147
ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2013
on the acquisition date, regardless of whether there
are non-controlling interests. The positive difference
between the acquisition cost and the fair value of the
group’s stake in the acquired and identifiable net as-
sets is recorded as goodwill. If the acquisition cost is
less than the fair value of the acquired subsidiary’s
net assets, the difference is recognised directly in the
consolidated statement of comprehensive income (see
Note 2.5).
For the acquisition of subsidiaries that occurred after 1
January 2010 the Group has applied reviewed IFRS 3. Ac-
cordingly to witch the purchase method continues to be
applied in acquisitions, with some significant changes:
(i) All amounts which comprise the purchase price
are valued at fair value, with the option of meas-
uring, transaction by transaction, the “non-con-
trolled interests” by the proportion of the value of
net assets of the acquired entity or the fair value
of assets and liabilities acquired.
(ii) All costs associated with acquisition are recorded
as expenses.
Also has been applied since 1 January 2010 the revised IAS
27, which requires that all transactions with the “non- con-
trolling interest” are recorded in equity, when there is no
change in control of the entity, there is no place to record
goodwill or gains or losses. When there is a loss of control
exercised over the entity, any remaining interest on the
principal is remeasured at fair value, and a gain or loss is
recognized in the results of the exercise.
Balances and gains arising from transactions between
group companies are eliminated. Losses not realised are
also eliminated, except when the transaction reveals that
a transferred asset is subject to impairment. The subsidi-
aries’ accounting policies are altered whenever necessary
to ensure consistence with the group’s policies.
(b) Jointly controlled companies
The financial statements of jointly controlled com-
panies were included in these consolidated financial
statements by the proportional consolidation method,
as of the date on which the joint control is acquired.
According to this method, these companies’ assets,
liabilities, income and costs were included in the an-
nexed consolidated financial statements, item by item,
in the proportion of the control assigned to the group.
The Group acknowledges his share of losses and gains
on assets sold to the jointly controlled companies pay-
able to other investors. The Group doesn’t acknowl-
edge his share of losses and gains on assets sold to
the jointly controlled companies payable to the Group
until these assets are sold outside the Group. However
a lost in these transactions is immediately recognise
if it indicates a liquid asset reduction or impairment.
Transactions, balances and dividends paid among
group companies and jointly controlled companies are
eliminated in the proportion of the control assigned to
the group. The excess acquisition cost compared with
the fair value of the identifiable assets and liabilities on
the acquisition date of a jointly controlled company is
recognised as goodwill.
Jointly controlled companies are listed in Note 5.
2.3 REPORT PER SEGMENT
An operating segment is a component of an entity that
engages in business activities from which it may earn
revenues and incur expenses (including revenues and
expenses relating to transactions with other compo-
nents of the same entity) whose operating results are
reviewed regularly by the entity’s chief operating deci-
sion maker to make decisions about resources to be al-
located to the segment and assess its performance and
for which discrete financial information is available.
