IBERSOL Annual Report 2018

ANNUAL REPORT 2018 d) Fixed tangible and intangible assets The determination of lifetime period of the assets and the depreciation method to be applied, is essential to determine the amount of depreciation to be recognized in the income statement for each year. According to the best judgment of the Board of Directors and considering the prac- tices adopted by companies in the sector internationally these two parameters are set for the assets and business in question. Regarding the determination of the recoverable value of tangible fixed assets and intangible assets, the Group follows the accounting policy presented in Note 2.8, which requires that relevant judgments and estimates be made. e) Impairment losses foreseen In applying the expected impairment loss models, the Group assesses the probabil- ity of default and estimated losses in the event of default, as disclosed in note 2.9.3. This evaluation involves relevant estimates by the Group. f) Incremental financing rates To calculate the estimated impacts of adopting IFRS 16, the Group makes estimates on its incremental financing rates, which incorporate specific market and entity risks that require the Group to make relevant judgments and estimates. 5. INFORMATION ABOUT THE COMPANIES INCLUDED IN THE CONSOLI- DATION AND OTHER COMPANIES 5.1. THE FOLLOWING GROUP COMPANIES WERE INCLUDED IN THE CONSOLI- DATION ON 31ST DECEMBER 2018 AND 2017: 241