Agility Real Estate Inc. ANNUAL

Business / Consolidation

e. Consolidation The Group’s c onsolidated financial statements consolidate the financial statements of Agility Real Estate Inc. and the entities it contro ls drawn up to December 31, 20 25 and its comparative periods. (a) Subsidi aries The parent controls a subsi diary if it is exposed, or has rights, to variable r eturns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. All subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Inter-company transactions, balances and unrealized ga ins on transactions b etween Group subsidiaries are eliminated. Unrealized lo sses are also eliminated unless t he transaction prov ides evidence of an impairment of the asset transferred. Accounting policies as applied to the subsidiaries have been changed where necessary to ensure consistency with the policies adopted b y the Group. Non-controlling interests repr esen t the portion of profi t or l oss and net a ssets in subsidiaries th at are not held by the Group a nd are presented separately within eq uity in the consolidated statement of financ ial position, from parent sh areholders’ equity. (b) Bu siness combinations The Grou p applies the acqu isition method of account ing when accounting for business combinations. The cost of an acquisition is measured at t he fair value of the assets transferred, equity in struments i ssued and liabilities incurre d or a ssumed at the date of exchange. Costs directly a ttributable to t he acquisition are charged to profit or loss a s incurred. Identifiable assets acquired, liabilities and contingent l iabilities assu med in a business combination are measured initially at their fair values at the acquisition date, irrespective of any non-controlling interest. The excess of th e cost of acquisition over the fair value of the Group’ s share of the identifiable net asse ts acquired is recorded as goodwill. If the cost of ac quisit ion is less than th e fair value of t he net assets for the subsidiary acquired, the differ ence is recognized directly in profit o r loss. (c) Investm ent in A ssociates An associate is an entity over which the Group has significant influence, but not cont rol or joint control. Significant influence is the power to pa rticipate in the fina