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

The deferred tax assets and liabilities recognised are reassessed at each balance sheet date in order
to ascertain whether they still exist, and the appropriate adjustments are made on the basis of the
findings of the analyses performed.
Q) Foreign currency balances and transactions
Transactions in currencies other than the functional currency of each company are translated to
the functional currency by applying the exchange rates prevailing at the date of the transaction.
During the year, the differences that arise between the balances translated at the exchange rate
prevailing at the date of the transaction and the balances translated at the exchange rate prevailing
at the date of collection or payment are recorded as finance costs or finance income in the
consolidated income statement.
Also, balances receivable or payable at 31 December each year denominated in currencies other
than the functional currencies in which the financial statements of the consolidated companies are
denominated are translated to euros at the year-end exchange rates. The translation differences are
recognised as finance costs or finance income in the consolidated income statement.
R) Environmental activities
In general, environmental activities are considered to be operations whose main purpose is to
prevent, reduce or redress damage to the environment.
Investments relating to environmental activities are measured at acquisition cost and capitalised as
an addition to non-current assets in the year in which they are made.
Environmental protection and improvement expenses are charged to income in the year in which
they are incurred, regardless of when the resulting monetary or financial flow arises.
Provisions for probable or certain third-party liability, litigation in process and outstanding
environmental indemnity payments or obligations of undetermined amount not covered by the
insurance policies taken out are recorded when the liability or obligation giving rise to the
indemnity or payment arises.
S) CO2 emission allowances
Royal Decree 60/2005 approved the first allocation for no consideration of individual CO2
emission allowances for each facility for 2005-2007. The Council of Ministers’ Resolution
approving the individual allocation of emission allowances under the National Allocation Plan for
greenhouse gas emission allowances for 2008-2012 was published on 14 November 2007.
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