IBERSOL | 2019 Annual Report

Consolidated Financial Statements PROPERTY, PLANT AND EQUIPMENT - IMPAIRMENT TESTS The assessment of the existence of signs of impairment in tangible assets and the performance of the respective tests, if necessary, were carried out on an annual basis as referred to in note 2,8. For the purposes of assessing the existence of signs of im- pairment in tangible assets, the following indicators were considered by the Group: - 2 years of activity, - operating results less amortization, depreciation and impairment losses on tangible fixed assets, intangible assets and goodwill, negative. Since impairment has been recorded for some assets and impairment for other as- sets was reversed, information on the events and conditions that led to the recogni- tion of the impairment and that led to the reversal of the impairment, required under IAS 36,130 a) and the paragraphs c) and d) as well as by IAS 36,131. This information is also not available in note 35, for the remaining situations subject to impairment / reversal. Methods and assumptions As of December 31, 2019 and 2018, the methods and main assumptions used in the preparation of impairment tests on the Group’s main tangible assets that showed signs of impairment were as follows: 2019 2018 Portugal Spain Portugal Spain Method used Use Value Use Value Base used* Projections with perpetuity Projections with perpetuity Projections with perpetuity Projections with perpetuity Periodo Utiizado (anos) 5 5 5 5 Discount rate for the period (WACC) 5,60% 5,20% 5,83% 5,33% * The discount rate presented was calculated based on the methodology WACC (Weighted Average Cost of Capital). The growth rate in perpetuity used in cash flow projections is 2.5%. The positive evolution of the economy in the countries of the Iberian Peninsula and the consequent reduction in risk rates in countries and markets, in parallel with a reduction in interest rates, lead to a slightly lower applicable rate in 2019. 250