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## Consolidation 

These consolidated financial statements are primarily made up of the assets, liabilities and results of operations of the Corporation's subsidiaries, which the Corporation controls; control is presumed to exist when the Corporation holds more than 50% of the voting power of another entity. 

The following table lists the significant subsidiaries of the Corporation which are accounted for on a consolidated basis: 

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(1) On May 10, 2012, Capstone sold a 20% interest in Bristol Water resulting in a 50% retained interest. Capstone continues to consolidate as Capstone still exercises control over Bristol Water. 

The Corporation accounts for its controlled investments using the consolidation method of accounting from the date control is obtained and deconsolidates from the date that control ceases. All intercompany balances and transactions have been eliminated on consolidation. 

Non-controlling interests represent equity interests in subsidiaries owned by outside parties. The share of net assets of subsidiaries attributable to non-controlling interests is presented as a component of equity. Their share of net income and comprehensive income is recognized directly in equity. Changes in the Corporation's interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. 

## Equity Accounted Investments 

Companies in which the Corporation has the ability to exercise significant influence, but not control, over financial and operating policy decisions are accounted for using the equity method; significant influence is presumed to exist when the Corporation holds between 20% and 50% of the voting power of another entity. 

