ACCIONA, S.A. AND SUBSIDIARIES (Consolidated Group ...

The assets and liabilities acquired are measured provisionally at the date on which control is
acquired, and the resulting value is reviewed in a maximum period of one year from the date of
acquisition. Until the fair value of the assets and liabilities has been definitively determined, the
difference between the cost of acquisition and the carrying amount of the company acquired is
recognised provisionally as goodwill.
Any excess of the cost of the investments in the consolidated companies over the corresponding
underlying carrying amounts acquired, adjusted at the date of first-time consolidation, is allocated
as follows:
- If it is attributable to specific assets and liabilities of the companies acquired, increasing the
value of the assets (or reducing the value of the liabilities) whose market values were higher
(lower) than the carrying amounts at which they had been recognised in their balance sheets
and whose accounting treatment was similar to that of the same assets (liabilities) of the
Group: amortisation, accrual, etc.
- If it is attributable to specific intangible assets, recognising it explicitly in the consolidated
balance sheet provided that the fair value at the date of acquisition can be measured reliably.
- The remaining amount is recognised as goodwill, which is allocated to one or more specific
cash-generating units.
Goodwill is only recognised when it has been acquired for consideration and represents, therefore,
a payment made by the acquirer in anticipation of future economic benefits from assets of the
acquired company that are not capable of being individually identified and separately recognised.
Goodwill acquired on or after 1 January 2004 is measured at acquisition cost and that acquired
earlier is recognised at the carrying amount at 31 December 2003.
On disposal of a subsidiary or jointly controlled entity, the attributable amount of goodwill is
included in the determination of the gain or loss on disposal.
Goodwill arising on the acquisition of companies with a functional currency other than the euro is
translated to euros at the exchange rates prevailing at the date of the consolidated balance sheet.
D) Other intangible assets
Intangible assets are recognised initially at acquisition or production cost and are subsequently
measured at cost less any accumulated amortisation and any reductions required to reflect
accumulated impairment losses. Intangible assets with indefinite useful lives are not amortised.
Intangible assets with finite useful lives are amortised over those useful lives using methods
similar to those used to depreciate property, plant and equipment. The amortisation rates, which
were determined on the basis of the average years of estimated useful life of the assets, are
basically as follows:
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