Annual Report 2010 - AdP

Separate Financial Statements
for the year ended 31 December 2010
Contents
Financial position statement 121
Income statement 122
Comprehensive income statement 122
Changes in total equity statement 123
Cash flow statement 124
Notes to the financial statements 125
1. Economic activity of Águas de Portugal, S.G.P.S., S.A. 125
1.1. Introduction 125
1.2. Business activity 125
1.3 Shareholders 126
1.4 Approval of the financial statements 126
2. Accounting policies 126
2.1 Basis of accounting 126
2.2 Financial holdings in subsidiaries and associated companies 128
2.3 Foreign exchange 130
2.4 Tangible fixed assets 130
2.5 Intangible assets 131
2.6 Investment properties 131
2.7 Financial assets and liabilities 131
2.8 Fair value hierarchy 133
2.9 Derivatives and hedging 133
2.10 Customers and other accounts receivable 134
2.11 Cash and cash equivalents 134
2.12 Impairment 134
2.13 Equity 135
2.14 Dividends payable 135
2.15 Investment grants 135
2.16 Provisions, assets and contingent liabilities 135
2.17 Taxation 135
2.18 Yield 136
2.19 Own works 136
2.20 Costs and losses 136
2.21 Subsequent events 136
3 Financial risk management policy 137
3.1 Risk factors 137
3.2 Credit risk 137
3.3 Foreign exchange risk 137
3.4 Liquidity risk 138
3.5 Cash flow and fair value risk associated with interest rates 138
3.6 Capital risk 138
4 Estimates and judgements 138
4.1 Provisions and adjustments 139
4.2 Tangible and intangible assets 139
4.3 Impairment 139
4.4 Fair value of derivatives 139
5 First time adoption of the IFRS 139
6. Financial instruments (IFRS 7) 141
7. Intangible assets 142
8. Tangible fixed assets 142
9. Financial investments 143
10. Loans to group companies 144
11. Other accounts receivable - non-current 145
12. Customers 145
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