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CONSOLIDATED FINANCIAL STATEMENTS
2.18. Dividend payment
Payment of dividends to shareholders is recognised as
a liability in the group’s financial statements when the
dividends are approved by the shareholders.
2.19. Profit per share
Basic
The basic profit per share is calculated by dividing the
profit payable to shareholders by the weighted mean
number of ordinary shares issued during the period,
excluding ordinary shares acquired by the company
and held as own shares (Note 15).
Diluted
The profit diluted per share is calculated by dividing
the profit payable to shareholders – adjusted by the
dividends of convertible preference shares, convertible
debt interest and gains and expenses resulting from
the conversion – by the average number of ordinary
shares issued during the period plus the average
number of ordinary shares that may be issued in the
conversion of ordinary shares that may be potentially
used in the dilution.
2.20. Derivatives financial instruments
The Group uses derivatives financial instruments,
such as exchange forwards and interest rate swaps,
only to cover the financial risk witch the Group
is exposed to. The Group doesn’t use derivatives
financial instruments for speculation. For the
carrying amount of derivatives financial instruments,
the Group uses hedge accounting policies under the
terms of the legislation in force. Derivatives financial
instruments negotiation is carried out by the Group,
on behalf of their subsidiaries, by the financial
department under the policies approved by the
Board of directors. Derivative financial instruments
are initially measured at the transaction date
fair value, being subsequently measured at each
reporting date fair value. Gains or losses of fair value
changes are recognised as follows:
Fair value hedge
In an operation to hedge the exposure to fair value
of an asset or liability (“fair value hedge”) determined
as effective hedges, the fair value changes are
recognised in the income statement jointly with
the fair value changes of the risk component of the
hedged item.
Cash flow hedge
In an operation to hedge the exposure to future
cash-flows of an asset or liability (“cash-flow
hedge”), the effective part of the fair value changes
in the hedging derivative are recognizes in equity; the
ineffective part of the hedging is recognized in the
income statement when it occurs.