Accounting Policies continued 1.5 Investment in associate (continued) Elimination and accounting policies Profits and losses resulting from upstream and downstream transactions between the Group and its associate are recognised in the Group’s financial statements only to the extent of unrelated investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. The accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. AFRICAN DAWN 44 ANNUAL REPORT 2015 Changes in ownership If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. Company - separate financial statements Investments in associates are accounted for using the equity method in the Company financial statements. The carrying amounts of these investments are reviewed annually and impaired when necessary by applying the policy described in policy 1.13. 1.6 Non-current assets held for sales and discontinued operations Non-current assets held for sale Non-current assets and disposal groups are classified as held for sale, if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Immediately before classification as held for sale, all assets and liabilities are remeasured in accordance with the Group’s accounting policies. Non-current assets held for sale (or disposal group) are measured at the lower of its carrying amount and fair value less costs to sell. A non-current asset is not depreciated (or amortised) while it is classified as held for sale, or while it is part of a disposal group classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale are recognised in profit or loss. Gains or losses recognised on initial classification as held for sale and subsequent remeasurement are recognised in profit or loss. The maximum gains that can be recognised are the cumulative impairment losses previously recognised in profit or loss. A disposal group continues to be consolidated while classified as held for sale. Income and expenses continue to be recognised in profit or loss. Non-current assets (or disposal groups) are reclassified from held for sale to held for use if they no longer meet the held- for-sale criteria. On reclassification the non-current asset (or disposal group) is remeasured at the lower of its recoverable amount and the carrying amount that would have been recognised had the asset (or disposal group) never been classified as held for sale. Any gains or losses are recognised in profit or loss. Discontinued operations A discontinued operation is a clearly distinguishable component of the Group that either has been disposed of, or is classified as held for sale, and: • represents a separate major line of business or geographical area of operations; • is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or • is a subsidiary acquired exclusively with a view to resale.
AFRICAN DAWN 2015 Annual Report
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