Annual Report 2010 - AdP

The Group uses derivatives with the sole purpose of managing the financial risks it is exposed to. In accordance with its financial
policies, AdP Group does not use derivatives for speculation purposes. Even though the derivatives used by AdP are effective instruments
for hedging risks, not all of them qualify as hedging instruments under the rules and requirements of IAS 39. Instruments that do not
qualify as hedging instruments are recorded in the balance sheet at fair value, and its changes are recorded under financial results.
Whenever available, the fair value of derivatives is estimated on the basis of quoted instruments. In the absence of market prices,
the fair value of derivatives is estimated using the discounted cash flow method and determined by external entities, in accordance
with valuation principles accepted by the market.
Derivatives are recognized on their trade date at fair value. Subsequently, the fair value of derivatives is revalued on a regular basis, and
the ensuing gains or losses of this revaluation are recorded directly under results for the period, except with respect to hedging derivatives.
Recognition of changes in the fair value of hedging derivatives depends on the nature of the hedged risk and the hedging model used.
21. Suppliers
31.12.2010 31.12.2009
Suppliers c/a - domestic 292,194 618,265
Suppliers c/a - other countries - 8,653
Suppliers c/a - Group companies 542,443 518,466
Fixed assets suppliers c/a - 3,870
834,637 1,149,254
22. Other current liabilities
31.12.2010 31.12.2009
Interest payable i) 2,749,360 2,434,345
State and other public entities ii) 867,280 926,661
Holidays and holiday pay iii) 531,566 743,878
Bonuses iv) - 491,022
General charges and costs of AdP Serviços 416,602 316,832
Receivable grants - Cohesion Fund 1,166,178 1,174,794
Group companies v) 2,282,360 2,118,520
Other creditors 74,666 3,460
8,088,011 8,209,512
i) The increase in interest payable is directly linked to the increase in market interest rates.
ii) The following are included under State payable:
31.12.2010 31.12.2009
Personal income tax withholding and other income 72,731 87,100
VAT 721,786 752,384
Social security 71,700 85,662
Other taxes 1,063 1,515
867,280 926,661
iii) The reduction of responsibilities related to holidays and holiday pay is explained by the fact that this responsibility is not considered
for the Governing Bodies
iv) The change that occurred in this item stems from the fact that, because of legal requirements, bonuses will not be paid in 2011
pertaining to 2010; as such, no accrual was made;
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