ANNUAL REPORT ‘12
NOTES TO THE FINANCIAL STATEMENTS
189
all the expenses associated with the purchase. The cost is determined using the pondered average cost method.
2.11_CASH AND CASH EQUIVALENTS
The heading Cash and cash equivalents includes cash, bank deposits, other short term investments with high levels
of liquidity and with an initial maturity of up to 3 months and bank overdrafts.
Bank overdrafts are shown on the statements of the financial position, in current liabilities under the heading of
loans. For the purposes of cash flow statements, the bank overdrafts are included in the heading cash and cash
equivalents.
2.12_DIVIDENDS
Dividends are shown as a liability whenever approved by Shareholders General Meeting. Thus, according to company
legislation in force, they are shown in the financial year after the year in which they were declared.
2.13_FINANCIAL LIABILITIES
The IAS 39 classifies financial liabilities into two categories:
• Financial liabilities at fair value via results;
• Other financial liabilities.
Financial liabilities at fair value via results refer to derivative financial instruments contracted within the scope of
managing the Group’s financial risks.
Derivative financial instruments are shown on the date they are contracted at their fair value. Subsequently,
the fair value of the derivative financial instruments is regularly evaluated. The gains or losses resulting from this
evaluation are shown directly in the results for the period or in coverage reserves, in equity, depending on its
qualification as derivative trading or coverage (Note 3.3).
Other financial liabilities include Loans obtained (Note 2.14) and Accounts payable (Note 2.15).
The financial liabilities are removed when the underlying obligations are eliminated by payment, or are cancelled or
expire.
2.14_LOANS OBTAINED
Loans obtained are initially shown at fair value, net of transaction costs incurred and are subsequently measured at
amortised cost. Any difference between the receipts (net of transaction costs) and the amortised value is shown
in the income statement over the period of the loan, using the effective rate method.
