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BORUSAN HOLDING A.Ş. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014
(Currency - US Dollars (“USD”) unless otherwise indicated)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.3 Basis of Consolidation
(continued)
The principles of consolidation followed in the preparation of the consolidated financial statements are as follows:
(i) The statement of financial position and statements of comprehensive income of the Subsidiaries are consolidated on a line-by-line basis and the carrying value of the investment held
by the Group is eliminated against the related equity accounts. Intercompany transactions and balances between the Group companies and unrealised gains or losses on transactions
between the Group companies are eliminated. The investment cost and the dividends obtained from subsidiaries are eliminated from equity and income for the year, respectively.
(ii) Subsidiaries are fully consolidated from the date, being the date on which the Group obtains control and continue to be consolidated until the date when such control ceases. The
financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.
(iii) Non-controlling interests’ share in the net assets of the consolidated subsidiaries is separately classified in the consolidated equity and statements of comprehensive income as non-
controlling interests. Kocabıyık Family members having interests in the share capital of the subsidiaries are treated as non-controlling interests and excluded from the Group’s interests.
Losses within a subsidiary are attributed to the non-controlling interests even if that results in a deficit balance. Changes in the Group’s ownership interests in subsidiaries, without a loss
of control, are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative
interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized
directly in equity and attributed to owners of the Company.
When the Group losses control of a subsidiary, the profit or loss on disposal is calculated as the difference between;
(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and,
(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests.
When assets of the subsidiary are carried at revalued amounts or fair values and the cumulative gain or loss has been recognized in other comprehensive income and accumulated in
equity, the amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if the Group had directly disposed of the relevant assets. The
fair value of any investment retained in the former subsidiary at the date when the control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS
39 F
inancial Instruments: Recognition and Measurement or
, when applicable, the cost on initial recognition of an investment in an associate or a jointly controlled entity.