IBERSOL | Annual Report 2020

Consolidated Financial Statements 2.8 INTANGIBLE ASSETS a) Industrial property a.1) Concessions and exploitation rights Concessions and exploitation rights are presented at historic cost. Concessions and exploitation rights have a finite useful life associated to the contractual periods and are presented at cost minus accumulated impairment and amortisation. a.2) Software The cost of acquiring software licences is capitalised and includes all costs incurred for acquiring and installing the software available for use. These costs are amortised during the estimated useful life (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 rel- evant general expenses. Software development costs recognised as assets are amortised during the soft- ware’s estimated lifetime (not exceeding 5 years). a.3) Brands 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. b) Other Intangible assets Assets in progress 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. 2.9 IMPAIRMENT OF GOODWILL, RIGHTS OF USE, PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS Intangible assets that do not have a defined useful life are not subject to amorti- zation but are subject to annual impairment tests (or in each reporting period in which there are signs of impairment). Assets subject to amortization are revaluated to determine any impairment whenever events or changes in circumstances occur that result in the amount at which they are recorded may not be recoverable. An impairment loss is recognized in the consolidated income statement and other com- prehensive income for the amount in excess of the asset’s carrying amount over its 322