IBERSOL | Integrated Management Report | 2025

CONSOLIDATED FINANCIAL STATEMENTS 2.1.3. Measurement basis The consolidated financial statements were prepared on a going concern basis, under 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 equity 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 interests. 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 between 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. 372