IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 2. Basis of preparation of the financial information Introduction Burger King Restaurant Purchase Agreement Following the sale of the Burger King operation in Portugal and Spain at the end of November 2022, the activity of all Burger King restaurants in 2022 and the restaurants not yet sold in 2023 are reported as “Discontinued Operations” in terms of financial information reporting. 2.1. Bases of presentation 2.1.1. Approval of the financial statements The financial statements were approved by the Board of Directors and authorized for issue on 29 April 2024. The shareholders have the right not to approve the accounts authorized for issue by the Board of Directors and to propose their amendment. 2.1.2. Accounting standards These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and with the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) or by the previous Standards Interpretation Committee (SIC), as adopted and effective in the European Union on 1 January 2023. In the case of Group companies using different accounting standards, conversion adjustments were made to the IFRS. 2.1.3. Measurement basis The consolidated financial statements were prepared on a going concern basis, un- der the historical cost convention, changed to fair value in the case of derivative financial instruments. The preparation of the financial statements requires estimates and management judgments. 2.1.4. Comparability The consolidated financial statements are comparable in all material respects with the prior year. 2.1.5. Consolidation Bases 2.1.5.1.Subsidiaries Under IFRS10 - Consolidated Financial Statements, investments in companies in which the Group is exposed, or has rights, to variable returns from its involvement in those companies and has the ability to influence those returns through its power over those companies (definition of control used by the Group), were included in these consolidated financial statements using the full consolidation method. The eq- uity and net income of these companies, corresponding to third party participation in them, are presented separately in the consolidated statement of financial position 405