ICONIC LABS PLC DISCLOSURE

Business / Consolidation

Basis of consolidation The Group fina ncial statements consolidate those of the p a rent company and all of its subsidiaries. Subsidiaries are entities controlled by the Group. The parent company c ontrols a subsidiary if it has po wer over the investe e to significantly direct the activities, exposure, or rights, to variab le returns from its involvement with th e investee, and the ability to u se its power over the investee to affe ct the amount of the investors’ returns. The financial statements of subsidiaries are included in th e conso lid ated financial statements fro m the date that control commences until the d ate that control ceases. The results of subsidiaries acquired or disposed in the period are included in the consolidated income statement from the effe ctive date of acquisition or up to the effe cti ve date of disposal, as appropriate. All intra -group transactions, balances, income and expe ns es are eliminate d on consolidation. The results and ne t assets of subsidiaries whose accounts are de nominated in foreign cu rrencies are retranslated into Sterling at average rates and year-end rates respective ly.