ACCIONA, S.A. AND SUBSIDIARIES (Consolidated Group ...

- At fair value when it is possible to determine it reliably, based on either the market price
or, in the absence thereof, using the price established in recent transactions or the
discounted present value of the future cash flows. The gains and losses from changes in
fair value are recognised directly in equity until the asset is disposed of, at which time the
cumulative gains or losses previously recognised in equity are recognised in the income
statement for the year. If fair value is lower than acquisition cost and there is objective
evidence that the asset has suffered an impairment loss that cannot be considered
reversible, the difference is recognised directly in the consolidated income statement.
At 31 December 2011, the available-for-sale financial assets were measured by reference
to quoted (unadjusted) market prices and categorised in level one of the fair value
measurement hierarchy established in IFRS 7.
In 2011 and 2010 no financial assets among the categories defined in the preceding paragraphs
were reclassified.
Purchases and sales of financial assets are recognised using the trade date method.
Transfers of financial assets
The Acciona Group derecognises financial assets when they expire or when the rights to the cash
flows from the financial asset and substantially all the risks and rewards of ownership have also
been transferred, such as in the case of firm asset sales, factoring of trade receivables in which the
company does not retain any credit or interest rate risk, sales of financial assets under an
agreement to repurchase them at fair value and the securitisation of financial assets in which the
transferor does not retain any subordinate financing or award any kind of guarantee or assume any
other kind of risk.
Bank borrowings other than derivatives
Interest-bearing bank loans and overdrafts are recognised at the proceeds received, net of direct
issue costs. Borrowing costs, including premiums payable on settlement or redemption and direct
issue costs, are recognised in the income statement on an accrual basis using the effective interest
method and are added to the carrying amount of the instrument to the extent that they are not
settled in the period in which they arise. In subsequent periods, these obligations are measured at
amortised cost using the effective interest method.
In specific cases where liabilities are the underlying of a fair value hedge, they are measured,
exceptionally, at fair value for the portion of the hedged risk.
- Page 31 -