Page 149 - KWAP_AR2022

FoR BetteR RetuRns Annual Report 2022 147

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.3 Subsidiaries And Basis Of Consolidation

(a) Subsidiaries

subsidiaries are entities over which the group has all of the following criteria:
• Power to exercise control over the financial and operating policies to direct the relevant activities of
the entity;
• Exposure, or rights, to the variable returns from its investment with the entity; and
• The ability to use its power over the entity to affect its returns.
subsidiaries are consolidated from the date of which control is transferred to the group and are
de-consolidated from the date that control ceases. investments of unquoted shares in subsidiaries are
recognised at cost whereby the amount is reconciled to the recoverable value including impairment losses
for the year, if any. the policy in relation to the impairment of non-financial assets is as set out in note 2.18.
acquisition cost is measured at fair value of the assets received, equity instruments issued and existing
outstanding liabilities or liabilities assumed at the date of exchange, plus direct costs attributable to the
acquisition, if any.

identifiable assets and liabilities acquired and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date, irrespective of the extent of the non-controlling
interests, if any.
Changes in ownership interests in subsidiaries without change of control

transactions with non-controlling interests that do not result in the loss of control are accounted for as
transactions with equity owners of the group. a change in ownership interest will result in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests
in the subsidiary. the difference between the amount of the adjustment to the non-controlling interests and
the consideration paid or received is recognised in equity attributable to the owners of the group, if any.
Disposal of subsidiaries

When the group ceases to consolidate a subsidiary because of a loss of control, the retained interest in the
entity is remeasured to its fair value with the change in the carrying amount recognised in profit or loss, if any.
the fair value becomes the initial carrying amount for the purposes of subsequent accounting of retained
interest as an associate, joint venture or financial asset. in addition, any amount previously recognised in
other comprehensive income in respect of that entity are accounted for as a direct disposal of the related
assets or liabilities by the group.
this may result in the reclassification of amount previously recognised in other comprehensive income to
profit or loss. gains or losses on the disposal of subsidiaries include the carrying amount of goodwill relating
to the subsidiaries.