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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 287

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

2 BASIS OF PREPARATION (CONTINUED)
(ii) Accounting pronouncements that are not yet effective and have not been early adopted by the Group and Company:
Accounting pronouncements that are currently being assessed by the Directors:
Effective for annual periods beginning on or after 1 January 2022 with earlier application permitted
• Amendments to MFRS 3 ‘Reference to Conceptual Framework’
• Amendments to MFRS 116 ‘Proceeds before intended use’
• Amendments to MFRS 137 ‘Onerous Contracts - Cost of Fulfilling a Contract’
• Annual Improvements to MFRS 9 ‘Fees in the 10% test for derecognition of financial liabilities’
• Annual improvements to MFRS 141 ‘Taxation in Fair Value Measurements’
• Annual improvements to Illustrative Example Accompanying MFRS 16 Leases ‘Lease Incentives’
• Annual improvements to MFRS 1 ‘Subsidiary as First-time Adopter’
Effective annual periods beginning on or after 1 January 2023
• Amendments to MFRS 101 ‘Classification of liabilities as current and non-current’
• Amendments to MFRS 112 ‘Deferred Tax related to Assets and Liabilities arising from a single transaction’
• Amendments to MFRS 101 and MFRS Practice Statement 2 ‘Disclosure of Accounting Policies’
• Amendments to MFRS 108 ‘Definition of Accounting Estimates’
The accounting pronouncements that are not yet effective are not expected to have any significant impact on the
financial statements of the Group and Company.

3 SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of financial statements are set out below. These policies have
been consistently applied to all the financial years presented, unless otherwise stated:
(a) Basis of consolidation and investment in subsidiaries
The consolidated financial statements include the financial statements of the Company and all its subsidiaries made up
to the end of financial year. Subsidiaries are all entities (including structured entities) over which the Group has control.
The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Acquisition accounting
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group when the
acquired set of activities and asset meet the definition of a business. The Group determines that it has acquired a
business when the acquired set of activities and assets include an input and a substantive process that together
significantly contribute to the ability to create outputs. The consideration transferred for the acquisition of a subsidiary
is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity
interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting
from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets
acquired and liabilities 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. The Group recognises
any non-current controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the
non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. At the
end of reporting period, non-controlling interests consists of amount calculated on the date of combinations and its
share of changes in the subsidiary’s equity since the date of combination.