Investments in unlisted companies
Investments in unlisted companies such as interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Investments in listed companies
Investments in listed company shares are initially measured at cost and revalued under the revaluation model to their market value at each balance sheet date which we are confident will also equate to their fair value as at this date.
On revaluation, if the listed company share value has increased, the increase is recognised in other comprehensive income and accumulated in equity. However, this increase shall firtsly be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same investment previously recognised in profit or loss.
The decrease of listed company share value as a result of a revaluation shall be recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity, in respect of that investment. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that investment, the excess shall be recognised in profit or loss.