Notes to the consolidated financial statements of Aegon N.V.  Note 2 138 Transactions with non-controlling interests Investment funds  those investments. The effect of the change in accounting policies on the financial position, comprehensive income and the cash flows  of Aegon at January 1, 2012 and December 31, 2012 are summarized together with the impact of IFRS 11 in note 2.1.2. In accordance  with the transitional provisions of IFRS 10, comparative numbers of 2011 are not restated. The consolidated financial statements include the financial statements of Aegon N.V. and its subsidiaries. Subsidiaries (including  consolidated structured entities) are entities over which Aegon has control. Aegon controls an entity when Aegon is exposed, or  has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over  the entity. 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 substantive. For a right to be substantive, the holder must have  the practical ability to exercise that right. 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 policies, 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. Non-controlling interests are initially stated at their share  in the fair value of the net assets on the acquisition date and subsequently adjusted for the non-controlling 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 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 consideration given in a business  combination prior to the adoption of IFRS 3 (as revised in 2008) are recognized as goodwill. Any changes in the estimated value of  contingent consideration given in a business combination after the adoption of IFRS 3 (as revised in 2008) are recognized in the income  statement. The identifiable assets, liabilities and contingent liabilities are stated at fair value when control is obtained. 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 interests is recognized in the income statement.  Transactions with non-controlling interests are accounted for as transactions with equity holders. Therefore disposals to non- controlling interests and acquisitions from non-controlling interests, not resulting in losing or gaining control of the subsidiary are  recorded in other comprehensive income. 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. Investment funds managed by the Group in which the Group holds an interest are consolidated in the financial statements if the Group  has power over that investment fund and it is exposed, or has rights, to variable returns from its involvement with the investee and  has the ability to affect those returns through its power over the investee. The assessment of control is based on the substance  of the relationship between the Group and the investment fund and, among other things, considers existing and potential voting  rights that are currently exercisable and convertible. 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 (unless the fund meets  the definition of a silo or when, under strict facts and circumstances, a direct link between the policyholder and the fund can be  assumed). 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 non-controlling 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.  Annual Report 2013