IBERSOL Annual Report and Consolidated Accounts 2017

Consolidated Financial Statements 2.9 STOCKS Stocks are presented at the lowest value between their cost and the net realisation value. The cost is calculated using the weighted mean cost. Personal alimentation costs are reflected in personnel expenses, against stocks inventory. The net realisation value corresponds to the estimated sale price during normal business operations, minus variable sale costs. 2.10 ACCOUNTS RECEIVABLE FROM CLIENTS AND OTHER DEBTORS AND ACCOUNTS PAYABLE TO SUPPLIERS AND OTHER CREDITORS Accounts receivable from clients and other debtors are initially recognised at the fair value. Medium and long term debts are subsequently measured at the amortised cost, using the effective rate method minus the impairment adjustment. Debts to suppliers and non-interest bearing third parties are measured at amortized cost so that they reflect their net present value. However, these amounts are not discounted because the effect of their financial update is considerer immaterial. 2.11 CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash, bank deposits and other investments up to 3 months that can be mobilized immediately, with a low risk of change in value. Bank overdrafts are presented in the Statement of Cash Flows as Cash and Cash Equivalents and in the Consol- idated Statement of Financial Position in current liabilities under the Obtained Loans item. 2.12 SHARE CAPITAL Ordinary shares are classified in equity. Incremental costs directly attributable to the emission of new shares or options are presented in equity as a deduction, net of taxes, of entries. When any group company acquires shares in the parent company (own shares), the amount paid, including costs directly attributable (net of taxes), is deducted from the equity attrib- utable to the shareholders of the parent company until the shares are cancelled, re-issued or sold. When those shares are subsequently sold or re-issued and after deducting directly imputable transaction costs and taxes, any receipt is included in the equity of the company’s shareholders. 218