ANNUAL REPORT 2016
2.2 CONSOLIDATION
(a) Subsidiaries
Shareholdings in companies in which the Group directly or indirectly holds more than 50% of
the voting rights or has the power to control their financial and operational activities (defi-
nition of control used by the Group) were included in these consolidated financial statements
through the full consolidation method. Equity and net profit of these companies assigned to
third-party shareholdings are presented separately in the “non-controlling interests” item in
the consolidated statement of financial position and of comprehensive income. The companies
included in the financial statements are listed in Note 5.
When losses impute to non-controlling interests exceed the non-controlling interest in a
subsidiary company’s equity, the non-controlling interest absorb that difference and any
additional losses.
The purchase method is used to account the acquisition of subsidiaries that occurred before
2010. The acquisition cost corresponds to the fair value of the delivered goods, capital issued
instruments and liabilities incurred or assumed on the acquisition date. The identifiable ac-
quired assets and the liabilities and contingent liabilities taken into account in a corporate
concentration will correspond to the fair value 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 assets 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. Accordingly to which the purchase method continues to be applied in acqui-
sitions, with some significant changes:
(i) All amounts which comprise the purchase price are valued at fair value, with the option
of measuring, transaction by transaction, the “non-controlled interests” by the proportion
of the value of net assets of the acquired entity or the fair value of assets and liabilities
acquired.
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