• 
  • Consolidated Balance Sheets
  • Consolidated Statements of income Yeares Ended
  • Consolidated Statements of Comprehensive Income Years Ended
  • Consolidated Statements of Shareholders' Equity
  • Consolidated Statements of Cash Flow Years Ended
  • Notes To the Consolidated Financial Statements
    • 1. Operations
    • 2. Presentation of the Financial Statements and Accounting Practices
    • 3. Critical Accounting Estimates
    • 4. Accounting Pronouncements not yet Adopted
    • 5. First-time Adoption of IFRS
    • 6. Financial Instruments
    • 7. Cash and Cash Equivalents
    • 8. Financial Assets
    • 9. Trade Accounts Receivable, Net
    • 10. Customer and Commercial Financing
    • 11. Collateralized Accounts Receivable and Recourse and Non Recourse Debt
    • 12. Inventories
    • 13. Other Assets
    • 14. Guarantee Deposits
    • 15. Related Party Transactions
    • 16. Property, Plant and Equipment
    • 17. Intangible Assets
    • 18. Financial Liabilities by Category
    • 19. Loans and Financing
    • 20. Trade Accounts Payable
    • 21. Other Payables
    • 22. Contribution from Suppliers
    • 23. Advances from Customers
    • 24. Axes and Payroll Charges Payable and Income Tax Social Contribution
    • 25. Other Provisions
    • 26. Provisions for Contingencies
    • 27. Post-retirement Benefits
    • 28. Shareholders' Equity
    • 29. Stock Compensation
    • 30. Earnings Per Share
    • 31. Employee Profit Sharing-plan
    • 32. Other Operating (expense) Income, Net
    • 33. Revenue and (expenses) by Nature
    • 34. Financial Income (expense)
    • 35. Foreign Exchange Gains (losses), Net
    • 36. Income Taxesincome Taxes
    • 37. Impairment Test
    • 38. Financial Guarantees
    • 39. Financial Instruments
    • 40. Responsibilities and Commitments
    • 41. Insurance (unaudited)
    • 42. Additional Information of Cash Flow
    • 43. Segment Information
    • 44. Events After the Balance Sheet Date
  • Proposal to the Board of Directors
  • ANNUAL REPORT

Notes to the Consolidated Financial Statements
In millions of U.S. dollars, unless otherwise stated

37. IMPAIRMENT TEST

On December 31, 2010 and 2009, the Company performed an evaluation of all its cash-generating units (CGUs). No evidence of indications of impairment was identified. For the impairment test, the CGUs included the intangible assets under development and property, plant and equipment.

The recoverable amount of the CGUs was determined based on calculations of the value in use. These calculations use cash flow projections before income tax, based on financial budgets approved by Management over a period of five years.

Key assumptions used for value in use calculations:

Gross margin
Management determined budgeted gross margin based on past performance and expectations for market development. These margins also consider the efficiencies for the planned production cycle.

Growth rates
Growth rates were reflected in the budgeted revenue stream for the Company, consistent with the forecasts included in industry reports.

Discount rates
The discount rates used correspond to pre-tax rates and were based on market rates considering the period of budgeted cash flow used by the Company, being 2.17% p.a. at December 31, 2010 and 2.98% p.a. at December 31, 2009.

No impairment losses for intangible assets or property, plant and equipment were recognized in 2010 and 2009.

top