ANNUAL REPORT ‘12
NOTES TO THE FINANCIAL STATEMENTS
187
a) Goodwill
Goodwill represents the surplus of the cost of acquisition as compared to the fair value of the identifiable assets
and liabilities of the subsidiary/associate at the date of acquisition. The goodwill of acquisitions of subsidiaries
is included in the intangible assets and that of the acquisition of associates is included as investments in
associates. The goodwill is subject to impairment tests, on an annual basis, and is presented at cost, less
the accumulated impairment losses. Gains or losses derived from the sale of an entity include the value of the
goodwill pertaining to the entity.
The goodwill is allocated to the units that generate the cash flows for purposes of conducting impairment tests.
The tests are conducted at least once a year with reference to the financial reporting date.
b) Research and development expenditure
Expenditure on research carried out while pursuing new technical or scientific knowledge, or a quest for
alternative solutions, is shown in the results when incurred.
The expenditure incurred on account of development is capitalised when it is proved that the product or process
being developed can be executed in technical terms and that the Group has the intention and the capacity to
complete its development and begin its use or sale.
c) Software
The costs incurred with the acquisition of software are capitalised whenever it is expected that they will be
used by the Group.
2.8_IMPAIRMENT OF NON-FINANCIAL ASSETS
The assets of the ANA Group are analysed during each report period so as to detect possible losses due to impairment.
While determining the value recoverable from the assets, 3 cash flow generating units are considered:
• The system of airports managed by ANA, S.A., which includes all the assets of this company, keeping in mind
that its assets alone do not themselves generate independent cash flows;
• The system of airports managed by ANAM, S.A., which includes all the assets of this company, keeping in mind
that its assets alone do not themselves generate independent cash flows;
• Portway, S.A..
The recoverable amount is the higher of the value in use or the fair value less costs to sell. When the book value
of an asset or a cash flow generating unit is higher than the recoverable value, then an impairment needs to be
recognised. Impairment losses are recognized in the income statement.
Under the Concession Contract signed on 14 December 2012 between ANA, S.A. and the Portuguese State, the
economic regulation of the provision of public airport service is applied to the network of Group airports, as
