SECTION 1 -

270
New Services: Pro forma Financial Statements and Notes
December, 31, 2009
appropriate criteria applicable to each individual investment using valuation techniques that are not based on observable
data (level 3 valuation technique). Securities that are not traded on an active market, for which fair value cannot be reliably
estimated, are carried in the balance sheet at historical cost plus any transaction expenses. When there is objective evidence
of a significant or prolonged decline in value, the cumulative unrealized loss recorded in equity is reclassified to the income
statement.
P.2. BANK BORROWINGS
Interest‐bearing drawdowns on lines of credit and bank overdrafts are recognized for the amounts received, net of direct
drawdown costs.
P.3. OTHER FINANCIAL LIABILITIES
Other financial liabilities are measured at amortized cost. Amortized cost is determined by the effective interest method, taking
into account the costs of the issue and any issue or redemption premiums.
Q. Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand, and short‐term investments in money market instruments. These
instruments generally have maturities of less than three months and are readily convertible into known amounts of cash; their
exposure to changes in value is minimal.
R. Minority puts
IAS 32 – Financial Instruments: Disclosures and Presentation requires that the value of the financial commitment represented by
put options granted by New Services to minority shareholders of subsidiaries, be recognized as a debt. The difference between
the debt and the related minority interests in the balance sheet, corresponding to the portion of the subsidiary's net assets
represented by the shares underlying the put, is recognized as goodwill. When the exercise price is equal to the fair value of the
shares, the amount of the debt is determined based on a multiple of the EBITDA reflected in the subsidiary's 5‐year business plan
and is discounted. Changes in the debt arising from business plan adjustments are recognized in goodwill. Discounting
adjustments are recognized in financial expense.
S. Income statement and statement of cash flows presentation
S.1. ISSUE VOLUME
Issue volume corresponds to the face value of prepaid vouchers issued during the period plus the amount loaded on prepaid
cards.
It is tracked for all vouchers and cards in circulation that are managed by New Services.
S.2. OPERATING REVENUE
In accordance with IAS 18 – Revenue, operating revenue corresponds to the value of goods and services sold in the ordinary
course of business by fully and proportionally combined companies.
It is measured at the fair value of the consideration received or receivable, net of all discounts and rebates, VAT and other sales
taxes, in compliance with IAS 18.
Operating revenue is recognized when it is probable that future economic benefits will flow to the entity and these benefits can
be measured reliably. If there is significant uncertainty about the collectibility of revenue, it is not recognized until the
uncertainty is removed.
There are two types of operating revenue:
S.2.1 OPERATING REVENUE GENERATED BY ISSUE VOLUME
This corresponds to operating revenue generated by prepaid vouchers.