ANNUAL REPORT ‘12
NOTES TO THE FINANCIAL STATEMENTS
201
Derivatives are initially shown at fair value and subsequently readjusted to fair value. The method of showing the
variations of fair value depends on whether the instrument is classified as coverage or not and the nature of the
item covered.
4_IMPORTANT ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continuously evaluated and are based on past experiences and other factors, including
expectations about future events that are reasonable in the existing circumstances.
The intrinsic nature of the estimates may differ in the future from the amounts originally estimated.
4.1_ASSET IMPAIRMENT
Whenever the accounting value of a set of assets that constitute a cash generating unit exceeds the recoverable
quantity, corresponding to the highest value between the value in use and fair value less costs to sell, it is reduced
to the recoverable amount and this impairment loss is recognized in the results of the financial year.
With the adoption of IFRIC 12, ANA, S.A. carried out an impairment test to assess the recoverability of its assets,
which showed there is no loss due to impairment to be reported, as pointed out in note 2.8.
4.2_ESTIMATE OF THE FAIR VALUE OF FINANCIAL ASSETS
Whenever the financial assets available for sale are not quoted on the market, their fair value is estimated.
This estimate is carried out on the basis of the discounted cash flow method, and the best management estimate
with regard to profitability, growth and discount rate.
4.3_ESTIMATE OF THE FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS
The fair value of financial instruments is determined based on the interest rate curves estimated in the medium
term, resulting from market transactions stated for those maturities.
4.4_ANAM, S.A.’S CONCESSION PERIOD
The Concession Contract (signed on 1 October 1993) had an initial term of 25 years, which was later extended by
Regional Legislative Decree 7-A/2000/M, of 15 March, for periods of 5 years, up to a maximum of 15 years, in
other words, up to 2033.
