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Tangible fixed assets are shown at the acquisition
cost, net of the respective amortisation and accumu-
lated impairment 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 expens-
es 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 an-
nual amounts method in order to allocate its cost at
its residual 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 state-
ment 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
controlled company’s assets and liabilities identifi-
able on the acquisition date. Goodwill resulting from
the acquisition of subsidiaries is included in intangible
assets. Goodwill is subject to annual impairment tests
and is shown at cost, minus accumulated impairment
losses. Impairment losses are not reverted. 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
improvements) 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
