Year ended 31 March 2016
NOTES TO THE
FINANCIAL STATEMENTS
SINGAPORE MYANMAR INVESTCO LIMITED
| Annual Report 2016
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3.
Significant accounting policies and other explanatory information (cont’d)
3A. Significant accounting policies (cont’d)
Joint ventures (cont’d)
When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount
of the investment, together with any long-term interests that form part thereof, is reduced to zero, and the
recognition of further losses is discontinued except to the extent that the Group has an obligation to fund
the investee’s operations or has made payments on behalf of the investee.
Investments in joint ventures are stated in the Company’s statement of financial position at cost less
accumulated impairment losses. Impairment loss recognised in profit or loss for a joint venture is reversed
only if there has been a change in the estimates used to determine the asset’s recoverable amount since the
last impairment loss was recognised. The carrying value and the net book value of the investment in a joint
venture are not necessarily indicative of the amount that would be realised in a current market exchange.
Impairment of non-financial assets
The carrying amounts of the Group’s non-financial assets, other than investment property, inventories and
deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, then the assets’ recoverable amount is estimated. An impairment
loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its
estimated recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to
sell. In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually
are grouped together into the smallest group of assets that generates cash inflows from continuing use that
are largely independent of the cash inflows of other assets or CGUs.
The Group’s corporate assets do not generate separate cash inflows and are utilised by more than one CGU.
Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as
part of the testing of the CGU to which the corporate asset is allocated.
Impairment losses are recognised in profit or loss. Impairment losses recognised in prior periods are
assessed at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment
loss had been recognised.
Non-controlling interests
The non-controlling interest is equity in a subsidiary not attributable, directly or indirectly, to the
reporting entity as the parent. The non-controlling interest is presented in the consolidated statement of
financial position within equity, separately from the equity of the owners of the parent. For each business
combination, any non-controlling interest in the acquiree (subsidiary) is initially measured either at fair value
or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Where the
non-controlling interest is measured at fair value, the valuation techniques and key model inputs used are
disclosed in the relevant Note. Profit or loss and each component of other comprehensive income are
attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income
is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-
controlling interests having a deficit balance.
