Prospectus - Notowania

105
>> Condensed Consolidated Financial Statements
Part A) – Accounting Policies
The carrying amount of an investment in a fully or proportionately consolidated entity held by the Parent or another Group
company is eliminated against the recognition of the subsidiary’s assets and liabilities as well as the Group’s portion of equity
of the subsidiary.
Intercompany balances, transactions, income and expenses are eliminated in full or proportionately, in accordance with the
adopted consolidation procedures.
A subsidiary’s income and expenses are included in consolidation from the date the Parent acquires control. On disposal of a
subsidiary, its income and expenses are consolidated up to the date of disposal, i.e., when the Parent ceases to control the
subsidiary. The difference between the proceeds from the disposal of the subsidiary and the carrying amount of its net assets
is recognised in item 270 “Gains (Losses) on disposal of investments” in profit and loss.
Minority interests are recognised in the consolidated balance sheet item 210 “Minorities” separately from liabilities and Parent
shareholders’ equity.
Minority interests in the profit or loss of the Group are separately disclosed under item 330 of the consolidated profit and loss
account.
On first-time consolidation, subsidiaries are measured at fair value as at the acquisition date, i.e. at the cost of obtaining
control of the subsidiary inclusive of ancillary costs.
ASSOCIATES
These are entities over which an investor has significant influence, and which is neither a subsidiary nor an interest in a joint
venture. It is presumed that the investor has significant influence if the investor holds, directly or indirectly, at least 20 per cent
of the voting power of an investee.
Investments in associates are recognised using the equity method. The carrying amount includes goodwill (less any
impairment loss) paid for the acquisition. The investor’s share of the profit and loss of the investee after the date of acquisition
is recognised in item 240 “Profit (Loss) of associates” in profit or loss. Distributions received from an investee reduce the
carrying amount of the investment.
If the investor’s share of an associate’s losses is equal to or more than its carrying amount, no further losses are recognised,
unless the investor has incurred legal or constructive obligations or made payments on behalf of the associate.
Unrealised profits on transactions with associates are eliminated to the extent of the Group’s interest. Unrealised losses are
likewise eliminated, unless the transactions show evidence of impairment of the assets exchanged.
JOINT VENTURES
A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to
joint control. Joint control exists only when financial and operating decisions relating to the activity require the unanimous
consent of the parties sharing control.
Interests in joint ventures are recognised using proportionate consolidation.
The following table shows the companies included in the scope of consolidation, listed by division, plus the companies valued
with the equity method.