IBERSOL Annual Report and Consolidated Accounts 2017

Consolidated Financial Statements b.2) Software The cost of acquiring software licences is capitalised and includes all costs incurred for ac- quiring and installing the software available for utilisation. These costs are amortised during the estimated lifetime (not exceeding 5 years). Software development or maintenance costs are recognised as expenses when incurred. Costs associated directly with creating identifiable and unique software controlled by the Group and that will probably generate future economic benefits greater than the costs, for more than one year, are recognised as intangible assets. Direct costs include personnel costs for developing software and the share in relevant general expenses. Software development costs recognised as assets are amortised during the software’s esti- mated lifetime (not exceeding 5 years). b.3) Brands The brands acquired in business combinations are reflected at fair value at the date of the concentration (Eat Out group) and amortized over 20 years. c) Other intangible Assets Research and development Research expenses are recognised as costs when incurred. Costs incurred on development pro- jects (for designing and testing new products or for product improvements) are recognised as intangible assets when it is likely that the project will be successful, in terms of its commercial and technological feasibility and when the costs may be reliably measured. Other development expenses are recognised as expenses when incurred. Developments costs previously recog- nised as expenses are not recognised as an asset in subsequent periods. Development costs with a finite lifetime that have been capitalised are amortised from the time the product be- gins commercial production according to the equal annual amounts method during the period of its expected benefit, which cannot exceed five years. . 214