IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 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 witch 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 “interests that do not control” 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. (iii) interest held prior to obtaining control is measured at fair value and added to the pur- chase price for the purposes of applying the purchase method Also has been applied since 1 January 2010 the revised IAS 27, which requires that all trans- actions with the “non- controlling 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 measured at fair value, and a gain or loss is recognized in the results of the exercise. 209