Management Report - Beursgorilla

ArcelorMittal Annual Report 2009Consolidated Financial Statements 07Notes to the Consolidated Financial StatementsArcelorMittal and Subsidiaries(millions of U.S. dollars, except share and per share data)Note 1: Nature of Business,Basis of Presentation and ConsolidationNature of businessArcelorMittal (“ArcelorMittal”, or “MittalSteel”, or the “Company”), together with itssubsidiaries, is a manufacturer of steel andsteel related products. ArcelorMittal ownsand operates manufacturing facilities inEurope, North and South America, Asia andAfrica. These manufacturing facilities, eachof which includes its respective subsidiaries,are referred to in these consolidatedfinancial statements as the “OperatingSubsidiaries”. These consolidated financialstatements were authorized for issuance onFebruary 9, 2010 by the Company’s Boardof Directors.Basis of presentationThe consolidated financial statements havebeen prepared on a historical cost basis,except for available for sale financial assetsand derivative financial instruments, whichare measured at fair value, and inventorieswhich are measured at the lower of netrealizable value or cost. The consolidatedfinancial statements have been preparedin accordance with International FinancialReporting Standards (“IFRS”) as issuedby the International Accounting StandardsBoard (“IASB”) and as adopted by theEuropean Union (the “EU”), and arepresented in U.S. dollars with all amountsrounded to the nearest million, except forshare and per share data.Adoption of new IFRS standards,amendments and interpretationsapplicable in 2009The following new standards, amendedstandards or interpretations were adoptedby the Company on January 1, 2009. Theeffects from the adoption of these standards,revisions or interpretations were not materialto the consolidated financial statements.• Amendments to IFRS 2,“Share-based Payment”• IFRS 8, “Operating Segments”• International AccountingStandard (“IAS”) 1 (revised),“Presentation of Financial Statements”• Amendments to IAS 7,“Statement of Cash Flows”• Amendments to IAS 16,“Property, Plant and Equipment”• Amendments to IAS 19,“Employee Benefits”• Amendments to IAS 20,“Accounting for Government Grants andDisclosure of Government Assistance”• Amendments to IAS 23,“Borrowing Costs”• Amendments to IAS 27 (revised),“Consolidated and SeparateFinancial Statements”• Amendments to IAS 28,“Investments in Associates”• Amendments to IAS 29,“Reporting in HyperinflationaryEconomies”• Amendments to IAS 31,“Interests in Joint Ventures”• Amendments to IAS 32,“Financial Instruments: Presentation”• Amendments to IAS 36,“Impairment of Assets”• Amendments to IAS 38,“Intangible Assets”• Amendments to IAS 39,“Financial Instruments:Recognition and Measurement”• Amendments to IAS 40,“Investment Property”• International Financial ReportingInterpretations Committee (“IFRIC”) 13,“Customer Loyalty Programs”• IFRIC 15,“Agreements for theConstruction of Real Estate”• IFRIC 16,“Hedges of a Net Investmentin a Foreign Operation”• IFRIC 18,“Transfers of Assets from Customers”(adopted for transfers of assetsfrom customers received on or afterJuly 1, 2009)The following new and revised standardshave been adopted in the current periodand have affected the presentation ofthese consolidated financial statements.Amendments to IFRS 7,“Financial Instruments: Disclosures”The amendments to IFRS 7 requiredisclosure of financial assets and liabilitiesin a three-level hierarchy based upon theinput data required by an entity to arriveat an asset or liability’s fair value. Expandedliquidity risk disclosures are also required.The Company has applied theserequirements in note 15.IAS 1 (revised),“Presentation of Financial Statements”IAS 1 introduced terminology changesincluding revised titles for the consolidatedfinancial statements and change in theformat and content of the consolidatedfinancial statements. In addition toterminology changes, a consolidatedstatement of comprehensive income isnow part of the consolidated financialstatements as required by the revisionof IAS 1.New IFRS standards and interpretationsapplicable from 2010 onwardUnless otherwise indicated below,the Company is still in the processof assessing whether there will be anysignificant changes to its consolidatedfinancial statements upon adoptionof these new standards, interpretations,or amendments. The Company does notplan to early adopt any of these newstandards, interpretations, or amendments.