IBERSOL | Integrated Management Report | 2025

Impairment of clients and other debtors IFRS 9 establishes an impairment model based on “expected losses”, which replaces the previous model based on “incurred loss- es” under IAS 39. In this sense, Ibersol recognizes impairment losses before there is objective evidence of loss of value arising from a past event. This model is the basis for the recognition of impairment losses on financial instruments held whose measurement is at amortised cost or fair value through other comprehensive income. The impairment model depends on whether there has been a significant increase in credit risk since initial recognition. If the credit risk of a financial instrument has not increased significantly since initial recognition, Ibersol recognizes a cumulative impairment equal to the expected loss estimated to occur within the next 12 months. If the credit risk has increased significantly, Ibersol rec- ognizes a cumulative impairment equal to the estimated loss expected to occur until the respective maturity of the asset. For accounts receivable, Ibersol applies the simplified approach to calculating expected credit losses, not taking into account changes in credit risk, but recognizing a provision for losses based on the expected credit losses for the entire life of the asset on each reporting date. To this end, experience with historical credit losses and prospective factors are taken into account. Once the loss event has been verified under the terms of IFRS 9 (“objective proof of impairment”, in accordance with the termi- nology of IAS 39), the accumulated impairment is directly imputed to the instrument in question, and its accounting treatment from this moment onwards is similar to that provided for in IAS 39, including treatment of the respective interest. The carrying amount of the asset is reduced and the amount of the loss is recognized in the income statement. If, in a subsequent period, the amount of impairment decreases, the amount of impairment losses previously recognized is also reversed in the income state- ment if the decrease in impairment is objectively related to the event occurring after initial recognition. For the periods ended 31 December 2025 and 2024, the breakdown of accounts receivable is as follows: INTEGRATED MANAGEMENT REPORT 2025 509