Subsidiaries include all entities over which NEXA has direct or indirect control. NEXA controls an entity when it is exposed to, or has the right to, variable returns from its involvement with the entity and the Company has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company, except when the predecessor basis of accounting is applied. Subsidiaries are deconsolidated from the date on which that control ceases.
Transactions, balances and unrealized gains and losses between Group companies are eliminated.
The accounting policies of subsidiaries are adjusted where necessary to ensure consistency with the policies adopted by the Company.