42
SUNMOON FOOD COMPANY LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.3
Business combinations
(Continued)
Business combinations from 1 January 2010 (Continued)
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition
under FRS 103 are recognised at their fair values at the acquisition date, except that:
•
deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements
are recognised and measured in accordance with FRS 12
Income Taxes
and FRS 19
Employee Benefits
respectively;
•
liabilities or equity instruments related to the replacement by the Group of an acquiree’s share-based
payment awards are measured in accordance with FRS 102
Share-based Payment
; and
•
assets (or disposal groups) that are classified as held for sale in accordance with FRS 105
Non-current
Assets Held for Sale and Discontinued Operations
are measured in accordance with that standard.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional amounts for the items for which the accounting
is incomplete. Those provisional amounts are adjusted during the measurement period (see below),
or additional assets or liabilities are recognised, to reflect new information obtained about facts and
circumstances that existed as of the acquisition date that, if known, would have affected the amounts
recognised as of that date.
The measurement period is the period from the date of acquisition to the date the Group obtains complete
information about facts and circumstances that existed as of the acquisition date, and is subject to a
maximum of one year.
Goodwill arising on acquisition is recognised as an asset at the acquisition date and initially measured at
cost, being the excess of the sum of the consideration transferred, the amount of any non-controlling interest
in the acquiree and the fair value of the acquirer previously held equity interest (if any) in the entity over
net acquisition-date fair value amounts of the identifiable assets acquired and the liabilities and contingent
liabilities assumed.
If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable net assets
exceeds the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree
and the fair value of the acquirer’s previously held equity interest in the acquiree (if any), the excess is
recognised immediately in profit or loss as a bargain purchase gain.
