IBERSOL | Integrated Management Report - 2024

INTEGRATED MANAGEMENT REPORT 2024 - Software The cost of acquiring software licenses is capitalized and comprises all expenses incurred in acquiring and making the software available for use. These expenses are amortized over their estimated useful life (which will not exceed 5 years). Costs associated with developing or maintaining software are recognized as expens- es when incurred. Costs directly associated with the production of identifiable and unique software controlled by the Group and which will likely generate future eco- nomic benefits greater than the costs, beyond one year, are recognized as intangible assets. Direct costs include personnel costs in software development and the share of relevant general expenses. Software development costs recognized as assets are amortized over their estimat- ed useful lives (which will not exceed 5 years). - Assets in progress Assets in progress are recorded at acquisition cost minus any impairment losses. These assets are amortized from the moment the underlying assets are available for use. Depreciations Intangible assets are amortized using the straight-line method over a period of three to six years, except those related to concession rights, which are considered in ac- cordance with the contracts. (i) 20 years in the case of brands; (ii) the contractual term, in the case of franchise and brand development rights paid to international brands when opening restaurants - 10 years in the case of Pizza Hut, Taco Bell and KFC and 12 years in the case of Pret a Manger; (iii) the estimated period of operation of the restaurants, in the case of the rights to operate KFC brand restaurants (determined within the scope of the acquisi- tion of the Medfood business), which vary between 2 and 30 years; (iv) the contractual term, in the case of concession rights, which vary between 10 and 33 years (see below); (v) ​between 3 and 6 years for the remaining intangible assets. Depreciation for the year of intangible assets is recorded in the income statement under the caption “Depreciation, amortization and impairment losses on non-finan- cial assets”. Impairment Assets subject to amortization are reassessed to determine any impairment, to be constituted or reverted, whenever events or changes in circumstances occur that cause the amount at which they are recorded to be recoverable or not. An impair- ment loss is recognized in the consolidated statement of income and other compre- hensive income for the excess amount of the asset’s carrying amount over its recov- erable amount. The recoverable amount is the higher of an asset’s fair value minus expenses incurred in selling it and its value in use. In order to carry out impairment 403