Notes to the Consolidated Financial Statements continued ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements (g) Basis of Consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 30 June 2026. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement(s) with the other vote holders of the investee • Rights arising from other contractual arrangements • The Group’s voting rights and potential voting rights 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. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of OCI are attributed to the equity holders 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. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. 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. 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, non-controlling interest and other components of equity, whilst any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value. Joint Arrangements The Group determines the classification of a joint arrangement, as either a joint operation or a joint venture, based on the Group's rights and obligations arising from the arrangement. For joint operations, the Group recognises its share of the assets, liabilities, revenue and expenses of the joint operation directly, rather than as an equity-accounted investment. Where the Group obtains an additional interest in a joint operation that constitutes a business, the Group applies AASB 3 to account for the incremental interest acquired. The requirement in AASB 3.42 to remeasure a previously held equity interest at fair value through profit or loss applies only to a business combination achieved in stages; it does not apply where the Group already jointly controlled the operation and subsequently obtains control (AASB 11.20-21). EQ Resources Limited Annual Report 2026 51
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