Annual Report of ACS Group - Grupo ACS

Consolidated
Financial Statements
3.08. Non-current and other fi nancial assets
Except in the case of fi nancial assets at fair value through profi t or loss, fi nancial assets are initially recognised at fair value,
plus directly attributable transaction costs. The Group classifi es its fi nancial investments in four categories regardless of
whether they are long- or short-term, excluding investments in associates and assets held for sale.
In the statement of fi nancial position, fi nancial assets maturing within no more than 12 months are classifi ed as current
assets and those maturing within more than 12 months as non-current assets.
3.08.01. Loans and receivables
These are non-derivative fi nancial assets with fi xed or determinable payments not traded in an active market. After their
initial recognition, they are measured at amortised cost using the effective interest method.
The amortised cost is understood to be the initial cost of a fi nancial asset or liability minus principal repayments, plus or minus
the cumulative amortisation of any difference between that initial amount and the maturity amount. In the case of fi nancial
assets, amortised cost also includes any reduction for impairment.
The effective interest rate is the discount rate that exactly matches the net carrying amount of a fi nancial instrument to all its
estimated cash fl ows of all kinds through its residual life.
Deposits and guarantees given are recognised at the amount delivered to meet contractual commitments, regarding gas,
water and lease agreements.
Period changes for impairment and reversals of impairment losses on fi nancial assets are recognised in the consolidated
income statement for the difference between their carrying amount and the present value of the recoverable cash fl ows.
3.08.02. Held-to-maturity investments
These include non-derivative fi nancial assets with fi xed or determinable payments and with a fi xed maturity date that
the Group has the positive intention and ability to hold to the date of maturity. After their initial recognition, they are also
measured at amortised cost.
3.08.03. Financial assets at fair value through profi t or loss
These include the fi nancial assets held for trading and fi nancial assets managed and measured using the fair value model.
These assets are measured at fair value in the consolidated statement of fi nancial position and changes are recognised in
the consolidated income statement.
3.08.04. Available-for-sale investments
These are non-derivative fi nancial assets designated as available for sale or not specifi cally classifi ed within any of the
previous categories. These relate mainly to investments in the share capital of companies not included in the scope of
consolidation.
After their initial recognition at acquisition cost, these investments are measured at fair value, and the gains and losses from
changes in fair value are recognised directly in equity until the asset is disposed of or it is determined that it has become
impaired, at which time the cumulative gains or losses previously recognised in equity under the heading “Adjustments for
changes in value” are recognised in the profi t or loss for the year of the related fi nancial assets.
62
ANNUAL REPORT 2010
ACS GROUP