Page 152 - KWAP_AR2022

150 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER REtURNS

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

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.4 Investments In Associates And Joint Ventures (continued)

Step acquisition in associates

When the group increases its stake in an existing investment or when the investment becomes an associate
for the first time, the group determines the cost of its investment in the equity-accounted investee as the sum
of the fair value of the initial interest at the date of obtaining significant influence plus the consideration paid for
any additional interest. the existing fair Value through other comprehensive income (fVoci) reserves may be
transferred to retained earnings or remain in fVoci reserves.
Increasing stake in an existing associate and retaining significant influence

the cost of acquisition of additional stake in an associate is added to the carrying amount of the associate
and equity accounted. goodwill arising on the purchase of the additional stake is determined using the fair
value information at the date the additional interest is required. there was no remeasurement of previously held
investment in the associate in the reporting period.

under the equity method, the initial recognition of the investment in associates or joint ventures is recognised
at cost and adjusted thereafter to recognise the group’s share of the post-acquisition profits or losses of the
associates or joint ventures in profit or loss, as well as the group’s share of movements in other comprehensive
income of the associates or joint ventures in other comprehensive income. dividend received or receivable
from the associates or joint ventures are recognised as a reduction in the carrying amount of the investments.
in the event the group’s share of losses in an associate or a joint venture equals or exceeds its interest in
the associate or joint venture (including any long term interest that in substance, form part of the group’s net
investment in the associate or joint venture) further recognition of losses is not required by the group with the
exception of legal or constructive obligations or payments made on behalf of the associate or joint venture, if any.
gains or losses arising from the upstream and downstream transactions between the group and its associates
or joint ventures are recognised in the consolidated financial statements, if any, only to the extent of unrelated
investors’ interests in the associates or joint ventures. unrealised losses are eliminated unless the transaction
provides evidence of impairment of the assets transferred.
the preparation of the financial statements of the associates and joint ventures is of the same reporting date as
the group. adjustments are made for the standardisation of accounting policies in line with the policies of the
group, where necessary.

subsequent to the application of the equity method, the group applies the mfrs 136: ‘impairment of assets’
(mfrs 136) to determine the necessity of the recognition of additional impairment losses with respect to its net
investment in associates or joint ventures, if any. the entire carrying amount of the investment is tested as a
single asset for impairment in accordance with the mfrs 136, using the comparison between the recoverable
amount (the higher of value in use and fair value less costs to sell) and the carrying amount, where necessary.
impairment losses are recognised in profit or loss, if any. reversal of impairment losses is recognised to the
extent of the subsequent increase in the recoverable amount of the investment.