3.5 Basis of consolidation.
Pursuant to section 249(1) Austrian Business Code, Gemeinnützige Wohnungs- und Siedlungsgesellschaft der Wiener Stadtwerke GmbH is not included in the scope of consolidation. One company that reports in a foreign currency has been included in the consolidated financial statements since 2012, from which time foreign currency translation has been carried out. A breakdown of holdings in Group companies is available at the parent company’s registered office.
2. CHANGES IN CONSOLIDATION DURING THE REPORTING PERIOD
There were no changes in consolidation during the period under review. Acquisitions and disposals of interests only took place in connection with retrospective mergers of entities into consolidated companies with effect from 1 January 2018, and with the merger of a non-consolidated company into a consolidated one. Acquisition of the remaining shares in the TownTown Tiefgaragen companies and merger into Wipark In 2018, Wipark Garagen GmbH acquired a 56% stake in both TownTown Tiefgaragen GmbH and TownTown Tiefgaragen GmbH & Co KG, which were then merged into Wipark Garagen GmbH with retrospective effect from 1 January 2018. Merger of WIENCOM into WienIT WIENCOM Werbeberatungs GmbH, a non-consolidated subsidiary, was merged into WienIT GmbH during the reporting period. Acquisition of Öko Kraftwerk Water I and merger into Wien Energie In 2018 Wien Energie GmbH acquired Öko Kraftwerk Water I GmbH; the company was merged into Wien Energie GmbH during the year.
Previously, the book value method was applied to capital consolidation, but since 1 January 2016 only the purchase method may be used. Up to and including the 2008 financial year, differences between the value of the investment and the share of equity in a subsidiary were offset in Group reserves. The amount was offset on initial consolidation of the subsidiary in the consolidated financial statements. The interests in the subsidiary’s equity not attributable to the Group were recognised under the balancing item for non-controlling interests. After 2008, positive consolidation differences were recognised as goodwill, and negative differences offset in Group reserves. Pursuant to section 261(2) Austrian Business Code, negative consolidation differences that relate to a realised profit as at the reporting date are now reversed through profit or loss. A direct adjustment in reserves is no longer possible. Elimination of intra-Group liabilities involves the offsetting of concessions, prepayments, loans, trade receivables, other receivables and accrued and deferred assets against the corresponding liabilities and provisions. Elimination of intra-Group income and expenses on consolidation is carried out between the companies included in consolidation in accordance with section 257(1) Austrian Business Code. In the case of assets produced in the Group, the attributable revenue is reclassified as own work capitalised, provided that it relates to own work. Otherwise, the original expenses are reduced. Intra-Group profits are eliminated in profit or loss, subject to the principle of materiality. Elimination of intra-Group profits is not carried out in relation to companies accounted for using the equity method, since the impact on the overall picture of intra-Group relationships is not material. For companies accounted for using the equity method and proportionately consolidated companies, differences arising on capital consolidation are offset according to the same principles as for fully consolidated companies. Where possible and not immaterial, valuation is adjusted in line with the Group’s uniform valuation policies. To a certain degree, approximate calculations and assumptions must be made when preparing the consolidated financial statements, which influence the assets and liabilities recognised, other obligations as at the reporting date, and income and expenses during the reporting period. The actual amounts arising in the future may deviate from these estimates.