Deemed cost

The board finalised their conclusion on the deemed cost alternatives regarding the net asset option (refer to IASPlus notes from day 1 of this meeting). On day 1 of the meeting eight Board members indicated that they could accept Alternative 2 to calculate deemed cost based on the amounts under previous GAAP and six indicated that they could accept Alternative 1 to calculate deemed cost based on the amounts of the underlying assets and liabilities of the subsidiary in the consolidated financial statements at the date of transition to IFRSs. However, no final conclusion was reached on day 1 as two Board members were not present. These Board members were present at the Friday session and both indicated that they could accept Alternative 2 (that is, Alternative 2 commands the support of 10 Board members).