A N N U A L R E P O R T A N D A C C O U N T S - CMVM
A N N U A L R E P O R T A N D A C C O U N T S - CMVM
A N N U A L R E P O R T A N D A C C O U N T S - CMVM
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Notes to the Consolidated Financial Statements at 31 st December 2008<br />
The entry into force of the alterations to the IAS 39 / IFRS 7, as well as IFRIC 14 and IFRIC 13, in 2008, did not have a significant impact on<br />
the attached results statements.<br />
IFRIC 12 – “Contracts regarding concession services” was approved by the European Union on the 26 th of March 2009, with its first application<br />
defined for the first financial year started after that date. Therefore, the application to the Group should be mandatory for the financial year<br />
started on the 1 st of January 2010. IFRIC 12 establishes the provisions to be applied in the measurement, recognition, presentation and<br />
diffusion of the activities developed under the public services concession contracts. The impact of the future adoption of that standard in the<br />
consolidated results statements is still not fully assessed at this date.<br />
No significant impacts are foreseen in the results statements of the Group, resulting from the adoption of the remaining standards.<br />
The following accounting standards and interpretations were already issued on this date although they have not been approved yet by the<br />
European Union:<br />
Effective Date<br />
IFRS 3 – Corporate Clusters (Reviewed) 01-07-2009<br />
IFRS 1 – Adoption of the IFRS for the first time (Reviewed) 01-07-2009<br />
IAS 27 – Individual and consolidated financial statements (Reviewed) 01-07-2009<br />
IAS 39 – Ellegible cover instruments (Reviewed) 01-07-2009<br />
IAS 39 – Reclassification of financial assets (Reviewed) 01-07-2009<br />
IFRS 7 – Qualitative increases in the diffusions related to financial instruments (Reviewed) 01-01-2009<br />
IFRIC 15 – Contracts related to real estate construction 01-01-2009<br />
IFRIC 16 – Net investment cover in operations with foreign markets 01-10-2008<br />
IFRIC 17 – Distribution among shareholders of non-pecuniary assets 01-07-2009<br />
IFRIC 18 – Customers’ assets transfer 01-07-2009<br />
The impact of the adoption, in future financial years, of the above referred standards in the consolidated results statements is not fully assessed<br />
yet at this date.<br />
2.2 - Critical assessments / estimates<br />
The preparation of the statements of results in conformity with the IFRS recognition and measuring principles requires that the Board of<br />
Directors formulates assessments, estimates and presuppositions which may affect the value of the assets and liabilities submitted, namely<br />
amortizations, depreciations and provisions, the diffusion of contingent assets and liabilities at the date of the statements of results, as well as<br />
of profits and costs.<br />
Those estimates are based on the best existing knowledge at each moment and on the actions that they plan to carry out, subject to a periodical<br />
review based on the information available. Alterations to facts and circumstances may lead to estimate review; therefore, actual future results<br />
may differ from those estimates.<br />
The significant estimates and presuppositions formulated by the Board of Directors in preparing these statements of results include, namely,<br />
the presuppositions used in processing the following aspects:<br />
Impairment of non-current assets<br />
The determination of an eventual loss due to impairment can be triggered by the occurrence of several events, many of which outside the<br />
Group’s sphere of influence, such as the future availability of financing, the cost of capital or any other , internal or external changes related to<br />
the Group.<br />
The identification of impairment indicators, the estimate of future cash flow and the determination of the recoverable value of assets imply a<br />
high level of assessment on the part of the Board, regarding the identification and evaluation of the different impairment indicators, expected<br />
cash flow, applicable discount rates, useful lifetime and residual values.<br />
Impairment of Goodwill<br />
Goodwill is subject to an annual impairment test or always when there is evidence of an eventual loss of value, in accordance with the policy<br />
indicated in Notes 18 and 22. The recoverable values of the cash flow generating units to which goodwill is attributed are determined based<br />
on the expected cash flow. These calculations require the use of estimates on the part of management, regarding the evolution of future<br />
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