LENMED AIR 2019.pdf

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: + Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities. + Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. + Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. 3. Accounting policies The accounting policies have been consistently applied to all years presented, unless otherwise stated. The Group changed its accounting policy for the determination of the carrying amount of land and buildings from the revaluation method to the cost method. The change in accounting policy has been accounted for retrospectively and the comparative statements for 2018 have been restated. Refertonote 29 forfurther information. Accounting policies for which no choice is permitted in terms of International Financial Reporting Standards have been included only if management concluded that the disclosure would assist users in understanding the financial statements as a whole, and taking into account materiality of the item being discussed. Accounting policies which are not applicable from time to time, have been removed, but will be included if the type of transaction occurs in future or becomes material. 3.1 Basis of consolidation These financial statements are consolidated financial statements of Lenmed Investments Limited and its subsidiaries and associates. Control is achieved when the Group has powers over the investee, is exposed or has rights to variable returns from its investment with the investee and has the ability to use its power to affect its returns. If facts and circumstances indicate that there are changes to one or more elements of control, the Group shall reassess whether it controls the investee. The Group can have power over an investee even if it holds less than a majority of the voting rights of an investee. All facts and circumstances are considered in assessing whether or not voting rights in an investee are sufficient to give it power. Subsidiaries Subsidiaries are consolidated from the date on which the control is transferred to the Group and are no longer consolidated from the date that control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given up, shares issued or liabilities undertaken at the date of acquisition plus costs directly attributable to the acquisition. The excess of the cost of acquisition over the fair value of the net assets of the subsidiaries acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement. Inter- company transactions, balances and unrealised gains on transactions between group companies are eliminated. A business combination achieved in stages is accounted for using the acquisition method at the acquisition date. The components of a business combination under IFRS 3 include previously held interests. The previously held interest is measured to fair value at the acquisition date and a profit or loss is recognised in the Statement of Comprehensive Income. Non-controlling interests in subsidiaries are presented in the consolidated statement of financial position separately from the equity attributable to equity owners of the parent company. Non-controlling shareholders’ interest may initially be measured at fair value or the non-controlling shareholders’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis ismade on each acquisition individually. Subsequent to acquisition, the carrying amount of non- controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling having a deficit balance. Associates An associate is an entity overwhich the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The investment in an associate is initially recognised at cost and adjusted for the Group’s share of in the net assets of the investee after the date of acquisition, and for any impairment in value (equity method), except when the investment is classified as held-for sale in accordance with IFRS 5 Non-current assets held-for-sale and discontinued operations. If the Group’s share of losses of an associate equals or exceeds its interest in the associate, the Group discontinues recognising its share of further losses. LENMED ANNUAL INTEGRATED REPORT 2019 99