Annual Report 2005 - Tenaris

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c. Current assets and long term assets
Assets are stated at realizable values, including monetary
or exchange variations and related accrued income, when
applicable.
Allowance for doubtful receivables has been set at a level
considered to be sufficient to cover possible losses on the
amounts receivable from customers and others, accounts
receivable are recorded net of this allowance.
Inventories are stated at the average cost of purchase or
production, less than replacement costs or realizable
values. Imports in transit are stated at the accumulated
cost of each importation.
d. Permanent Assets
Permanent assets are stated at cost price restated monetarily
up to December 31, 1995, under the following
conditions:
Investments in subsidiaries and associated companies are
recorded using the equity equivalence method.
Revaluation of property, plant and equipment, conducted
in 1991, is based on appraisals by independent experts.
Depreciation of property, plant and equipment on a
straight line basis, using the annual rates given in explanatory
note 8, which take into account the useful working
lives of the assets.
e. Current and long term liabilities
Are shown by known or calculable amounts, in addition
to monetary or exchange variations and corresponding
charges, when applicable.
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f. Consolidation Criteria
The consolidated financial statements were prepared in
accordance with the technical consolidation criteria in
Ruling no. 247/96 issued by the CVM.
For the preparation of the consolidated financial statements,
the following accounts are eliminated: investments,
unrealized profits or losses between parent company and
subsidiaries or associated companies, the results of equity
equivalence, the revenues and expenses from transactions
among the companies, the balances among companies
for current and long term assets and liabilities. The
minority stockholders' interests are clearly shown in the
results and net worth.
The consolidated financial statements include the following
subsidiary companies:
Confab Montagens Ltda.
Revestimentos Ltda.
Socotherm Brasil S.A.
Confab Trading LLC and its subsidiary Confab Trading N.V.
g. Supplementary information
In order to maximize the information being made available
to the market, the Company is presenting as supplementary
information the cash flow statement prepared in
accordance with norm NPC 20 issued by IBRACON
(Institute of Independent Auditors of Brazil), taking into
account the main operations influencing the Company's
available cash and financial investments.
57. Financial Statements 2005