IBERSOL | 2019 Annual Report

Consolidated Financial Statements Goodwill Brands Industrial property Other intangible Assets Intangible Assets in progress Total 1 January 2019 Initial net amount 90 846 327 19 616 667 12 450 980 1 708 028 2 370 483 126 992 484 Changes in the perimeter 1 121 898 - - - - 1 121 898 Change in accounting policy (IFRS 16) - - - - - - Currency conversion - - -74 408 - -100 681 -175 089 Additions - - 3 372 763 317 030 244 781 3 934 574 Decreases - - 37 273 - 57 258 94 530 Transfers - - 442 100 600 000 -1 042 100 - Amortization in the year - 1 100 000 1 737 240 532 903 - 3 370 143 Impairment in the year 4 000 000 - - - - 4 000 000 Final net amount 87 968 225 18 516 667 14 416 923 2 092 155 1 415 225 124 409 189 31 Decemberr 2019 Cost 87 968 225 22 000 000 45 735 432 13 793 294 1 415 225 170 912 176 Accumulated amortization - 3 483 333 27 637 453 11 659 270 - 42 780 056 Accumulated impairment - - 3 681 055 41 875 - 3 722 930 Net amount 87 968 225 18 516 667 14 416 923 2 092 155 1 415 225 124 409 189 Goodwill – Impairment tests Goodwill is not amortized. The Group performs impairment tests on goodwill an- nually, or whenever there are signs of impairment, as mentioned in note 2,8. For the purpose of impairment tests on CGUs, the recoverable amount was deter- mined based on the value in use, according to the discounted cash flow method. The recoverable value of the UGC derives from assumptions related to the activity, namely, sales volumes, operating costs, planned investments, namely the opening, remodeling and closing of units, the impact of other market players, internal mana- gement projections and historical performance. These projections result from the budgets for the following year and the estimated cash flows for a subsequent period of four years reflected in the medium and long- -term plans approved by the Board of Directors. 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. 254