IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT To determine the present value of lease payments, in cases where it is not possible to obtain the implicit interest rate, the Group uses the incremental financing rate, which represents the interest rate that the Group would have to pay to borrow for a similar term, and with a similar guarantee, the funds necessary to obtain an asset of an equivalent value to the asset under right of use in a similar economic context. In order to determine the lease term, in cases where extension and / or termination options are defined, the Board of Directors evaluates the projected business plans and determines the lease term that best reflects their expectations of permanence in the contract. This expectation can be adjusted according to changes in business conditions. Lease liabilities are remeasured due to revaluations or changes to the lease. 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, exclu- ding 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 sharehol- ders – adjusted 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 issued 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. 2.20 SUBSEQUENT EVENTS The events that occurred between the date of the statement of consolidated finan- cial position and the date of issue of the consolidated financial statements and of the consolidated financial position (“adjusting events”) are reflected in the consoli- dated financial statements. Events occurring between the date of the consolidated statement of financial position and the date of issue of the consolidated financial statements that provide information on conditions that occur after the date of the consolidated statement of financial position (“non adjusting events”), if material, are disclosed in note 37. 229