91 ANNUAL REPORT 2010 Starting January 1, 2010, AEGON introduced a new reporting  format for segment reporting that aligns with changes  implemented in the way AEGON manages its businesses. Refer  to section 2.5 Segment reporting for details about this change. The change in operating segments had no impact on equity or  net income. The comparative segment information presented in  note 5 has been adjusted to make the information consistent  with the current period figures. Business combinations that occurred before the adoption date  of IFRS (January 1, 2004) have not been restated.  The identifiable assets, liabilities and contingent liabilities  are stated at fair value when control is obtained.  is recognized directly in the income statement. If the fair value  of the assets, liabilities and contingent liabilities acquired in  the business combination has been determined provisionally,  adjustments to these values resulting from the emergence of  new evidence within twelve months after the acquisition date  are made against goodwill. Contingent consideration is  discounted and the unwinding is recognized in the income  statement as an interest expense. Any changes in the estimated  value of contingent considerations given in a business  combination are recognised in the income statement. The consolidated financial statements include the financial  statements of AEGON N.V. and its subsidiaries. Subsidiaries  are entities over which AEGON has direct or indirect power  to govern the financial and operating policies so as to obtain  benefits from its activities (‘control’). The assessment of control  is based on the substance of the relationship between the  Group and the entity and, among other things, considers  existing and potential voting rights that are currently  exercisable and convertible.  Special purpose entities are consolidated if, in substance, the  activities of the entity are conducted on behalf of the Group,  the Group has the decision-power to obtain control of the entity  or has delegated these powers through an autopilot, the Group  can obtain the majority of the entity’s benefits or the Group  retains the majority of the residual risks related to the entity  or its assets.  The subsidiary’s assets, liabilities and contingent liabilities  are measured at fair value on the acquisition date and are  subsequently accounted for in accordance with the Group’s  accounting principles, which is consistent with IFRS. Intra-group  transactions, including AEGON N.V. shares held by subsidiaries,  which are recognized as treasury shares in equity, are  eliminated. Intra-group losses are eliminated, except to the  extent that the underlying asset is impaired. Minority interests  are initially stated at their share in the fair value of the net  assets on the acquisition date and subsequently adjusted for  the minority’s share in changes in the subsidiary’s equity.  The excess of the consideration paid to acquire the interest and  the fair value of any interest already owned, over the Group’s  share in the net fair value of assets, liabilities and contingent  liabilities acquired is recognized as goodwill. Negative goodwill  On consolidation of an investment fund, a liability is recognized  to the extent that the Group is legally obliged to buy back  participations held by third parties. The liability is presented in  the consolidated financial statements as investment contracts  for account of policyholders. Where this is not the case, other  participations held by third parties are presented as minority  interests in equity. The assets allocated to participations held  by third parties or by the Group on behalf of policyholders are  presented in the consolidated financial statements as  investments for account of policyholders.  Investment funds managed by the Group in which the Group  holds an interest are consolidated in the financial statements if  the Group can govern the financial and operating policies of the  fund. In assessing control all interests held by the Group in the  fund are considered, regardless of whether the financial risk  related to the investment is borne by the Group or by the  policyholders.  Transactions with minority interests are accounted for as  transactions with equity holders. Therefore disposals to  minority interests and acquisitions from minority interests,  not resulting in gaining or losing control of the subsidiary are  recorded in equity. Any difference between consideration paid or  received and the proportionate share in net assets is accounted  for in equity attributable to shareholders of AEGON N.V.. Subsidiaries are deconsolidated when control ceases to exist.  Any difference between the net proceeds plus the fair value of  any retained interest and the carrying amount of the subsidiary  including non-controlling interest is recognized in the income  statement.  Transactions with minority interests Investment funds  A. SUBSIDIARIES NOTE 2.3 BASIS OF CONSOLIDATION NOTE 2.2 CHANGES IN PRESENTATION SHARPENING OUR FOCUS