AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
Subsidiaries are consolidated from the date of acquisition , being the date on which the group obtains control , and continue to be consolidated until the date when such control ceases . The financial statements of the subsidiaries are prepared for the same reporting period as the holding company , using consistent accounting policies . All intragroup balances , transactions , unrealised gains and losses resulting from intragroup transactions and dividends are eliminated .
The share of total comprehensive income of non-controlling interest within a subsidiary is attributed to the noncontrolling interest , even if that results in a deficit balance .
For purchases of additional interests in subsidiaries from non-controlling interests without loss of control , the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is added to , or deducted from , equity . For disposals of non-controlling interests , differences between any proceeds received and the relevant share of non-controlling interests are also recorded in equity .
Where the group loses control over a subsidiary , it :
Derecognises the assets ( including goodwill ) and liabilities of the subsidiary ; Derecognises the cumulative translation differences recorded in equity ; Derecognises the carrying amount of any non-controlling interest ; Reclassifies the share of components previously recognised in other comprehensive income to profit or loss or retained earnings , as appropriate ; Recognises the fair value of the consideration received ; Recognises the fair value of any investment retained ; and Recognises in profit or loss any difference between the fair value and the net carrying amount of the subsidiary on date of loss of control .
Investments in subsidiaries at company level are shown at fair value through other comprehensive income . The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants at the measurement date . The fair value of the investments is the market value as traded in the considered market . Where an active market does not exist , the net asset value of the subsidiary is used as the best estimate of a fair value .
2.1.1 Joint ventures A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture . Joint control is the contractually agreed sharing of control of an arrangement , which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control . The group ’ s interests in joint ventures are accounted for by applying the equity method . In applying the equity method , account is taken of the group ’ s share of accumulated retained earnings and movements in reserves from the effective dates on which the companies become joint ventures and up to the effective dates of disposal .
Under the equity method , the investment in joint ventures is initially recognised in the statement of financial position at cost . Subsequent to acquisition date the carrying amount of the investment is adjusted with changes in the group ’ s share of net assets of the joint venture . Goodwill relating to the joint venture is included in the carrying amount of the investment and is not amortised or separately tested for impairment . The share of the results of operations of joint ventures is reflected in profit or loss . This is the profit or loss attributable to equity holders of joint ventures and is therefore profit after tax and non-controlling interests in the subsidiaries of the joint ventures . Adjustments are made where the accounting period and accounting policies of joint ventures are not in line with those of the group . Where a change in other comprehensive income of joint ventures was recognised , the group recognises its share of any changes and discloses this , where applicable , in the statement of changes in equity . Unrealised gains and losses resulting from transactions between the group and joint ventures are eliminated to the extent of the interest in joint ventures .
When downstream transactions provide evidence of a reduction in the net realisable value of the assets to be sold or contributed , or of an impairment loss of those assets , those losses shall be recognised in full by the investor . When upstream transactions provide evidence of a reduction in the net realisable value of the assets to be purchased or of an impairment loss of those assets , the investor shall recognise its share in those losses .
68 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06