AMPER, SA and Subsidiaries Consolidated Financial Statements for ...

3. Assessment standards
The principal assessment standards used in the preparation of the attached consolidated financial
statements were the following:
a) Goodwill
The goodwill generated in consolidation represents the excess of the acquisition cost over the
Group's interest in the fair value of the identifiable assets and liabilities of a subsidiary on the date
of acquisition, unless it is not possible to determine the fair value of the assets.
Goodwill is considered an asset of the acquired company and, therefore, in the case of a
subsidiary with a functional currency different from the euro, it is measured at the functional
currency of that company, the translation to euros being made at the exchange rate in force at
the balance sheet date.
In accordance with IAS 36 ("Impairment of assets"), if goodwill has been distributed to a Cashgenerating
Unit and the entity disposes of an operation within that unit through another channel,
the goodwill associated with the operation will be:
(a) included in the book value of the operation when determining the profit or loss on
disposal through another channel; and
(b) measured based on the relative values of the operation disposed of through
another channel and the portion of the Cash-generating Unit retained, unless the
entity can demonstrate that another method better reflects the goodwill associated
to the operation disposed of through another channel.
Goodwill is recognised as an asset, and at each accounting close an estimate will be made to
see if there has been any impairment that reduces the value to a sum below the recorded cost. If
this is the case, the appropriate write off is made under "Loss due to impairment/reversion of the
impairment of assets" on the consolidated income statement. Losses for impairment related to
goodwill are not the object of subsequent reversion.
b) Intangible assets
Intangible assets are initially recognised at their acquisition or production cost, and subsequently
at cost less, as the case may be, any accumulated depreciation and impairment losses.
Intangible assets are generally amortised over 5 years.
Expenditures on research activities are recognised as an expense in the year in which it is
incurred. Development expenditures are specifically identified per individual project, and their cost
is clearly established so that it can be distributable over time. Likewise, the Group's Management
has good reasons to expect the technical success and economic-commercial profitability of these
projects and in addition to the technical and financial resources to enable completion of the asset.
These development expenditures are recognised, when it is incurred, at acquisition price or
production cost and is amortised on a straight-line basis over 3-5 years.
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