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
2.17 - Responsibility with pensions
Some Group companies provide retirement insurance to their employees. This insurance was created within the scope of a social policy
and incentives for employees and is of the exclusive initiative of those companies. Being characterized by its optional nature, it is
exclusively up to the respective management that the contributions are done whenever they seem adequate, taking in consideration the
performance and the economic and financial situation. The contributions made by the Group are registered as costs on the date they
are due.
Notwithstanding its optional nature, the availability of the contributions made by the Group is limited to the conditions foreseen in the applicable
tax legislation.
2.18 - Income tax
The income tax of the period is calculated based on the taxable results of the companies included in the consolidation and takes into
consideration the deferred taxation.
The current income tax is calculated based on the taxable results (which differ from the accounting results) of the companies included in the
consolidation, in accordance with the tax rules in force at each Group companies’ registered head office.
Deferred taxes refer to the temporary differences between the assets and the liabilities amounts for accounting record purposes and the
respective amounts for taxation purposes, as well as those resulting from tax benefits obtained.
The assets and liabilities due to deferred taxes are calculated and periodically evaluated using the taxation rates expected to be in force at the
time of the temporary differences reversion and are not discounted.
The assets due to deferred taxes are only registered when there are reasonable expectations of getting enough future tax profits to be used.
At the date of each balance sheet a re-appreciation of the underlying temporary differences is made to the assets due to deferred taxes in order
to recognize them or adjust them according to the current expectation of future recovery.
2.19 - Contingent assets and liabilities
The contingent assets are not recognized in the consolidated financial statements but diffused in the note whenever it is likely to occur a future
economic benefit.
The contingent liabilities are not recognized in the consolidated financial statements, the same being diffused in the note to the financial
statement, unless the possibility of outlet of funds affecting future economic benefits is remote. In this case they shall not be subject to
diffusion.
2.20 - Capital gain and accrual basis
Sales
Profits deriving from the sale of assets are recognized in the results statement whenever the following conditions have been fulfilled:
- The Group has transferred to the buyer the significant risks and advantages inherent to the ownership of the assets;
- The Group does not retain any continued management involvement in a degree generally associated to ownership, or the effective control
of the assets sold;
- The amount of capital gain can be reliably measured;
- Likelihood that economic benefits associated to the transaction flow to the Group; and
- The costs incurred or being incurred regarding the transaction can be reliably measured.
Sales are recognized net of taxes, discounts and other costs inherent to its materialization for the fair value of the amount received or to be
received.
Services rendered
Profits resulting from services rendered are recognized in the results statement with reference to the finishing stage of the services rendered
at the date of the balance sheet.
183