Half-yearly financial Report at June 30, 2013 - A2A

Half-yearly financial report at June 30, 2013Consolidation policies andproceduresConsolidation policiesSubsidiariesThe consolidation scope of the A2A Group comprises the parent A2A S.p.A. and the companiesover which it exercises direct or indirect control, including the case when the holding is less than50%.. Subsidiaries are consolidated from the date on which the Group effectively acquirescontrol and cease to be consolidated on a line-by-line basis from the date on which control istransferred to a company outside the Group.59Associates and joint venturesInvestments in associates, namely those in which the A2A Group has a considerable interestand is able to exercise significant influence, and those over which A2A has joint controltogether with other entities (joint ventures) are accounted for using the equity method. Gainsand losses attributable to the Group are recognized in the financial statements from the dateon which significant influence or joint control commences.In the event that the loss attributable to the Group exceeds the carrying amount of aninvestment, the carrying amount is reduced to zero and any excess loss is provided for to theextent that the Group has legal or constructive obligations to make good the associate’s lossesor, in any case, to make payments on its behalf.Potential voting rightsIf the A2A Group holds call options on shares or other equity instruments that representcapital (warrants) that are convertible into ordinary shares or similar instruments having thepotential, if exercised or converted, to give the Group voting rights or reduce the voting rightsof third parties (“potential voting rights”), such potential voting rights are taken intoconsideration when assessing whether or not the Group has the power to govern or influenceanother company's financial and operating policies.