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The Board of Directors determines the budgeted gross
margin based on past performance and on its market
growth expectations. The average weighted growth
rate used is consistent with provisions included in the
sector’s reports. The discount rates used after taxes and
reflect specific risks related with the assets from a CGU.
2.8 FINANCIAL ASSETS
2.8.1 Classification
The group classifies its financial assets under the fol-
lowing categories: financial assets at the fair value
through results, loans granted and accounts receiv-
able, investments held until maturity and financial
assets available for sale. The investment is classified
according to its purpose. The Board of Directors de-
cides on the classification when the investments are
initially recorded and re-assesses that classification at
each report date.
a) Financial assets at the fair value
through results
This category is subdivided into two parts: financial
assets held for negotiation and those that are desig-
nated at the fair value through results from the start.
A financial asset is classified in this category if it is ac-
quired for the main purpose of being sold on the short
term or if designated as such by the Board of Direc-
tors. Derivatives are also classified as held for negotia-
tion, except if they are classified for hedging. Assets in
this category are classified as current if they are held
for negotiation or are realisable within 12 months after
the consolidated statement of financial position date.
b) Loans granted and accounts
Loans grantedandother credits arenon-derivative finan-
cial assets with fixed or determinable payments and that
are not listed on an activemarket. These assets originate
when the group supplies cash, goods or services directly
to a debtor, without intending to negotiate the time at
which it will receive payment for the said cash goods
or services. They are included in current assets, except
when theymature inmore than 12months after the con-
solidated statement of financial position date, in which
case they are classified as non-current assets.
c) Investments held until maturity
Investments held until maturity is non-derivative fi-
nancial assets with fixed or determinable payments
and fixed maturities, which the group’s Board of Direc-
tors has the intention and capacity to maintain until
maturity. These investments are included in non-cur-
rent assets, except those falling due within 12 months
as of the consolidated statement of financial position
date, which are classified as current assets.
d) Financial assets available for sale
Financial assets available for sale are non-derivative as-
setswhich are designated in this category or are not clas-
sified in any of the other categories. They are included in
non-current assets, except when the Board of Directors
wishes to sell the investment within 12 months as of the
consolidated statement of financial position date.
2.8.2 Recognition and measurement
Purchases and sales of investments are recognised
on the transaction date – the date on which the group
promises to purchase or sell the asset. Investments
