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Given the current constraints of the financial markets
and despite the goal of placing the gearing ratio in
the range 35% -70%, prudently, in 2014 we have a
17% ratio.
3.2 ESTIMATED FAIR VALUE
The fair value of financial instruments commercialised
in active markets (such as publicly negotiated deriva-
tives, securities for negotiation and available for sale)
is determined based on the listed market prices on
the consolidated statement of financial position date.
The market price used for the group’s financial assets
is the price received by the shareholders in the current
market. The market price for financial liabilities is the
price to be paid in the current market.
The nominal value of accounts receivable (minus im-
pairment adjustments) and accounts payable is as-
sumed to be as approximate to its fair value. The fair
value of financial liabilities is estimated by updating
future cash flows contracted at the current market
interest rate that is available for similar financial in-
struments.
4. IMPORTANT ACCOUNTING ESTIMATES
AND JUDGMENTS
Estimates and judgements are continuously evaluat-
ed and are based on past experience and on other fac-
tors, including expectations regarding future events
that are believed to be reasonably probable within the
respective circumstances.
The group makes estimates and outlines premises
about the future. Generally, accounting based on esti-
mates rarely corresponds to the real reported results.
Estimates and premises that present a significant risk
of leading to a material adjustment in the accounting
value of the assets and liabilities in the following year
are described below:
a) Estimated impairment of goodwill
The group performs annual tests to determine
whether the goodwill is subject to impairment, ac-
cording 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).
Dec 2014
Dec 2013
Bank loans
38.831.817
46.526.172
Cash and bank deposits
-13.566.782
-22.138.608
Net indebtedness
25.265.035
24.387.564
Equity
126.313.585
119.440.096
Total capital
151.578.620
143.827.660
Gearing ratio
17%
17%
