IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 cost so that they reflect their net present value. However, these amounts are not dis- counted because the effect of their financial update is considerer immaterial. 2.13 CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash, bank deposits and other investments up to 3 months that can be mobilized immediately, with a low risk of change in value. Bank overdrafts are presented in the Statement of Cash Flows as Cash and Cash Equiva- lents and in the Consolidated Statement of Financial Position in current liabilities under the heading “Loans obtained” item. 2.14 SHARE CAPITAL Ordinary shares are classified in equity. Incremental costs directly attributable to the emission of new shares or options are presented in equity as a deduction, net of taxes, of entries. When any group company acquires shares in the parent company (own shares), the amount paid, including costs directly attributable (net of taxes), is deducted from the equity attributable to the shareholders of the parent company until the shares are cancelled, re-issued or sold. When those shares are subsequently sold or re-is- sued and after deducting directly imputable transaction costs and taxes, any receipt is included in the equity of the company’s shareholders. 2.15 LOANS OBTAINED Loans are recorded in liabilities at the nominal value received, net of expenses with the issue, which corresponds to the respective fair value on that date. Subsequently, they are measured through the amortized cost method, with the corresponding fi- nancial charges calculated according to the effective interest rate and recorded in the income statement in accordance with the assumption of accrual basis, with the amounts past due and not settled at the date balance sheet, classified under “Ac- counts payable” (Note 20). The effective interest rate is the rate that discounts future payments over the ex- pected life of the financial instrument to the net carrying amount of the financial liability. 2.16 INCOME TAX AND DEFERRED TAXES Current income tax is calculated based on the taxable results of the companies included in the consolidation perimeter in accordance with the tax rules in force at the location of the headquarters of each company. In Portugal, the tax estimate (IRC) was calculated according to the Special Regime for Taxation of Groups of Companies (RETGS). In Spain, the current tax of subsidiaries based in Vigo, Madrid and Barcelona (except Cortsfood and Dehesa) was calculated under the special tax regime for economic groups. The remaining subsidiaries, based in Luanda - Angola, calculate their current tax individually, in the light of the regulations in force in the country of their registered office (Note 5). 351