Company: GIFLF
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001104659-25-034245
Chunk: 147

Company: Grifols SA
Filing Date: 2025-04-11
Form: 20-F
Item: Item 5
Chunk 147
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 ImmunoTek for the opening and management of plasma donation centers (See Item 4 of this Part I “Information on the Company— A. History of and Development of the Company—Important Milestones” and “—Subsequent Events” above), resulting in the creation of a joint venture called ITK JV. Until fiscal year 2022, we had recognized our participation in the ITK JV as a financial investment. However, in 2024, after discussions with the CNMV (see “—Short Seller Reports” below), we concluded that this agreement should be recognized as a joint operation, requiring the recognition of assets, liabilities, and results of the jointly controlled entity. 

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Consequently, the assets and liabilities of the ITK JV were included in our consolidated audited financial statements as of and for the year ended December 31, 2024, in the amount of €151 million and €191 million, respectively, recognizing a negative adjustment in reserves of €40 million, net of translation differences. The integration was carried out prospectively from January 1, 2023. This negative adjustment to reserves relates mainly to the losses of the ITK JV in 2021, 2022 and 2023. To accurately present these losses in the respective income statements for each period, the comparative figures corresponding to the income statement for 2023 and 2022 have been restated in the consolidated financial statements as of and for the year ended December 31, 2024, the impact of which represents a reduction in results of €17 million and €23 million, respectively.
Shanghai RAAS
We made an incorrect application of the accounting treatment of the non-controlling interest in an associate, resulting in a correction to the equity-method investment in Shanghai RAAS. Under the agreement entered into with Shanghai RAAS in 2019, on March 30, 2020, we received Shanghai RAAS shares corresponding to 26.2% of its share capital in exchange for shares representing 45% of the economic rights of our subsidiary GDS. Consequently, we held a stake in an associate that, in turn, held a stake in GDS. 
Since the IFRS do not specifically address the accounting treatment of non-controlling interests when an investment in an associate has a stake in a group company, we chose the accounting policy to (i) increase the percentage of ownership attributable to Grifols in GDS by the indirect interest Grifols obtained through its stake in Shanghai RAAS by