Annual Report 2010 - CMVM

Notes to the Consolidated Financial Statements as at 31 December 2010The following standards, interpretations, amendments and reviews approved by the European Union and of mandatory application in financial years beginning on or after1 January 2010, which are applicable to the financial statements, and were adopted or applied by the Group for the first time for the year ended on 31 December 2010:Standard / interpretationNew standards and interpretations:IFRIC 12 – Service concession arrangementsDate of entry into force(financial years beginning onor after)01-Jan-10Brief descriptionThis interpretation introduces recognition and measurement rules for privatesector operators involved in the provision of infrastructure construction andoperation services in the context of public-to-private type concessions.IFRIC 15 – Agreements for the construction of realestate01-Jan-10This interpretation addresses the manner to assess whether a real estate constructionagreement is under IAS 11 - Construction contracts or IAS 18 - Revenue,and how the corresponding revenue should be recognised.IFRIC 16 – Hedges of a net investment in a foreignoperation01-Jul-09This interpretation provides guidance on the accounting of hedges of net investmentsin a foreign operations.IFRIC 17 – Distributions of non-cash assets to owners01-Jul-09This interpretation provides guidance on the correct recording of non-cash assetsdistributed to shareholders as dividends.IFRIC 18 – Transfers of assets from customersReviews and alterations:IFRS 3 – Business combinations and IAS 27 -Consolidated and separate financial statements(Revised 2008)01-Jul-0901-Jul-09This interpretation provides guidance on the accounting by operators of tangiblefixed assets "from customers".This review introduced some alterations in terms of the registration of businesscombinations, namely with respect to: (a) the measurement of non-controllinginterests (formerly called minority interests); (b) the recognition and subsequentmeasurement of contingent payments; (c) the treatment of direct costsrelated to the combination; and (d) the registration of transactions for the acquisitionof interests in entities which are already controlled and transactionsof sale of interests where this does not result in the loss of control; and e) thecalculation of the result on the sale of a holding with loss of control and theneed to remeasure the interests retained in the sold holding.IAS 28 - Investments in associates (Revised 2008)01-Jul-09The principles described above and adopted for IAS 27 (2008) relative to thecalculation of the result of the sale is applicable also to IAS 28.Reviews of IFRS 1 – First-time adoption of theinternational financial reporting standards01-Jul-09This standard was reviewed so as to group the different amendments whichhave occurred since its first version.Improvements to the international financial reportingstandards - 2009Various (usually 1-Jan-10)This process involved the review of 12 accounting standards.Alterations to IAS 39 - Financial instruments:Recognition and Measurement - Instruments: eligiblehedged items01-Jul-09Clarifies the application of the accounting of hedging to the inflation componentof the financial instruments and to options contracts, when used as hedginginstruments.150