Basic-Fit N.V. ANNUAL

Business / Consolidation

Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled either directly, or indirectly, by the Company. Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated, unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been aligned with the Group’s accounting policies where necessary to ensure consistency with the policies adopted by the Group.