Intangible assets are internally generated development costs related to "Omega" and related capital expenditure. Omega is a system including proprietary software with data processing, communication and energy system control functionalities. The software algorithms embedded within Omega perform supervisory monitoring, dynamic control, protection, data analysis and optimisation of energy assets installed in power, heat and transport networks in a coordinated and unified manner.
Intangible assets are initially recorded at cost and are subsequently stated at cost less any accumulated amortisation and impairment losses. The cost of internally generated intangible assets include directly attributable costs of labour, both directors' and employees', necessary to generate the asset.
Intangible assets are amortised from the date they are available for use. Amortisation is charged to the Income Statement on a straight-line basis over the estimated useful life of the intangible asset, which is 20 years. Intangible assets with an indefinite useful life are tested for impairment annually. Amortisation periods and methods are reviewed annually and adjusted if appropriate.
Any intangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.