Consolidated Financial Statements as of December 31, 2015
Notes to the Consolidated Financial Statements
Scope of consolidation
Note 3
Accounting policies
3.1
Basis of consolidation
As of the acquisition date, the identifiable assets acquired and
●
liabilities assumed are recognized and measured at fair value.
The Consolidated Financial Statements include the financial
statements of subsidiaries from the date of acquisition (the date when
Goodwill corresponds to the excess of (i) the sum of the
●
the Group gains control) up to the date when the Group ceases to
consideration transferred (
i.e.
, the acquisition price) and the
control the subsidiary, and the Group's equity in associates and joint
amount of any non-controlling interest in the acquiree, over (ii) the
ventures accounted for by the equity method.
net of the acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed. It is recorded directly in the
Subsidiaries
(i)
statement of financial position of the acquiree, in the latter's
A subsidiary is an entity over which the Group exercises control, directly
functional currency, and is subsequently tested for impairment at
or indirectly. An entity is controlled when the Group is exposed, or has
the level of the Cash Generating Unit to which the acquiree belongs,
rights, to variable returns from its involvement with the entity and has
by the method described in Note
6.3. Any gain from a bargain
the ability to affect those returns through its power over the entity. The
purchase (
i.e.
, negative goodwill) is recognized directly in profit or
Group considers all facts and circumstances when assessing whether it
loss.
controls an investee, such as rights resulting from contractual
For business combinations on a less than 100% basis, the
●
arrangements or substantial potential voting rights held by the Group.
acquisition date components of non-controlling interests in the
The profit or loss of subsidiaries acquired during the year is included in
acquiree (
i.e.
, interests that entitle their holders to a proportionate
the Consolidated Financial Statements from the date when control is
share of the acquiree's net assets) are measured at either:
acquired. The profit or loss of subsidiaries sold during the year or that
fair value, such that part of the goodwill recognized at the time of
●
the Group ceases to control, is included up to the date when control
the business combination is allocated to non-controlling
ceases.
interests ("full goodwill" method), or
Intra-group transactions and assets and liabilities are eliminated in
the proportionate share of the acquiree's identifiable net assets,
●
consolidation. Profits and losses on transactions between a subsidiary
such that only the goodwill attributable to the Group is
and an associate or joint venture accounted for by the equity method
recognized ("partial goodwill" method).
are included in the Consolidated Financial Statements to the extent of
The method used is determined on a transaction-by-transaction
unrelated investors’ interests in the associate or joint venture.
basis.
Associates and joint ventures
(ii)
The provisional amounts recognized for a business combination
●
Entities in which the Group exercises significant influence (associates),
may be adjusted during a measurement period that ends as soon as
and entities over which the Group exercises joint control and that meet
the Group receives the information it was seeking about facts and
the definition of a joint venture, are accounted for by the equity
circumstances that existed as of the acquisition date or learns that
method, as explained in Note
7 "Investments in companies accounted
more information is not obtainable, or at the latest 12 months from
for by the equity method".
the acquisition date. Adjustments during the measurement period
to the fair value of the identifiable assets acquired and liabilities
Significant influence is the power to participate in the financial and
assumed or the consideration transferred are offset by a
operating policy decisions of the investee but is not control or joint
corresponding adjustment to goodwill, provided they result from
control of those policies.
facts and circumstances that existed as of the acquisition date. Any
Joint control is the contractually agreed sharing of control of an
adjustments identified after the measurement period ends are
arrangement, which exists only when decisions about the relevant
recognized directly in profit or loss.
activities require the unanimous consent of the parties sharing control.
For a business combination achieved in stages (step acquisition),
●
Other investments
(iii)
when control is acquired the previously held equity interest is
Investments in companies where the Group does not exercise control
remeasured at fair value through profit or loss. In the case of a
or significant influence over financial and operating policy decisions
reduction in the Group's equity interest resulting in a loss of control,
are qualified as available-for-sale financial assets and reported under
the remaining interest is also remeasured at fair value through
"Other noncurrent financial assets". The accounting treatment of these
profit or loss.
investments is described in Note
12 "Financial assets and liabilities,
Transaction costs are recorded directly as an operating expense for
●
finance costs and other financial income and expenses".
the period in which they are incurred.
Business combinations
At the IFRS
transition date, the Group elected to maintain the
accounting treatment for business combinations applied under
Business combinations, defined as transactions where the assets
previous accounting standards, in line with the option available to
acquired and liabilities assumed constitute a business, are accounted
first-time adopters under IFRS 1.
for by the purchase method. Business combinations carried out since
January
1, 2010 are measured and recognized as described below, in
accordance with IFRS 3 –
Business Combinations
(as revised in 2008).
2015 REGISTRATION DOCUMENT
163




