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Notes to the Consolidated Financial Statements31 December 2024ESR Group Limited Annual Report 2024135STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTS2.1BASIS OF PREPARATION (continued)Basis of consolidation (continued)Profit or loss and each component of other comprehensive income are attributed to the owners of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.The Group re-assesses 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 described above. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, any non-controlling interest and the exchange fluctuation reserve; and recognises the fair value of any investment retained and any resulting surplus or deficit in profit or loss. The Group%u2019s share of components previously recognised in other comprehensive income is reclassified to profit or loss or retained profits, as appropriate, on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.2.2CHANGES IN ACCOUNTING POLICIES AND DISCLOSURESThe Group has adopted the following revised IFRS Accounting Standards for the first time for the current year%u2019s financial statements.Amendments to IFRS 16Lease Liability in a Sale and LeasebackAmendments to IAS 1Classification of Liabilities as Current or Non-current (the %u201c2020 Amendments%u201d)Amendments to IAS 1Non-current Liabilities with Covenants(the %u201c2022 Amendments%u201d)AmendmentstoIAS7andIFRS7Supplier Finance ArrangementsThe nature and the impact of the revised IFRS Accounting Standards are described belo(a)Amendments to IFRS 16 specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains. Since the Group has no sale and leaseback transactions with variable lease payments that do not depend on an index or a rate occurring from the date of initial application of IFRS 16, the amendments did not have any impact on the financial position or performance of the Group.