IBERSOL | Integrated Management Report | 2025

CONSOLIDATED FINANCIAL STATEMENTS 4.3. Operating income and expenses Accounting policies Employee benefits Short-term employee benefits, such as salaries, wages and social security contributions, are recorded under personnel ex- penses. The liabilities are recorded in the period in which all the employees, including the members of the Board of Directors, acquire the respective right, irrespective of the date of payment, with the balance outstanding at the date of the statement of financial position being shown under current payables. Expenses to be recognized and accrued income Expenses and income are recorded in the period to which they refer regardless of when paid or received, in accordance with the accrual accounting principle. The differences between the amounts received and paid and the corresponding income and expenses are registered under “Accounts receivable” or “Accounts payable” depending on whether they are receivable or payable amounts. Government grants Government grants are government aid in the form of transfer of resources to an entity in exchange for past or future compli- ance with certain conditions related to the entity’s operating activities. Government grants for financing staff training activities are recognized as income in the consolidated income statement over the period of time during which the Group incurred the related training expenses. Government grants are recognized as income or loss on a systematic basis over the periods in which the entity recognizes the related costs as expenses. Government grants for financing investments in tangible and intangible assets are deferred and recorded as liabilities. Invest- ment subsidies are recognized in the consolidated statement of income during the estimated useful life of the subsidized assets under “Other operating income / (expenses)”. As at 31 December 2025 and 2024, the other operating income and expenses are broken down as follows: 394