Notes to the Financial Statements - Efacec

More documents

Recommendations

Info

1.3 Reporting by segments A business segment is a group of activities and operations involved in the supply of products and services subject to risks and benefi ts that are different to other business segments. A geographical segment is involved in supplying products and services in a specifi c economic environment that is subject to different risks and benefi ts that those of segments that operate in other economic environments. 1.4 Exchange Rate Conversion (a) Functional currency and that for presentation purposes The fi gures included in the Financial Statements of each of the Group entities are stated using the currency of the country in which the unit operates (“The functional currency”). The consolidated Financial Statements are presented in Euro, this being the functional and presentational currency of the Group accounts. (b) Transactions and Balances Transactions in currencies other than the Euro are converted to the functional currency using the Exchange rate at the date of the transaction. Exchange gains and losses arising from the payment of transactions and from conversion at the rate on the balance sheet date of the assets and liabilities denominated in a currency other than the Euro, are recognised in the Profi t and Loss account. (c) Group Companies The fi nancial results and position of all Group entities (none of which use a currency of a country suffering hyper infl ation) that have a functional currency different to that of account presentation are converted to the presentation currency as follows: (I) The assets and liabilities of each balance sheet presented are converted at the exchange rate in force at the date of the Financial Statements; (II) Income and expenses of each profi t and loss account are converted at the average Exchange rate; and (III) The resulting exchange rate differences are shown in Shareholders’ Funds in the line “Reserves”. (d) Rates used to convert major foreign currencies into Euro In Group companies with registered offi ces outside the Euro Zone, the fi gures in the fi nancial statements relating to assets and liabilities, and included in the fi nancial statements, were converted to Euro using the following Exchange rates as at 31 December 2007: 1.5 Tangible Fixed Assets For 1 monetary unit – Euro 31.12.2007 31.12.2006 Argentina Peso ARS 4,63640 4,04517 Brazil Real BRL 2,59630 2,81272 China Yuan CNY 10,75240 10,34088 Czech Republic Crown CZK 26,62800 27,48500 Algeria Dinar DZD 98,24060 90,88288 India Rupee INR 57,85500 58,29042 Macau Pataca MOP 11,82440 10,54810 Malaysia Ringgit MYR 4,86820 4,65509 Mozambique New Metical MZN 34,81500 34,73749 Singapore Dollar SGD 2,11630 2,01929 Tunisia Dinar TND 1,79470 1,71408 United States Dollar USD 1,47210 1,31700 Venezuela Bolívar VEB 3.161,04000 2.017,60000 Land and buildings basically correspond to factories and offi ces. Land is shown at fair value, based on periodic valuations done at least every three years by external independent valuers. Other tangible fi xed assets are shown at historical cost, less depreciation, including all expenditure directly attributable to the acquisition of the assets. Subsequent costs are included in the cost already booked for the asset, or recognised as separate assets, as appropriate, but only when it is probable that economic benefi ts will accrue to the company and that the cost can be measured reliably. Other expenditure for repairs and maintenance are recognised as costs in the period in which they are incurred. 11 2007 Consolidated and Individual Financial Statments
Increases resulting from revaluations are shown in Reserves in Shareholders’ Funds. Each year, the difference between depreciation based on the re-valued amount of the asset taken to Profi t and Loss in the period, and depreciation based on the original cost of the asset, is transferred from Fair Value Reserves to Retained Earnings. Land is not depreciated. Depreciation on other assets is calculated using the straight line method using the cost value or the revalued amount, in order to apportion their cost or re-valued amount over the useful life of the asset down to their residual value, as follows: Line Years Land - Buildings and Other Construction 25 - 50 Plant and Equipment 8 - 12 Vehicles 4 - 5 Tools and Utensils 4 - 8 Offi ce Equipment 4 - 6 Depreciation begins in the month following that in which the asset entered service, in accordance with its useful life, as follows: Depreciation begins in the month following that in which the asset entered service. The residual values of assets and their useful lives are revised and adjusted, if necessary, at the balance sheet date. If the amount booked is greater than the recoverable value of the asset, it is immediately adjusted to its estimated recoverable value (Note 1.7). Gains and/or losses on disposal or write offs are determined by calculating the difference between the net accounting value of the asset, and its disposal or write off value, being in the latter case zero, and included in the Profi t or Loss of the period. 1.6 Intangible Assets (a) Goodwill Goodwill represents the difference between the cost of acquisition and the fair value of identifi able assets and liabilities of the affi liate/subsidiary on the date of acquisition (Note 1.2), when the acquisition cost is greater than the fair value. It is shown on a separate line in the Balance Sheet. Goodwill is subject to impairment tests on an annual basis, and is shown at cost, less accumulated impairment losses. Gains or losses resulting from the sale of an entity include the value of its respective goodwill. Goodwill is allocated cash fl ow generating units (UGC) for carrying our impairment tests (Note 1.7). The amount recoverable from a UGS is calculated based on calculations of useful value. These calculations use cash fl ow projections based on fi nancial budgets approved by the management entity, covering a period of at least 4 years. The management entity works out the budgeted gross margin based on prior performance and its expectations for the development of the market. The average weighted growth rate used is consistent with the forecasts included in sector reports. The discount rates used are before tax, and refl ect the specifi c risks related to the relevant sectors. b) Software The acquisition cost of software licences is capitalised and includes all costs incurred for its acquisition and those required to put the available software into use. These costs are depreciated over the estimated useful life (not exceeding 5 years). Costs related to the development or maintenance of the software are recognised as costs of the period in which they are incurred. Costs directly associated with the production of identifi able and unique software controlled by the Group, and which is probably going to generate future economic benefi ts that are superior to costs involved beyond one year, are recognised as intangible assets. Direct costs include people costs to develop the software and a share of relevant fi xed costs. Software development costs recognised as assets are amortised over its estimated useful life (not exceeding 5 years). c) Research and Development Costs Expenditure on research is recognised as a cost in the period it is incurred. Costs related to development projects (concerning the design and test of new products or improvements to existing products) are recognised as intangible assets when it is probable that the project will be a success, taking into account its technical and commercial viability and the costs that can be measured reliably. Other development expenditure is recognised as a cost of the period in which it is incurred. Development costs previously recognised as a cost are not recognised as an asset in subsequent periods. Development costs with a fi nite useful life that have been capitalised, are amortised from the beginning of commercial production of the product on a straight line bases over the period of expected benefi t, not exceeding fi ve years. 12
Page 2 and 3: 1 2 Index Consolidated Financial St
Page 4 and 5: EFACEC Capital, SGPS, S.A. and Affi
Page 6 and 7: Attributable to shareholders Reserv
Page 8 and 9: A. General Information Notes to the
Page 12 and 13: 1.7 Asset impairment Assets that do
Page 14 and 15: a) Sales The income recognised, in
Page 16 and 17: 2.3 Estimates of fair value The fai
Page 18 and 19: 3.2 Information by geographical seg
Page 20 and 21: 5.2 Goodwill The breakdown of goodw
Page 22 and 23: 8. Derivatives In relation to fi na
Page 24 and 25: 11. Stocks 31.12.2007 31.12.2006 Ra
Page 26 and 27: Commercial Paper On 8 July 2005, a
Page 28 and 29: Denomination of Loans The accountin
Page 30 and 31: 17. Provisions for risks and charge
Page 32 and 33: 21. Net financial charges 22. Incom
Page 34 and 35: 27.1 Transactions that took place i
Page 36 and 37: 27.4 Commitments and contingencies
Page 38 and 39: Foreign companies Company Name Head
Page 40 and 41: 41 2007 Consolidated and Individual
Page 42 and 43: EFACEC Capital, SGPS, S.A. Profit a
Page 44 and 45: Reserves Financial Instruments Merg
Page 46 and 47: A. General Information Notes to the
Page 48 and 49: 1.5 Investments Investments in grou
Page 50 and 51: 2.2 Accounting for financial instru
Page 52 and 53: 4. Investments in group and associa
Page 54 and 55: 6. Customers and Accrued Income 200
Page 56 and 57: On 30 November 2006, a second Comme
Page 58 and 59: Deferred tax booked in shareholders
Page 60 and 61:
17. Profit per share Basic The basi
Page 62 and 63:
21.4 Loans to related parties 2007
Page 64 and 65:
To the Shareholders, Report and Opi
Page 66:
��
show all

Notes to the Financial Statements - Efacec

Create successful ePaper yourself

Delete template?

Save as template?