Annual Report 2010 - AdP

14. Derivatives
31.12.2010 31.12.2009
Swaps assets 2,227,586 2,477,311
Swaps liabilities (14,914,691) (9,334,823)
(12.687.105) (6.857.512)
31.12.2010 31.12.2009
Assets Liabilities Assets Liabilities
Foreign exchange risk swaps 2,227,586 - 2,477,311 -
Interest rate swaps - 14,914,691 - 9,334,823
2,227,586 14,914,691 2,477,311 9,334,823
The group uses derivatives for the sole purpose of managing the financial risks it is exposed to. In accordance with its financial policies,
the 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.
15. Tariff deficit
31.12.2010 31.12.2009
Gross tariff deficit - assets 310,762,868 262,487,519
Gross tariff deficit - liabilities (135,317,264) (124,876,302)
Net gap 175,445,605 137,611,217
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