MERLIN PROPERTIES SOCIMI, S.A. ANNUAL

Business / Consolidation

2.6 Basis of consolidation applied All companies over which the Group is exposed, or has the right, to variable returns from its involvement in the subsidiary and has the capacity to influence these returns through the power to direct the activities of the entity have been fully consolidated using the full consolidation method; and by applying the equity method, where appropriate, when significant influence is held but not a majority of the voting rights, with a shareholding of more than 20% (see Note 9 ). Likewise, a significant influence on the investments held by the Group with a participation rate of less than 20% is considered to exist if it has representation on the Board of these companies of the parties related to it. A number of adjustments have been made to align the accounting principles and measurement bases of Group companies with those of the Parent, including the application of International Financial Reporting Standards measurement bases to all Group companies and associates.