Estados Financieros, (Inglés, Español) - Túnel San Cristóbal

i) Financial assets
Financial investments, whether current or non-current, are
classified in the following categories:
The company’s financial investments:
- Trade debtors, other accounts receivable and accounts
receivable from related parties:
These are recorded at their amortized cost, which is basically
the initial market value, less capital repayments made, plus
accrued uncollected interest on loans calculated using the
effective interest rate method.
- Cash and other equivalent liquid means:
Cash on hand, bank checking account balances, time
deposits and other highly liquid, short-term investments that
can be quickly converted into cash and have a low risk of a
change in their value are recorded here.
j) Financial liabilities
Loans received, obligation with the public and other similar
obligations are initially recorded at their reasonable value,
net of the transaction costs. They are valued by means of the
amortized cost method, using the effective interest rate.
k) Derivative financial instruments
The Company has expressly defined a general hedging
policy which is described in Note 4. On the basis of those
definitions, the applicable accounting policy encompasses
the following criteria:
i) For fair value hedges: the profit or loss resulting from
the evaluation of the hedge instrument is recognized
immediately in the income statement. The change in the fair
value of the hedged item attributable to the risk projected is
recognized in the book value of the hedged item and also in
the income account.
ii) For Cash Flow Hedges: For as long as the hedge instrument
has not been liquidated, the profit or loss resulting from the
evaluation of market price of that instrument, in the portion
that has been determined as effective, must be recognized
in the net equity account, while any ineffective portion in
the aforesaid profit or loss will be recognized as the profit or
loss for the year. Upon liquidation of the hedge instrument,
the profit or loss determined will be fully recognized in the
profit for the year.
• Derivative financial instruments are understood to be
those defined by IAS 39, paragraph 9.
• Contracting this type of financial instrument is only
authorized for fair value, cash flow or foreign net investment
hedges, under no circumstances for trading or speculating.
• The realization of such operations and effected in strict
compliance with existing international law that regulates
and ethical principles defined by senior management of the
Company.
• The Company’s Board of Directors is the only instance
authorized to approve financial derivative operations,
pursuant to the company’s hedge needs and the business’
current circumstances.
• In every case, operations with derivative financial
instruments must meet the criteria stipulated for IAS No. 39.
• The performance of derivative instrument operations will
be monitored frequently and regularly during the term of the
contract. To that end, the effectiveness or any deviations that
might be generated during the hedge relationship will be
measured at least on a quarterly basis.
• Operations involving financial derivative instruments
will be carried out using counterparts authorized by the
Company’s Board of Directors.
• Whenever authorization is given to operate with
derivative instruments, the effectiveness of the derivatives
contracted as hedge instruments must be qua notified. This
effectiveness shall be within the limits defined by AS 39.
Any ineffective part of the fair value of the hedge derivatives
shall be considered for limiting the risk.
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