Common use of Book Value Clause in Contracts

Book Value. Regardless of the value set out for tax purposes or any other end, in this Contract, “book value” refers to the book value of the Concession Assets or of the intangible asset that reflects the Concession Assets related to the performance of the Project’s works, expressed in Dollars (according to the audited Financial Statements prepared in accordance with the standards and principles generally accepted in Peru or the International Financial Reporting Standards - IFRS), net of accumulated depreciation and amortization at the time of the calculation. For these purposes, the depreciation or amortization shall be estimated under the straight-line method, for a period of thirty (30) years for the intangible asset indicated above and for the period indicated in the accounting standards and principles generally accepted or the IFRS for the other assets. If the depreciation or amortization for tax purposes is higher than that defined in this paragraph, it shall be discounted from the resulting book value the difference between (1) the income tax paid for under the straight-line depreciation method described and (2) the income tax resulting from the depreciation method used by the CONCESSIONAIRE. For the purposes of this Contract, the book value will not include any kind of revaluations or tax credit. Annex 4 CONTRACT PERFORMANCE BOND FORMAT [city], _ _ , 202__ Messrs.