ACCIONA, S.A. AND SUBSIDIARIES (Consolidated Group ...

The financial statements of jointly controlled entities are proportionately consolidated with
those of the Parent and, therefore, the aggregation of balances and subsequent eliminations are
only made in proportion to the Group's ownership interest in the capital of these entities.
The assets and liabilities relating to jointly controlled operations and the Group's share of the
jointly controlled assets are recognised in the consolidated balance sheet classified according
to their specific nature. Similarly, the Group's share of the income and expenses of joint
ventures is recognised in the consolidated income statement on the basis of the nature of the
related items.
f. Equity method
In the consolidated financial statements, investments in associates are accounted for using the
equity method, i.e. at the Group's share of net assets of the investee, after taking into account
the dividends received therefrom and other equity eliminations.
The value of these investments in the consolidated balance sheet includes, where applicable,
the goodwill arising on the acquisition thereof.
When the Group's investments in associates are reduced to zero, any additional implicit
obligations at the subsidiaries that are accounted for using the equity method are recognised
under "Long-Term Provisions" in the consolidated balance sheet.
In order to present results uniformly the Group's share of the profit or loss before and after tax
of associates is disclosed in the consolidated income statement.
g. Translation differences
On consolidation, the assets and liabilities of the Group's foreign operations with a functional
currency other than the euro are translated to euros at the exchange rates prevailing on the
balance sheet date. Income and expense items are translated at the average exchange rates for
the year, unless exchange rates fluctuate significantly. Capital and reserves are translated at the
historical exchange rates. Any translation differences arising are classified as equity. Such
translation differences are recognised as income or as expenses in the year in which the
operation is disposed of.
h. Changes in the scope of consolidation
In 2011 the main exclusions from, and reductions in, the scope of consolidation relate to the
sale of the toll road concession operators in Chile, the car park concession operators and a
shopping centre in Cornellá, which were all classified as assets held for sale at 31 December
2010 (see Note 24). Also, in 2011 the Group sold 15% of Acciona Termosolar, S.L., although
control over this subsidiary was retained after the sale.
In 2010 there were no significant changes in the scope of consolidation. Appendix IV includes
the changes in the scope of consolidation in 2011 and 2010.
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