Page 76 - Paragon Annual Report 2

72 | Group financial statements
Notes to the consolidated financial statements (continued) 2 Significant accounting policies (continued)
(s) EBIT/EBITDA/Underlying EBIT/EBITDA
EBITDA is earnings before interest, tax, depreciation and amortisation. It also includes all restructuring and exceptional items and any gains/ (losses) arising on or from acquisitions (including gains on bargain purchases).
EBIT includes depreciation and amortisation.
Underlying EBIT and EBITDA is stated after adjusting for items which in the opinion of the directors are exceptional due to their nature, size or incidence. Exceptional items are further explained within Note 8 below.
(t) Non-Controlling Interests
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
(u) Proforma sales, EBIT and EBITDA
The Consolidated Income Statement includes the impact of acquisitions from their effective date of acquisition. Proforma amounts reported in the Strategic Report include in the Directors’ opinion the full year impact of acquisitions that were made during the year.
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