Investments in subsidiaries
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated
impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated
impairment losses.
Investments in associates accounted for in accordance with the fair value model are initially recorded at the
transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value
recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably
without undue cost or effort, the cost model will be adopted.
Dividends and other distributions received from the investment are recognised as income without regard to whether
the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less
any accumulated impairment losses.
Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded
at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value
recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably
without undue cost or effort, the cost model will be adopted.
Dividends and other distributions received from the investment are recognised as income without regard to whether
the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being
estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is
impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual
asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The
cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that
largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination,
irrespective of whether other assets or liabilities of the company are assigned to those units.