Annual Report 2010 - CMVM

More documents

Recommendations

Info

Notes to the Consolidated Financial Statements as at 31 December <strong>2010</strong>2.15 - Operating profit or lossOperating profit or loss includes all the costs and revenues of operating activities, both recurring and non-recurring, including restructuring costs and the costs and revenuesassociated with operating assets (tangible fixed assets and other intangible assets). It also includes the capital gains or losses calculated on the sale of companies included inthe consolidation using the full or proportional consolidation method. In this way, net financing costs, the net income of associates, other financial investments and incometax are excluded from net operating income.2.16 - Financial instrumentsFinancial assets and financial liabilities are recognised when the Group becomes a party in the respective contractual relationship.a) Cash and cash equivalentsThe amounts included in Cash and cash equivalents heading correspond to cash, bank deposits, term deposits and other cash investments with a maturity of less than threemonths and which are immediately repayable on demand with no significant risk of change in value.b) Accounts receivableAccounts receivable are measured, when recognised initially, at fair value and subsequently at amortised cost in accordance with the effective interest rate method. Whenthere is evidence that they are impaired, the corresponding adjustment is recorded through profit or loss under the heading "Other Operating Costs". The recognised adjustmentis measured by the difference between the value at which the receivables are recognised and the present value of the cash flows discounted at the effective interest ratedetermined at the initial recognition.c) InvestmentsInvestments are recognised on the date when the inherent risks and rewards are transferred substantially. They are initially recorded at their acquisition value, which is thefair value of the price paid, including transaction costs.Investments are classified as follows:Financial assets available for saleFinancial assets available for sale are financial investments which are available for sale and are classified as non-current assets.After their initial recognition, the financial assets available for sale are measured through reference to their market value on the balance sheet date, without any deductionfor transaction costs that may be incurred until their sale. Gains or losses due to changes in the fair value are recorded in equity, under the heading ‘‘Fair value reserve’’ untilthe investment is sold, received or disposed in any other way, or when impairment losses are believed to exist, in which case the accumulated gain or loss is recorded in theincome statement.Other investmentsFinancial assets available for sale in equity instruments that do not have a market price listed in an active market and whose fair value cannot be measured reliably aremeasured at their acquisition cost minus any accumulated impairment losses and are recorded under the heading "Other investments".Furthermore, assets measured at fair value through profit or loss are revalued at their fair value with reference to their market value on the balance sheet date, without anydeduction for transaction costs that may be incurred until their sale. These assets are recognised in the heading "Other investments" and any variation in their fair value isrecorded under the heading "Earnings relative to investment activities".d) Financial liabilities and equity instrumentsFinancial liabilities and equity instruments are classified according to the nature of the contract regardless of their legal form. Equity instruments are contracts that have aresidual interest in the Group's assets after deducting its liabilities.Equity instruments issued by the Group are recorded at the amount received net of the costs incurred to issue them.158
Notes to the Consolidated Financial Statements as at 31 December <strong>2010</strong>e) Accounts payableAccounts payable are measured initially at fair value and subsequently at amortised cost in accordance with the effective interest rate method.f) LoansLoans are initially recorded and recognised as liabilities at their nominal value, net of the costs incurred to issue them and subsequently measured at amortised cost. Financecharges, calculated in accordance with the effective interest rate and including premiums payable, are accounted for in accordance with the accrual principle and added to thebook value of the loan if they are not paid during the year.g) Derivative financial instruments and hedge accountingDerivative financial instruments are used to hedge the financial risks to which the Group is exposed due to changes in interest rates. Thus, the Group does not use derivativefinancial instruments for speculative purposes.Financial instruments are used in accordance with internal policies adopted by the Board of Directors.Derivative financial instruments are measured at their respective fair value and recognised in the heading "Other liabilities/current assets" or "Other non-current liabilities/assets", as applicable. The recognition method depends on the nature and purpose of their contracting.The fair value of the derivative financial instruments is determined with reference to stock market values. If the stock market values are not available, the fair value is determinedbased on the analysis of discounted cash flows, which include assumptions supported on observable market prices or rates.Hedge accountingThe possibility of classifying a derivative financial instrument as a hedging instrument follows the provisions of IAS 39 - Financial Instruments: Recognition and Measurement("IAS 39"), particularly regarding their documentation and effectiveness.Changes in the fair value of derivative financial instruments classified as fair value hedges are recognised as a financial profit or loss for the year, as well as changes in the fairvalue of the asset or liability subject to that risk.Changes in the fair value of derivative financial instruments classified as cash flow hedges are recorded in "Hedge operation reserves" for their effective component and infinancial profit or loss for their non-effective component. The values recorded under “Hedge operation reserves” are transferred to the financial profit or loss for the year whenthe hedged item also has an effect on profit or loss.Changes in derivative financial instruments classified as hedges of a net investment in a foreign operation are recorded as "Currency conversion adjustments" for their effectivecomponent. The non-effective component of these changes is recognised immediately as financial profit or loss for the year. If the hedging instrument is not a derivative, thechanges arising from changes in exchange rates are recorded under "Currency conversion adjustments."Hedge accounting is discontinued when the hedging instrument reaches maturity, is sold or exercised, or when the hedge relationship no longer meets the requirementsset out in IAS 39.Trading instrumentsFor derivative financial instruments which, despite being used for economic hedging purposes, in accordance with the Group’s risk management policies do not comply withall provisions of IAS 39 regarding the possibility of qualification in hedge accounting, changes in their fair value are recorded in the income statement for the year when theyoccur in the heading "Financial profit or loss".2.17 - Pension liabilitiesThe Group offers a retirement plan to its employees.This insurance plan was established in the context of a social and incentive policy for workers and is of the exclusive initiative of the subsidiary companies where these benefits areattributed. Characterised by their voluntary nature, contributions that are deemed appropriate at any given time are subject to the sole discretion of their board of directors, taking intoaccount the performance and economic and financial situation. Thus, the contributions made by the Group are recorded as a cost on the date they are due.159
Page 1 and 2:
ANNUALREPORT2010
Page 3:
Annual Report 2010
Page 6 and 7:
Teixeira Duarte, S.A.Head Office: L
Page 8:
TEIXEIRA DUARTE ORGANOGRAM2010BOARD
Page 11 and 12:
Management Reportof the Board of Di
Page 13 and 14:
Management Report of the Board of D
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Notes to the Management Report of t
Page 59 and 60:
CorporateGovernance Report 2010
Page 61 and 62:
Corporate Governance Report 2010TD-
Page 63 and 64:
Corporate Governance Report 2010I.4
Page 65 and 66:
Corporate Governance Report 2010II.
Page 67 and 68:
Page 69 and 70:
Corporate Governance Report 2010III
Page 71 and 72:
Corporate Governance Report 20101.4
Page 73 and 74:
Corporate Governance Report 2010The
Page 75 and 76:
Page 77 and 78:
Corporate Governance Report 2010I.1
Page 79 and 80:
Corporate Governance Report 2010com
Page 81 and 82:
Corporate Governance Report 2010TD-
Page 84 and 85:
Corporate Governance Report 2010Con
Page 86 and 87:
Page 88 and 89:
Page 90:
Page 93 and 94:
Page 95 and 96:
Corporate Governance Report 2010Cha
Page 97 and 98:
Corporate Governance Report 2010Man
Page 99:
Corporate Governance Report 2010Mem
Page 102:
Corporate Governance Report 2010Cha
Page 105 and 106:
Corporate Governance Report 2010Dir
Page 107 and 108: Corporate Governance Report 2010The
Page 109 and 110: Corporate Governance Report 2010Att
Page 111 and 112: Corporate Governance Report 2010As
Page 116 and 117: Corporate Governance Report 2010All
Page 118 and 119: Corporate Governance Report 2010bon
Page 120 and 121: Corporate Governance Report 2010pro
Page 122 and 123: Corporate Governance Report 2010as
Page 126 and 127: Corporate Governance Report 2010III
Page 130 and 131: Balance Sheet as at 31 December 201
Page 132 and 133: Statement of Changes in Equity for
Page 134 and 135: Financial Statements 2010NOTESAs at
Page 136 and 137: Financial Statements 2010f) Cash an
Page 138 and 139: Financial Statements 20106.2. Inves
Page 140 and 141: Financial Statements 20108.4. As at
Page 142 and 143: Financial Statements 2010Identifica
Page 144 and 145: Consolidated Statement of the Finan
Page 146 and 147: Consolidated Full Income Statement
Page 148 and 149: Consolidated Cash Flow Statement fo
Page 150 and 151: Notes to the Consolidated Financial
Page 206: Report and Opinion of the Superviso
show all

Annual Report 2010 - CMVM

Create successful ePaper yourself

Delete template?

Save as template?