EFTA01367201.pdf

Amendment #4 Page 772 of 868 4.8.2 Certified Emission Reductions (CERs) The Company recognizes CERs in accordance with MS 2 inventory because they are held for sale in the orctrery course of lateness CERs are measured, initially and sitsequenny, al fair value 4A Intangible assets Intangible assets acquired separately are measured oddly at cost Following 'neat reccgneon, dangible assets we earned at cost less arty accumulated amortizaton and any aCCUTLiated impairment losses as reoessary The Company records the ntangible assets generated internally as expenses In the year in which they are 'floured excel)! for development oasts that are cad ialing:I The useful lives of intangible assets are assessed to be either finite or ndeforte Energta Utica only has irtonate assets with forte useful lives, winch are amortized totter the straglUine method over the assets estimated useful was. which are periodically reviewed by Marogemerit Gains or losses from the Oerecogribon of an [Mange* asset are determined by the Cancels/ as the deference between the proceeds from sale or disposal and the net carryrg amoint of the intangible asset, recogvzng them in the results of the year in which they are incurred 4.9.1 Connectivity rights As part of the obligations set forth n PPA with ENEE, the Company red to buil. at its own cost an electrical sot:Caton on behat of ENEE. Because the Company does rot own the pnyucal asset, the respects,* cost was considered a rigs to be able to operate the wind park and therefore recognized as an irtargible asset Ccnnectivrty rights are amortized on a straight-line bets over the PPA term 4.9.2 Research and development costs Research costs are expensed as routed Development activities iavolved a pan or design for the construdon of new wind power generaton woods An intangde asset areing from the development phase of a project is recognized if the Company can dement rate all of the (Wowing the lethncal feaskety of completing the asset so That it win be available for use or sae, as intention to complete the asset are use it or set it, its Malay to use or sell the asset, row the asset iv,s generate probable future economic benefits, the availability or adequate technical and financial resources to complete the development and lo use Cr see the asset, and its ability lo reliably measue the expendture attributable to the intangible asset during its development Uselt1 life for intangible assets wrung from developriert costs is determined based on the PPA term and amortization occurs on a straight-line basis 4.13 Software Software represents the cost of accounting software licenses Software is amortized over a useful life between one are twee years. on a straight-Ine base 4.10 Property, plant and equipment Property. dart. and equpmert are stated at acquisition cost less accumulated depreoabon and losses due to swarmed. it any These costs include the cost of replacing the components of plant or equpment F-452 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058729 CONFIDENTIAL SDNY_GM_00204913 EFTA01367201