ANNUAL REPORT 2016
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 allocate
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 consolidated 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
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/associa-
ted/jointly controlled company’s assets and liabilities identifiable on the acquisition date. Goo-
dwill 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.
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