IBERSOL | Integrated Management Report 2022

Consolidated Financial Statements 10. Other Provisions and Contingencies 10.1. Other provisions Accounting policies Other provisions are recognized when, and only when, the Group has a present obliga- tion (legal or constructive) resulting from a past event, whenever it is probable that an outflow of resources will be required to settle the obligation and the amount of the obligation can be reasonably estimated. Other provisions are reviewed on the date of each statement of financial position and are adjusted to reflect the best estimate of its fair value at that date. When identifying onerous contracts, the Group considers whether the unavoidable costs of complying with the contract exceed the economic benefits expected under such contract. In the event of any onerous contract being identified, a provision is rec- ognized for the difference between unavoidable costs and expected benefits of the contract. As at 31 December, 2022 and 2021, the detail of other provisions is as follows: Dec/2021 Increases Decreases Dec/2022 Onerous contracts 1 560 000 - 1 560 000 Compensation 834 766 - -834 766 - Others 33 257 965 612 -28 000 970 869 Other Provisions 2 428 023 965 612 -862 766 2 530 869 In 2021, as a result of the application of Law 13/2021 and the losses in passenger traffic caused by the pandemic, the Ibersol Group revised the business plans of the concessions in Spain, recognizing a provision for onerous contracts for the Gran Canaria airport activity in the amount of 1.6 million euros (see note 4.3.3), which remains at 31.12.2022. In 2021, the provision amounting to 744.766 euros and 90.000 euros, corresponding to a deposit in the Juzgado in Barcelona of an equal amount (note 5.2.), was reversed in 2022 considering a court decision favorable to the Group. Provisions were also set up in 2022 in the amount of approximately 965.000 euros to meet other possible liabilities arising from litigation / claims. 472