IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 10. FINANCIAL INVESTMENTS 10.1 INVESTMENTS IN JOINTLY CONTROLLED ENTITIES Dec. 2017 Dec. 2016 Financial investments - joint controlled subsidiaries 2.420.386 2.417.891 2.420.386 2.417.891 Accumulated impairment losses - - 2.420.386 2.417.891 Jointly controlled subsidiary UQ Consult, as described in Note 5, with the following breakdown: Dec. 2017 Dec. 2016 Goodwill (1) 2.168.982 2.168.982 Equity (2) 251.404 248.649 2.420.386 2.417.631 (1) with evidence of impairment, tests were performed to the jointly controlled subsidiary UQ Consult, as follows: Goodwill 2.168.982 Other net assets 251.404 Total 2.420.386 Impairment test 2.530.314 With the discount rate used of 7.4%, it was concluded that there was no impairment. By varying the discount rate, results are as follows: Discount rate Recoverable amount Impairment 7,4% (base) 2.530.314 - 7,9% 2.304.160 116.126 8,4% 2.113.569 306.817 (2) Reconciliation of equity and net income of the joint venture UQ Consult, is presented as follows: Dec. 2017 Dec. 2016 Equity 502.807 497.297 50% 50% 251.404 248.652 Net profit 5.510 -521 50% 50% 2.755 -262 249