Page 82 - 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

(d) Ordinary shares
Ordinary shares are classified as equity and recorded at the proceeds received, net of directly attributable
costs.

Dividends on ordinary shares are recognised as liabilities when approved for appropriation.

5.6 INVESTMENTS IN SUBSIDIARIES

Investments in subsidiaries are measured in the statement of financial position of the Company at cost less any
impairment losses. The cost of the investments includes transaction costs.

5.7 INVESTMENTS IN ASSOCIATES

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an
interest in a joint venture.

The investment in an associate is accounted for in the consolidated financial statements using the equity method
based on the financial statements of the associate made up to 31 December 2021. The Group’s share of the post
acquisition profits and other comprehensive income of the associate is included in the consolidated statement of
comprehensive income, after adjustment if any, to align the accounting policies with those of the Group, from the
date that significant influence commences up to the effective date on which significant influence ceases. Dividends
received and receivable from associates are recognised as a reduction in the carrying amount of the investment.

When the Group’s share of losses exceeds its interest in an associate, the carrying amount of that interest is
reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an
obligation or has made payments on behalf of the associate.

Unrealised gains and losses on transactions between the Group and the associate are eliminated to the extent of
the Group’s interest in the associate.

When the Group loses significant influence over an associate as a result of a full or partial disposal, any retained
interest in the former associate at the date is measured at fair value and this amount is regarded as the initial
carrying amount of a financial asset. The difference between the fair value of any retained interest plus proceeds
from the interest disposed of and the carrying amount of the investment at that date is recognised in profit or loss.
In addition, any gains or losses previously recognised in other comprehensive income are also reclassified to profit
or loss if that gain or loss would be required to be reclassified to profit or loss on the disposal of the related assets
or liabilities.

82 UM Holdings Group