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the aforementioned period. Any differences that arise from this process, have been debited / (credited) to the
Equity under the “Translation Reserves” account.
3.5 Tangible assets
Fixed assets are reported in the financial statements at acquisition cost or deemed cost, as determined based
on fair values as at the transition dates, less accumulated depreciations and any impairment suffered by the
assets. The acquisition cost includes all the directly attributable expenses for the acquisition of the assets.
Subsequent expenditure is added to the carrying value of the tangible fixed assets or is booked as a separate
fixed asset only if it is probable that future economic benefits will flow to the Group and their cost can be
accurately and reliably measured. The repair and maintenance cost is booked in the results when such is
realized.
Depreciation of tangible fixed assets (other than Land which are not depreciated) is calculated using the
straight line method over their useful life, as follows:
Buildings
25-35 years
Mechanical equipment
4-30 years
Vehicles
4-10 years
Other equipment
4-7 years
The residual values and useful economic life of tangible fixed assets are subject to reassessment at each
balance sheet date. When the book value of tangible fixed assets exceeds their recoverable amount, the
difference (impairment) is immediately booked as an expense in the income statement.
Upon sale of the tangible fixed assets, any difference between the proceeds and the book value are booked as
profit or loss to the results. Expenditure on repairs and maintenance is booked as an expense in the period
they occur.
Self-constructed tangible fixed assets constitute an addition to the acquisition cost of tangible assets at a value
that includes the direct cost of employee’s salaries (including the relevant employer’s contributions), the cost
of materials used and other general costs.
3.6 Intangible assets
The intangible assets include Goodwill, the rights of use of Property, plant and equipment, software licenses,
licenses for the production, installation and operation of renewable energy assets and thermal energy assets,
the environment rehabilitation expenditure and borrowing costs.
Goodwill on Acquisition:
is the difference between the asset’s acquisition cost and fair value and the net assets
of the subsidiary / associate company as at the acquisition date. During the acquisition date, the company
recognizes this surplus value, emerged from acquisition, as an asset and presents it in cost. This cost is equal
