Subsequent expenditure

After initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated
impairment loss, if any.

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the
specific asset to which it relates.

Service concession arrangements

We recognize an intangible asset arising from a service concession arrangement to the extent we have a right to
charge for use of the concession infrastructure. The fair value, at the time of initial recognition of such an
intangible asset received as consideration for providing construction or upgrade services in a service concession
arrangement, is regarded as our cost. Subsequent to initial recognition, the intangible asset is measured at cost,
less any accumulated amortization and accumulated impairment losses, if any.

 

Amortization of intangible assets

Intangible assets are amortized on a straight line basis over the estimated useful economic life. The estimated
useful lives are as follows:

 

Asset Useful life (years)

 

Licenses and technical know-how

 

 

 

Software 4

 

The estimated useful life of an intangible asset in a service concession arrangement is amortized over the period
of contract.

The amortization period and the amortization method are reviewed at each reporting date. If the expected useful
life of the asset is significantly different from previous estimates, the amortization period is changed
accordingly.

Expenditure on research and development

Expenditure on research activities is recognized in the Restated Consolidated Statement of Profit and Loss as
incurred.

Development expenditure is capitalized as part of the cost of the resulting intangible asset only if the
expenditure can be measured reliably, the product or process is technically and commercially feasible, future
economic benefits are probable, and we intend to and have sufficient resources to complete development and to
use or sell the asset. Otherwise, it is recognized in the Restated Consolidated Statement of Profit and Loss as
incurred.

Following the initial recognition of the development expenditure as an asset, the cost model is applied, requiring
the asset to be carried at cost less any accumulated amortization and accumulated impairment losses, if any.
Amortization of the asset begins when development is complete and the asset is available for use. It is amortized
on a straight line basis over the period of expected future benefit from the related project. Amortization is
recognized in the Restated Consolidated Statement of Profit And Loss.

During the period of development, the asset is tested for impairment annually.
Government Grants

Government grants, including non-monetary grants at fair value, are not recognized until there is reasonable
assurance that we will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognized in the Restated Consolidated Statement of Profit and Loss as other income on

a systematic basis over the periods in which we recognize as expenses the related costs for which the grants are
intended to compensate.

333

 
