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CONSOLIDATED FINANCIAL STATEMENTS
valuated at the amortised cost, using the effective
rate method. Gains and losses - either realised
or not realised and arising from alterations to the
fair value of the category of the financial assets
at their fair value through results - are included
in the consolidated statement of comprehensive
income in the year in which they arise. Unrealised
gains and losses, resulting from alterations to the
fair value of non-monetary securities, classified
as available for sale, are recognised in the equity.
When the securities classified as available for sale
are sold or are under impairment, the accumulated
adjustments to the fair value are included in the
consolidated statement of comprehensive income
as gains or losses in securities investments.
The fair value of listed investments is based on
current market prices.
If there is no active market for a financial asset (and
for non-listed securities), the group determines the
fair value using evaluation techniques, which include
using recent transactions between independent
parties, reference to other instruments that are
substantially identical, an analysis of the discounted
cash flow and refined options price models that
reflect the specific emission circumstances.
2.8.3. Impairment
On each consolidated statement of financial
position, the group checks for objective evidence
showing whether any group of financial assets
is subject to impairment. In the event of equity
securities classified as available for sale, a significant
or lasting decrease in the fair value falling below
the cost value is determinant for knowing if there
is impairment. If there is evidence of impairment
applicable to financial assets available for sale, the
accumulated loss – calculated by the difference
between the acquisition cost and the current fair
value, minus any impairment loss of that financial
asset previously recognised in results – is removed
from equity and recognised in the consolidated
statement of comprehensive income. Impairment
losses from capital instruments recognised in
results are not reversible.
The group complies with the guidelines of IAS 39
(reviewed in 2004) to determine the permanent
impairment of investments. This measure requires
that the group valuate, among other factors, the
duration and the extent to which the fair value of
an investment is less than its cost, the financial
health and business outlook for the subsidiary,
including factors such as the industry’s and sector’s
performance, technological alterations and flows of
operating cash and financing.
2.9. Stocks
Stocks are presented at the lowest value between
their cost and the net realisation value. The cost is
calculated using the weighted mean cost.