Founded in 1987, Huawei is a leading global provider of information and communications

(iii) Non-controlling  interests
Non-controlling interests represent the 
carrying value of the net assets of subsidiaries 
attributable to non-controlling equity holders. 
The Group measures non-controlling interests 
at the non-controlling interests’ proportionate 
share of the subsidiary’s net identifiable assets. 
Changes in the Group’s interests in a subsidiary 
that do not result in a loss of control are 
accounted for as equity transactions, whereby 
adjustments are made to the amounts of 
controlling and non-controlling interests within 
consolidated equity to reflect the change in 
relative interests, but no adjustments are made 
to goodwill and no gain or loss is recognised.

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2020 Annual Report
 
       
87
The Group derecognises a financial asset 
when the contractual rights to the cash flows 
from the asset expire, or it transfers the 
rights to receive the contractual cash flows 
in a transaction in which substantially all of 
the risks and rewards of ownership of the 
financial asset are transferred or where it 
neither transfers nor retains substantially all of 
the risks and rewards of ownership and loses 
control. When control is retained, the Group 
continues to recognise the financial asset 
to the extent of its continuing involvement. 
Financial assets are also de-recognised 
when they are written off. Financial assets 
are written off when there is no reasonable 
expectation of further recoveries even though 
there may be enforcement actions ongoing.
The Group derecognises a financial liability 
when its contractual obligations are 
discharged, cancelled, or expire.
Financial assets and financial liabilities are 
offset and the net amount presented in the 
consolidated statement of financial position 
when, and only when, the Group currently 
has a legally enforceable right to set off the 
recognised amounts and intends either to 
settle them on a net basis or to realise the 
asset and settle the liability simultaneously.