Annual Report 2010 - AdP

31.12.2009
Net income OPA 45,911,366
Valuation of tangible fixed assets i) 5,759,231
Recognition of balance sheet gratuities under results ii) (381,450)
Discount of medium and long-term debt iii) 75,922
Fair value of financial instruments and foreign exchange updating iv) 12,882,614
Cancellation of intangible fixed assets v) 1,181,973
Cancellation of provisions vi) (39,207)
Fair value of securities vii) (49,871)
Cancellation of subscribed, unpaid capital vii) -
Other (15,089)
Total adjustments 19,414,123
Net income IFRS 65,325,489
Adjustments
i) Valuation of tangible fixed assets
AdP Group, during the transition, began to revaluate buildings and land at fair value (resulting from the valuation) and use of this fair
value as cost considered at that date. Accrued value of the assets as at the transition date resulted from the valuation that was
conducted, in the amount of 111,454,633 euros, net of deferred taxes.
ii) Recognition of balance sheet gratuities under results
With this transition, responsibilities were accrued with the gratuities to be paid to employees during the following year. In 2009,
EPAL paid balance sheet gratuities directly under total equity. For the purpose of preparing the 2009 values this amount was recorded
under results (staff costs).
iii) Discount of medium and long-term debt
In preparing the financial statements in accordance with IFRS in 2009 a medium and long-term debt that did not earn interest was
discounted.
iv) Fair value of financial instruments and foreign exchange updating
AdP Group has various lines of credit negotiated as a form of financing investment made in the operation. Swaps were negotiated
for some financing operations to cover interest rate and foreign exchange risks.
At end 2009, AdP SGPS had negotiated a series of swaps at simple interest rates, under which fixed interest rates were exchanged
for variable interest rates, as well as foreign exchange rates Because they do not qualify as hedging instruments, taking into account
the conditions stipulated under IAS 39, the aforementioned swaps were recorded at 31 December 2009 as trading instruments. The
fair value of these derivatives has not been recognized in the OPA accounts.
v) Cancellation of intangible fixed assets
Some intangible assets recognized in the balance sheet under the OPA were eliminated during the transition (for instance, start-up
costs) and goodwill was restored, which up until then had been amortized in accordance with national rules.
vi) Cancellation of provisions
Pursuant to “IAS 37 - Provisions, contingent liabilities and contingent assets,” only provisions for situations with an underlying obligation
can be recognized, resulting from a past event, and the obligation requires outflow of resources in order to fulfil it. Provisions for
Other risks and charges recorded by AdP Group essentially refer to provisions for legal proceedings and other provisions such as:
(i) provisions for covering losses in affiliate companies, in accordance with the share in minority holdings and (ii) provisions for
contingencies. The transition led to the write off of a provision that did not fully meet these conditions.
vii) Fair value of securities
Investment in shares of companies which AdP Group does not control or have significant influence over are valued in accordance
with IAS 39 - Financial instruments, at fair value (stock market price) or under results. Under the OPA, these investments were
recorded at acquisition cost less accumulated impairment losses.
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