A N N U A L R E P O R T A N D A C C O U N T S - CMVM

Notes to the Consolidated Financial Statements at 31 st December 2008
2.13 - Provisions
Provisions are recognized, when and only if the Group has a present obligation (legal or implicit) resulting from a past event, and it is likely that
for the resolution of that obligation there is an outlet of resources and the obligation amount can be reasonably estimated. The provisions are
reviewed at the date of each balance sheet and are adjusted in order to reflect a better estimate at that date.
The provisions for restructuring costs are recognized by the group whenever there is a formal and detailed restructuring plan and the same
has been communicated to the parties involved.
2.14 - Report by segments
A business segment is a group of assets and operations involved in the supply of products or services subject to risks and benefits which are
different from other business segments. A geographic segment is a group of assets and operations involved in the supply of products or
services in a particular economic environment, that is subject to risks and benefits which are different from those carried out by segments that
operate in other economic environments..
The Group presents the main business segments, in a coinciding way with the one in which management conducts its business.
2.15 - Operational results
Operational results include total operating costs and profits, recurrent or non-recurrent, including costs with restructurings, and costs and profits
associated to operational assets (tangible fixed assets and other intangible assets). They also include capital gains or losses (increased or
decreased values) ascertained in the company sale included in the consolidation by the integral or proportional consolidation method. Thus,
the net financing costs, the results ascertained with associated companies (Note 22), with the other financial investments (Note 25) and the
income taxes are excluded from the operational results.
2.16 - Financial instruments
Financial assets and financial liabilities are recognized whenever the Group becomesa part in the respective contractual relation.
Cash and cash equivalents
The amounts included in the item “Cash and cash equivalents” correspond to cash values, bank deposits, time deposits and other financial
investment applications, becoming due within less than three months, and which can be immediately mobilizable with insignificant risk of
changing the value.
Accounts receivable
Accounts receivable do not have implicit interest and are submitted by respective nominal value, deducted from the estimated realization
losses.
Investments
Investments are recognized on the date in which the inherent risks and advantages are substantially transferred. Initially they are registered
by their acquisition value, which is the fair value of the price paid, including transaction expenses.
The financial assets available for sale are financial investments which are available for sale and are classified as non-current assets.
After initial recognition, the financial assets available for sale are measured with reference to their market value at the balance sheet date,
without any deduction regarding transaction costs that may occur until they are sold. Gains or losses deriving from the alteration of the fair
value are registered in the equity capital, in the item “Fair value reserve” until the investment is sold, received or in any way alienated, or in the
situations where it is deemed that there are losses due to impairment and it is in that moment that the accumulated gain or loss is registered
in the financial statement.
The financial assets available for sale in equity capital instruments, which do not have a market price listed in an asset market and with a fair
value which cannot be reliably measured, are denominated “Other investments”. Other investments are measured by their acquisition cost
deducted of any losses due to accumulated impairments.
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