FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

Property and equipment
Our balance sheets reflect significant amounts of long-lived assets (mainly property and equipment, goodwill and other intangible assets) associated with our operations throughout
Mexico, Brazil and, effective October 2010, Chile and Peru. Many of these assets have resulted from past acquisitions, which have required us to report these assets at their fair value at
the acquisition date. In accordance with to their characteristics and specific treatment, we assess the recoverability of our long-lived assets at least once a year, normally during the
fourth quarter, as is the case for goodwill, or whenever events arise that we believe trigger a review such carrying values, as is the case with property and equipment and intangible
assets of definite life. Property and equipment to be disposed of are assessed on the date on which the sale plan is approved at the lower of its net carrying value and its fair value less
associated sale costs. Moreover, we monitor the lives assigned to these long-lived assets for purposes of depreciation. This analysis is subjective and form part to the determination
of whether impairment has occurred.
Property and equipment are initially recorded at acquisition cost. Effective January 1, 2008, when inflationary accounting is applied in high inflationary periods, those assets are restated
by using INPC factors applicable to the country where those assets are established, as discussed in Note 3 e) to our financial statements.
While we believe that our estimates are reasonable, different assumptions could materially affect our evaluations. Our evaluations for 2011 and 2010 and up to the date of this annual
report did not lead to any impairment of property and equipment. Accordingly, fair value of property and equipment was equivalent to or greater than the carrying value thereof at that
date. We can give no assurance that our expectations will not change as a result of new information or developments.
Business acquisitions, intangible assets and goodwill
Business acquisitions are recognized by using the purchase method to allocate the purchase price to the net assets acquired and the noncontrolling interest. Therefore: (i) intangible
assets acquired are recognized at its estimated fair value at acquisition date; (iii) the unallocated portion of the purchase price that is not identifiable is included as goodwill, which is
allocated to the cash flow generating unit in order to periodically evaluate the impairment. The goodwill value is adjusted for any correction to the preliminary value allocated to the net
assets acquired and the noncontrolling interest within the twelve months subsequent to the acquisition date.
80