IBERSOL | Integrated Management Report 2022

INTEGRATED MANAGEMENT REPORT 2022 6.3. Property, plant and equipment Accounting policies Initial recognition and measurement Buildings and other constructions comprise properties dedicated to the restoration activity, as well as expenses with works on third-party property, namely resulting from the installation of restoration shops. Tangible fixed assets are measured at acquisition cost, net of the respective deprecia- tion and accumulated impairment losses. Acquisition cost includes all expenditure directly attributable to the acquisition of the assets. Borrowing costs incurred and borrowing costs for the construction of tangible assets are recognized as part of the construction cost of the asset. Depreciations Depreciation of assets is calculated using the straight-line method, in order to allocate their cost to their residual value, based on their estimated useful life, as follows: Years Buildings and other constructions 10-35(*) Equipment 10 Tools and utensils 4 Vehicles 5 Office equipment 10 Other tangible fixed assets 5 (*)Two buildings owned by the Group have an estimated useful life of up to 50 and 40 years. Assets’ depreciable amounts, useful lives and depreciation method are reviewed and adjusted, if necessary, on the date of the consolidated statement of financial position. Changes to useful lives are treated as a change in accounting estimate and are applied prospectively. If the carrying amount is greater than the recoverable value of the asset, it is immedi- ately readjusted to the estimated recoverable value. In determining the useful life of non-transferable assets, the Group considers, among other aspects, the lease term. Cases in which this useful life exceeds the lease term relate to situations in which the Group estimates, based on the history, that a new contractual period will be agreed for that location. 425