IBERSOL | Integrated Management Report | 2025

INTEGRATED MANAGEMENT REPORT 2025 6.2. Goodwill Accounting policies Recognition Goodwill represents the excess of acquisition cost over the fair value of identifiable assets and liabilities attributable to the Group at the date of acquisition or first consolidation. If the acquisition cost is lower than the fair value of the acquired subsid- iary’s net assets, the difference is recognized directly in profit or loss for the year. Goodwill is allocated to the Group’s cash generating units (or group of units), identified in each business segment. Impairment The Group performs impairment tests on Goodwill on an annual basis or more frequently if events or changes in circumstances indicate a potential impairment. The recognized amount of Goodwill is compared with the recoverable amount, which is the higher of value in use and fair value less costs to sell. The value in use is determined based on cash flow projections based on financial budgets approved by managers, covering at least a period of 5 years. The Board of Directors determines the budgeted gross margin based on past performance and its expectations for market development. The weighted average growth rate used is consistent with forecasts included in sector reports. Discount rates are applied after tax and reflect specific risks related to the assets. Whenever the book value of Goodwill exceeds its recoverable amount, the impairment is immediately recognized as an ex- pense and is not subsequently reversed. Goodwill is allocated to each of the reportable segments as follows: 413