IBERSOL Annual Report and Consolidated Accounts 2017

Consolidated Financial Statements Balances and gains arising from transactions between group companies are eliminated. Loss- es not realised are also eliminated, except when the transaction reveals that a transferred asset is subject to impairment. The subsidiaries’ accounting policies are altered whenever necessary to ensure consistence with the group’s policies. (b) Jointly controlled companies The financial statements of jointly controlled companies were included in these consolidated financial statements by the equity method, under the adoption of IFRS 11, 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 annexed consolidated financial statements in one line in the consolidated statement of financial position and in one line in the consoli- dated statements of comprehensive income. Transactions, balances and dividends paid among group companies and jointly controlled companies are not 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 a financial investment. 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 components of the same entity) whose operating results are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which separate financial information is available The group’s head office – which also hosts the largest operating company, is in Portugal. Its business activity is in the restaurant segment. The Group operates in three main business segments: - Restaurants, which includes the units with table service available offer and home delivery; - Counters, with sales over the counter; - Concessions and catering, which includes all other businesses, including the catering activity and the units located in concession areas. In 2016, the assets and liabilities of the Eat Out group, and its 5 subsidiaries acquired in the fourth quarter of 2016 (Note 5.2.1), were not allocated to pre-existing segments. In 2017, with the conclusion of the valuation of Goodwill, the respective allocation was made to the segments of the Group, and the respective restatement was made in the comparatives now presented. 210