IBERSOL | Integrated Management Report 2022

Consolidated Financial Statements The value of inventory adjustments refers, fundamentally, to employee meals at the workplace (3.302.878 euros and 2.298.260 euros, respectively in 2022 and 2021 re- spectively in 2022 and 2021, according to note 4.3.2.) and other adjustments. The variation results from increased activity, due to normalized consumption, after the Covid-19 pandemic. 5.2. Accounts receivable Accounting policies Recognition and measurement Trade and other receivables Trade and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less impairment ad- justment. Assets measured at amortised cost A financial asset is measured at amortized cost if the objective inherent to the business model is achieved by collecting the related contractual cash flows and if the underlying contractual cash flows represent only payments of principal and interest. Assets in this category are initially recognized at fair value and subsequently measured at amortized cost. Loans and receivables are generally held for the purpose of collecting contractual cash flows and it is expected that the underlying contractual cash flows represent only pay- ments of principal and interest and therefore meet the requirements for measurement at amortized cost under IFRS 9. Recognition and derecognition Acquisitions and disposals of financial assets are recognized on the trade date, i.e. the date on which the Group commits to acquire or dispose of those financial assets. Financial assets are derecognized when the Group’s contractual rights to receive their future cash flows expire, when the Group has transferred substantially all risks and rewards of ownership or when, despite retaining some but not substantially all of the risks and rewards of ownership, the Group has transferred control over the assets. Other receivables and financial assets For other receivables and financial assets carried at amortized cost, the Group pre- pares its analyses based on the general model, assessing at each date whether there has been a significant increase in credit risk since the date of initial recognition of such asset. If there has not been an increase in credit risk, an impairment corresponding to the amount equivalent to the expected losses over a 12-month period is calculated. If there has been an increase in credit risk, the calculation of impairment considers the expected losses for all contractual cash flows up to the maturity of the asset. 410