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Our Performance Sustainability Statement Governance Our Numbers Other Information

2. SIGNIFICANT ACCOuNTING POLICIES (CONT’D.)

2.2 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Bank and its subsidiaries as at 31 December
2020.

The financial statements of the Bank’s subsidiaries are prepared for the same reporting date as the Bank, using consistent
accounting policies to classify transactions and events in similar circumstances. Subsidiaries are consolidated from the
date of acquisition, being the date on which the Bank obtains control and continue to be consolidated until the date that
such control effectively ceases. Control is achieved where the Group has the power to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. The Group controls an investee, if and only if, the Group
has the following three (3) elements of control:
- Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
- Exposure, or rights, to variable returns from its involvement with the investee; and
- The ability to use its power over the investee to affect its returns.

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three (3) elements of control.

Generally, there is a presumption that majority of voting rights result in control. To support this presumption, and when
the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
- Contractual arrangement with the other vote holders of the investee;
- Rights arising from other contractual arrangements; and
- The Group’s voting rights and potential voting rights.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions
are eliminated in full.

A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction. If the
Group losses control over a subsidiary, it:
- Derecognises the assets (including goodwill) and liabilities of the subsidiary at their carrying amounts;
- Derecognises the carrying amount of any non-controlling interest in the former subsidiary;
- Derecognises the cumulative foreign exchange translation differences recorded in equity;
- Recognises the fair value of the consideration received;
- Recognises the fair value of any investment retained in the former subsidiary;
- Recognises any surplus or deficit in the statement of profit or loss; and
- Reclassifies the parent’s share of components previously recognised in other comprehensive income to statement of
profit or loss or retained earnings, if required in accordance with other MFRSs.
All of the above will be accounted for on the date when control is lost.