090 Intangible assets with a finite useful life are written down over their useful life and recognized at cost less accumulated scheduled write-downs. In compliance with IAS 38 intangible assets with an indefinite useful life are not written down on a scheduled basis, but are subject to an impairment test at least annually. The other intangible assets comprise purchased and self-developed software as well as other intangible assets acquired. These include, among others, a right for the exclusive use of a sales channel and a preemption right on interests in this sales channel. After an analysis of all relevant factors, the useful life was qualified as indefinite. Any impairments are identified by tests carried out annually to compare the realizable amount and the carrying amount. Software is written down on a straight-line basis over its useful life of a maximum of five years. For the insurance companies, the write-downs are allocated to the income statement line items of net investment income, claims and benefits, operating expenses and other expenditure. The deferred acquisition costs include commissions and other expenses directly incurred when acquiring insurance policies. The acquisition costs of life insurance poli- cies are spread over the term of the contracts, taking into account the interest yield, at the same proportion as the profit margin in each individual year bears to the total profit margin to be expected from the contracts. In long-term health insurance, acquisition costs are written down over the total average contract term in proportion to premium income. The calculation parameters are regularly adjusted to the current situation. For property and casualty insurance the write-downs are also made in proportion to premium income over the contract term, the maximum period being five years. Investment property is recognized at acquisition or construction costs less accu- mulated scheduled and unscheduled write-downs and accumulated impairment. The write-down modalities and measurement principles for investment property are the same as those applied for owner-occupied property. Investment property only includes the property mainly occupied by third parties. Shares in enterprises measured at equity refer to associated enterprises on which the AMB Generali Group may exercise a material influence and to joint ventures jointly run with other partner companies. A material influence is assumed to exist if at least 20 percent of the voting rights are attributable to the AMB Generali Group. An enterprise is jointly run if there is a contractually agreed shared control of the economic business activities of the joint venture. Financial instruments are recognized in the balance sheet once the AMB Generali Group becomes a party to the contractual rules of the financial instrument. Financial instruments are all kinds of legal transactions in the form of contracts or agreements which directly or indirectly aim at the exchange of means of payment. Financial instruments can be subdivided into financial assets and financial liabilities. Financial instruments are derecognized, as a matter of principle, if the requirement of a transfer of the risks and rewards of ownership is fulfilled. The transfer of the risks and rewards is regarded on a consolidated basis. Furthermore financial instruments are dere- cognized if the control of a financial instrument is transferred to the contracting party. When interest and currency swaps are taken out, hedge accounting is applied if the corresponding criteria are fulfilled. As a matter of principle, the measurement of financial instruments is determined on the basis of the settlement date. Financial instruments are categorized by "loans and receivables", "available for sale" and "financial assets at fair value through profit or loss". Chap. 3 CONSOLIDATED FINANCIAL STATEMENTS NOTES