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

- The infrastructure is operated by the concession operator as established in the concession tender
specifications for an established concession term. At the end of this period, the assets are returned
to the concession grantor, and the concession operator has no right whatsoever over these assets.
- The concession operator receives revenue for the services provided either directly from the users
or through the concession grantor.
The most significant accounting methods used by the Acciona Group in relation to these
concession arrangements are as follows:
- Capitalisation of the borrowing costs incurred during the construction period and noncapitalisation
of the borrowing costs after the entry into service of the related assets.
- Depreciation of the concession infrastructure on a straight-line basis over the concession term.
- Concession operators depreciate these assets so that the carrying amount of the investment made
plus the costs considered necessary to return the assets in working order is zero at the end of the
concession.
- In virtually all of the concessions of the Acciona Group, the construction work was carried out by
Group companies. In this regard, the income and expenses corresponding to infrastructure
construction or upgrade services are recognised at the gross amount thereof (recognition of the
sales and the cost of sales in the consolidated financial statements of the Acciona Group),
recognising the construction margin in the consolidated financial statements. If construction were
not carried out by the Group itself, this fact would be taken into account for the purpose of
recognising sales and the cost of sales in the consolidated financial statements.
Computer software
The acquisition and development costs incurred in relation to the basic computer systems used in
the Group's management are recognised at acquisition cost with a charge to “Other Intangible
Assets” in the consolidated balance sheet.
Computer system maintenance costs are recognised with a charge to the consolidated income
statement for the year in which they are incurred.
E) Impairments of non-current assets
At each balance sheet date, the Group reviews the carrying amounts of its property, plant and
equipment, investment property, goodwill and intangible assets to determine whether there is any
indication that those assets might have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss (if any). Where the asset itself does not generate cash flows that are independent from other
assets, the Group estimates the recoverable amount of the smallest identifiable cash-generating
unit to which the asset belongs.
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