Annual Report 2010 - AdP

4.3 Impairment
Determination of a possible loss due to impairment can be sparked by the occurrence of various events, many of which are outside
AdP Group’s sphere of influence, such as the future availability of financing, the cost of capital or maintaining the current regulatory
structure of the market, as well as other changes inside and outside AdP Group. Identification of impairment indicators, estimated
future cash flow and the determination of the fair value of assets (or group of assets) imply a high level of judgment by the
Administration as regards identifying and assessing various impairment indicators, expected cash flow, applicable discount rates, useful
lives and residual values. In the specific case of the AdP Group, the impairment indicators change with the growth in the infrastructure
network, expected tariff changes or current strategies of AdP stakeholders, which together with the other factors may lead to
changes in the standard or amount of future cash flows.
At the date of issue of AdP Group’s financial statements it is our opinion that there is no likely occurrence of any situation of
impairment in the reported assets. If subsequent to the assessment currently underway there should be evidence of any impairment,
the respective balance sheet value of the asset shall be adjusted under results of the year. In addition to the aforementioned
uncertainties, there are also some judgment areas whose impact is reflected in the financial statements. Although we do not expect
that they will cause a material change in the following year, they may still change the criteria or the assessment undertaken by AdP
Group's Administration.
4.4 Fair value of derivatives
The fair value of financial instruments that do not have an active market is determined on the basis of valuations that reflect the
mark-to-market valuation of these instruments. The Group uses its own judgement to select the valuation techniques and criteria
to use for valuation of the contracted derivatives at the date of financial reporting.
5. First time adoption of the IFRS
Under its articles of incorporation AdP Group reported its financial data in accordance with the Official Plan of Accounts (OPA), which
was extinguished on 31 December 2009. With the publication of Decree-Law no. 158/2009 of 13 June, the OPA and accounting directives
were revoked as of 1 January 2010. Therefore, for the period ensuing after this date, AdP Group began stating its consolidated accounts
in accordance with the IFRS, as stipulated in number 2 of Article 4 of said Decree-Law. Below are reconciliations between total equity and
income for the comparative period, prepared in accordance with the Official Plan of Accounts.
31.12.2009 01.01.2009
Total equity OPA 534,758,177 497,540,813
Minority interest 217,609,927 213,974,367
Subtotal (CP + IM) 752,368,104 711,515,180
Valuation of tangible fixed assets i) 117,213,864 111,454,633
Recognition of balance sheet gratuities under results ii) (381,450) -
Discount of medium and long-term debt iii) (116,964) (192,886)
Fair value of financial instruments and foreign exchange updating iv) (7,424,066) (20,306,680)
Cancellation of intangible fixed assets v) 703,854 (474,988)
Cancellation of provisions vi) 1,074,074 1,113,281
Fair value of securities vii) 12,127 61,999
Cancellation of subscribed, unpaid capital vii) (3,439,392) (3,439,392)
Other - -
Total adjustments 107,642,047 88,215,967
Total equity IFRS 860,010,152 799,731,146