Page 62 - ar2012

31 December 2012
NOTESTO FINANCIAL STATEMENTS
58 GEO ENERGY RESOURCES LIMITED | Annual Report 2012
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
At the date of authorisation of these fnancial statements, the following FRSs and amendments to FRS that are
relevant to the Group and the Company were issued but not effective:
 Amendments to FRS 1 Presentation of Financial Statements – Amendments relating to Presentation of
Items of Other Comprehensive Income
 Amendments to FRS19 Employee Benefts
 FRS 27 (Revised) Separate Financial Statements
 FRS 110 Consolidated Financial Statements
 FRS 112 Disclosure of Interests in Other Entities
 FRS 113 Fair Value Measurement
 Amendments to FRS 32 Financial Instruments: Presentation and FRS 102 Financial Instruments:
Disclosure – Offsetting Financial Assets and Financial Liabilities
 INT FRS 120 Stripping costs in the production phase of a surface mine
 Annual Improvements to FRS 2012
Consequential amendments were also made to various standards as a result of these new/revised standards.
Management anticipates that the adoption of the above FRSs, INT FRSs and amendments to FRS in future
periods will not have a material impact on the fnancial statements of the Group and of the Company in the period
of their initial adoption.
BASIS OF CONSOLIDATION – The consolidated fnancial statements incorporate the fnancial statements of
the Company and entities controlled by the Company (its subsidiaries). The subsidiaries included in the Group
pursuant to the Restructuring exercise as described in Notes 2A to 2E has been consolidated using the principles
of merger accounting and on the assumption that the restructuring of entities controlled by the same shareholders
has been effected as at the beginning of comparative fnancial year presented in the consolidated fnancial
statements. Control is achieved where the company has the power to govern the fnancial and operating policies of
an entity so as to obtain benefts from its activities.
The acquisition of subsidiaries from a party other than a common shareholder is accounted for using the purchase
method.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement
of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as
appropriate.
Where necessary, adjustments are made to the fnancial statements of subsidiaries to bring their accounting
policies into line with those used by other members of the group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Non-controlling interests in subsidiaries are identifed separately from the group’s equity therein. The interest
of non-controlling shareholders that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation may be initially measured (at date of original business
combination) either at fair value or at the non-controlling interests’ proportionate share of the fair value of the
acquiree’s identifable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis.
Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specifed
in another FRS. 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 interests
having a defcit balance.