Page 80 - Annual Report 2021

Overview Leadership Message Business Segment Moving Forward Our Resources Working for a Corporate Financial
Review Plan Better Tomorrow Governance statements

nOTES TO THE FInanCIaL STaTEmEnTS

(b) non-controlling interests
Non-controlling interests are presented within equity in the consolidated statement of financial position,
separately from the equity attributable to owners of the Company. Profit or loss and each component of
other comprehensive income are attributed to the owners of the Company and to the non-controlling
interests. Total comprehensive income is attributed to non-controlling interests even if this results in the non-
controlling interests having a deficit balance.

(c) changes in Ownership interests in subsidiaries Without change of control
All changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions. Any difference between the amount by which the non-controlling
interest is adjusted and the fair value of consideration paid or received is recognised directly in equity of the
Group. No gain or loss is recognised on the change.

(d) loss of control
Upon the loss of control of a subsidiary, the Group recognises any gain or loss in profit or loss which is
calculated as the difference between the proceeds from the disposal of the subsidiary and its carrying
amount at the date of disposal.

If the Group retains any interest in the former subsidiary, that investment is accounted for as a financial asset
from the date the entity ceases to be a subsidiary, provided that it does not become an associate. The
carrying amount on that date is regarded as the cost on initial measurement of the financial asset.

5.3 GOODWILL

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses, if any.
Amortisation is recognised in profit or loss on a straight-line method over its estimated useful life.

Under the purchase method, any excess of the cost of business combination over the Group’s interest in the net
fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities recognised, is recorded as
goodwill.

Where the latter amount exceeds the former, after reassessment, the excess represents a bargain purchase gain
(negative goodwill) and is recognised in profit or loss immediately.

Goodwill arising on the acquisition of equity-accounted associates is recorded as part of the carrying amount at
the date of acquisition. The Group adjusts its share of the post acquisition profits or losses of associates to account
for the amortisation of the goodwill.

5.4 FUNCTIONAL AND FOREIGN CURRENCIES

(a) Functional and Presentation currency
The individual financial statements of each entity in the Group are presented in the currency of the primary
economic environment in which the entity operates, which is the functional currency.

The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s
functional and presentation currency.

80 UM Holdings Group