consolidation (i) Subsidiaries Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when: • exposed to, or has rights to, variable returns from its involvement with the entity; • has the ability to affect those returns through its power to direct the relevant activities of the entity; and • the existence and effect of potential voting rights are considered only when such rights are substantive when assessing control. In the Company’s separate financial statements, investments in subsidiaries are stated at cost less accumulated impairment losses. On disposal of such investments, the difference between net disposal proceeds and their carrying amounts are included in the statement of profit or loss. (ii) Basis of consolidation The consolidated financial statements comprise the financialstatements of the Company and its subsidiaries. The characteristics of those financial statements are: • the financial statements of the subsidiaries are prepared for the same reporting date as the Company. • subsidiaries are consolidated from the date on which 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