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ANNUAL REPORT 2011
a) Estimated impairment of consolidation differences
The group performs annual tests to determine
whether the consolidation differences are subject
to impairment, according to the accounting policy
indicated in Note 2.5. Recoverable amounts from
the units generating cash flows are determined
based on the calculation of utilisation values. Those
calculations require the use of estimates (Note 9).
If the real gross margin is less, or the discount
rate - prior to taxes - is greater than the estimates
by the managers, the impairment losses of the
consolidation differences may be greater than
those recorded.
b) Income Tax
The group is subject to Income Tax in Portugal,
Spain and Angola. A significant judgement must
be made to determine the estimated income tax.
The large number of transactions and calculations
make it difficult to determine the income tax during
normal business procedures. The group recognises
liabilities for additional payment of taxes that may
originate from reviews by the tax authorities. When
tax audits indicate a final result different from the
initially recorded amounts, the differences will
have an impact on the income tax and on deferred
taxes in the period in which those differences are
identified.