Open Joint Stock Company Gazprom

OAO GAZPROMNOTES TO THE IAS CONSOLIDATED FINANCIAL STATEMENTS(In millions of Russian Roubles in terms of the equivalent purchasing power of the Rouble asof 31 December 2001)Quoted market prices or dealer quotes for the specific or similar instruments are used for fairvalue estimation of long-term debt. Other techniques, such as estimated discounted value of future cashflows, are used to determine fair value for the remaining financial instruments.The fair value of unquotedfinancial instruments is estimated from the future cash flows expected from both the periodic incomegenerated by the investments and from their disposal, discounted by a rate that reflects the risk inherentin the investment.The fair value of financial liabilities for disclosure purposes is estimated by discounting the futurecontractual cash flows at the current market interest rate available to the Group for similar financialinstruments.The fair value of accounts receivable for disclosure purposes is estimated by discounting thevalue of expected cash flows at the market rate of interest for similar borrowers at the balance sheetdate.5 SEGMENT INFORMATIONManagement does not separately identify segments within the Group as it operates as a verticallyintegrated business with substantially all external sales generated by the gas distribution business.However, following the practice suggested by IAS 14, "Segment Reporting", Revised 1997 ("IAS 14") forvertically integrated businesses, information can be analysed based on the following businesssegments:• Production – exploration and production of gas and other hydrocarbons;• Refining – processing of gas condensate and other hydrocarbons, and sales of otherhydrocarbon products;• Transportation – transportation of gas;• Distribution – domestic and export sale of gas; and• Other – other activities, including banking.F-56