Atento S.A. | CIK:0001606457 | 3

  • Filed: 4/27/2018
  • Entity registrant name: Atento S.A. (CIK: 0001606457)
  • Generator: IBM Cognos
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1606457/000129281418001398/0001292814-18-001398-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1606457/000129281418001398/atto-20171231.xml
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  • ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory

    f) Intangible assets

    Intangible assets are stated at acquisition cost, less any accumulated amortization and any accumulated impairment losses.

    The intangible assets acquired in a business combination are initially measured at their fair value as of the acquisition date.

    The useful lives of intangible assets are assessed on a case­by­case basis to be either finite or indefinite. Intangible assets with finite lives are amortized on a straight line basis over their estimated useful life and assessed for impairment whenever events or changes indicate that their carrying amount may not be recoverable. Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. The amortization charge on intangible assets is recognized in the consolidated statements of operations under “Amortization”.

    Amortization methods and useful lives are revised annually at the end of each reporting period and, where appropriate, adjusted prospectively.

    Customer bases

    Customer bases acquired in a business combination are recognised at fair value at the acquisition date and have finite useful lives and are subsequently carried at cost less accumulated amortization, which has been estimated to be between seven and twelve years. The customer bases relate to all agreements, tacit or explicit, entered into between the Atento Group and the former owner of the Atento Group and between the Atento Group and other customers, in relation to the provision of services, and that were acquired as part of the business combinations indicated in Note 5.

    Software

    Software is measured at cost (at acquisition or development costs) and amortized on a straight line basis over its useful life, generally estimated to be between three and five years. Maintenance cost of software is expensed as incurred.

    Development costs directly attributable to the design and creation of software that are identifiable and unique, and that may be controlled by the Group, are recognized as an intangible asset providing the following conditions are met:

    It is technically feasible for the intangible asset to be completed so that it will be available for use or sale.

    Management intends to complete the asset for use or sale.

    The Group has the capacity to use or sell the asset.

    It is possible to show evidence of how the intangible asset will generate probable future economic benefits.

    Adequate technical, financial and other resources are available to complete the development and to use or sell the intangible asset.

    The outlay attributable to the intangible asset during its development can be reliably determined.

    Directly attributable costs capitalized in the value of the software include the cost of personnel developing the programs and an appropriate percentage of overheads.

    Costs that do not meet the criteria listed above are recognized as an expense as incurred. Expenditure for an intangible asset that is initially recognized within expenses for the period may not be subsequently recognized as intangible assets.

    Other intangible assets

    Other intangible assets mainly include payment of loyalty incentives which are amortized on a straight line basis over the term of the agreements which range from four to ten years.