The consolidated financial statements cover the financial statements of Grupa KĘTY S.A. and the financial statements of its subsidiaries prepared for the current year. The financial statements of subsidiaries are prepared for the same reporting period as the ones of the parent, with the use of coherent accounting principles applied to transactions and economic events of similar nature.
The financial figures of all Group companies are prepared in accordance with the Group accounting policies consistent with IFRS. All significant intercompany balances and transactions, including unrealised profits on transactions within the Group, are eliminated. Unrealised losses are eliminated, unless there is evidence of impairment.
The Group controls a given entity when it has:
The Group verifies whether it controls other entities, if a situation occurs indicating a change of one or several aforementioned control requirements.
Subsidiaries are fully consolidated from the date of taking control over them by the Group. The consolidation is abandoned on the date the control is no longer exercised.
The transactions of taking over the control of entities are settled with the acquisition method. The remuneration paid for the acquisition of a subsidiary is determined as the fair value of transferred assets and incurred liabilities or equity instruments issued by the Group. The remuneration paid comprises the fair value of assets or liabilities resulting from the determination of the conditional element of the contractual remuneration. The costs related to the acquisition are recognised in the profit or loss at the time they are incurred. Identifiable assets acquired and liabilities assumed in the process of the business entities merger are measured initially at their fair value as at the acquisition date. For each acquisition, the Group recognises non-controlling interests in the acquiree at the fair value or proportional value of the part of net assets of the acquiree applicable to non-controlling interests.
The surplus of the paid remuneration, the fair value of any possible, previously held interests in the equity of the acquiree as at the acquisition date and of the non-controlling interests over the fair value of identifiable net assets acquired, is recognised as goodwill. If the value is lower than the fair value of net assets of the subsidiary, the differences are recognised directly in other operating income of the statement of profit or loss.
The consolidated financial statements are prepared with the use of the full consolidation method. The consolidation covers all of the Group companies (the composition of the Group is presented in note 4).
In order to carry out the consolidation with the full method, the Group applies the following procedures:
Changes in the ownership interest of the parent company which do not result in the loss of control over a subsidiary are recognised as equity transactions. In such cases, in order to reflect the changes in relative interests in a subsidiary, the Group adjusts the carrying amount of non-controlling interests. Any differences between the amount of the adjustment of the non-controlling interests and the fair value of the amount paid or received are recognised in equity and attributed to the owners of the parent.
