TCM Group A/S ANNUAL

Business / Consolidation

Consolidation principles and business combinations Subsidiaries Subsidiaries are companies where TCM Group has con- trol. Control entails the direct or indirect right to shape a company’s financial or operational strategies in a bid to receive financial benefits. When assessing whether con- trol exists, potential voting shares that can be immedi- ately utilised or converted must be taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that the controlling interest arises and until the date on which the controlling interest ceases. If ownership is reduced to such an extent that the con- trolling interest is lost, any remaining holdings are rec- ognised at fair value and the change in value is recog- nised in the income statement.