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NOTES TO THE FINANCIAL STATEMENTS
C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
3.
Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these
financial statements.
3.1 Basis of consolidation
Subsidiaries
The subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. The financial statements of the subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
The accounting policies of the subsidiaries have been aligned with the policies adopted by the Group.
Investment in jointly-controlled entity (equity-accounted investee)
The jointly-controlled entity is an entity over whose activities the Group has joint control, established by
contractual agreement and requiring unanimous consent for strategic financial and operating decisions.
Investment in the jointly-controlled entity is accounted for using the equity method (equity-accounted
investees) and is recognised initially at cost. The cost of the investment includes transaction costs.
The consolidated financial statements include the Group’s share of the profit or loss and other
comprehensive income of the equity-accounted investee with those of the Group, from the date that
significant influence or joint control commences until the date that joint control ceases.
When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount
of the investment, together with any long-term interests that form part thereof, is reduced to zero, and the
recognition of further losses is discontinued except to the extent that the Group has an obligation to fund
the investee’s operations or has made payments on behalf of the investee.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements.
Accounting for Investments in subsidiaries and jointly-controlled entity in the Trust’s financial statements
Investments in subsidiaries and jointly-controlled entity are stated in the Trust’s statement of financial
position at cost less accumulated impairment losses.
