IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT The assets in progress are recorded at acquisition cost less any impairment losses. These assets are amortized as from the moment when the underlying assets are available for use. 2.7 INTANGIBLE ASSETS a) Goodwill Goodwill represents the acquisition cost exceeding the fair value of the subsidiary’s/ associated/jointly controlled company’s assets and liabilities identifiable on the ac- quisition date. Goodwill resulting from the acquisition of subsidiaries is included in intangible assets. Goodwill is subject to annual impairment tests and is shown at cost, minus accumulated impairment losses. Impairment losses are not reverted. Gains or losses from the sale of an entity include the value of the goodwill in refe- rence to the said entity. Goodwill is allocated to the units that generate the cash flows for performing im- pairment tests. b) Industrial property b.1) Concessions and exploitation rights Concessions and exploitation rights are presented at the historic cost. Concessions and exploitation rights have a finite lifetime associated to the contractual periods and are presented at cost minus accumulated impairment and amortisation. b.2) Software The cost of acquiring software licences is capitalised and includes all costs incurred for acquiring 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 rele- vant general expenses. Software development costs recognised as assets are amortised during the software’s estimated 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). Brands life cycle was determined considering the benchmark of the sector for brands of this dimension, which in general point to a life cycle of 20 years. 221