2. SIGNIFICANT ACCOUNTING POLICIES
2.1 BASIS OF CONSOLIDATION
The consolidated financial statements comprise of the financial statements of Senwesbel Limited, its subsidiaries, joint
ventures and associate as at 30 April 2020.
Control is achieved when the group is exposed, or has rights to variable returns from its involvement with the investee and
has the ability to affect those returns through its power over the investee. Specifically, the group controls an investee if and
only if the group has:
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Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns.
When the group has less than a majority of the voting or similar rights of an investee, the group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
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The contractual arrangement with the other vote holders of the investee;
Rights arising from other contractual arrangements; and
The group’s voting rights and potential voting rights.
The group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation of a subsidiary begins when the group obtains control over the
subsidiary and ceases when the group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the statement of comprehensive income from the date the group
gains control until the date the group ceases to control the subsidiary.
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.
Non-controlling interest’s share of total comprehensive income within a subsidiary is attributed to the non-controlling 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;
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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;
l Reclassifies the share of components previously recognised in other comprehensive income to profit or loss or retained
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earnings, as appropriate;
Recognises the fair value of the consideration received;
Recognises the fair value of any investment retained;
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.
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.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 86