Accounting in the field of the public sector has undergone a long process of modernization and reform that has lately been reflected in the approval of the current General Plan of Public Accounting by Order EHA/1037/2010, of 13 April. This plan has been conceived as a framework plan for all public administrations and with it has been intended to make progress in the process of accounting standards, in particular through the adaptation of its principles to the expected accounting criteria. International Public Sector Accounting Standards issued by the International Federation of Accountants (IFAC).

Taking into account the progress made in recent years in the quality of the accounting information included in the individual annual accounts of the Public Administrations, there is a need to make progress in the drawing up consolidated accounts in the field of the public sector.

This need is determined by the growing process of decentralization in the provision of public services that is being carried out through the creation of autonomous public entities, a process that aims to achieve a improving efficiency and efficiency in the provision of public services, but which poses the risk of losing information from the group of public entities within the same control area. In order to avoid this situation, it is necessary to have the individual annual accounts of the different institutions and annual accounts in which the management carried out by all the entities on which the dominant entity exercises is reflected. control, understanding by control the power to direct the financial policies and the activity of another entity in order to obtain economic returns or service potential. In order for these annual accounts to reflect the true picture of the financial and asset situation of the group of public entities, it is not sufficient to simply aggregate the individual accounts, but the consolidation of the accounts must be carried out. This will be an important step forward in the transparency of public accounting information.

In any case, the drawing up of consolidated annual accounts in the field of the public sector should not lead to the abandonment of the presentation of the individual annual accounts, since they continue to be of prominent importance in the the procedure for accountability of those responsible for the various public entities.

In this sense, the General Intervention of the State Administration in 2006 produced a document on the consolidation of annual accounts in the public sector that was intended to serve as a basis for any public administration. state, regional or local, which sought to draw up consolidated annual accounts. Based on this document, the IGAE has promoted the formation of a working group in the Public Accounting Commission with the aim of developing a Standard on the Consolidation of Accounts in the Public Sector.

In the Order's unique article, these Rules are approved as an accounting framework for all Public Administrations.

The single transitional provision regulates the rules for the application of the Rules for the formulation of the consolidated annual accounts in the first financial year starting from 1 January 2014 in those entities which have drawn up consolidated accounts prior to the entry into force of this standard.

The single repeal provision provides for the repeal of all rules of equal or lower rank in which they contradict or oppose the provisions of this Order.

The final provision first states that in those cases where an operation not provided for in these Rules occurs, it shall be in accordance with the rules for the formulation of consolidated annual accounts, approved by Royal Decree 1159/2010 of 17 September 2010.

The second final provision regulates the entry into force of this Order on the day following its publication in the "Official State Gazette", being mandatory in the field of the state public sector, from of 1 January 2014.

In the local entities, it is planned to be implemented, after an adaptation to the consolidation rules by the Minister of Finance and Public Administrations, in the preparation of the corresponding consolidated accounts. the third exercise of implementation of the Adaptation of the General Plan of Public Accounting, approved by Order EHA/1037/2010, of 13 April, to the Local Administration.

The rules on the Consolidation of Accounts in the Public Sector that are approved in this order are structured in four chapters and an annex, preceded by an introduction in which the fundamental characteristics of the standard. The content of these rules is as follows:

In Chapter I "General Rules" the group, the dominant entity and the dependent entities are defined, establishing a series of assumptions about the existence of control. Other entities that are not part of the group but are involved in consolidation, multigroup entities, and associates are also defined.

In addition, the obligation to consolidate is regulated, where the dominant entity is not obliged to consolidate as well as the entities excluded from consolidation.

Also defined in this first chapter are the methods of global and proportional integration and the procedure for putting in equivalence or method of participation that will be applied to the different entities according to the influence exerted on them by the dominant entity.

Chapter II discusses the method of global integration and describes the procedure to be followed for the formulation of consolidated annual accounts through the following stages: prior homogenization (temporary, valuation, by internal transactions and the structure of annual accounts), aggregation and removals (net worth investment, both in the first consolidation and in subsequent consolidations, and intragroup items and results).

In relation to investment elimination-net worth in the first consolidation, the rule defines the difference of first consolidation, either goodwill or negative consolidation difference, analyzing the participation of external partners. In subsequent consolidations, the cases of modification of the participation without loss of control, the additional investment or reduction of the investment without modification of the participation and the loss of control are analyzed. The elimination of equity capital in the case of indirect participations and reciprocal participations between dependent entities is also analysed.

In relation to the elimination of intra-group items and results, the elimination of internal operations of stocks, fixed assets or investments in real estate, services and financial assets is analyzed. application of adjustments for changes in value and recognition of grants in net worth, by acquisition of financial liabilities issued by the group to third parties and by internal dividends.

In Chapter III, the method of proportional integration and the procedure of putting in equivalence or method of participation are described and the differences that present in front of the method of global integration are analyzed. In particular, in relation to the equivalence procedure, the homogenization of the information and the first and subsequent applications of the procedure are analyzed. The loss of associated or multigroup entity condition is also parsed.

Chapter IV describes the consolidated annual accounts, in particular the documents that make up them, their formulation as well as the rules for their preparation.

Finally, the consolidated annual accounts models are included in the Annex: consolidated balance sheet, consolidated economic income statement, consolidated net worth of changes, state of flows of assets consolidated cash, consolidated budget settlement status and consolidated memory.

Memory has a different content than the one provided in the General Public Accounting Plan. This is due to the fact that, as indicated above, public sector entities will continue to give the Court of Auditors or external control body their individual annual accounts irrespective of the annual accounts remission Consolidated reporting on the management carried out by each public sector as a whole.

Therefore, the Memory will report fundamentally on the perimeter of the consolidation as well as on the specific items of consolidation: goodwill, negative difference of consolidation, external partners or items relating to multi-group entities or units placed in equivalence.

However, in the same way as the General Public Accounting Plan establishes, the memory will also inform on the basis of presentation of the consolidated annual accounts, the standards of recognition and valuation and on different balance sheet items and on the account of the economic result. It will also provide budgetary information and contain a range of financial and economic indicators.

The approval of this Order is made on the proposal of the General Intervention of the State Administration, in accordance with the powers conferred on it by Article 124.a) of Law 47/2003, 26 of November, General Budget, to promote the exercise of regulatory power attributed to the Minister of Finance and Public Administrations.

In its virtue, according to the State Council, I come to have:

Single item. Approval of the rules on the consolidation of accounts in the public sector.

The rules on the consolidation of accounts in the public sector, the text of which is inserted below, are approved with the character of an accounting framework for all public

.

Single transient arrangement. Rules for the application of the rules for the formulation of consolidated annual accounts in the first financial year starting from 1 January 2014.

The rules approved by this order will not be applied retroactively. As a result, if the institution required to consolidate accounts prior to the entry into force of this standard, the consolidation to be carried out in the first financial year starting from 1 January 2014 shall apply. following rules:

Entities that have been consolidated in the years prior to 2014 shall maintain the calculations of the first and subsequent consolidations derived from the criteria included in the rules applied.

The subsequent consolidation in the first financial year initiated from 1 January 2014 shall be carried out in accordance with the rules approved by this order.

Single repeal provision. Regulatory repeal.

All rules of the same or lower range are repealed in that they contradict or oppose the provisions of this order.

Final disposition first. Supplementary rules.

In cases where an operation not provided for in this standard occurs, it shall be in accordance with the rules for the formulation of consolidated annual accounts, approved by Royal Decree 1159/2010 of 17 December 2010. September.

Final disposition second. Entry into force.

This Order shall enter into force on the day following that of its publication in the "Official State Gazette" and shall be applicable in the State public sector from 1 January 2014.

Madrid, July 18, 2013.-The Minister of Finance and Public Administration, Cristobal Montoro Romero.

RULES FOR THE FORMULATION OF CONSOLIDATED ANNUAL ACCOUNTS

IN THE PUBLIC SECTOR SCOPE

INTRODUCTION

The process of reform and modernization of accounting in the field of the public sector has so far focused on improving the accounting information included in the individual annual accounts of administrations. Public as well as the making available of such information to the different users of the same.

Among the measures of modernization and accounting reform in the field of the public sector must be highlighted the approval of the current General Plan of Public Accounting by Order EHA/1037/2010, of April 13, adapted to the International Accounting Standards for the Public Sector of the IFAC. This plan has been conceived as an accounting plan for all public administrations, and with it is intended to make progress in the process of accounting standards in the field of public administrations, achieving the harmonization of accounting publishes with the business accounting and accounting of other countries in our environment.

The progress made in improving the accounting information included in the individual annual accounts of the Public Administrations has been very relevant, so there is now a need for information the accounting officer of the groups of public entities, understanding as a group the one formed by a dominant entity and the entities controlled by it, and by control the power to direct the financial policies and the activity of another entity for the purpose of obtain economic returns or service potential.

As a consequence of the increasing process of decentralization in the provision of public services through the creation of autonomous public entities, a process that aims to achieve an improvement in efficiency and efficiency in the the provision of public services, the loss of information of the group of public entities within the same control area can be caused. In order to avoid such a situation, it is necessary to have, in addition to the individual annual accounts of the various entities, annual accounts in which the management carried out by all the entities on which the dominant entity exercises is reflected control. In order for these annual accounts to reflect the true picture of the assets, the financial situation, the economic outcome and the implementation of the budget of the group of public entities, it is not sufficient to add the individual accounts, but need to be consolidated.

The consolidation of accounts in the field of the public sector poses many difficulties which must not be justified in any event that is not carried out, since it will be a very important step in the transparency of the public sector. public accounting information.

Among the difficulties that consolidation poses, it is worth noting that, although there is a normalizing trend in the field of accounting, it is not possible to extrapolate the rules of consolidation of the business sector to the sector. public, both due to the specific characteristics of the public sector entities and the relationships of dependency between them. It is also an important difficulty for institutions to consolidate different accounting plans. In any case, in the same line that has been followed in the business scope, the objective is to include in the consolidation of accounts the entities that apply a different account plan to that of the dominant entity.

On the other hand, both in the International Accounting Standards for the Public Sector of the IFAC, and in certain countries, as is the case with Canada, New Zealand or the United States, the presentation of consolidated financial statements to improve the utility of the accounting information of public entities when they are integrated within the same group.

In line with the above, it is considered essential to undertake the consolidation of annual accounts in the public sector, without giving up the presentation of the individual annual accounts, as they continue to have a significant importance in the accountability procedure of the heads of the various public entities.

Aware of the previous need, the General Intervention of the State Administration in 2006 produced a document on the consolidation of annual accounts in the public sector that was intended to serve as a basis for any state, regional or local public administration which intends to draw up consolidated annual accounts. Based on this document, the IGAE has promoted the formation of a working group in the Commission for the elaboration of Public Accounting studies for the elaboration of a Standard on the Consolidation of Accounts in the Public Sector. This working group has been directed and coordinated by the Deputy Director General of Planning and Directorate of the Accounting of the IGAE, and has been composed of representatives of the General Administration of the State, the Autonomous Communities, Local and university-level corporations. Once the content of the standard was agreed by the members of the working group, it was forwarded to the members of the Committee on Public Accounting, and finally adopted by the Commission at its meeting on 4 July 2011.

These Rules regulate the compilation of consolidated annual accounts in the field of the public sector and are conceived as a framework accounting framework for all Public Administrations that aims to facilitate the the process of consolidation of accounts in the public sector.

Since the regulation of the consolidation of accounts in the field of the public sector is a new issue, it has been foreseen that in those cases where an operation not provided for in this standard will occur, it will be addressed to establish the consolidated annual accounts formulation rules, approved by Royal Decree 1159/2010 of 17 September 2010.

The rules for the formulation of consolidated annual accounts in the public sector are structured in four chapters and an annex, with the following content:

In the first chapter "General rules" the group is defined as the one formed by the dominant entity and all the entities controlled by it, understanding by control the power to direct the financial policies and the activity of another entity for the purpose of obtaining economic returns or service potential, establishing a series of assumptions about the existence of control. Other entities that are not part of the group but are involved in the consolidation are also defined: multi-group and associated entities.

In addition, the obligation to consolidate is regulated, where the dominant entity is not obliged to consolidate as well as the entities excluded from consolidation.

Also defined in this first chapter are the methods of global and proportional integration and the equivalence procedure that will apply to the different entities according to the influence exerted on them by the the dominant entity.

The second chapter discusses the method of global integration and describes the procedure to be followed for the formulation of consolidated annual accounts through the following stages:

− Pre-homogenization that may be temporary, valuative, by internal operations, and the structure of annual accounts.

− Aggregation.

− Investment removals-net worth, intra-group items and results.

In relation to the elimination of investment-net worth in the first consolidation, the rule defines the difference of first consolidation, either goodwill or negative difference of consolidation analyzing the participation external partners.

In subsequent consolidations the cases of modification of the participation without loss of control, the additional investment or reduction of the investment without modification of the participation and the loss of control are analyzed. The elimination of equity capital in the case of indirect participations and reciprocal participations between dependent entities is also analysed.

In relation to the elimination of intra-group items and results, the elimination of internal operations of stocks, fixed assets or investments in real estate, services and financial assets is analyzed. application of adjustments for changes in value and recognition of grants in net worth, by acquisition of financial liabilities issued by the group to third parties and by internal dividends.

In the third chapter, the method of proportional integration and the procedure of putting in equivalence or method of participation are described and the differences that present in front of the method of global integration are analyzed. In particular, in relation to the equivalence procedure, the homogenization of the information and the first and subsequent applications of the procedure are analyzed. The loss of associated or multigroup entity condition is also parsed.

The fourth chapter analyses the consolidated annual accounts, in particular the documents that make up them, their formulation and the rules for drawing up the same.

Finally, the consolidated annual accounts models are included in the Annex: consolidated balance sheet, consolidated economic income statement, consolidated net worth of changes, state of flows of assets consolidated cash and consolidated memory.

The consolidated cash flow statement presents two models for the dominant entity to be able to opt for one or the other based on the level of disaggregation that is available for its elaboration.

For its part, the memory has a different content than that provided for in the General Plan of Public Accounting. This is due to the fact that, as indicated above, public sector entities will continue to give the Court of Auditors or external control body their individual annual accounts irrespective of the annual accounts remission consolidated which will give information on the true dimension of the public sector.

Therefore, the Report shall report on the perimeter of the consolidation as well as on the specific items of consolidation: goodwill, negative consolidation difference, external partners or items relating to multi-group entities or units placed in equivalence.

However, in the same way as the General Public Accounting Plan establishes, the memory will also inform on the basis of presentation of the consolidated annual accounts, the standards of recognition and valuation and on different balance sheet items and on the account of the economic result. It will also provide budgetary information and contain a range of financial and economic indicators.

Therefore, it is considered essential that the memory report on the perimeter of the consolidation as well as on the specific items, such as the goodwill, the negative difference of consolidation, the external partners, certain items corresponding to multi-group entities or the shares held in equivalence. However, the memory shall also report on the basis for the presentation of the consolidated annual accounts, the recognition and valuation rules or on different balance sheet items such as tangible fixed assets, real estate investments, intangible fixed assets, financial assets or liabilities or net worth. A number of financial and economic indicators are also incorporated into the memory.

CHAPTER I

General rules

Section 1. Entity Group

Article 1. Group of entities.

The entity group, for the sole purposes of the consolidation of accounts, consists of the dominant entity and all its dependent entities, irrespective of the fact that the latter may be excluded from the consolidation in the cases referred to in Article 8.

Article 2. Dominant entity and dependent entities.

1. Dominant entity is the public sector entity that holds, directly or indirectly, under regulatory or formal arrangement, control over another or other, called dependents.

2. The control means the power to direct financial policies and the activity of another entity in order to obtain economic returns or service potential.

3. In particular, it is presumed that there is control when at least one of the conditions of power and one of the net worth conditions listed below is met, unless there is clear evidence that it is another entity that maintains the control.

Power conditions:

(a) The entity has directly, or indirectly through controlled entities, the ownership of a majority holding of more than 50% with the right to vote in the other entity.

(b) The entity has the power, by virtue of a formal provision or formal agreement, to appoint or revoke the majority of the members of the governing body of the other entity.

(c) The entity has, by virtue of a formal arrangement or formal agreement, the majority of voting rights that would be possible to issue on a general meeting of the other entity.

(d) The entity has, by virtue of a formal arrangement or formal agreement, the power to cast the majority of the votes at the meetings of the governing body, and the control of the other entity is exercised by that body.

e) The entity has appointed with its votes the majority of the members of the governing body, who will be in office at the time the consolidated accounts are to be made and during the two years immediately preceding them. In particular, this circumstance shall be presumed when the majority of the members of the governing body of the dependent entity are members of the governing body of any entity in the group.

Net Heritage Conditions:

(a) The entity has the power to dissolve the other entity and to obtain an important level of residual economic benefits or to assume important obligations.

b) The entity has the power to access the distribution of the other entity's assets, and/or may be responsible for certain obligations of the other entity.

4. In the case of consortia and foundations, it is presumed that there is control when it follows from its Statutes or other existing agreements that at least one of the conditions of power listed in the previous paragraph is met.

Article 3. Computation of voting rights.

1. To determine voting rights, they shall be added to those directly owned by the parent entity, which correspond to the entities dominated by the parent entity or to other entities acting in their own name but on behalf of any entity in the group.

2. For the purposes of the preceding paragraph, the number of votes corresponding to the parent institution, in relation to the entities indirectly dependent on it, shall be the number of votes corresponding to the dependent entity directly participating in the institution. the share capital or equity of these.

Section 2. Other entities involved in consolidation

Article 4. Multigroup entities.

1. They are multi-group entities, for the sole purposes of consolidation, those entities not included in the group, which are managed by one or more entities of the group, participating in their equity or equity, together with one or more other entities. external to the group.

2. Joint management is the statutory or contractual arrangement under which two or more entities agree to share the power to direct financial and operational policies on an economic activity in such a way that strategic decisions, Both financial and operational in relation to the activity require the unanimous consent of all members.

3. In any case, it is understood that there is joint management of another entity when, in addition to participating in the equity or equity capital, one of the following circumstances occurs:

a) That joint management be established in the social statutes, or

(b) There are covenants or agreements that allow the partners to exercise the right of veto in the decision-making of the entity.

Article 5. Associated entities.

1. They shall have the status of associated entities, to the sole purposes of the consolidation of accounts, those, not included in the group, in which one or more entities in the group exercise significant influence by having a stake in their group. social capital or heritage which, by creating a lasting link, is intended to contribute to its activity.

2. There is significant influence on the management of another entity, when the following two requirements are met:

(a) That one or more entities in the group participate in the equity or equity of the entity, and

b) You have the power to intervene in the financial and operational policy decisions of the investee, without managing it together or having control.

3. Unless otherwise tested, the requirements set out in the previous paragraph shall be presumed to be met where one or more of the group's entities have at least 20% of the capital or equity of the entity that does not belong to the group.

Section 3. Obligation To Consolidate and Exceptions

Article 6. Obligation to consolidate.

1. Any dominant entity shall be required to make the consolidated annual accounts in accordance with the rules applicable to it.

2. Dependent entities which in turn are dominant shall have an obligation to make the annual accounts and, where appropriate, the consolidated management report, in accordance with the rules applicable to them.

3. The obligation to draw up the annual accounts and, where appropriate, the consolidated management report does not exempt the group's entities from formulating their own annual accounts and, where appropriate, the relevant management report, in accordance with the rules that apply to you.

Article 7. Waiver of the obligation to consolidate.

By way of derogation from the foregoing Article, the parent entity shall not be required to perform the consolidation in the following cases:

(a) When subject to public accounting principles, it is, in turn, dependent on another entity subject to the same accounting principles provided that the dominant entity presents consolidated accounts.

(b) Where none of the dependent entities has a significant interest, individually and in aggregate for the fair value of the assets, the financial situation and the results of the group's entities.

c) For the size, where the dominant entity is a local entity that meets the characteristics set out in the regulatory regulatory framework of the local entities.

Article 8. Entities excluded from consolidation.

The entities in which some of the circumstances are present are excluded from consolidation:

(a) Do not have a significant interest in the true image to be expressed by the consolidated annual accounts. As a number of entities in these circumstances, they may not be excluded from the consolidation rather than, if together, they have an insignificant interest in respect of the purpose expressed.

(b) Where there are significant and permanent restrictions that substantially hinder the exercise by the dominant entity of its rights to the equity or management of the dependent entity.

(c) Where the information necessary to establish the consolidated accounts can be obtained only by incurring disproportionate costs or with an unavoidable delay which makes it impossible to draw up such accounts within the period established in the applicable rules.

Section 4. th Consolidation Methods and Procedures

Article 9. Applicable consolidation methods and procedures.

1. The applicable consolidation methods and procedures are as follows:

a) The global integration method.

b) Method of proportional integration.

c) A procedure for putting in equivalence or method of participation.

2. The consolidated set shall consist of the entities to which the method of global or proportional integration applies to them.

3. The consolidation perimeter shall be made up of the entities of the consolidated group and the entities to which the equivalence-making procedure or method of participation applies to them.

Article 10. Application of the global integration method.

1. The global integration method will be applied to the entities in the group.

2. By way of derogation from the preceding number, credit institutions and dependent insurance institutions may be subject to the procedure for putting in place equivalence or method of participation.

Article 11. Application of the proportional integration method.

1. The proportional integration method can be applied to multi-group entities.

2. If the method of proportional integration is applied to multi-group entities, that application shall be uniform for all entities in that situation.

Article 12. Application of the method of putting in equivalence or method of participation.

The procedure for putting in equivalence or method of participation shall apply to:

a) the associated entities,

b) multi-group entities if the proportional integration method is not applied to them,

c) credit and dependent insurance entities if the global integration method is not applied to them.

CHAPTER II

Global Integration Method

Section 1. Method Description

Article 13. Definition.

Application of the global integration method requires:

-the incorporation into the balance sheet of the dominant entity of all the assets, rights and obligations that make up the assets of the dependent entities,

-the incorporation into the account of the economic outcome of the parent entity of all income and expenses that are in the determination of the result of the exercise of the dependent entities,

-the incorporation into the state of changes in the net worth of the dominant entity of all income, expenses and other items included in the states of changes in the net worth of the entities dependent,

-the incorporation into the state of cash flows of the parent entity of all collections and payments of the dependent entities and

-lastly, the incorporation into the state of liquidation of the budget of the dominant entity of all the budgetary rights and obligations recognised by the dependent entities whose expenditure budget is of a nature limiting.

All of the above shall be carried out after the previous homogenizations and the relevant removals have been carried out in accordance with the provisions of the following Articles.

Section 2. Previous Homogenization

Article 14. Temporary homogenization.

1. Consolidated accounts shall be established on the same date and period as the annual accounts of the institution required to consolidate.

2. If a dependent entity closes its financial year with a date that does not differ in more than three months, prior or later, from the date of closure of the consolidated annual accounts, it may be included in the consolidation by the accounting securities of the (a) the annual accounts referred to in Article 1 (1) of Regulation (EU) No 6060/2014, as referred to in Article Where transactions are carried out between the date of the end of the financial year of the dependent entity and that of the consolidated annual accounts or events are significant, those transactions shall be adjusted; in this case, if the transaction is performed with an entity in the group, appropriate adjustments and removals should be made, reporting all of this in memory.

3. If a dependent entity closes its financial year before or after more than three months at the date of the closing of the consolidated annual accounts, or the period to which it relates does not coincide with that of the consolidated annual accounts, shall make specific annual accounts drawn up for the same period and date of closure to which the consolidated annual accounts relate.

4. Where the group has taken advantage of the provisions of paragraph 2 above, and in a subsequent financial year the dependent entity changes the closure of its financial year to the date of closure of the consolidated annual accounts, this change shall be treated, the sole effects of the formulation of the consolidated annual accounts, as a change of accounting criteria.

5. Notwithstanding the foregoing, when an entity enters or falls outside the group, the account of the economic income, the status of changes in the net worth and the statement of cash flows and, where applicable, the status of settlement of the budget to be included in the consolidation shall be related only to the part of the financial year in which that institution has been part of the group.

Article 15. Value homogenization.

1. The elements of the annual accounts of the entities in the group should be valued according to uniform methods and in accordance with the principles and valuation rules set out in the General Plan of Public Accounting or in its regulations development.

2. If any element of the annual accounts has been assessed according to non-uniform criteria for those applied in the consolidation, such an element should be valued again and for the sole purposes of consolidation, in accordance with such criteria, the necessary adjustments are made, unless the result of the new assessment offers an insignificant interest for the purpose of achieving the group's true image.

3. However, if the group carries out several activities, in such a way that some are subject to the general accounting rules and others to the rules applicable in Spain to certain entities in the financial sector, the rules must be respected. (a) specific criteria for each of the activities explaining in detail the criteria used, without prejudice to the fact that, for those criteria which present options, the necessary homogenisation of these criteria should be carried out in the light of the objective This is a true and fair picture, which will motivate the homogenisation of operations by the criterion applied in the individual accounts of the entity whose relevance within the group is higher for the said transaction.

When specific regulations do not present options, the criteria applied by the entity in their individual accounts must be maintained.

Article 16. Homogenization by internal operations.

When in the annual accounts of the group's entities, the amounts of the items derived from internal transactions are not matched, or there are any outstanding amounts to be recorded, the adjustments to be made for practice the corresponding eliminations. This homogenisation shall not be appropriate for the disposal provided for in Article 19 below.

Article 17. Homogenisation of the structures of the annual accounts.

The necessary reclassifications shall be made in the structure of the annual accounts of the entities in the group, in order to match that of the consolidated annual accounts.

Section 3

Article 18. Aggregation.

The preparation of the consolidated annual accounts shall be carried out by the aggregation of the different items, according to their nature, of the individual annual accounts, without prejudice to the adjustments and the removals mentioned in the following items.

Section 4

Subsection 1. Elimination Investment-Net Worth

Article 19. Investment elimination-net worth.

1. Investment elimination-net worth is the clearing of the accounting securities representative of the equity instruments of the dependent entities which the dominant entity has, directly or indirectly, with the proportional share of the the net worth items of the listed entities that are attributable to those units, at the date of acquisition of the shares.

2. The date of acquisition shall mean the date on which the dominant entity obtains control of the subsidiary.

3. By way of derogation from the above paragraph, it may be considered that the incorporation of an entity into the group occurs on the date of commencement of the first financial year in which the dominant entity is required to draw up consolidated accounts or (a) to be made voluntarily, provided that any such date is later than that of the effective incorporation into the group. When a group is engaged in this section, it will apply to all dependent entities.

Article 20. Difference of first consolidation.

1. It is called a positive or negative difference of first consolidation that exists between the accounting value of the share in the capital or equity of the dependent entity that owns, directly or indirectly, the dominant entity and the (a) a proportion of the net worth representing the equity or equity of the dependent entity at the date of acquisition of the equity or equity.

2. Where the difference in consolidation is positive, and for the sole purposes of the formulation of the consolidated accounts, the assets of the dependent entity shall be charged directly and as far as possible, with the value of the assets or the reduction of the liabilities, and up to the limit that is attributable to the dominant entity of the difference between the book value of the asset item concerned and its market value on the date of the first consolidation; calculated on the basis of the share of participation in the share capital or in the equity of the institution dependent.

Once the indicated allocation is made, the resulting amounts for balance sheet items shall be amortised, where appropriate, with the same criteria as those applied to them prior to the imputation.

3. Where the difference in consolidation is negative, and for the sole purposes of the formulation of the consolidated accounts, the assets of the dependent entity shall be charged directly and as far as possible, with the value of the liabilities or the reduction of the assets, and up to the limit that is attributable to the dominant entity of the difference between the book value of the equity element in question and its market value on the date of the first consolidation, in the role of the share in the share capital or in the equity of the dependent entity.

4. The difference in the first consolidation which subsidises, following the application of the provisions of the preceding paragraphs, shall be the consolidation trade fund or the negative consolidation difference as appropriate.

Article 21. Consolidation Trading Fund.

1. Consolidation goodwill shall mean the positive difference referred to in the previous article, which is reduced by the amount of the asset revaluations or the value reductions of liabilities as set out in the above. Article.

2. The consolidation trade fund shall be entered under a heading of the consolidated balance sheet asset.

3. The consolidation trade fund shall not be written off. Instead, it will have to be analysed, at least annually, for its possible deterioration in line with the rules on deterioration of value provided for in the General Public Accounting Plan. These impairment losses shall be irreversible.

Article 22. Negative consolidation difference.

1. A negative consolidation difference shall mean the negative difference referred to in Article 20, which is reduced by the amount of revaluations of liabilities or decreases in the value of assets made in accordance with the provisions of that Article. Article.

2. The negative consolidation difference shall be recognised in the consolidated wealth economic result account as a positive result in item 16 'Negative difference in consolidation of consolidated entities'.

3. Where the provisions of Article 19 (3) are used, the negative differences shall be considered as reserves of the entity holding the holding.

Article 23. Participation of external partners.

1. The valuation of the external partners shall be carried out on the basis of their share in the net worth of the dependent entity.

Such participation shall be calculated on the basis of the proportion representing the participation of the external partners in the capital or assets of each dependent entity, excluding equity instruments and equity instruments. maintained by its dependent entities.

2. The share in the net worth of the dependent entity attributable to third parties outside the group shall be shown under the heading V. "External partners" of the consolidated balance sheet net worth.

Subsection 2. Elimination Investment-Net Worth in subsequent consolidations

Article 24. Subsequent consolidations.

1. In subsequent consolidations the investment elimination-net worth shall be performed on the same terms as those established for the date of acquisition. The excess or default of the net worth of the dependent entity shall be presented in the consolidated balance sheet in the following items of equity:

− The portion of this amount corresponding to reserve items will be shown in Item 1. 'Reserves' under the heading II 'Generated heritage' shall be broken down into consolidated memory under the name 'Reserve in consolidated entities'.

− The part corresponding to adjustments for changes in value and transfers and grants received shall be shown in the headings III. "Adjustments for Value Change" and IV.  "Other property increases pending imputation to results", respectively.

− The portion attributable to the external partners must be entered under the heading "External Partners". In the memory, the appropriate detail on the composition of this balance will also be included.

In order to calculate these amounts, transfers made to the economic income account of the adjustments due to changes in value and the transfers and grants received, existing in the date of acquisition.

2. For the purposes of the preceding paragraph, the net worth variation shall be calculated:

a) excluding exercise result and

(b) taking into account the adjustments to the results of previous financial years relating to transactions between entities in the group, as referred to in Articles 30 and following.

3. In any event, the value adjustments corresponding to the investment in the capital or assets of the dependent entity made after their membership of the group shall be eliminated in advance.

Article 25. Modification of participation without loss of control.

1. Once the control has been obtained, subsequent transactions which result in the change in the holding of the dominant entity in the dependent entity, without, in the event of a reduction, a loss of control, shall be considered as consolidated accounts as an operation with equity securities. Consequently, in the elimination of investment-net worth and in the calculation of external partners, the following rules apply:

(a) The amount of the recognised negative consolidation or difference trading fund, or the amount of other assets or liabilities on the consolidated balance sheet, shall not be amended.

(b) In the case of a reduction in participation without loss of control, the benefit or loss recognised in the individual annual accounts shall be eliminated from the exclusive effects of the consolidation, will motivate an adjustment in the reserves of the entity that reduces participation.

(c) The amount of the adjustments due to changes in value and the transfers and grants received from the dependent entity, which should be reported in the consolidated balance sheet, shall be quantified according to the percentage of the share held by the entities of the group hold in the capital or assets of that group, after the operation has been carried out.

(d) The participation of the external partners in the net worth of the dependent entity shall be shown in the consolidated balance sheet on the basis of the percentage of participation that third parties outside the group hold in the capital or equity of that entity, after the operation has been performed.

e) Where appropriate, the adjustment necessary to comply with points (a), (c) and (d) shall cause a change in the reserves of the entity that reduces or increases participation.

2. Where the reduction in the percentage of participation causes a significant loss in the individual annual accounts of the investment entity, that circumstance shall be taken into account in order to assess the deterioration of the goodwill consolidation.

Article 26. Additional investment or reduction of investment without modification of participation.

1. Where a dominant entity makes a new investment in the capital or equity of a dependent entity or a disinvestment in the capital or equity, which does not involve a change in the percentage of participation in the dependent entity, the entity shall not change the goodwill and the negative consolidation difference.

2. In the case of a reduction in investment without a change in participation, where appropriate, the benefit or loss recognised in the individual annual accounts shall be removed from the exclusive effects of the consolidation, will motivate an adjustment in the reserves of the entity that reduces its share.

Article 27. External partners in subsequent consolidations

1. In subsequent consolidations the valuation of the external partners shall be carried out taking into account the eliminations provided for in this chapter.

2. The participation in the income of the dependent entities recognised in the consolidated wealth income statement and in the statement of income and recognised expenditure of the State of changes in the consolidated net worth, which corresponds to external partners will be presented separately as an attribution of the result and not as an expense or income.

3. In the case of indirect holdings, the calculation of the participation of external partners, both in results and in the rest of the net worth, shall be made once the dependent entities in which the dependent entity participates is integrated. which is the corresponding external partners.

4. In the case of reciprocal participations between dependent entities, the participation of external partners, both in results and in the rest of the net worth, shall be calculated taking into account the inter-relationship between the entities.

Subsection 3. Special Cases

Article 28. Indirect participations.

1. Investment elimination-net worth in indirect participation assumptions shall be carried out in stages:

(a) First, the investment elimination-net worth corresponding to the dependent entity that has no direct participation in the equity or equity of any other dependent entity.

(b) thereafter, the successive investment eliminations shall be carried out-net worth, in the order deriving from the above, taking into account for the quantification of the net worth that they shall be a part of the latter reserves in consolidated entities, value adjustments in consolidated entities and transfers and grants received in consolidated entities, which, in accordance with the provisions of Article 24, have arisen in the stages above.

2. In order to determine the goodwill arising at each stage, account must be taken of the timing of the shares.

Article 29. Reciprocal participations between dependent entities.

1. In the case of reciprocal participations between the dependent entities, the goodwill or the negative consolidation difference shall be calculated in accordance with Article 20 et seq. and without affecting the calculation of the net worth such interrelationship.

2. To calculate reserves in consolidated entities from reciprocated dependent entities, and to determine the participation in the adjustments by value changes and in the transfers and grants received by the institution dependent, the change in the net worth of each of them shall be calculated taking into account that interrelationship.

3. In any case, account must be taken of the timing of the shares. If reciprocal investments occur prior to the takeover of the parent, it will be necessary to carry out the calculations resulting from the interrelationship which had not previously been considered in the preparation of previous consolidated accounts. Where reciprocal investment occurs once there is control, no additional goodwill shall be recognised, in line with the provisions of Article 25.

Subsection 4. Intragroup item removals and results

Article 30. Elimination of intra-group items.

1. The intragroup items shall be eliminated in full in the consolidated annual accounts, after the adjustments made in accordance with Articles 14 to 17 have been made.

2. Intragroup items shall mean claims and debts, revenue and expenditure, cash flows and budgetary revenue and budgetary expenditure between entities in the group, without prejudice to the provisions of the dividends referred to in Article 38.

Article 31. Elimination of results by internal operations.

1. Internal transactions shall mean those carried out between two entities in the group from the time the two entities became part of the group. For the purposes of this subsection, the results of both the results and, where applicable, the revenue and expenditure directly attributed to the net worth, in accordance with the applicable accounting rules, shall be understood as results.

2. The entire result produced by the internal operations must be eliminated and deferred until third parties are taken outside the group. The results to be deferred are both those of the year and the previous financial years produced from the date of acquisition.

However, losses in domestic transactions may indicate the existence of a deterioration in the value that would be required, if any, in the consolidated annual accounts. Similarly, the profit produced in internal transactions may indicate the existence of a recovery in the value impairment of the active transaction object that had previously been recorded. Where appropriate, both concepts shall be presented in the consolidated annual accounts in accordance with their nature.

3. The provisions of the preceding paragraphs shall apply in cases where a third party acts on its own behalf and on behalf of an entity of the group.

4. The results shall be understood as against third parties in accordance with Articles 32 to 36 or where one of the entities participating in the internal transaction ceases to be part of the group, provided that the asset it incorporates the result does not remain within it. The allocation of results in the consolidated wealth economic result account or, where applicable, the status of changes in consolidated net worth shall be, where appropriate, as a minor or greater amount of the items that come from.

5. If any assets are subject, for the purposes of the consolidated annual accounts, to an adjustment of value, depreciation, impairment losses and results of disposal or loss on balance sheet, they shall be calculated in the annual accounts consolidated, based on their adjusted value.

6. In accordance with Article 30, the impairment losses relating to assets which have been the subject of the elimination of results from internal transactions shall be eliminated in the consolidated annual accounts. Provisions arising from guarantees or similar granted in favour of other entities in the group shall also be eliminated. Both eliminations will result in the corresponding adjustment in results.

7. The elimination of results from internal transactions carried out in the financial year shall affect the consolidated results, or the total amount of revenue and expenditure directly attributed to the net worth, while the elimination of results for internal transactions in previous financial years, it shall amend the amount of net worth, affecting reserves, adjustments due to changes in value or transfers and grants received from third parties other than the institution or entities owners, who are pending to impute to the account of the patrimonial economic result consolidated.

8. The adjustment in results, in revenue and expenditure directly imputed to the net worth, and in other items of net worth, shall affect the institution which has the good or the service and therefore the amount allocated to the external partners of the that entity.

9. The classification of the assets, income, expenditure, cash flows and revenue and budgetary expenditure shall be carried out from the group's point of view, without being modified by the internal transactions. In the case where the internal transaction coincides with a change of affectation from the point of view of the group, that change of affectation shall be reflected in the consolidated annual accounts in accordance with the rules laid down for that purpose. regulatory, in particular as noted in the following articles.

Article 32. Elimination of results by internal stock operations.

1. An internal stock transaction shall be considered as all those in which an entity in the group purchases stocks or assets in the sales state from the group, irrespective of whether the entity selling it is a stock, assets in the state of sale, fixed assets or real estate investments.

2. The results produced in these operations shall be deferred, until the year in which they are carried out, in accordance with the following rules:

a) The amount to be deferred will be equal to the difference between the book value and the sale price.

(b) The result shall be understood when the acquired goods or the products from which the acquired stock is part of the goods are sold to third parties.

Dealing with losses shall also be deemed to be realised where there is a deterioration in the book value of stocks or assets in the sales state and up to the limit of such deterioration. For these purposes the corresponding impairment loss shall be recorded.

(c) Where acquired stocks are integrated, as a cost, into fixed assets or investments, the rules of Article 33 shall apply.

3. Where, as a result of an internal transaction, an element of the fixed assets or investments is affected as stocks or assets in the state of sale, this change of affectation shall be included in the account of the economic result Consolidated assets in a specific item 'Assets transformed into stocks or assets in the state of sale', for the amount of the cost, net of the internal results.

Article 33. Elimination of results from internal operations of fixed assets or real estate investments.

1. Internal fixed assets or investment property transactions shall be considered to be all transactions in which an entity of the group buys such items from another group as well as from the group, irrespective of whether it is for the entity that it sells. fixed assets, real estate investments, stocks or assets in the state of sale.

2. The results produced in these operations shall be deferred, until the year in which they are carried out, in accordance with the following rules:

a) The amount to be deferred will be equal to the difference between the book value, and the sale price.

b) The result will be understood when:

b.1) The acquired asset is sold to third parties.

b.2) Another asset is entered into a third party, which has been incorporated as a cost for the amortization of the acquired asset.

b.3) In the event that the amortisation is not incorporated as the cost of an asset, the result shall be understood as a proportion of the depreciation, impairment or balance sheet of each financial year.

b.4) In the case of losses, the result shall also be deemed to be realised where there is a deterioration in the value of the book value of fixed assets or real estate investment and up to the limit of such impairment. For these purposes the corresponding impairment loss shall be recorded.

(c) Where the depreciation of the asset is incorporated into stocks or assets in the state of sale as a cost, the rules of Article 32 shall apply.

3. Where, as a result of an internal transaction, stocks or assets in the state of sale are affected as an element of fixed assets or investment, this change in affectation shall be included in the account of the economic result. Consolidated assets in the specific item 'Jobs made by the group for fixed assets', for the amount of the cost, net of the internal results.

Article 34. Removing results from internal service operations.

1. Internal service operations shall be considered as all services in which one entity in the group acquires services from another group as well as the financial group.

2. When purchased services are incorporated as the cost of an asset, the results produced in these operations shall be deferred until the year in which they are performed, in accordance with the following rules:

a) The amount to be deferred will be equal to the difference between the purchase price or production cost of the service and its sales price.

(b) The result shall be understood in accordance with the provisions of Articles 32 and 33.

In the case of losses, the result shall also be deemed to be realised where there is a deterioration in the value of the purchase price or the cost of production of the assets, possibly net of redemptions, and up to the limit of such deterioration. For these purposes the corresponding impairment loss shall be recorded.

(c) Where such services are incorporated as the cost of a fixed asset or investment property, the account of the consolidated economic result shall be recorded in a specific item " Jobs made by the group for its fixed assets ", for the amount of the cost, net of the internal results.

Article 35. Elimination of results by internal operations of financial assets.

1. Internal transactions in financial assets shall be considered as transactions in which one entity in the group acquires financial assets from another entity in the group.

2. The results produced in these operations shall be deferred, where appropriate until the year in which they are carried out, in accordance with the following rules:

a) The amount to be deferred will be equal to the difference between the book value and the sale price.

(b) The result shall be deemed to have been made when the said financial assets are sold to third parties.

Dealing with losses shall also be deemed to be realised where there is a deterioration in value in respect of the book value of assets and up to the limit of such impairment. For these purposes the corresponding impairment loss shall be recorded.

Article 36. Reclassification and elimination of results by application of adjustments for changes in value and recognition of net worth grants.

1. By way of derogation from the foregoing Articles, where the fair value of the assets subject to the internal transaction is applied in the consolidated accounts, the internal result shall be reclassified in the amount of the fair value variation, in the corresponding net worth item.

2. The results recorded by the acquired entities derived from transfers to the account of the wealth economic result from net worth accounts as a result of internal transactions shall be eliminated by the amounts of the Balance sheet items III "Adjustments for changes of value" and IV "Other outstanding property increases to be attributed to results" existing at the date of acquisition. Such results shall be considered to be integrated into the net worth of items from which they come, for the purposes of determining the excess or default of net worth provided for in Article 24 (1

.

Article 37. Acquisition of financial liabilities issued by the group to third parties.

1. For the exclusive purposes of the formulation of consolidated accounts, the acquisition of financial liabilities issued by group entities to third parties shall, where appropriate, be recorded as a result.

2. The result shall be determined by the difference between the accounting value of the liability on the date of acquisition and its purchase price.

3. The result determined in accordance with the preceding paragraphs shall be the consolidated financial income statement under the name 'Profit from transactions with financial liabilities of the group' or ' Losses by transactions with financial liabilities of the group, as appropriate.

4. Adjustments shall be eliminated, by application of fair value or by any other concept, recorded after the acquisition of these assets to third parties.

Article 38. Removal of internal dividends.

1. Internal dividends shall be considered as income for the year of an institution of the group that has been distributed by another entity belonging to the group.

2. These dividends will be eliminated by considering them reserves of the perceptive entity.

3. In the case of dividends to be paid, they shall be disposed of against the asset's representative assets in the entity that distributed them.

CHAPTER III

Method of proportional integration and put-on-equivalence procedure

Section 1. Proportional Integration Method

Article 39. Method definition.

1. The application of the proportional integration method consists of the incorporation into the consolidated annual accounts of the portion of assets, liabilities, expenses, income, cash flows and other items of the annual accounts of the multi-group entity corresponding to the percentage of the group's assets held by the group's institutions, without prejudice to prior homogenizations and the relevant adjustments and removals described in Chapter II above.

2. The accounts of the multi-group entity to be incorporated pursuant to the preceding paragraph shall be the consolidated annual accounts of that institution. In the event that those accounts are not made, under any of the reasons for waiver provided for in the consolidation rule, the individual annual accounts shall be taken.

Article 40. Applicable criteria.

To effect proportional integration, account shall be taken, with the necessary adaptations, of the rules set out in Articles 13 to 38 concerning the method of global integration, taking into account the following:

(a) The aggregation to the consolidated accounts of the various items in the annual accounts of the multi-group entity shall be carried out in the proportion representing the participation of the group's entities in the net worth of that.

(b) Credit and debt, income and expenditure, cash flows, budgetary revenue and budgetary expenditure and results from operations with multi-group entities shall be eliminated in the ratio specified in the letter previous. The differences that could not be eliminated shall be contained in separate items of the consolidated annual accounts.

(c) No item corresponding to external partners of the multi-group entity shall be shown in the consolidated accounts.

(d) In the event that non-cash contributions made by group entities in the multi-group entity have generated economic results, only the portion corresponding to the consolidated accounts shall be recognised in the consolidated accounts. assets held by the other members of the multi-group entity. These results must be removed by adjusting the value of the corresponding asset. The amount of any negative result shall be recognised where the transaction has shown a deterioration in the value of the assets transferred.

Section 2. First Equivalence Procedure or Participation Method

Article 41. Description of the procedure.

1. In accordance with the equivalence procedure, or the method of participation, the investment in an entity is initially recorded in the amount that the investment percentage of the group's entities represents on the net worth of the entity, and shall subsequently be increased or reduced to recognise the percentage of the investor in the profit or loss of the financial year and other increases or decreases directly attributable to the net worth obtained by the institution participated after the acquisition date.

2. Where an institution is subject to the procedure for the entry into equivalence of the accounts of that institution, for the purposes of applying the provisions of the following Articles, it shall, where appropriate, be its consolidated annual accounts. In the event that those accounts are not made, under any of the reasons for waiver provided for in the consolidation rule, the individual annual accounts shall be taken.

Article 42. Homogenization of information.

1. If the investee uses valuation criteria other than the group, the necessary adjustments shall be made, in advance of the entry into equivalence, in accordance with the terms of Article 15, where such differences result significant and provided that the necessary information can be made available.

2. The annual accounts of the participating entity shall relate to the same date as the consolidated annual accounts. For these purposes, Article 14 (2) shall apply. Paragraph 3 of that Article shall also apply provided that the necessary information can be obtained.

Article 43. First application of the equivalence procedure.

1. Where the equivalence procedure is applied for the first time, the participation in the institution shall be valued on the consolidated balance sheet for the amount that the investment rate of the group's entities represents on the equity net of the entity.

This amount shall be included in the non-current assets of the consolidated balance sheet under item 1. 'Equity holdings' under item IV 'Long-term financial investments in group, multi-group and associated entities'.

2. If the difference between the amount to which the holding was accounted for in the individual accounts and the value referred to in the preceding paragraph is positive, the goodwill shall be included in the value accounting of the investment in the item "Participations put in equivalence" and reported in the memory.

In the exceptional assumption that such a difference is negative, it will be recognised in the consolidated wealth economic income account as a positive result in item 25 " Negative difference in institution consolidation ".

3. The results generated by the institution in equivalence shall be recognised from the date on which the significant influence is acquired, the joint control in the case of multi-group entities or the control in the case of credit institutions or credit institutions. insurance.

Article 44. Subsequent consolidations.

1. The book value in the consolidated balance sheet of the holding in the institution shall be modified, increased or decreased, in the proportion corresponding to the entities in the group, by the changes in the entity's net worth participated from the initial valuation, after the proportion of the unrealised results generated in transactions between that entity and the group's entities has been eliminated, provided that they are significant and to the extent that it is possible obtain the necessary information for this.

2. The higher value, where applicable, attributed to the holding as a result of the provisions of Article 20, shall be reduced in subsequent years, from the consolidated results or to any other net equity item that corresponds to and which are depreciated, caused to be reduced or the corresponding property elements are to be entered into third parties. Similarly, consolidated results shall be carried out when losses are incurred due to the impairment of the previously recognised value of assets of the investee entity, with the limit of the capital gain assigned to them on the date First set to equivalence.

3. For each exercise after the first application of the procedure:

(a) The changes in the value of the share corresponding to the results of the participation of the investee shall form part of the consolidated results, including explicitly in the account of the economic result Consolidated assets, under item 23 'Participation in profit/loss of institutions placed in equivalence'.

(b) However, in the event that the participating entity incurs losses, the reduction of the representative account of the investment shall be limited to the own accounting value of the investment calculated on the basis of equivalence.

Once the value of the holding has been reduced to zero, the additional losses and the corresponding liability shall be recognised in so far as legal, contractual, implicit or tacit obligations have been incurred, or if the group of entities has made payments on behalf of the participating entity.

If the participating entity gains subsequent gains, they shall be recognized in consolidated annual accounts when they reach unrecognized losses.

The income and expenses of the participating entity that have been directly imputed to the equity shall be treated in an analogous manner to these.

(c) Changes in the value of the share corresponding to other changes in equity, whether by changes in the equity of the investee entity that the entity has not recognised in its profit or loss exercise, or reserves generated from results of previous years, shall be shown in the corresponding items or headings of the net worth, in accordance with their nature.

(d) The profit distributed by the participating entity shall reduce the accounting value of the participation in the consolidated balance sheet, considering reserves of the entity holding the holding. In the case of dividends on account, the accounting value of the holding shall be reduced from the results of the entity that received them.

Article 45. Modification of participation.

1. In a further acquisition of shares in the entity put into equivalence, the additional investment and the new goodwill or negative consolidation difference shall be determined in the same way as the first investment and in the percentages on the net worth corresponding to such investment. If, in relation to the same investee, a goodwill arises and a negative consolidation difference arises, the negative difference shall be reduced to the limit of the implicit trading fund, which shall cause the minoron of the participation put into equivalence.

2. In the case of a reduction in shares in the entity in which the significant influence is maintained, the representative consignment of the investment shall be valued by applying the rules laid down in the preceding Articles, for the amounts corresponding to the percentage of participation that is retained. The result of the transaction shall be adjusted for the imputations to consolidated results prior to the disposal of the following reasons:

a) The results obtained by the investee entity.

(b) The application of fair value to the assets of the entity involved at the date of first entry into equivalence.

(c) Fair value adjustments directly imputed to equity that correspond to the reduction in the share percentage.

3. Where a new acquisition of shares in the institution does not imply an increase in the percentage of participation, no further differences shall arise in respect of the first entry into equivalence, without any modification of the trade fund of the implicit consolidation of the net worth accounts with a specific denomination.

When a reduction in shares in the entity does not imply a reduction in the percentage of participation in the entity, the value of the representative item of the investment and the reserves in institutions set in equivalence in the amount obtained as a result of the reduction, eliminating the result which, if any, has been recorded by the investment entity.

4. If the increase or reduction of the percentage of participation without an additional investment or a disinvestment implies the modification of the value of the shares in the investee entity, the corresponding result shall be recognised in the Item 23 "Participation in profit/loss of institutions placed in equivalence" of the consolidated wealth economic income account.

Article 46. Impairment losses of the value.

1. Once the equivalence procedure has been applied and the losses of the investee entity have been recognised in accordance with Article 44, the investor shall apply in the consolidated accounts as laid down in the applicable rules, to determine whether additional impairment losses need to be recognised in respect of the net investment in the investee entity.

2. The analysis of the deterioration of the goodwill shall not be carried out separately, but on the basis of the provisions of the previous paragraph. Impairment losses shall not be assigned to any particular asset, including the consolidation trade fund, which is part of the book value of the investment in the investee. Therefore, the reversions of these impairment losses shall be recognised in accordance with the provisions of the applicable regulations.

CHAPTER IV

Consolidated Annual Accounts

Article 47. Documents integrating the consolidated annual accounts.

1. The consolidated annual accounts comprise the consolidated balance sheet, the consolidated wealth economic income account, the consolidated net worth changes status, the consolidated statement of cash flows, the state of settlement of the consolidated budget and consolidated memory.

2. These documents form a unit and must be clearly worded and show the true image of the heritage, the financial situation, the economic outcome, and the execution of the group's budget.

3. The systematic and regular application of the requirements of the information and accounting principles and criteria included in the conceptual framework of the General Plan of Public Accounting shall lead to the consolidated annual accounts showing that true image.

4. Where compliance with these requirements of the information and accounting principles and criteria is deemed not to be sufficient to show the above true image, the additional information required to be achieved shall be provided in the memory this objective.

5. In exceptional cases where such compliance is incompatible with the true and fair image to be provided by the consolidated annual accounts, that application shall be deemed to be inappropriate. In such cases, this circumstance will be sufficiently motivated in the consolidated memory, and its influence on the group's assets, financial situation and results will be explained.

Article 48. Formulation of the consolidated annual accounts.

1. The consolidated annual accounts shall be drawn up by the dominant entity and shall relate to the financial year.

2. The balance sheet, the economic income statement, the state of changes in equity, the statement of cash flows, the state of settlement of the budget and the consolidated memory shall be identified; clear and in each of these documents their name, the group to which they correspond and the exercise to which they relate.

3. The consolidated annual accounts shall be drawn up by expressing their values in euro; however, the values may be expressed in thousands or millions of euro when the size of the figures so advises, and this shall be indicated in the consolidated annual accounts.

Article 49. Structure of the consolidated annual accounts.

The structure of the consolidated annual accounts shall be adjusted as set out in the Annex to this Standard.

Article 50. Rules common to the balance sheet, the wealth economic result account, the state of changes in equity and the statement of consolidated cash flows.

Without prejudice to the provisions of the individual rules of each of the states that make up the consolidated annual accounts, the balance sheet, the economic income statement, the state of changes in the net worth, and the status of consolidated cash flows shall be made taking into account the following rules:

1. In addition to the figures for the financial year which are closed for the preceding financial year, each item shall be included, except in the first part of the statement of changes in net worth. However, for the first financial year, consolidated accounts may be omitted from the figures for the preceding financial year.

For these purposes, where the figures for the current financial year are not comparable with those of the previous financial year, either because there has been a change in the structure of the accounts or a change in the criterion (a) accounting or error of error or because an administrative reorganisation has occurred, the amounts of the preceding financial year shall be adjusted for the purposes of its presentation in the financial year to which the annual accounts relate consolidated, reporting on memory.

When the composition of the entities included in the consolidation would have varied considerably in the course of an exercise, the information needed to compare successive states should be included in the report. financial shows the major changes that have taken place between exercises.

2. The items to which no amount corresponding in the financial year or in the preceding year are not included.

3. The structure of an exercise shall not be modified unless exceptional cases are indicated in the memory.

4. New items may be added to those provided for in the model provided that their content is not provided for in the existing ones.

5. A more detailed subdivision of the items appearing in the model may be made.

6. Items preceded by Arabic numbers in the balance sheet, in the statement of changes in net worth and in the statement of cash flows, or of letters in the account of the economic result, may be grouped together if they represent only an amount irrelevant to show the true image or if clarity is favored.

7. Where appropriate, each consignment shall contain a cross-reference to the relevant information within the memory.

Article 51. Consolidated balance sheet.

1. The consolidated balance sheet shall comprise the appropriate separation, the assets and liabilities of the dominant entity and of the entities to which the method of global integration applies, without prejudice to the adjustments and removals that they carry out, as well as the a net worth that shall include separate separate part of the part corresponding to partners outside the group.

2. In addition, the consolidated balance sheet shall include the assets and liabilities of the entities to which the method of proportional integration applies to them, in the percentage representing the group's share in its share capital or equity and without damage to the settings and removals that proceed.

3. Item III of the non-current asset "Real estate investments" includes ongoing real estate investments and advances.

4. Item VI of the non-current asset "Deferred tax assets" and item IV of the non-current liability "Deferred tax liabilities" shall be determined in accordance with the rules of the General Accounting Plan.

5. The consolidated balance sheet shall also include specific items resulting from the application of the various consolidation methods and procedures.

6. Claims and debts owed to institutions included in the consolidation by the equivalence or proportional integration procedure in the non-eliminated party shall be shown separately in the relevant asset or liability headings.

7. Claims and debts with group, multi-group and associated entities not included in the consolidation perimeter shall be reported separately in the relevant asset or liability headings.

8. The consolidated balance sheet shall be made in the light of the rules for drawing up the balance sheet of the General Public Accounting Plan, without prejudice to the provisions of the preceding paragraphs.

Article 52. Consolidated wealth economic income account

1. This account includes the consolidated economic income obtained in the financial year and consists of the income and expenses of the parent entity and the entities to which the method of global integration applies, except where proceeds directly to the net worth in accordance with the rules for the recognition and valuation of the General Plan of Public Accounting, without prejudice to the adjustments and eliminations that come, and the economic result consolidated assets, with distinction of the share attributed to the dominant entity and to the external partners to the group.

In addition, the income and expenses of the entities to which the method of proportional integration applies, in the percentage that represents the participation, shall be integrated into the account of the consolidated economic income. of the group in its assets, except where appropriate direct imputation to the net worth in accordance with the rules of recognition and valuation of the General Plan of Public Accounting, and without prejudice to adjustments and removals that they proceed.

2. The corporation tax shall, where appropriate, be included in item 11 'Other ordinary management costs'.

3. Item 15 'Result of loss of control of consolidated holdings' shall be determined in accordance with the rules for the formulation of consolidated annual accounts approved by Royal Decree 1159/2010 of 17 September 2010.

4. Item 16 'Negative difference of consolidation in consolidated entities' shall be determined in accordance with the rules for the formulation of consolidated annual accounts approved by Royal Decree 1159/2010 of 17 September 2010 and shall include the difference negative in business combinations.

5. Items 23 'Participation in profit (loss) of institutions placed in equivalence', 24 'Impairment and result by loss of significant influence of holdings placed in equivalence or joint control of a multi-group entity' and 25 "Negative difference of consolidation of entities placed in equivalence" shall be determined in accordance with the Regulations for the formulation of consolidated annual accounts approved by Royal Decree 1159/2010 of 17 September 2010.

6. Item IV 'Result of the financial year from which a net tax break' refers exclusively to entities applying the General Accounting Plan and shall be determined in accordance with the rules laid down therein.

7. Specific items arising from the application of the various consolidation methods and procedures shall also be included in the consolidated wealth economic result account.

8. Revenue and expenditure arising from transactions with entities included in the consolidation by the procedure for the implementation of equivalence or by the proportional integration procedure in the non-eliminated party shall be shown separately in the corresponding headings of revenue or expenditure.

9. Revenue and expenditure arising from transactions with group, multi-group and associated entities not included in the consolidation perimeter shall be reported separately in the relevant revenue and expenditure headings.

10. The consolidated economic income statement shall be made in the light of the rules for drawing up the account of the economic outcome of the General Plan of Public Accounting, without prejudice to the set in the preceding sections.

Article 53. Status of changes in consolidated net worth.

The status of changes in consolidated net worth has two parts:

− Total Status of Consolidated Net Worth Changes

− Consolidated recognized revenue and expense status.

1. In the first part 'Total State of Changes in Consolidated Net Worth', all changes in net worth shall be reported by distinguishing:

a) Net worth adjustments due to changes in accounting criteria and error corrections.

(b) The consolidated revenue and expenditure recognised in the financial year.

c) Operations with the owning entity or entities, in which they act as such.

d) Other variations that occur in net worth.

2. In the second part 'Statement of consolidated income and expenses', changes in net worth shall be collected from:

I) The consolidated economic result of the financial year.

(II) The revenue and expenditure of the dominant entity and of the entities to which the method of global integration applies where appropriate direct imputation to the net worth in accordance with the provisions of the recognition and assessment of the General Public Accounting Plan, without prejudice to any adjustments and removals that may arise.

The revenue and expenditure of the entities to which the method of proportional integration applies to them, in the percentage representing the group's participation in their equity, where appropriate, their direct allocation to equity in accordance with the rules for the recognition and assessment of the General Public Accounting Plan, without prejudice to the adjustments and removals that may be made.

Items 5 "For actuarial gains and losses and other adjustments", 6 "Conversion differences" and 7 "Tax effect" refer only to entities that apply the General Accounting Plan and will be determined in accordance with the rules provided for therein.

III) Transfers to the account of the economic income, or to the initial value of the item covered, of income and expenses recognised directly in the equity.

Items 5 "Conversion Differences" and 6 "Tax Effect" refer only to entities that apply the General Accounting Plan and will be determined in accordance with the rules laid down therein.

The status of changes in consolidated net worth should be made taking into account the rules for the development of the state of changes in the net worth of the General Plan of Public Accounting, without prejudice to the provisions set out in the preceding paragraphs.

Article 54. Consolidated cash flow status.

1. The consolidated cash flow statement reports on the origin and destination of the movements in the representative cash items and other equivalent liquid assets, classifying the movements by activities and indicating the net variation of that magnitude in the financial year.

The consolidated cash flow statement shall be drawn up in accordance with the model included in the Annex to this Standard.

However, if the dominant entity does not have the information necessary to prepare it, it may present the information relating to the flows of management activities by differentiating those that correspond to entities subject to public accounting principles and those corresponding to the other entities. In this case, the information on charges and payments of entities subject to public accounting principles shall be offered at the level of disaggregation provided for in the model included in the Annex to this Standard.

2. The consolidated statement of cash flows shall include due separation, charges and payments from the parent entity and the integrated entities as a whole, without prejudice to any adjustments and removals that may be made.

3. In addition, the amounts and payments of the entities to which the proportional integration method applies shall be integrated into the consolidated statement of cash flows, in the percentage that represents the group's participation in its equity, without prejudice to of the settings and removals that proceed.

4. The classification of cash flows by activities shall be made in the group as a unit, so the cash flows by transactions between entities in the consolidated set shall be eliminated, as appropriate.

5. The consolidated statement of cash flows shall be made taking into account the rules for drawing up the cash flows of the General Plan of Public Accounting, without prejudice to the provisions of paragraphs 1 and 2. above.

Article 55. Statement of liquidation of the consolidated budget.

The State of Settlement of the Consolidated Budget, comprising, with due separation, the consolidated settlement of the Budget of expenditure and the revenue budget, as well as the consolidated budgetary outcome of the entities in the group that have a limiting budget.

Article 56. Consolidated memory.

Full consolidated memory, extends and comments on the information contained in the other documents that make up the consolidated annual accounts. It will be formulated taking into account that:

1. The consolidated memory model collects the minimum information to be completed; however, in those cases where the information requested is not significant, the notes corresponding to it will not be completed. If, as a result of the above, certain notes are not content and are therefore not completed, it shall be maintained for those notes which, if they contain content, shall be numbered in the consolidated memory model and shall be incorporated in the consolidated memory model. consolidated memory a relationship of those notes that do not have content.

2. Any other information not included in the consolidated memory model that is necessary to enable knowledge of the situation and activity of the group in the financial year shall be indicated, facilitating the understanding of the annual accounts. consolidated presentation, in order to ensure that they reflect the true image of the assets, the financial situation, the economic outcome and the liquidation of the group's budget.

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Consolidated memory

Consolidated memory content

1. Entities in the group.

2. Multigroup and associated entities.

3. Information for the entity subgroups.

4. Basis for the presentation of consolidated annual accounts.

5. Standards for recognition and assessment.

6. Adjustments and removals.

7. Business combinations and business restructuring operations.

8. Consolidation Trading Fund.

9. Negative consolidation difference.

10. External partners.

11. Modifications to the percentage of participation in entities in the group.

12. Items for multi-group entities.

13. Units in entities placed in equivalence.

14. Tangible fixed assets.

15. Real estate investments.

16. Intangible fixed assets.

17. Financial assets.

18. Financial liabilities.

19. Net worth.

20. Provisions and contingencies.

21. Budgetary information.

22. Other information affecting the consolidated annual accounts.

23. Financial and heritage indicators.

24. Post-closure events.

1. Entities in the group

1.1 Dominant entity.

Identification.

1.2 Dependent Entities.

a) Entities to integrate into consolidation.

− Identification of dependent entities to integrate into consolidation.

Such entities shall be grouped according to the procedure for which they have been integrated, in accordance with their legal nature and their organic classification.

Where appropriate, the opinion expressed by the auditor shall be reported in the relevant audit report of each of the accounts integrated into the consolidation.

− Economic exercise and closing date of the year of the annual accounts, if they relate to a date or an exercise that differs from those applied in the consolidation.

− Supposed of those provided for in Article 2 of these consolidation rules by which each entity has been included in the group

− Percentage of direct or indirect participation of the entities in the group in the entities in which a 100% holding is not held, specifying the entity holding the holding.

− Identification of dependent entities classified as held for sale.

b) Entities to exclude from consolidation.

− Identification of dependent entities that are excluded from the consolidation perimeter, ordered according to the causes of exclusion provided for in Article 8 of these consolidation rules, and within each According to their legal form and organic classification.

− Percentage of direct or indirect participation of the entities in the group in the entities in which a 100% holding is not held, specifying the entity holding the holding.

− Net worth of the last known financial year, pointing out amounts corresponding to capital or equity, reserves and results.

1.3 Relative Importance of Group Entities.

The representative magnitude of such relative importance is considered to be:

− In public sector entities performing administrative activities:

• if your expense budget is limited; the total amount of the net recognized obligations,

• if your expense budget has an estimate; the total amount of creditors recognized by operations derived from the activity.

− In public sector entities performing business activities; the amount of operating expenses for the financial year.

− In public sector foundations; the amount of the exercise expenses derived from both the activity itself and the business activity.

2. Multigroup and associated entities

a) Entities to integrate into consolidation

− Identification of multi-group and associated entities to integrate into consolidation.

− Percentage of direct or indirect participation of the group's entities in the multigroup and associated entities, specifying the holding entity.

− Supposed to determine your configuration as a multigroup or associated entity.

Multigroup entities

Reports about:

− Method or procedure of applied consolidation, and justification for use.

− Economic exercise and closing date of the year of the annual accounts of a multi-group entity, if they relate to a date or an exercise that differs from those applied in the consolidation.

− Where appropriate, the opinion expressed by the auditor shall be reported in the relevant audit report of each of the accounts of the multi-group entities.

− Identification of multi-group entities classified as held for sale.

Associated Entities

Reports about:

− Reasons for which the presumption that there is no significant influence has been avoided if the investment entity holds, directly or indirectly, less than 20 percent of the actual and potential voting rights in the (a) where the investment entity has reached the conclusion that it exercises such influence.

− Reasons for which the presumption that significant influence has been avoided if the investment entity holds, directly or indirectly, 20 percent or more of the actual and potential voting rights in the investee, where the investment entity has concluded that it does not exercise such influence.

− Economic exercise and closing date of the year of the annual accounts of an associate, if they relate to a date or an exercise that differs from those applied in the consolidation.

− Where appropriate, the opinion expressed by the auditor shall be reported in the relevant audit report of each of the accounts of the associated entities.

− Identification of associated entities classified as held for sale.

b) Entities to exclude from consolidation

− Identification of multi-group or associated entities that are excluded from the consolidation perimeter, ordered according to the causes of exclusion provided for in Article 8 of these consolidation rules, and within each one of them, according to their legal form and organic classification.

3. Entity subgroup information

When an entity in the group is itself a parent of other entities, the structure of that subgroup shall be reported by identifying the different entities that are part of it.

4. Basis for the presentation of consolidated annual accounts

1. True image:

(a) The dominant entity must make an explicit statement that the consolidated annual accounts reflect the true and fair view of the assets, the financial situation, the economic outcome and the execution of the group budget.

(b) Information requirements, public accounting principles and accounting criteria not applied for interfering with the objective of the faithful image and, where applicable, impact on consolidated annual accounts.

c) Principles, applied accounting criteria, and supplemental information needed to achieve the target of true image and location of memory.

2. Comparison of information:

(a) Exceptional reasons justifying the modification of the structure of the consolidated annual accounts.

b) Explanation of the causes that prevent the comparison of the consolidated annual accounts of the financial year with those of the previous year.

c) Explanation of the adaptation of the amounts of the preceding year to facilitate the comparison and, if not, the impossibility of making this adaptation.

3. Reasons and impact on the consolidated annual accounts of changes in accounting and error correction criteria.

4. Information about changes in accounting estimates when they are significant.

5. Operations between consolidation perimeter entities

Significant transactions between entities in the consolidation perimeter shall be reported, where the accounting year of one of them is completed on a date that does not differ in more than three months of the date closing the consolidated accounts.

Significant transactions between consolidation perimeter entities that have caused adjustments to the consolidated accounts of the previous financial year shall also be reported.

5. Standards for recognition and assessment

The accounting criteria applied for the following items shall be indicated:

1. Goodwill and negative consolidation difference; indicating the criteria applied in the elimination of investment-net worth and in the calculation of the deterioration of the consolidation trade fund.

In particular, the criteria used to recognise and assess the assets and liabilities of the dependent entities included in the consolidation shall be reported.

2. Transactions between entities included in the consolidation perimeter; indicating the criteria applied in the elimination of intra-group items and results from internal transactions.

3. Tangible fixed assets, indicating depreciation criteria, valuation corrections for deterioration and reversal of depreciation, capitalisation of financial expenses, enlargement costs, modernisation and improvements, costs of major repair or general inspection, costs of decommissioning of the asset and restoration of its site, and the criteria for determining the cost of the work carried out by the institution for its fixed assets.

The subsequent valuation model used for each class of fixed assets shall be indicated, either the cost or the revaluation.

4. Real estate investments; pointing out the criterion for qualifying land and buildings as real estate investments, specifying for these the criteria mentioned in the previous section.

5. Intangible fixed assets; indicating the criteria used for capitalisation or activation, amortisation and valuation corrections for impairment.

Justification of the circumstances that have led to the indefinite qualification of the useful life of an intangible fixed asset.

The subsequent valuation criterion used for each class of fixed assets shall be indicated, either the cost or the revaluation criterion.

6. Leases; indicating the criteria for accounting for leasing contracts and other similar operations.

7. Permutas; indicating the criterion followed and the justification for their application, in particular the circumstances which led to the consideration of a permuse as non-similar assets from a functional or useful life point of view.

8. Financial assets and liabilities; indicating:

− Criteria used for the rating and valuation of different categories of financial assets and financial liabilities, as well as for the recognition of fair value changes.

− For financial assets:

● Nature of the initially classified as at fair value with changes in the account of the economic outcome, as well as the criteria applied in that classification and an explanation of how the entity has fulfilled the requirements set out in the standard of registration and valuation relating to financial assets.

● Criteria applied to determine the existence of objective evidence of impairment, as well as of record of the correction of value and its reversal and the definitive discharge of impaired financial assets. In particular, the criteria used to calculate the valuation corrections of debtors for management operations and other receivables shall be highlighted. The accounting criteria applied to financial assets whose conditions have been renegotiated and which otherwise would be due or impaired shall also be indicated.

− Criteria used for the registration of financial assets and financial liabilities.

− Financial collateral contracts; indicating the criterion followed both in the initial and subsequent valuation, as well as, where applicable, for the provision of provisions by guarantees classified as doubtful.

− Investments in Group, Multigroup and Associated Entities: The applied criteria for recording impairment valuation corrections will be reported.

− Criteria used in determining income or expenses from different categories of financial instruments: interest, premiums or discounts, dividends, etc.

9. Accounting hedges; indicating the valuation criteria of the hedging instrument and the cover item, distinguishing between hedges of recognised assets or liabilities, firm commitments and expected transactions, as well as the criteria of assessment applied for the recording of the coverage interruption.

10. Stocks; indicating the valuation criteria and, in particular, those followed by value adjustments.

11. Assets constructed or acquired for other entities; indicating the criteria for the recognition of revenue and expenditure arising from the contract or construction agreement or acquisition, and where applicable, the method used to determine the degree of progress or realization, and it will be reported if the method could not have been applied.

12. Transactions in foreign currency; indicating the criteria for the valuation of balances in currency other than the euro, and the procedure used to calculate the euro exchange rate of assets which, at present or at their origin, have been expressed in currency other than the euro.

13. Profit tax of consolidation perimeter entities subject to the General Accounting Plan; indicating the criteria used for the registration and valuation of assets and liabilities for deferred tax, in accordance with the rules provided for in that Plan.

14. Revenue and expenditure; indicating the general criteria applied.

15. Provisions and contingencies; indicating the criterion of valuation as well as, where appropriate, the treatment of compensation to be received from a third party. In particular, in relation to provisions, a description of the methods of estimation and calculation of each of the risks shall be carried out.

16. Transfers and grants; indicating the criteria used for their classification and, where appropriate, their imputation to results.

17. Joint activities; indicating the criteria followed by the institution to integrate the balances corresponding to the joint activity in which it participates in its annual accounts.

18. Assets in the sales state: the following criteria shall be indicated for qualifying and valuing such assets.

19. Interrupted operations, criteria for identifying and classifying an activity as interrupted, as well as the revenue and expenses it originates.

6. Adjustments and removals

The recognized settings and removals among the different entities in the group by entity groups will be reported.

In addition, it will be reported at this point in the endorsements and guarantees between entities in the group as long as they are significant.

7. Business combinations and business restructuring operations

For each of the business combinations and business restructuring operations recognized in the individual accounts of the consolidated entities by the global or proportional integration method subject to the Plan Accounting General taking place during the year, the following information will be provided:

a) Name and description of the acquired entity or entities.

b) Date of acquisition.

c) Legal form used to perform the combination.

d) Main reasons that have motivated the business mix or the business restructuring, as well as a qualitative description of the factors that result in the recognition of the goodwill, such as synergies expected from the combination of the acquired and the acquirer, intangible assets that do not meet the conditions for recognition separately or other factors.

e) Criteria for the valuation of the assets that are the subject of the business combination when the book value has not been applied.

8. Consolidation Trading Fund

1. Analysis of the movement of this item, indicating

− Initial Balance

− Additions

− Reductions

− Amortization

− End Balance

Operations that have caused significant additions and reductions should be synthetically described.

2. Breakdown of the final balance according to the holdings that have generated the consolidation goodwill.

9. Consolidation negative difference

1. Analysis of the composition of the following items of the consolidated wealth income account: 16 "Negative difference in consolidation of consolidated entities" and 25 " Negative difference in consolidation of institutions set in equivalence '. The reasons why the transaction has resulted in the balance of these items should be described when they are significant.

2. Breakdown of the final balance according to the shareholdings that have generated the negative consolidation differences.

10. External partners

The following information will be displayed:

1. Breakdown of this heading indicating for each dependent entity:

a) The movement in the exercise and the causes that have caused it.

b) The composition of the balance at the end of the financial year, differentiating between its share in the generated equity, adjustments for changes in value and other outstanding increases in the allocation of results.

2. If the acquisition of the dependent entity condition has taken place during the financial year, the amount of the external partners in the acquired entity recognised at the date of acquisition shall be reported.

3. Participation of external partners in the trade fund accounted for in the consolidated annual accounts.

11. Changes to the percentage of participation in entities in the group

The effects on equity attributable to the dominant entity of those changes in the holding of a parent's ownership of a subsidiary that do not lead to loss of control shall be reported. In particular, for each significant operation the following information will be displayed:

a) Variation in reservations.

b) Variation in the headings III. Adjustments for changes in value, and IV. Other net worth increases outstanding from imputation to results.

c) Where appropriate, goodwill attributed to minority partners.

12. Items for multi-group entities

For each significant item on the balance sheet and on the consolidated financial result account, the amounts corresponding to the multi-group entities shall be broken down. This information will be included in aggregate for all multigroup entities.

13. Holdings in institutions placed in equivalence

The following information will be displayed:

1. Breakdown of this item by entities placed in equivalence, indicating the movement of the exercise and the causes that have originated it.

2. Summary financial information of institutions, where the cumulative amount of assets, liabilities, ordinary income and profit or loss of the financial year shall be included.

3. Result of the exercise of the entities placed in equivalence corresponding to the investment entity. The accounting shall be reported in the account of the economic income and of which it appears directly in the equity.

14. Tangible fixed assets

Analysis of movement during the exercise of each balance sheet item included in this item and its corresponding cumulative write-downs and cumulative value adjustments, indicating the following:

a) Initial save.

b) Entries.

c) Augments by transfers from other items.

d) Outputs.

e) Decreases by transfers to other items.

f) Net valuation corrections for exercise impairment (endowments minus reversions).

g) Exercise Amorizations.

h) End Balance

15. Real estate investments

The information required in the previous note will be provided.

16. Intangible fixed assets

The information required in the previous note will be provided.

17. Financial assets

For financial assets, with the exception of credit for transactions arising from the usual activity and the designated derivatives instruments, the following information shall be provided:

(a) A summary statement of the reconciliation between the balance sheet financial asset classification and the categories that are set out in the recognition and valuation standard n. 8 "Financial assets" of the PGCP, agreement with the following structure:

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