Moncler Group | Annual Report 2024 Consolidated Financial Statements 350 |
2. Summary of material accounting principles
used in the preparation of the Consolidated
Financial Statements
The accounting principles set out below have been applied
consistently for f iscal year 2024 and the prior year.
2.1 Basis of consolidation
The Consolidated Financial Statements comprise those
o
f the Parent Company and its subsidiaries, of which the Parent
owns, directly or indirectly, a majority of the voting rights
and over which it exercises control, or from which it is able
to benef it by virtue of its power to govern the subsidiaries’
f inancial and operating policies.
The f inancial results of the subsidiaries are prepared
for the same reporting period as the Parent Company,
using consistent accounting policies.
Subsidiaries are consolidated from the date on which
c
ontrol is transferred to the Group and cease to be consolidated
from the date on which control is transferred out of the Group.
Wher
e the Group loses control of a subsidiary, the Consolidated
Financial Statements include the results for the portion
of the reporting period during which the Parent Company
had control. In the Consolidated Financial Statements,
non-controlling interests are presented separately within
equity and in the statement of income. Changes in the parent’s
ownership interest, that do not result in a loss of control
or changes that represent acquisition of non-controlling
interests after the control has been obtained, are accounted
for as changes in equity.
In preparing the Consolidated Financial Statements,
the ef fects, the balances as well as the unrealized prof it
or loss recognised in assets resulting from intra-group
transactions are fully eliminated.
Investments in associates
Investments in associates are accounted for using the equity
method whereas the initial recognition is stated at acquisition
cost and adjusted thereafter for the post-acquisition change
in the investor’s share of net assets. On acquisition
of the investment any dif ference between the cost of the investment
and the investors share of the net fair value of the associates
assets and liabilities is included in the carrying amount
of the investment If the investors share of losses of the associate
equals or exceeds its interest in the associate the investors
interest is reduced to zero and additional losses are provided
for and a liability is recognised to the extent that the investor has
incurred a legal obligation or has the intention to make payments
on behalf of the associate
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