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Hyprop Investments Limited
Group annual financial statements 2016
1.
Accounting policies and presentation of financial statements
continued
1.5 Goodwill
Goodwill is carried at cost as established at the date of acquisition less accumulated impairment losses. An impairment loss recognised for
goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss
on disposal.
For the purposes of impairment testing, goodwill is allocated to each of the group’s cash-generating units that is expected to benefit from
the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is
allocated first to the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the
carrying amount of each asset in the unit.
1.6 Investments in subsidiaries
Subsidiaries are entities over which the group has control.
The company considers whether it has control by taking into account the relevant facts and circumstances, even if the company has less than
the majority of the voting rights. It has control over the investee when the voting rights are sufficient to give it the practical ability to direct
the relevant activities of the investee unilaterally. The following will be considered:
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The size of the company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders
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Potential voting rights held by the company, other vote holders or other parties
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Rights arising from other contractual arrangements
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Any additional facts and circumstances that indicate that the company has, or does not have, the current ability to direct the relevant
activities at the time that decisions need to be made, including voting patterns at shareholders’ meetings.
1.7
Interests in joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and
obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement which
exists when decisions about the relevant activities require unanimous consent of the parties sharing control.
When a group entity transacts with its joint operation, profits and losses resulting from the transactions with the joint operation are
recognised in the group’s financial statements only to the extent of interests in the joint operation that are not related to the group.
When a group entity undertakes its activities under joint operations, the group as a joint operator recognises in relation to its interest in a
joint operation:
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Its assets, including its share of any assets held jointly
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Its liabilities, including its share of any liabilities incurred jointly
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Its revenue from the sale of its share of the output arising from the joint operation
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Its share of the revenue from the sale of the output by the joint operation
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Its expenses, including its share of any expenses incurred jointly.
The group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the IFRS
applicable to the particular assets, liabilities, revenues and expenses.