Financial Information - Uralita

ANNUAL REPORT 2006
FINANCIAL INFORMATION
Of total “Reserves at consolidated companies” at
31 December 2006, €38,180 thousand were
restricted reserves, before taking into account
consolidation adjustments. Of this amount,
€5,396 thousand relates to the revaluation
reserve pursuant to Royal Decree-Law 7/1996.
Once the tax authorities have reviewed and
approved the balance of the reserve (or the
three-year period for review has expired), the
balance is available, free of tax, to offset tax
losses. From 1 January 2007, the balance can
be taken to unrestricted reserves, provided that
the monetary surplus has been realized. The
surplus will be deemed to have been realized in
respect of the portion on which depreciation has
been applied for accounting purposes or when
the revalued assets have been transferred or
retired from the accounting records. If this
balance is used in a manner other than that
provided for in Royal Decree-Law 7/1996, it
would be subject to tax.
Translation differences arise from the conversion
to euros of balances of consolidated subsidiaries
whose functional currency is not the euro (see
Note 4.18).
Valuation adjustments
Cash-flow hedges.
This heading under “Reserves at consolidated
companies” in the consolidated balance sheet
includes the net amount of changes in the value
of derivative financial instruments designated as
cash flow hedges (see Note 13). The movements
in these were as follows:
THOUSANDS OF EUROS
Balance at 1 January 2005
-
Changes in fair value
(1,533)
BALANCE AT 31 DECEMBER 2005 (1,533)
Changes in fair value
(1,456)
BALANCE AT 31 DECEMBER 2006 (2,989)
160