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ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2012
works at third-party properties, in particular those re-
quired for setting up restaurant shops.
Tangible fixed assets are shown at the acquisition cost,
net of the respective amortisation and accumulated im-
pairment losses.
The historic cost includes all expenses attributable di-
rectly to the acquisition of goods.
Subsequent costs are added to the amounts for which
the good is recorded or recognised as separate assets,
as appropriate, only when it is probable that the com-
pany will obtain the underlying economic benefits and
the cost may be reliably measured. Other expenses on
repairs and maintenance are recognised as an expense
in the period in which they are incurred.
Depreciation of assets is calculated by the equal annual
amounts method in order to allocate its cost at its resid-
ual value, according to its estimated lifetime, as follows:
- Buildings and other structures:
12-50 years
- Equipment:
10 years
- Tools and utensils:
4 years
- Vehicles:
5 years
- Office equipment:
10 years
- Other tangible assets:
5 years
The amounts which assets may be depreciated, their
lifetime and the depreciation method are reviewed and
adjusted if necessary on the consolidated statement of
financial position date.
If the accounted amount is higher than the asset’s re-
coverable amount, it is immediately readjusted to the
estimated recoverable amount (Note 2.6).
Gains and losses consequent to a reduction or sale are
determined by the difference between receipts from
the sale and the asset’s accounted value, and are rec-
ognised as other operating income or other operating
costs in the profit and loss account. When revaluated
goods are sold, the amount included in other reserves
is transferred to retained profit.
2.6 Intangible Assets
a) Goodwill
Goodwill represents the acquisition cost exceeding the
fair value of the subsidiary’s/associated/jointly con-
trolled company’s assets and liabilities identifiable on
the acquisition date. Goodwill resulting from the acqui-
sition of subsidiaries is included in intangible assets.
Goodwill is subject to annual impairment tests and is
shown at cost, minus accumulated impairment losses.
Gains or losses from the sale of an entity include the
value of the goodwill in reference to the said entity.
Goodwill is allocated to the units that generate the cash
flows for performing impairment tests.
b) Research and development
Research expenses are recognised as costs when in-
curred. Costs incurred on development projects (for
designing and testing new products or for product im-
provements) are recognised as intangible assets when it
is likely that the project will be successful, in terms of its
commercial and technological feasibility and when the
costs may be reliably measured. Other development
expenses are recognised as expenses when incurred.
Developments costs previously recognised as expenses
are not recognised as an asset in subsequent periods.
Development costs with a finite lifetime that have been
capitalised are amortised from the time the product be-
gins commercial production according to the equal an-
nual amounts method during the period of its expected
benefit, which cannot exceed five years.
