Notes to the consolidated financial statements - Efacec

A. General information
Notes to the Financial Statements
The activity of EFACEC Capital, SGPS, SA, as a holding company, cannot be studied separately from the group that it leads through
the management of its subsidiary and associated companies, and the businesses run by each of them. The diversity in terms of
production and engineering competencies has left its mark on the management of this company and is demonstrated by the range
of shareholdings held. The variety of services and products include a wide range of equipment used in electricity transport and
distribution, in remote control systems, ventilation, electric traction, industrial electronics, telecommunications, automation and
robotics and in engineering projects focused on industrial plant and maintenance.
The company, and the group it represents operate in a highly competitive market, and it is necessary to be alert to the constant
developments and changes in customer preferences and in new technologies. With this in mind, the company has adapted its
structure to ensure the most appropriate solution. During the last few years, in which there has been a focus on internationalising
and diversifying activities that has seen branches and agents set up across more than 30 countries, it has carried out projects
and studies with the aim of strengthening and consolidating its position, and rethinking its development strategy for the entire
group.
Efacec Capital, Holding company of the Efacec Group is a public liability company with headquarters at Arroteia, parish of Leça do
Balio, Matosinhos in Portugal.
The following Notes support and complement the Company's individual fi nancial statements.
B. Summary of main accounting policies
The main accounting polices used to prepare these fi nancial statements are described below. These policies have been consistently
applied over the years unless otherwise stated.
1.1 Basis of preparation
The fi nancial statements were prepared using historical costs with the exception of land, fi nancial assets and liabilities (including
derivatives) which have been valued in the accounts at their fair value.
During this fi nancial year the interpretation IFRIC.11 IFRS.2 was mandatory - Intra group transactions of Own Shares, producing
no signifi cant impact of company accounting policies.
At the end of this fi nancial year, the following standards were issued but not mandatory as at 31 December 2008:
- IFRS 2 Payment based on shares (2008 Update)
- IFRS 3 Business combinations (2008 Update)
- IFRS 8 Operating Segments;
- IAS 1 Presentation of Financial Statements (2007 Update)
- IAS 23 Cost of Loans Obtained – (2007 Update)
- IAS 27 Consolidated and Separate Financial Statements (2008 update)
- IAS 32 Financial instruments: Presentation (2008 Update)
- IFRIC 13 Customer Retention Programmes;
- IFRIC 14 The Limit on a Defi ned Benefi t Asset, Minimum Financing Requirements and their Interaction
- IFRIC 15 Contracts for the construction of buildings
- IFRIC 16 Hedges of a net investment in a foreign operation
In view of the fact that applying these standards was not mandatory for the year beginning 1 January 2008, the company decided
not to adopt them immediately.
It is estimated however that there would be no signifi cant impact from applying them to the fi nancial statements of the company.
The preparation of the fi nancial statements in accordance with the International Financial Reporting Standards requires the use of
some important accounting estimates. It also requires that the management entity uses its judgement in the process of applying
the accounting policies of the company.
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2008 Consolidated and
Individual Financial Statements