Ac c oun ting polic y Busines s C ombina tions Busines s c ombina tions ar e ac c oun t ed f or using the ac quisi tion me thod as a t the ac quisition da t e which is the da t e on which c on tr ol is tr ans f err ed t o the Gr oup T he Gr oup me asur es goodwil l a t the ac quisition da t e as the f air v alue o f the c onsider a tion tr ans f err ed plus the r ec ognised amoun t o f an y non c on tr ol ling in t er es ts in the ac quir ee plus if the busines s c ombina tion is achie v ed in s t ages the f air v alue o f the e xis ting equit y in t er es t in the ac quir ee les s the ne t r ec ognised amoun t gener al ly f air v alue o f the iden tifable as se ts ac quir ed and liabilities as sumed W hen the e x c es s is nega tiv e a bar gain pur chase gain is r ec ognised immedia t ely in pr o ft and los s T he c onsider a tion tr ans f err ed does no t include amoun ts r ela t ed t o the se ttlemen t o f pr e e xis ting r ela tionships Such amoun ts ar e gener al ly r ec ognised in pr o ft or los s T r ans ac tion c os ts r ela t ed t o the ac quisition o ther than those as socia t ed with the is sue o f deb t or equit y securities tha t the Gr oup incurs in c onnec tion with a busines s c ombina tion ar e e xpensed as incurr ed An y c on tingen t c onsider a tion pa y able is r ec ognised a t f air v alue a t the ac quisition da t e If the c on tingen t c onsider a tion is clas sifed as equit y it is no t r eme asur ed and se ttlemen t is ac c oun t ed f or within equit y Otherwise subsequen t changes t o the f air v alue o f the c on tingen t c onsider a tion ar e r ec ognised in pr o ft and los s W hen shar e based pa ymen t a w ar ds r eplac emen t a w ar ds ar e r equir ed t o be e x changed f or a w ar ds held b y the ac quir ee s emplo y ees ac quir ee s a w ar ds and r ela t e t o pas t servic es then al l or a por tion o f the amoun t o f the ac quir er s r eplac emen t a w ar ds is included in me asuring the c onsider a tion tr ans f err ed in the busines s c ombina tion T his de t ermina tion is based on the mark e t based v alue o f the r eplac emen t a w ar ds c ompar ed with the mark e t based v alue o f the ac quir ee s a w ar ds and the e xt en t t o which the r eplac emen t a w ar ds r ela t e t o pas t and or futur e servic e In de t ermining the f air v alue o f iden tifable ne t as se ts ac quir ed the Gr oup c onsiders the e xis t enc e o f iden tifable in t angible as se ts such as br and names tr ademarks cus t om er c on tr ac ts and r ela tionships and in pr oc es s r ese ar ch and de v elopmen t in t angible as se ts W her e ma t erial these it ems ar e r ec ognised separ a t ely fr om goodwil l 5B C ONSOLID A TED ENTITIES T he Gr oup s signifcan t c on tr ol led en tities ar e lis t ed belo w P ar en t en tit y C oun try o f Inc orpor a tion ALS Limit ed Aus tr alia Subsidiaries Aus tr alian L abor a t ory Servic es P t y L t d Aus tr alia A CIRL Pr oprie t ary L t d Aus tr alia A CIRL Qualit y T es ting Servic es P t y L t d Aus tr alia E c o wise Aus tr alia P t y L t d Aus tr alia ALS Indus trial P t y L t d Aus tr alia ALS Me t al lur gy P t y L t d Aus tr alia ALS South American Holdings P t y L t d Aus tr alia ALS C anada L t d C anada ALS T es ting Servic es Gr oup Inc US A ALS Gr oup Gener al P ar tnership US A ALS Gr oup US A C orp US A ALS US A Inc US A ALS Servic es US A C orp US A ALS T echnichem Singapor e P t e L t d Singapor e ALS Cheme x South A frica Pr oprie t ary L t d South A frica ALS Burkina S ARL Burkina F aso Gr oup de L abor a t oir e ALS MALI S ARL M ali ALS Scandina via AB S w eden ALS Inspec tion UK Limit ed Unit ed Kingdom ALS Cheme x de Me xic o S A de C V Me xic o ALS P a t agonia S A Chile ALS P eru S A P eru T he abo v e en tities w er e whol ly o wned a t the end o f the curr en t y e ar and the c ompar a tiv e y e ar Ac c oun ting polic y C onsolida t ed en tities Subsidiaries Subsidiaries ar e en tities c on tr ol led b y the Gr oup T he Gr oup c on tr ols an en tit y when it is e xposed t o or has righ ts t o v ar iable r e turns fr om its in v olv emen t with the en tit y and has the abilit y t o a f f ec t those r e turns thr ough its po w er o v er the en tit y T he fnancial s t a t emen ts o f subsidiaries ar e includ ed in the c onsolida t ed fnancial s t a t emen ts fr om the da t e tha t c on tr ol c ommenc es un til the da t e tha t c on tr ol c e ases T he ac c oun ting policies o f subsidiaries ha v e been changed when nec es s ary t o align them with the policies adop t ed b y the Gr oup 69 ALS LIMITED AND IT S SUBSIDIARIES A NNU AL F INANCIAL R EPOR T F OR THE Y EAR E NDED 31 M AR CH 2019 F INANCIAL REPOR T F INANCIAL S T A TEMENT S N O TES T O THE FINANCIAL S T A TEMENT S Gr oup s truc tur e