IBERSOL | Integrated Management Report - 2024

Consolidated Financial Statements 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 and statement of comprehensive income, under the heading non-controlling inter- ests. The companies included in the financial statements are listed in Note 1.1. The assets and liabilities of each Group company are identified at their fair value at the acquisition date as prescribed by IFRS 3. Any excess of cost over the fair value of the net assets and liabilities acquired is recognized as goodwill. If the difference be- tween the acquisition cost and the fair value of the net assets and liabilities acquired is negative, it is recognized as income for the year. Transaction costs directly attributable to business combinations are immediately recognized in profit or loss. Non-controlling interests include the third parties’ proportion of the fair value of the identifiable assets and liabilities at the date of acquisition of the subsidiaries. Subsequent transactions of disposal or acquisition of interests to non-controlling interests, which do not imply a change in control, do not result in the recognition of gains, losses or goodwill, being any difference between the transaction value and the book value of the traded interest, recognized in equity, in other equity instruments. Balances and gains arising from transactions between group companies are elimi- nated. Unrealized losses are also eliminated unless the transaction reveals evidence of impairment of a transferred asset. The accounting policies of subsidiaries are changed where necessary to ensure consistency with the policies adopted by the Group. 2.1.5.2. Associates and joint ventures The Group’s interests in entities in which it exercises control jointly with other part- ners, i.e. entities in which control means that decisions have to be taken unanimously between the parties sharing control, are recognized, by applying IFRS 11, from the date on which joint control is acquired. The Group includes its share of the assets and liabilities in a line in the Consolidated Statement of Financial Position and the expenses and income of the joint venture in a line in the Consolidated Statement of Profit and Loss and Other Comprehensive Income. Balances and transactions between Group companies and entities where the Group exercises control jointly with other partners are not eliminated in proportion to the control attributable to the Group. 366