Notes to the Financial Statements - Efacec

More documents

Recommendations

Info

8. Derivatives In relation to fi nancial risk management described in Note 2, the status of fi nancial instruments as at 31 December 2007 and 31 December 2006 was as follows: Exchange rate risk Exchange rate risk hedging is done through options, of which at the balance sheet date 62 million USD and 1.7 million GBP were active in the Group, on which an upward adjustment of 1,062,540 Euro was made to refl ect fair value. Interest rate risk As at 31 December 2007, EFACEC had interest rate options totalling 57 million dollars for BEI loans and Commercial paper (Note 15), whose market valuation was higher by 345,574 Euro. Copper “commodity” price At the end of the year, the Group had options for copper price hedging on 3,750 tons required for consumption in 2008 and 2009, the market valuation of which was lower by the sum of 117,426 Euro. The impact of these valuations as at 31 December 2007 can be summarised as follows: 31.12.2007 31.12.2006 Assets Liabilities Assets Liabilities Exchange rate option - cash fl ow cover 1.062.540 0 485.168 0 Financing option - cash fl ow cover 345.574 0 0 47.245 Cobber options - cash fl ow cover 0 117.426 1.543.299 0 Total 1.408.114 117.426 2.028.467 47.245 * Non current 345.574 0 0 47.245 * Current 1.062.540 117.426 2.028.467 0 The hedging option contracts were booked in Shareholders’ Funds in accordance with Note 2.2. The movements in the line Financial Instruments Reserves were the result of the change in fair value between the various reporting periods, less the related deferred tax assets/liabilities (note 16). 9. Customers and Accrued Income The breakdown of this line as at 31 December 2007 and 31 December 2006 was as follows: 31.12.2007 31.12.2006 Trade Debtors - Current 150.185.865 167.773.990 Debtors - Related parties (Note 27) 1.053.310 4.872.431 Trade debtors - Bills Receivable 429.115 719.141 Trade debtors - Doubtful Debts 8.351.376 7.511.950 Accrued Income - multi-year contracts 57.936.793 39.268.880 217.956.459 220.146.393 Provision for Customer accounts impairment -8.422.008 -7.953.184 Debtors - net 209.534.451 212.193.209 Accrued income - not covered by IFRS 7 8.697.395 814.957 Total 218.231.846 213.008.166 * Non current 0 0 * Current 218.231.846 213.008.166 23 2007 Consolidated and Individual Financial Statments
The fair value of receivables is the same as its accounting value. There is no concentration of risk concerning trade receivables and other debtors, since the Group has a large number of customers all over the world. As at 31 December 2007 and 2006, the value of debtors, including income accruals on multi year contracts, had the following ageing analysis based on due dates for payment on balances outstanding: 31.12.2007 31.12.2006 Balances not due Balances due 151.884.915 140.195.432 Up to 90 days 25.617.407 43.791.683 From 90 to 360 days 20.438.745 20.819.926 Over 360 days 20.015.392 15.339.353 217.956.459 220.146.393 Impairment -8.422.008 -7.953.184 Net Debtors Balance 209.534.451 212.193.209 During 2007, the Group booked 529,934 Euro for impairment adjustments on customer receivables while reversal of provisions totalled 94,454 Euro in the same period. It is the company’s belief that the impairment losses estimated on accounts receivable are properly refl ected in the accounts and refl ect the real risk of loss. In spite of the fact that other sums exist with signifi cant delays in payment, provisions were not taken for these, since situations of impairment were not found to exist. The amounts in Income Accruals included in this line relate to income for ongoing projects and work in progress, for which the stage of completion is greater than that of invoicing (Note 1.10 and 29). 10. Other Debtors and Prepayments The breakdown of this line as at 31 December 2007 and 31 December 2006 was as follows: 31.12.2007 31.12.2006 Other Debtors 12.534.520 8.846.221 - Impairment Losses -405.670 -405.670 Trade and Other Debtors - net 12.128.850 8.440.551 Accounts Receivable with Related Parties 1.178.637 2.104.627 State and Other Public Entities 14.247.200 1.674.991 Deferred Costs 2.367.561 735.683 Total 29.922.248 12.955.853 *Non Current 27.000 27.000 *Current 29.895.248 12.928.853 The line “State and other public entities” as at 31 December 2007 and 31 December 2006 was made up of active balances with the following breakdown: 31.12.2007 31.12.2006 Income Tax 1.849.185 1.460.316 Value Added Tax to Recover 12.398.015 0 Other taxes to recover 0 214.675 24 14.247.200 1.674.991 The increase in this line was due to a legislative change that occurred in 2007 concerning Value Added Tax in relation to construction contracts which had a signifi cant impact on some Group companies. This change means the continuous existence of VAT credit balances with the State, which are periodically subject to recovery processes. The line “Other Debtors” is made up of balances with entities of various kinds, which overall are considered acceptable taking into account the operational activities of the Group.
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 10 and 11: 1.3 Reporting by segments A busines
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 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: ��

Notes to the Financial Statements - Efacec

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?