RA 2006 abrinq.indd - Fundação Abrinq

of Child Labor - together with the municipal public authorities and entrepreneurs, itsobjective is to eradicate the worst forms of child labor in five states of Brazil, totaling 18municipalities. It monitors the Federal Government measures to eradicate the problem inBrazil through the “Presidente Amigo da Criança” Program.“Seminário International” - International Seminar - approaches various themesrelated to the situation of children and adolescents in the world.“Orçamento Criança” - Public Budget for Children - aims at contributing to themonitoring and visibility of the Public Budget for Children and Adolescents (OCA), to favorthe absolute priority of children and adolescents in the public budget.“Petrobras Jovem Aprendiz” - Petrobras Young Apprentice - aims at developing aneducational program for young apprentices, benefiting youngsters that are socially andpersonally vulnerable.“Projetando a Vida” - Projecting Life - its objective is to reduce the evasion and abandonmentof school by youngsters and adults by developing a closer relationship betweenyoung students and adult volunteers in their community, who work as mentors, and theintroduction of life projects in pedagogical curricula.The Foundation has requested the renewal of the Philanthropic Welfare Entity Certificate(former Certificate for Entities with Philanthropic Purposes (CEFF)) granted by the NationalCouncil of Social Welfare (CNAS), through process No. 71010.001136/2005-89, which wasformalized on June 9, 2005.The Foundation complies with all requirements of the legislation, being income tax exempt(based on Article 150 of the Federal Constitution) and exempt from the social contributionon surplus, the employer’s contribution to the National Institute of Social Security (INSS)and the Social Contribution on Revenues (COFINS) (based on Law 8212/91).The exemption from the social security and social contribution charges generated thefollowing benefits:2 Significant Accounting PracticesThe financial statements have been prepared and are presented in accordance withaccounting practices adopted in Brazil. The preparation of the financial statementsrequires management to make estimates to account for certain assets, liabilities andother transactions. Estimates are used in these financial statements for useful lives ofproperty, plant and equipment and provisions, among others. Actual results could differfrom those estimates.(a)Determination of results of activitiesDonations and contributions received by the Foundation to sponsor specific programsand projects, as well as the financial income earned by investing such funds until they areutilized in the project concerned, are shown in the balance sheet as “Advances for projects”.Amounts are transferred from this account to the results for the year as amounts are spenton projects. Spontaneous donations and contributions with no specific destination forprograms and projects are recorded as income upon receipt.Expenses are recorded on the accrual basis.(b) ReclassificationsFor a better presentation, the statement of surplus of 2005, presented herein, considers thefollowing reclassifications:RevenuesProjectsDonations from individuals andcorporate entities for the “OurChildren” projectDonations and monthly duesFinancial incomePrevious10,472,3742,407,6873,559,6101,150,21317,589,884Reclassification(2,440,335)226,7792,217,649(4,093)2005Current8,032,0392,634,4665,777,2591,146,12017,589,8842006 2005Employer’s contribution to INSS 1.100.534 1.031.936COFINS 387,918 493,311Social contribution on net income (CSLL) 81,7711.488.452 1.607.018ExpensesProjects“Our Children” project contributions- individuals and corporate entitiesGeneral and administrativeDepreciations and write-off of fixed assetsFinancial expensesPrevious(1,679,722)(2,401,954)(12,463,515)(135,784)(337)(16,681,312)Reclassification6,592,694232,430(6,823,429)(1,695)2005Current(8,272,416)(2,634,384)(5,640,086)(134,089)(337)(16,681,312)74