CONSOLIDATED FINANCIAL STATEMENTS
On December 31st 2016 and 2015 the gearing ratio was of 42% and 14%, respectively, as
follows:
Dec. 2016
Dec. 2015
Bank loans
166,791,662
43,435,303
Other financial assets
-17,480,341
-7,098,836
Cash and bank deposits
-39,588,532
-14,471,082
Net indebtedness
109,722,788
21,865,385
Equity
152,061,828
135,046,003
Total capital
261,784,616
156,911,388
Gearing ratio
42%
14%
The increase in the gearing ratio results from the financial effort to purchase the Eat Out
Group (Note 5.2).
3.2 ESTIMATED FAIR VALUE
The fair value of financial instruments commercialised in active markets (such as publicly
negotiated derivatives, 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 impairment adjustments) and accounts
payable is assumed 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 instruments.
4. IMPORTANT ACCOUNTING ESTIMATES AND JUDGMENTS
Estimates and judgements are continuously evaluated and are based on past experience and
on other factors, including expectations regarding future events that are believed to be rea-
sonably probable within the respective circumstances.
The Group makes estimates and outlines premises about the future. Generally, accounting
based on estimates 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:
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