Supplemental Disclosure Material - Ono

others, an analysis of the causes of the possible impairment and the time and the expected amount thereof. Likewise, factors
such as technological obsolescence, the suspension of certain services and other changes in circumstances that create the need
to assess possible impairment are taken into account.
Fair Value of Derivatives and Other Financial Instruments
The fair value of financial instruments that are not traded in an active market is determined by using valuation
techniques. We select a variety of methods and make assumptions that are mainly based on market conditions existing at each
balance sheet date. We have used discounted cash flow analysis as well as third party valuations to determine the fair value of
the derivatives and other financial assets and liabilities.
Deferred Income Tax and Tax Credits
We assess the recoverability of deferred income tax assets and tax credits on the basis of estimates of future results.
The recoverability will, in the final analysis, depend on our ability to generate taxable profits during the period in which the
deferred income tax assets may be deducted. The analysis takes into account the taxable profits estimated on the basis of
internal projections that are updated to reflect the most recent trends, assumptions and information. Actual flows of amounts
received and paid for income tax may differ from our estimates as a result of changes in tax legislation or unforeseen future
transactions that might affect the tax balances.
Provisions
Provisions are recognized when we have a present obligation as a result of past events, it is probable that an outflow
of resources will be required to settle the obligation, and the amount has been reliably estimated. The obligation may be legal
or constructive, derived from, among other factors, regulations, contracts, normal practices or public commitments that create
a valid expectation for third parties that we will accept certain liabilities. The provision is measured by the best estimate of the
payment that will be necessary to settle the relevant obligation, taking into consideration all the information available on the
closing date for the financial statements, including the opinions of independent experts, such as legal advisors or consultants.
Due to the unpredictability inherent in estimating the amount of provisions, the actual payments may differ from the amounts
initially recognized on the basis of the estimates made.
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