AMPER, SA and Subsidiaries Consolidated Financial Statements for ...

At the end of 2011 a number of legal proceedings and claims were in progress against the
consolidated companies arising from the normal performance of their activities. Both the Group's
legal advisers and Administrators consider that the outcome of these proceedings and claims will
not have a significant effect on the financial statements of the years affected.
j) Recognition of income and expenses
Income and expenses are recorded on an accrual basis.
Revenue is recognized when the gross input of economic benefits arising in the course of the
Group's ordinary activities during the financial year occurs, provided that this input of benefits
creates an increase in equity that is not related to contributions of the owners of the equity and
such benefits can be measured reliably. Revenue is stated at the fair value of the consideration
received or receivable.
Revenue arising from the provision of services is only recognized when it can be reliably
estimated and depending on the degree of completion of the service at the date of the balance
sheet.
Interest income is accrued on a time proportion basis, referenced to the principal outstanding and
the effective interest rate applicable.
(i)
Identification of transactions
The Group assesses whether there are different elements in a transaction, in order to apply
income recognition criteria to each one.
(ii)
Sale of goods
Revenue from sales of goods is recognized when the Group:
• Has transferred the major risks and benefits inherent in the ownership of the goods to
the purchaser:
• No longer has any involvement in the ordinary management of the goods sold to the
degree usually associated with ownership, and does not retain effective control over the goods;
• The amount of income and the costs incurred or to be incurred can be reliably
calculated;
• It is likely that economic benefits will be obtained in relation to the sale; and
• The costs incurred or to be incurred in regard to the transaction can be reasonably
measured.
The Group sells certain goods that are subject to guarantees. In these cases, the sales of goods
are recognized as soon as they fulfill the above conditions and it is possible to reliably estimate
the amount of the guarantees based on past experience and other relevant factors. The
estimated amount of the guarantees is recorded with a credit to the cost provisions established
for this purpose.
22