AMPER, SA and Subsidiaries Consolidated Financial Statements for ...

During financial years 2010 and 2011, different reorganizations have taken place in the Group in the
business lines in which it operates. After each reorganization, the Group has performed an exhaustive
analysis to identify independent cash inflows for the purposes of defining the Cash-Generating Unit.
In the preparation of these Consolidated Annual Accounts, the Group has analyzed the functional
currency of the eLandia Group during the present financial year. As a result of this analysis, the Group
determined that the functional currency of the eLandia Group, in accordance with applicable standards,
is the U.S. dollar.
2.4 Basis of consolidation
Subsidiaries:
Subsidiaries are companies over which the Company, either directly or indirectly through subsidiaries,
exercises control. Control is considered as the power to govern financial and operating policies of an
entity, for the purpose of obtaining profits from its activities, taking into account potential voting rights
that can be exercised or converted at the end of the accounting period held by the Group or by third
parties.
The subsidiaries are consolidated by the global integration method, and all their liabilities, revenues,
expenses and cash flows are included in the consolidated financial statements after making
adjustments and eliminations relating to intra-group transactions.
The revenues, expenses and cash flows of the subsidiaries are included in the Consolidated Financial
Statements since the acquisition date, date in which the Group has the control of them. The subsidiaries
are excluded from the consolidation since the date when Group has no control.
The consolidation of the operations of the parent company and of the consolidated subsidiaries has
been done according to the following basic principles:
1. At the date of acquisition (when the Group has the control of the business acquired), the
assets, liabilities and contingent liabilities of the subsidiary are recorded at market value. In the
event of a positive difference between the acquisition cost of a subsidiary and the market value
of its assets and liabilities, proportional to the parent company's participation, this difference is
entered as goodwill. If the difference is negative, it is credited to the Consolidated Income
Statement.
2. The goodwill stated in the business combinations has not been amortised since 1 January 2004
(the transition date to IFRSs), although they have been reviewed at least annually to analyse
the need for possible writing down.
3. The value of non-controlling interests in the equity and in the results of the fully consolidated
subsidiaries global is presented under "Net equity - of Non-Controlling Interests" in the
Consolidated Balance Sheet and "Profit for the year - Non-controlling Interests" in the
Consolidated Income Statement, respectively.
4. The financial statements of the foreign companies with a functional currency different from the
euro are translated to euros as follows:
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