Annual Report and Consolidated Accounts 2015
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 company will obtain the un-
derlying 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 allo-
cate its cost at its residual value, according to
its estimated lifetime, as follows:
Buildings and other structures
12-20 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 con-
solidated statement of financial position date.
If the accounted amount is higher than the asset’s
recoverable 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 recognised as other operating in-
come or other operating costs in the profit and
loss account. When revaluated goods are sold,
the amount included in other reserves is trans-
ferred to retained profit.
2.6 INTANGIBLE ASSETS
a) Goodwill
Goodwill represents the acquisition cost exceed-
ing the fair value of the subsidiary’s/associated/
jointly controlled company’s assets and liabili-
ties identifiable 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. Impair-
ment 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.
215
