IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 2.17 LEASING Leasing is classified as an operating lease if a significant part of the risks and benefits inher- ent to the possession remain the lessor’s responsibility. Payments in operating leases (minus any incentives received from the lessor) are included in the consolidated statement of compre- hensive income by the equal annual amounts method during the leasing period. Leasing of tangible assets where the group is substantially responsible for all the property’s risks and benefits are classified as a financial lease. Financial leasing is capitalised at the start of the lease by the lowest amount between the fair value of the leased asset and the current value of the minimum leasing values. Leasing obligations, net of financial charges, are included in other non-current liabilities, except for the respective short-term component. The interest parcel is entered in financial expenses during the leasing period, thereby producing a constant periodic interest rate on the remaining debt in each period. Tangible assets acquired through financial leasing are depreciated by the lowest amount between the asset’s lifetime and the leasing period. 2.18 DIVIDEND PAYMENT Payment of dividends to shareholders is recognised as a liability in the group’s financial statements when the dividends are approved by the shareholders. 2.19 PROFIT PER SHARE Basic The basic profit per share is calculated by dividing the profit payable to shareholders by the weighted mean number of ordinary shares issued during the period, excluding ordinary shares acquired by the company and held as own shares (Note 16). Diluted The profit diluted per share is calculated by dividing the profit payable to shareholders – ad- justed by the dividends of convertible preference shares, convertible debt interest and gains and expenses resulting from the conversion – by the average number of ordinary shares is- sued during the period plus the average number of ordinary shares that may be issued in the conversion of ordinary shares that may be potentially used in the dilution. 221