IBERSOL | Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS Depreciation of assets is calculated by the equal annual amounts method in order to allocate its cost at its residual value, according to its estimated useful life, as follows: Buildings and other constructions 10-35 years (*) Equipment: 10 years Tools and utensils: 4 years Vehicles: 5 years Office equipment: 10 years Other property, plant and equipment: 5 years (*) Two buildings owned by the Group have an estimated useful life of up to 50 and 40 years. The amounts which assets may be depreciated, their lifetime and the depreciation method are reviewed and adjusted, if necessary, on the consolidated statement of financial position date. Changes in lifetime are treated as a change in accounting estimate and are applied prospectively. If the accounted amount is higher than the asset’s recoverable amount, it is immedi- ately readjusted to the estimated recoverable amount (Note 2.9). Gains and losses consequent to a reduction or sale are determined by the difference between receipts from the sale and the asset’s accounted value, and are recognised as other operating income or other operating costs in the profit and loss account. When revaluated goods are sold, the amount included in other reserves is trans- ferred to retained profit. 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. 2.8 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. 346