Financial Information - Uralita

FINANCIAL INFORMATION ANNUAL REPORT 2006
Law 62/2003, of December 30, on Fiscal,
Administrative and Social Measures. Note 4 sets
out obligatory accounting principles and policies
and measurement bases applied and the
alternatives legally permitted in this respect. No
standards have been applied early.
The Group’s annual consolidated accounts and
the accounts of the companies comprising the
Group for 2006 are pending approval at their
respective General Shareholders' Meetings. The
parent company’s Board of Directors expects the
annual accounts to be approved without
significant changes. The consolidated annual
accounts for 2005, which were prepared in
accordance with IFRS for the first time, were
approved at the General Shareholders’ Meeting
of Uralita, S.A. held 22 June 2006.
exercise control over. Under IAS 27, control is
understood as the ability to govern the financial
and operating policy of an investee so as to
obtain benefits from its activities.
The annual accounts of subsidiaries are
consolidated using the full consolidation method.
Therefore, all material balances and results of
transactions carried out between consolidated
companies have been eliminated on
consolidation.
If necessary, adjustments are made to the
financial statements of subsidiaries to unify the
accounting policies used with those of the
Group, one of the main ones being the
capitalization of recoverable tax credits not
recorded in the subsidiaries.
The Group’s consolidated financial statements
are presented in euros. Foreign operations are
recorded applying the policies established in
Note 4.18.
Third-party interests in Group equity and profit
are presented in "Minority interests" on the
consolidated balance sheet and income
statement, respectively.
2.2. Consolidation principles
a. Subsidiaries
Subsidiaries are defined as any company
included in the consolidation scope over which
the Parent Company, directly or indirectly,
manages by virtue of ownership of a majority of
the voting rights in their representation and
decision-making bodies or has the capacity to
Results of subsidiaries acquired or disposed of
during the year are included in the consolidated
income statement from the effective date of
acquisition or until the effective date of disposal,
as appropriate.
Appendix I details the subsidiaries and related
information (name, country of incorporation,
percentage ownership by the parent company).
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