IBERSOL • 2023 Integrated Management Report

Consolidated Financial Statements 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. In general terms, there are no material inconsistencies between the lease term of the contracts and the useful life of the respective underlying non-transferable assets. Subsequent costs Subsequent costs are added to the amounts at which the asset is carried or recog- nized as separate assets, as appropriate, only when it is probable that inherent eco- nomic benefits will flow to the company and the cost can be reliably measured. Other expenses with repairs and maintenance are recognized as an expense in the period in which they are incurred. Reduce and disposals Gains or losses from reduction or disposal are determined by the difference between receipts from disposals and the carrying amount of the asset and are recognized as other operating income or other operating costs in the income statement. Property, plant and equipment in progress Assets in progress are recorded at acquisition cost minus any impairment losses. These assets are depreciated from the moment the underlying assets are available for use. Impairment Assets are reassessed to determine any impairment, to be constituted or reversed, whenever events occur or changes in circumstances that cause the amount at which they are recorded to be recoverable or not. An impairment loss is recognized in the consolidated statement of income and other comprehensive income for the excess amount of the asset’s carrying amount over its recoverable amount. The recoverable amount is the higher of an asset’s fair value minus expenses incurred in selling it and its value in use. In order to carry out impairment tests, assets are grouped at the low- est level at which cash flows can be identified separately (cash generating units). The assessment of the existence of signs of impairment of the CGU and the carrying out of the respective tests, if necessary, occurs on an annual basis. Each restaurant is considered a cash generating unit (CGU), and in the case of airports each airport is a CGU. Each CGU comprises all the assets and liabilities attributable to each restaurant, namely: tangible fixed assets, intangible assets, rights of use and respective leasing liabilities. 444