) Business combinations and subsidiaries

The modification clarifies that the portfolio exception in IFRS 13 applies to all contracts (together with
non-financial contracts) throughout the scope of IAS 39/IFRS 9.
IAS 40 “Funding property”
The usual is amended to make clear that IAS 40 and IFRS 3 will not be mutually unique.
2.2. Consolidation
(a) Enterprise combos and subsidiaries
Subsidiaries are all entities (together with particular function entities) over which the group has the ability
to manipulate the monetary and working insurance policies usually accompanying a shareholding of greater than
one half of the voting rights. The existence and impact of potential voting rights which are at present
exercisable or convertible are thought of when assessing whether or not the group controls one other
entity. The Group additionally assesses existence of management the place it doesn’t have greater than 50% of the
voting energy however is ready to govern the monetary and operational insurance policies by advantage of de-facto
management. Subsidiaries are absolutely consolidated from the date on which management is transferred to the
group. They’re deconsolidated from the date that management ceases.
The group makes use of the acquisition technique of accounting to account for enterprise combos. The
consideration transferred for the acquisition of a subsidiary is the truthful values of the belongings
transferred, the liabilities incurred and the fairness pursuits issued by the group. The consideration
transferred consists of the truthful worth of any asset or legal responsibility ensuing from a contingent consideration
association. Acquisition-related prices are expensed as incurred. Identifiable belongings acquired and
liabilities and contingent liabilities assumed in a enterprise mixture are measured initially at
their truthful values on the acquisition date. On an acquisition-by-acquisition foundation, the group
acknowledges any non-controlling curiosity within the acquiree both at truthful worth or on the non-controlling
curiosity’s proportionate share of the acquiree’s web belongings.
If the enterprise mixture is achieved in levels, the acquisition date truthful worth of the acquirer’s
beforehand held fairness curiosity within the acquiree is remeasured to truthful worth on the acquisition date.
Any contingent consideration to be transferred by the group is recognised at truthful worth on the
acquisition date. Subsequent modifications to the truthful worth of the contingent consideration that’s
deemed to be an asset or legal responsibility is recognised in accordance with IAS 39 both in revenue or loss or
as a change to different complete earnings. Contingent consideration that’s labeled as fairness is
not remeasured, and its subsequent settlement is accounted for inside fairness.
Goodwill is initially measured as the surplus of the mixture of the consideration transferred and
the truthful worth of non-controlling curiosity over the web identifiable belongings acquired and liabilities
assumed. If this consideration is decrease than the truthful worth of the web belongings of the subsidiary
acquired, the distinction is recognised in revenue or loss.
Investments in subsidiaries are accounted for at price much less impairment within the Firm’s standalone
monetary statements. Price is adjusted to replicate modifications in consideration arising from contingent
consideration amendments.
Inter-company transactions, balances and unrealised good points on transactions between group
firms are eradicated. Unrealised losses are additionally eradicated, except the transaction gives
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proof of an impairment of the belongings transferred. Accounting insurance policies of subsidiaries have been
modified the place vital to make sure consistency with the insurance policies adopted by the group.
Transactions and non-controlling pursuits
The group treats transactions with non-controlling pursuits as transactions with fairness house owners of
the group. For purchases from non-controlling pursuits, the distinction between any consideration
paid and the related share acquired of the carrying worth of web belongings of the subsidiary is
recorded in fairness. Features or losses on disposals to non-controlling pursuits are additionally recorded in
fairness.
When the group ceases to have management or vital affect, any retained curiosity within the entity
is remeasured to its truthful worth, with the change in carrying quantity acknowledged in revenue or loss. The
truthful worth is the preliminary carrying quantity for the needs of subsequently accounting for the
retained curiosity as an affiliate, three way partnership or monetary asset. As well as, any quantities
beforehand acknowledged in different complete earnings in respect of that entity are accounted for as
if the group had instantly disposed of the associated belongings or liabilities. This will likely imply that quantities
beforehand acknowledged in different complete earnings are reclassified to revenue or loss.
(b) Joint ventures
Joint ventures or collectively managed entities are accounted for by proportional consolidation. The
Group combines its share within the three way partnership on a line-by-line foundation within the monetary statements.
The Group recognises the portion of good points or losses on the sale of belongings by the Group to the joint
enterprise that’s attributable to the opposite venturers. The Group doesn’t recognise its share of
earnings or losses from the three way partnership that consequence from the acquisition of belongings by the Group from
the three way partnership till it resells the belongings to an unbiased occasion. Nonetheless, if a loss on the
transaction gives proof of a discount within the web realizable worth of present belongings or an
impairment loss, the loss is recognised instantly.
Accounting insurance policies of joint ventures have been modified the place vital to make sure consistency
with the insurance policies adopted by the Group.
The Firm accounts for investments in joint ventures in its stand alone monetary statements at
price much less impairment.
(c) Associates
Associates are entities over which the Group usually has between 20% and 50% of the voting
rights, or over which the Group has vital affect, however which it doesn’t management.
Investments in associates are accounted for by the fairness technique of accounting and are initially
recognised at price. The Group’s funding in associates consists of goodwill (web of any cumulative
impairments losses) recognized in acquisition.
Underneath this technique the Group’s share of the post-acquisition earnings or losses of associates is
recognised within the earnings assertion and its share of post-acquisition actions in different
complete earnings is recognised in different complete earnings. The cumulative submitacquisition actions are adjusted towards the carrying quantity of the funding. Unrealised
good points on transactions between the Group and its associates are eradicated to the extent of the
Group’s curiosity within the associates; unrealised losses are additionally eradicated except the transaction
gives proof of an impairment of the asset transferred. When the Group’s share of losses in
an affiliate equals or exceeds its curiosity within the affiliate, the Group doesn’t recognise additional
losses, except the Group has incurred obligations or made funds on behalf of the associates.
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If the possession curiosity in an affiliate is lowered however vital affect is retained, solely a
proportionate share of the quantities beforehand acknowledged in different complete earnings are
reclassified to revenue or loss the place acceptable.
Accounting insurance policies of associates have been modified the place vital to make sure consistency with
the insurance policies adopted by the Group.
The Firm accounts for investments in associates in its stand alone monetary statements at price
much less impairment.
2.3. Segmental reporting
The segments are decided on the idea of inner data reviewed by the administration of
the Group and are reported within the monetary statements based mostly on this inner element
classification.
2.4. Overseas foreign money translation
(a) Useful and presentation foreign money
Gadgets included within the monetary statements of every of the Group’s entities are measured utilizing the
foreign money of the first financial atmosphere by which the entity operates (‘the useful
foreign money’). The consolidated monetary statements are introduced in Euros, which is the Firm’s
useful and presentation foreign money.
(b) Transactions and balances
Overseas foreign money transactions are translated into the useful foreign money utilizing the trade charges
prevailing on the dates of the transactions. Overseas trade good points and losses ensuing from the
settlement of such transactions and from the interpretation at year-end trade charges of financial
belongings and liabilities denominated in foreign currency echange are recognised within the earnings assertion.
Translation variations on non-monetary objects, reminiscent of equities held at truthful worth by means of revenue or
loss, are reported as a part of the truthful worth acquire or loss.
(c) Group firms
The outcomes and monetary place of all of the group entities (none of which has the foreign money of a
hyperinflationary economic system) which have a useful foreign money completely different from the presentation
foreign money are translated into the presentation foreign money as follows:
(1) Property and liabilities for every steadiness sheet date are translated on the closing fee on the
date of the steadiness sheet;
(2) Revenue and bills for every earnings assertion are translated at common trade charges
(except this common shouldn’t be an affordable approximation of the cumulative impact of the charges
prevailing on the transaction dates, by which case earnings and bills are translated on the
dates of the transactions); and
(3) All ensuing trade variations are recognised by means of different complete earnings.
On consolidation, trade variations arising from the interpretation of the web funding in overseas
entities, and of borrowings and different foreign money devices designated as hedges of such
investments, are taken to different complete earnings. When a overseas operation is bought, such
trade variations are recognised within the earnings assertion as a part of the acquire or loss on sale.
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Goodwill and truthful worth changes arising on the acquisition of a overseas entity are handled as
belongings and liabilities of the overseas entity and translated on the closing fee. Change variations
arising are acknowledged in different complete earnings.
2.5. Funding property
Funding property, principally comprising land and buildings, is held by the Group for long-term
rental yields. Funding property is measured at price much less depreciation. When the carrying
quantities of the funding property exceed their recoverable quantities, the distinction
(impairment) is charged instantly in revenue or loss.
The Firm classifies all land and buildings rented to subsidiaries as funding property in its
stand alone monetary statements.
The land labeled as funding property shouldn’t be depreciated. Depreciation on buildings is
calculated utilizing the straight-line technique to allocate the price of every asset to its residual worth
over its estimated helpful life, which is 33-34 years.
2.6. Property, plant and tools
All property, plant and tools (“PPE”) is proven at price much less subsequent depreciation and
impairment. Price consists of expenditure that’s instantly attributable to the acquisition of the objects.
Subsequent prices are included within the asset’s carrying quantity or recognised as a separate asset, as
acceptable, solely when it’s possible that future financial advantages related to the merchandise will
circulate to the Group and the price of the merchandise could be measured reliably. All different repairs and
upkeep are charged to revenue or loss in the course of the monetary interval by which they’re incurred.
Land shouldn’t be depreciated. Depreciation on PPE is calculated utilizing the straight-line technique to
allocate the price of every asset to its residual worth over its estimated helpful life, with a view to write
down the associated fee in its residual worth.
The anticipated helpful lifetime of property, plant and tools is as follows:
Buildings 5-12,5 years
Equipment, installations & tools 5-10 years
Motor autos 5-7 years
Telecommunication tools 3-5 years
Different tools 3-5 years
The belongings’ residual values and helpful lives are reviewed, and adjusted if acceptable, at every
steadiness sheet date.
When the carrying quantity of the asset is greater than its recoverable quantity, the ensuing
distinction (impairment loss) is acknowledged instantly as an expense in revenue or loss.
In case of sale of property, plant and tools, the distinction between the sale proceeds and the
carrying quantity is acknowledged as revenue or loss within the earnings assertion.
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Borrowing prices instantly attributable to the development of qualifying belongings are added to the associated fee
of these belongings till such time because the belongings are considerably prepared for his or her supposed use or sale.
2.7. Leases

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