Management Report - Beursgorilla

ArcelorMittal Annual Report 200990 Annual AccountsNotes to the Annual AccountsArcelorMittal, Société Anonyme(expressed in millions of U.S. dollars, unless otherwise stated)Note 1: GeneralArcelorMittal (‘the Company’) wasincorporated as a ‘Société Anonyme’ underLuxembourg law on June 8, 2001 for anunlimited period.The Company has its registered office in19 avenue de la Liberté, Luxembourg Cityand is registered at the Register of Tradeand Commerce of Luxembourg under thenumber B82.454.The financial year of the Company startson January 1 and ends on December 31each year.The Company’s corporate goal is themanufacturing, processing and marketingof steel products and all other metallurgicalproducts; and any other activity directlyor indirectly related thereto. The Companyrealizes its corporate goal either directlyor through the creation of companiesor the acquisition and holding of interestsin companies, partnership, associations,consortia and joint-ventures.In conformity with the requirements ofLuxembourg laws and regulations, theCompany publishes consolidated financialstatements in accordance with InternationalFinancial Reporting Standards as adoptedby the European Union.Note 2: Summary of SignificantAccounting PrinciplesGeneral principlesThese annual accounts correspondingto the standalone financial statementsof the parent company, ArcelorMittal, havebeen prepared in accordance with generallyaccepted accounting principles and inaccordance with the laws and regulationsin force in the Grand-Duchy of Luxembourg.Main valuation rulesTranslation of currenciesThe Company maintains its accountingrecords in United States Dollars (‘USD’)and the annual accounts are preparedin this currency. Unless otherwise stated,all amounts in the annual accounts arestated in millions of USD.The following principles are applied toitems denominated in a currency otherthan the USD:• Fixed assets and creditors due aftermore than one year are translated athistorical exchange rates or the currentrate if unrealized exchange losses exist.Differences in the exchange rates leadingto an unrealized loss are recorded in theprofit and loss for the year. A reversalof the unrealized loss is recorded to theextent the factors, which caused its initialrecording, have ceased to exist.• Foreign currency swaps are accounted forat the current rate and unrealized foreignexchange gains and losses are recognizedso as to offset unrealized foreignexchange gains and losses with respectto hedged debenture loans and amountsowed to credit institutions.• Other balance sheet items are translatedat the year-end exchange rate andrelated exchange differences are recordedin the profit and loss for the year.• Profit and loss items are translatedat the exchange rate prevailing at thetransaction date.• Off balance sheet commitments aredisclosed based upon the historicalexchange rate.Financial assetsShares in affiliated undertakings,associates and participating interestsare recorded at acquisition cost includingrelated acquisition costs. At the end ofeach accounting period, shares in affiliatedundertakings are subject to an impairmentreview. Where a permanent diminutionin value is identified, this diminution isrecorded in the profit and loss accountas a value adjustment. A reversal of thevalue adjustment is recorded to the extentthe factors, which caused its initial recording,have ceased to exist.Loans to affiliated undertakings and otherloans are recorded in the balance sheetat their nominal value. At the end of eachaccounting period value adjustments arerecorded on loans which appear to be partlyor wholly irrecoverable.DebtorsDebtors are recorded in the balance sheetat their nominal value. At the end of eachaccounting period value adjustments arerecorded on debtors, which appear to bepartly or wholly irrecoverable.Transferable securitiesTransferable securities are valued at thelower of cost or market value. A valueadjustment is recorded when the marketprice is lower than the acquisition price.A reversal of the value adjustment isrecorded to the extent the factors, whichcaused its initial recording, have ceasedto exist.Provisions for liabilities and chargesProvisions for liabilities and charges arerecorded to cover all foreseeable liabilitiesand charges for which there is a legalor constructive obligation as a resultof past events as of the balance sheetdate. Provisions relating to previous periodsare regularly reviewed and released if thereasons for which the provisions wererecorded have ceased to apply.LiabilitiesLiabilities are recorded in the balancesheet at their nominal value.