the Group obtains control, and continue to be consolidated until the date that such control ceases. • intragroup balances, transactions and unrealised gains or losses are eliminated in full. • uniform accounting policies are adopted in the consolidated financial statements for like transactions and events in similar circumstances. The Group applies the acquisition method to account for business combinations. The consideration transferred for acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement and fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, liabilities and contingent liabilities assumedin a business combination are, with limited exceptions, measured initially at their fair value at the acquisition date. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 216 3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED) (a) Subsidiaries and basis of consolidation (continued) (ii) Basis of consolidation (continued) The excess of the consideration transferred, the amount of any NCI in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the gain is recognised in the statement of profit or loss. Refer to Note 10 for accounting policy on goodwill. NCI is the equity in a subsidiary not attributable, directly or indirectly, to a parent. On an acquisition-by-acquisition basis, the Group measures any NCI in the acquiree either at fair value or at the NCI’s proportionate share of the acquiree’s