73
2013
Annual Report
9
NOTE 3
.- Accounting Principles
3.1.
Intangible assets
a)
Computer software
Computer software mainly reflects the acquisition and development of software applications, which are
recognised at cost under the pertinent intangible asset category and amortised on a straight-line basis over
their estimated useful life of between three and five years.
Computer software maintenance costs are charged as expenses when incurred. Costs directly related to the
production of single identifiable computer programs controlled by the Company that will probably generate
economic benefits in excess of costs for more than one year are recognised under intangible assets.
b)
Concessions
Administrative concessions are carried at cost less accumulated amortisation and any recognised impairment.
Concessions are amortised on a straight-line basis over the term of the concession.
If the favourable situation that enabled expenses required to obtain the concession to be capitalised were to
change, the portion pending amortisation is taken to profit or loss in the year the situation changed.
c)
Other intangible assets
Other intangible assets include incremental and specific costs incurred and related to contracts in which
customers undertake to remain with the Company for a specified period of time, and which are amortised on a
straight-line basis over the specified period.
3.2.
Property, plant and equipment
Property, plant and equipment are recognised at cost of acquisition or production, less accumulated
depreciation and recognised accumulated impairment losses, where applicable.
The value of self-constructed assets is calculated taking into account direct and indirect costs attributable to
those assets.
Costs incurred to extend, modernise or improve property, plant and equipment are only recorded as an
increase in the value of the asset when the capacity, productivity or useful life of the asset is increased and it
is possible to ascertain or estimate the carrying amount of the assets that have been replaced in inventories.
The cost of major repairs is capitalised and depreciated over their estimated useful life, while recurring
maintenance costs are charged to the income statement during the year in which they are incurred.
Depreciation of property, plant and equipment, with the exception of land that is not depreciated, is
calculated systematically on a straight-line basis over the estimated useful lives of the assets based on the
actual decline in value due to operation and use.
