Annual Report 2023

95 ANNUAL REPORT 2023 2. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) 2.2 Consolidation The consolidated financial statements include the financial statements of the Company and all its subsidiaries as at 31 December. (i) Subsidiaries Control is achieved when the Company: ‧ has power over the investee; ‧ is exposed, or has rights, to variable returns from its investment with the investee; and ‧ has the ability to use its power to affect the returns of the investee. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it the power, including: ‧ the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; ‧ potential voting rights held by the Company, other vote holders or other parties; ‧ rights arising from other contractual arrangements; and ‧ any additional facts and circumstances that indicate the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.