IBERSOL Annual Report 2018

Consolidated Financial Statements Buildings and other constructions 10-35 years (*) Equipment: 10 years Tools and utensils: 4 years Vehicles: 5 years Office equipment: 10 years Other tangible assets: 5 years (*) Buildings and other constructions owned by the Group have an estimated life cycle of up to 50 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 immedi- ately readjusted to the estimated recoverable amount (Note 2.8). 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 trans- ferred to retained profit. 2.7 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 identifiable on the ac- quisition 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 refer- ence to the said entity. Goodwill is allocated to the units that generate the cash flows for performing impair- ment tests. b) Industrial property b.1) Concessions and exploitation rights Concessions and exploitation rights are presented at the historic cost. Concessions and exploitation rights have a finite lifetime associated to the contractual periods and are presented at cost minus accumulated amortisation. 220