CONSOLIDATION METHODS Consolidation methods are set out in IFRS 10, IFRS 11 and IAS 28 respectively. They are based on the nature of the control exercised by CFM Indosuez Wealth over entities within the scope of consolidation, regardless of their activity and whether or not they have legal status: - full consolidation for controlled entities, including entities with different account structures, even if their activity is not in line with that of CFM Indosuez Wealth; - the equity method, for entities over which significant influence is exercised and jointlyowned businesses (excluding joint ventures). Full consolidation consists of substituting the value of the securities with each of the assets and liabilities of each subsidiary. The equity and income attributable to non-controlling interests is presented separately in the consolidated balance sheet and Income Statement. Non-controlling interests are as defined by IFRS 10 and include instruments representing current ownership interests that grant entitlement to a proportional share of the net assets in the event of liquidation and the other equity instruments issued by the subsidiary and not held by the Group. Investments in associated or jointly controlled companies are recognised as a separate item in the balance sheet under "Investments in companies accounted for using the equity method". The equity method consists of replacing the value of the securities with the Group's share of equity and the profit or loss of the companies concerned. As the two consolidated subsidiaries were created by CFM Indosuez Wealth, no goodwill has been recognised. RESTATEMENTS AND ELIMINATIONS In accordance with IFRS 10, CFM Indosuez Wealth makes the restatements necessary to harmonise the valuation methods of consolidated companies. The impact of Group internal transactions on the consolidated balance sheet and Income Statement is eliminated for fully consolidated entities. In the financial statements of the consolidating entity, capital gains or losses arising on the disposal of assets between consolidated companies are eliminated; the presence of capital losses on the part of the transferor may result in the recognition of an impairment loss on the asset disposed of on the occasion of this internal disposal. CFM Indosuez Wealth Management 84
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