ACS Group Annual Report - Grupo ACS

contingency or corresponding challenge could be contrary to the interests of the ACS Group, under the consideration of the
country in which it originates, and according to the tax rates referred to therein. Given that the calendar of outfl ows of said
provisions depend on certain events, in some cases related to the legal rulings or rulings from similar agencies, the Group
does not fi nancially update the same, given the uncertainty of the actual time when they may take place or the associated
risk may disappear.
Provisions for responsibilities
They mainly pertain to the following concepts:
Provision for litigation
They cover the risks of the ACS Group companies that are involved as a party in certain cases of litigation due to the same
responsibilities for the activities they carry out. The litigation cases that may be signifi cant in number are irrelevant in
amounts when considered individually and there are none that are especially notable with the exception of the litigation
related to the lawsuit by Boliden-Apirsa in 2004. Said provisions are funded according to the analysis of the litigation or
claims, in accordance with the reports prepared by the legal advisers of the ACS Group. As in the case of the tax provisions,
said amounts are not updated, as far as that at the moment of realisation or disappearance of the associated risk, it depends
upon circumstances tied to legal rulings or arbitration, upon which it is impossible to quantify the moment when they will be
resolved. Likewise, they are not removed until either at the time when the rulings are fi rm and it proceeds with the payment
of the same, or there is no doubt of the disappearance of the associated risk.
Additionally, and in accordance with the opinion of the external lawyers responsible for the legal aspects of this matter, the
Group considers that there is no material economic risk relating to the lawsuit fi led by Boliden-Apirsa in 2004. In relation to
this matter, the Madrid Court of First Instance and the Provincial Court of Madrid have dismissed the lawsuit fi led by Boliden-
Apirsa. This judgment has been subject to an extraordinary appeal to the Supreme Court.
Environmental provisions
The ACS Group is developing an environmental policy that is based not only on strict compliance with current legislation on
environmental improvement and protection, but that goes beyond that through the establishment of preventive planning
and analysis and minimisation of the environmental impact of the activities carried out by the Group, including the provisions
to cover the probable environmental risks that may arise.
Contractual and legal guarantees and obligations
It covers the provisions for paying the expenses of obligations arising from the contractual and legal commitments that
are not environmental in nature. A signifi cant part of the provisions is established by increasing the value of those assets
related to the obligations undertaken in activities performed through an administrative concession, whose effect on profi ts
takes place when amortising said asset according to the amortisation coeffi cients. Additionally, provisions are included that
involve highway concession companies, regarding the cost of future expropriations that shall be assumed by the concession
companies, according to the agreements set with the companies providing the concessions, as well as the present value of
the committed investments in the concession contracts, according to the respective economic/fi nancial models.
The funding of the same is mainly due to the provisions of sealing and post-closing maintenance, as well as the amounts
associated with the highway concession contracts and other activities initiated in the form of a concession. The infl ows for
the period mainly pertain to companies, which have initiated their activities and give rise to the contractual obligation of
sealing or replacement. The applications and reversals originate in the sealing of different basins associated with waste
treatment concessions of Group companies, in addition to the payment of amounts associated with expropriations of lands
affected by real estate assets.
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ECONOMIC AND FINANCIAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS