(4.) Basis of consolidation
The consolidated financial statements include WILO SE and all significant companies that WILO SE controls directly or indirectly. WILO SE controls an entity when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control is achieved until it ends and fully consolidated in accordance with IFRS 10.
In addition to WILO SE, the consolidated financial statements as at 31 December 2016 include eight (previous year: seven) German entities and 56 (previous year: 55) foreign subsidiaries. In addition, one associate (previous year: one) and one joint venture (previous year: one) are included in the consolidated financial statements using the equity method.
One German subsidiary, which was acquired in March 2016, and one foreign subsidiary, which was immaterial in the previous year, were consolidated for the first time. A list of all of WILO SE’s direct and indirect shareholdings can be found in the annex to the notes to the consolidated financial statements.
ACQUISITIONS In March 2016, WILO SE acquired 100 percent of the shares in GVA Gesellschaft für Verfahren der Abwassertechnik mbH & Co. KG. The company specialises in the development, design and production of system technologies and components for biological wastewater treatment. The acquisition expands the Wilo Group’s existing areas of application in wastewater treatment on national and international markets. The company is not material for the consolidated financial statements.