b.Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is
recognized immediately in profit or loss.
The associated gains or losses recognized in other comprehensive income are transferred from equity to profit
or loss as a reclassification adjustment in the line item relating to the hedged item in the same period when the
hedged item affects profit or loss. If a hedge of a forecast transaction results in the recognition of a nonfinancial
asset or a liability, the associated gains and losses recognized in other comprehensive income are removed from
equity and are included in the initial cost of the nonfinancial asset or liability.
Hedge accounting is discontinued prospectively when the Corporation revokes the designated hedging
relationship; when the hedging instrument expires or is sold, terminated, or exercised; or when it no longer
meets the criteria for hedge accounting. The cumulative gain or loss on the hedging instrument that has been
previously recognized in other comprehensive income from the time when the hedge became effective remains
separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to
occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.
Provisions
Provisions, including those arising from the contractual obligation specified in a service concession arrangement
to maintain or restore the infrastructure before it is handed over to the grantor, are measured at the best estimate
of the consideration required to settle the present obligation at the end of the reporting period, taking into
account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where
the effect of the time value of money is material).
Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for
estimated customer returns, rebates and similar allowances. Sales returns are recognized at the time of sale if the
seller can reliably estimate future returns and recognizes a liability for returns based on previous experience and
relevant factors.
a.Sale of goods
Revenue from the sale of goods is recognized when the goods are delivered and titles have passed, at which
time all the following conditions are satisfied:
1)The Corporation has transferred to the buyer the significant risks and rewards of ownership of the goods;
2)The Corporation retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
3)The amount of revenue can be measured reliably;
4)It is probable that the economic benefits associated with the transaction will flow to the Corporation; and
5)The transaction costs incurred or to be incurred can be measured reliably.
│
51
│
Financial Statements
