| 2.17 | Other intangibles assets |
Other intangible assets mainly comprise software and licenses, which are initially measured at the cost of acquisition or cost of development. Costs incurred during the research phase are expensed as incurred.
Development expenses which are directly attributable to design and performance tests of software and identifiable, unique and controlled by Grupo Aval are recognized as intangible assets, when the following conditions are met:
| · | Technically, it is possible to complete the intangible asset production so it can be available for use; |
| · | Management intends to complete the corresponding intangible asset for use; |
| · | Grupo Aval has the capacity of using the intangible asset; |
| · | It is probable that future economic benefits that are attributable to the asset will flow to the entity; |
| · | There is availability of adequate technical or financial resources or other type, for completion and usage of the intangible asset; and |
| · | Costs attributable to intangible asset during its development phase can be estimated and measured in a reliable manner. |
Costs that are directly attributable and capitalized as part of intangible assets include personnel expense directly related to developing such programs and an adequate percent of overhead expense.
Expenses that do not satisfy these criteria are recognized as incurred expenses. Disbursements over intangible assets are initially recognized as expenses of the period and they will not be subsequently recognized as intangible assets.
Subsequent to their initial recognition, these assets are measured at cost less amortization, which is carried out during its estimated useful life as follows: software amortization is recognized on a straight-line basis, according to the estimated useful lives. At the end of each fiscal year, Grupo Aval analyzes if there is evidence based on each CGU, both external and internal, indicating that the intangible asset is impaired. Any loss due to subsequent impairment or reversals are recognized in profit or loss; such impairment is determined by the excess of carrying amount over recoverable value.
