Services’ Costs Identification – Corporation Costs Base Sample Clauses

Services’ Costs Identification – Corporation Costs Base. Service to companies and on behalf of the shareholder or the concession

Services’ Costs Identification – Corporation Costs Base. As a general principle and within the corporate SAP platform, all costs associated with the activities of each company, both own personnel expenses, external suppliers’ costs, depreciation and others, are analytically accounted in the so-called “allocation orders”. Each order among its different analytical fields collects a product code that identifies the corresponding corporate service. Cost base of Iberdrola Group corporate service is defined as the Earnings Before Interest and Taxes (EBIT). The EBIT includes the following components: • Personnel Expenses • Net External Services of other operating income • Taxes • Depreciation • Provisions The External Services component will include both items received from external companies of the Group and items from different Group companies of the Corporation and necessary for the provision of corporate services. As an exception to the direct allocation of costs to products, indirect costs are those that due to their nature or the way in which they are accounted on the Corporation can’t be assigned to a single corporate service. In this case a consumption criterion has to be used in order to assign it to the corporate services affected.