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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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power over the investee;
the possibility of achieving a return resulting from ownership of the investment;
the investor's ability to use its power over the investee to affect the amount of its return.
The existence of potential voting rights exercisable at the reporting date is also taken into
consideration for the purposes of determining control.
Subsidiaries are consolidated on a line-by-line basis. The criteria adopted for line-by-line
consolidation are as follows:
assets and liabilities, expenses and income of consolidated entities are aggregated line-by-line and
non-controlling interests are allocated, where applicable, the relevant portions of equity and profit for
the period, which are then reported separately within equity and the consolidated income statement;
gains and losses, including the relevant tax effect, arising from transactions between consolidated
companies are eliminated if not realised with third parties; unrealised losses are not eliminated if
there is evidence that the asset transferred is impaired. The following are also eliminated:
intercompany payables and receivables, intercompany expenses and income, and intercompany
finance income and costs;
business combinations through which control of an entity is acquired are recorded using the
acquisition method of accounting. The acquisition cost is measured as the acquisition-date fair value
of the assets acquired, the liabilities incurred or assumed and the equity instruments issued. The
assets, liabilities and contingent liabilities acquired are recognised at their acquisition-date fair
values. The excess of acquisition cost over the fair value of the Group's share of the identifiable net
assets acquired is recorded as goodwill under intangible assets. If the acquisition cost is less than
the Group's share of the fair value of the identifiable net assets acquired, the difference is recognised
as a gain directly in the income statement, but only after reassessing that the fair values of the net
assets acquired and the acquisition cost have been measured correctly;
if non-controlling interests are acquired in entities which are already under the Group's control, the
Group recognises directly in equity any difference between the acquisition cost and the related share
of net assets acquired;
if non-controlling interests are acquired in entities previously not under the Group's control, and
which result in it obtaining control, the Group accounts for this using the acquisition method, whereby
the consideration transferred is equal to the acquisition-date fair value of the assets acquired and
liabilities assumed or incurred. In a business combination achieved in stages, the previously held
equity interest in the acquiree is remeasured at its acquisition-date fair value and any resulting gain
or loss, if any, is recognised in the income statement;
gains or losses arising on the disposal of ownership interests that result in a loss of control of
consolidated companies are recognised in the income statement at the amount equal to the
difference between the sale consideration and the corresponding share of consolidated equity sold;
gains or losses from the deconsolidation of an investee's net assets, resulting from the difference
between the fair value of the equity interest and the corresponding portion of equity, are recognised
in "Finance income" and "Finance costs" respectively.