Under Argentine GAAP, there are no specific requirements governing the recognition of accrual for vacations. The accepted practice in Argentina is to expense vacation when taken and to accrue only the amount of vacation in excess of normal remuneration.
Under Argentine GAAP, the Company has capitalized start-up and organization costs as intangible assets in the accompanying consolidated balance sheets. These costs are primarily being amortized on a straight-line basis over 5 years. Included as start-up and organization costs are fees and expenses related to the issuance of certain financial debts amounting to Ps. 1,213,203 as of December 31, 2001. These fees and expenses are being amortized on a straight-line basis over the term of the debt agreements.
Under US GAAP, start-up and organization costs are expensed as incurred and classified as operating costs. Fees and expenses related to the issuance of certain financial debts are capitalized and amortized over the term of the debt agreements using the effective interest method of amortization.
Under US GAAP the Company applies the provisions of Statement of Financial Accounting Standards ("SFAS") No. 34, "Capitalization of Interest Cost", which requires interest capitalization on assets which have a period of time to get them ready for their intended use. In accordance with these requirements, the Company capitalized interest costs amounting to Ps. 410,173 and Ps. 3,169,035 for the years ended December 31, 2001 and 2000, respectively. The net US GAAP adjustments include amortization of the capitalized interest amounting to Ps. 738,310 and Ps. 255,999 for the years ended December 31, 2001 and 2000, respectively.
Under Argentine GAAP, property, plant and equipment transferred to the Company as a result of the privatization processes are depreciated based on some technical formulas.
As discussed in Note 13, the Argentine government declared exchange holidays all working days between December 21, 2001 and December 31, 2001. On January 11, 2002, when the exchange market first opened, the exchange rate was Ps. 1 to US$ 1.4 (buying rate) and Ps. 1 to US$ 1.6 (selling rate). As of December 31, 2001, under Argentine GAAP, the Company accounted for its foreign currency assets and liabilities at an exchange rate of Ps. 1 to US$ 1. The effects of the devaluation were recognized during fiscal year 2002.
Under US GAAP, the Company applied the guidance set forth in the EITF D-12 “Foreign Currency Translation – Selection of the Exchange Rate When Trading is Temporarily Suspended”, that states that when exchangeability between two currencies is temporarily lacking at the balance sheet date, the first subsequent rate at which exchange could be made shall be used. Accordingly, under US GAAP, the Company accounted for its foreign currency assets and liabilities using the buying rate of Ps. 1.4 and the selling rate of Ps. 1.6 to the dollar, as appropriate. The reconciling item reflects the timing difference for the recognition of the foreign currency exchange loss.
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Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 14. | Differences between Argentine GAAP and US GAAP (continued) |
| | | |
| | (f) | Voluntary retirement program |
Under Argentine GAAP, costs associated with voluntary retirement programs incurred in the start-up of the Company at the time of the privatization were capitalized as intangible assets and amortized on a straight-line basis over 5 years.
Under US GAAP, these costs were considered as a liability assumed in determining the value assigned to the property, plant and equipment transferred by the government as a result of the privatization. As a result, these costs increased the cost of property, plant and equipment under US GAAP. The difference between Argentine GAAP and US GAAP relates to the different amortization period.
| | (g) | Valuation of property, plant and equipment |
Under Argentine GAAP, the value assigned to property, plant and equipment transferred by the government as a result of the privatization of the Company’s subsidiaries was determined based on the purchase price paid for the percentage of ownership interest in these companies. The Company paid the purchase price of the privatized companies using government bonds that the Company had acquired from the market, considering the government recognized an amount greater than its fair value.
Under US GAAP, the purchase price was determined based on the consideration paid plus the fair market value of the government bonds at the time of payment. As the fair market value was below the amount recognized by the government, the purchase price under US GAAP was lower than the purchase price under Argentine GAAP, resulting in a lower value assigned to property, plant and equipment. This adjustment gave rise to differences in depreciation expense.
The Class 3 Floating Rate Notes accrues interest at a variable-increasing rate based on LIBOR plus basic points. Under Argentine GAAP, interest is recognized based on the effective rate applicable to each interest period.
Under US GAAP, in accordance with EITF 86-15 “Increasing Rate Debt”, the Company is recognizing the periodic interest cost related to the Floating Rate Notes using the effective interest method over the debt term.
| | (i) | Derivative financial instruments |
As discussed in Note 9, from time to time, the Company uses derivative financial instruments as part of its overall strategy to manage its exposure to market risks associated with fluctuations in interest rates and exchange rates. The counterparties to these instruments generally are major financial institutions. The Company does not hold or issue derivative instruments for trading purposes. A description of the Company’s derivative instruments activity during the years ended December 31, 2001 and 2000 follows:
Foreign currency forward-exchange contracts
In order to manage its foreign currency exposure, during the years ended December 31, 2000 and 2001, the Company entered into foreign currency forward-exchange contracts with financial institutions to effectively convert its yen-denominated short-term debts to US dollar-denominated debts.
As of December 31, 2000, the Company had three foreign currency forward-exchange contracts outstanding with an aggregate notional amount of Yen 6,323,500,000 maturing in April and August 2001. These foreign currency forward-exchange contracts covered yen-denominated short-term debts with Bank of Tokyo-Mitsubishi and Banco Rio de la Plata S.A. amounting to Yen 4,718,500,000 and Yen 1,605,000,000, respectively, with the same maturity dates.
As of December 31, 2001, the Company had a foreign currency forward-exchange contract outstanding with JPMorgan Chase Bank for an aggregate notional amount of Yen 2,452,000,000 covering a yen-denominated short-term debt with Bank of Tokyo Mitsubishi maturing on April 25, 2002.
F-24
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Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 14. | Differences between Argentine GAAP and US GAAP (continued) |
| | | |
| | (i) | Derivative financial instruments (continued) |
Under Argentine GAAP and, until December 31, 2000, also under US GAAP, premiums on foreign currency forward-exchange contracts were amortized over the life of the respective contracts. Gains and losses on the hedge contracts were reported in earnings and offset the gains and losses on the foreign currency exposure. The fair values of the foreign currency forward-exchange contracts were not recognized in the consolidated financial statements.
Effective January 1, 2001, under US GAAP the Company adopted Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, and its corresponding amendments (SFAS No. 133). SFAS No. 133 establishes accounting and reporting standards requiring that every derivative instrument be recorded in the balance sheet as either an asset or liability measured at its fair value. SFAS No. 133 requires that changes in the derivative's fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative's gains and losses to offset related results on the hedged item in the income statement, and requires that a company must formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. In accordance with the transition provisions of SFAS Nº 133, the Company recorded a net-of-tax cumulative-effect-type loss adjustment of Ps. 235,653 (Ps. 153,174 net of minority interest) in earnings to reflect the impact of the adoption of this standard. This loss relates to the fair market value of the foreign currency forward-exchange contracts outstanding as of December 31, 2000 totaling Ps. 362,543. In accordance with SFAS No. 133, although these derivative instruments were used to hedge liabilities denominated in foreign currency, no special or hedge accounting was needed because FAS No. 52 requires these liabilities be translated at current spot exchange rates and the resulting gains and losses be reported in earnings. Therefore, changes in the fair market value of these derivative financial instruments were also recognized in earnings.
Foreign currency option contract
In order to manage its foreign currency exposure, during the year ended December 31, 2001 the Company entered into a foreign currency option contract with Bank of America, pursuant to which the Company has the option to buy Yen 3,130,000,000 at a strike price of Yen 119 per US dollar. This foreign currency option contract covers a yen-denominated short-term debt maintained with Bank of Tokyo Mitsubishi which matures on August 2, 2002.
Under Argentine GAAP, the premium on the foreign currency option contract is being amortized over the life of the respective contract. The fair value of the foreign currency option contract is not recognized in the consolidated financial statements.
Under US GAAP, in accordance with SFAS No. 133 this derivative financial instrument has been recognized on the company’s balance sheet at its fair value, with changes in fair value reported in earnings.
In order to manage its interest rate exposure, in June 2001 the Company entered into two interest rate swap agreements with Bank of America to effectively convert its Floating Rate Notes from dollar-denominated variable-rate debt to dollar-denominated fixed-rate debt. Under the swap agreements, the Company pays interest at a fixed rate of 4.6225% and receives interest at a variable rate equal to LIBOR. The swap agreements have original maturities in August 2002 and 2003.
Under Argentine GAAP, any differential to be paid or received is accrued and recognized as an adjustment to interest expense in the statement of income. The related accrued receivable or payable is included as an adjustment to interest payable. The fair values of the swap agreements are not recognized in the consolidated financial statements.
Under US GAAP, the interest rate swaps have been designated as a hedge of the changes in cash flows of the variable-rate debts related to fluctuations in interest rates. In accordance with SFAS No. 133, the swaps have been recorded on the balance sheet at their fair values. The swaps have been classified as cash flow hedges, and accordingly, the effective portion of the swap’s loss has been reported in other comprehensive income (loss). Amounts accumulated in other comprehensive income (loss) are reclassified to earnings when the related interest payments affect earnings.
F-25
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Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 14. | Differences between Argentine GAAP and US GAAP (continued) |
| | | |
| | (j) | Accounting for multiple element arrangements |
As discussed in Note 8, in October 1997 Transener obtained the exclusive license to construct, maintain and operate the fourth line of the Comahue-Buenos Aires electricity transmission system. The Company received subsidies from CAMMESA totaling US$ 80 million during the construction phase of the contract, which ended in December 1999. The contract also establishes a fee to be paid to the Company in monthly equal and consecutive installments during 15 years as from December 1999 (the date operations began).
Under Argentine GAAP, there is no guidance to be followed when a contract has multiple deliverables. The Company has considered the construction, operation and maintenance as a single unit of accounting. Therefore, subsidies received from CAMMESA during the construction phase were recognized as “customers’ prepayments” within the non-current portion of trade accounts payable and are being recognized in income on a straight-line basis over 15 years.
Under US GAAP, revenue was allocated to the multiple elements based on their estimated fair value at the date the agreement was signed. The US GAAP adjustment relates to the result of the construction phase, which is being recognized, under Argentine GAAP, on a straight-line basis over 15 years.
Under Argentine GAAP, income taxes are recognized on the basis of amounts currently due in accordance with Argentine tax law and regulations. Temporary differences between the financial reporting and income tax basis of accounting are therefore not considered in recognizing income taxes.
Under US GAAP, the Company applies the principles of Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes", which requires a comprehensive liability method of accounting for income taxes. Under the comprehensive liability method, deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets are also recognized for tax loss carryforwards. SFAS 109 requires companies to record a valuation allowance for that component of net deferred tax assets which does not meet the more likely than not criterion for realization. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning in making these assessments. In accordance with SFAS 109, the Company is required to continuously evaluate the recoverability of deferred tax assets. This evaluation is made based on internal projections which are routinely updated to reflect more recent operating trends. Based on current financial projections, the Company is uncertain that it will recover its deferred tax assets through future taxable income. Accordingly, the Company has established a valuation allowance against its deferred tax assets.
In addition, the US GAAP adjustment includes the effect on deferred income taxes of the foregoing reconciling items, as appropriate.
This adjustment represents the effect on minority interest of the foregoing reconciling items, as appropriate.
F-26
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Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 14. | Differences between Argentine GAAP and US GAAP (continued) |
| | | | |
| | II. | Additional disclosure requirements |
| | | | |
| | (a) | Statement of income classification differences |
| | | | |
| | Operating income |
Under Argentine GAAP, the recoveries of certain expenses have been included within “Other income, net” in the accompanying consolidated statements of income. Under US GAAP, such items would have been classified as a reversal to the amounts in the line items which were originally recorded. Operating income under US GAAP but using Argentine GAAP numbers would have been Ps. 88.2 million and Ps. 88.9 million for the years ended December 31, 2001 and 2000, respectively.
| | (b) | Statements of cash flows |
As required by Argentine GAAP, the Company presents the statements of sources and uses of funds in the primary financial statements.
Under US GAAP, the Company is required to present the statements of cash flows in accordance with SFAS 95, “Statement of Cash Flows”. The presentation of the statements of cash flows under US GAAP but using Argentine GAAP numbers follows:
Consolidated Statements of Cash Flows for the years ended December 31, 2001 and 2000
(In Argentine Pesos, except as otherwise indicated)
| | 2001 | | 2000
(Unaudited) | |
| |
| |
| |
| Cash flows from operating activities: | | | | | | |
| Net income for the year | Ps. | 20,856,160 | | Ps. | 19,520,767 | |
| Adjustments to reconcile net income to cash flow from operating activities: | | | | | | |
| Financial results | | 3,282,201 | | | 1,824,008 | |
| Depreciation of property, plant and equipment | | 20,656,895 | | | 18,928,260 | |
| Amortization of intangible assets | | 5,201,590 | | | 5,915,786 | |
| Amortization of other assets | | 19,145,136 | | | 18,106,863 | |
| Loss (gain) from sale of property, plant and equipment | | 76,016 | | | (29,408 | ) |
| Provision for contingencies | | (238,344 | ) | | 3,343,353 | |
| Minority interest | | 12,646,698 | | | 12,007,860 | |
| Income tax expense | | 15,967,233 | | | 12,357,658 | |
| Changes in certain assets and liabilities, net of non-cash: | | | | | | |
| (Increase) in trade accounts receivable | | (1,503,460 | ) | | (3,813,151 | ) |
| Decrease in other receivables | | 2,683,501 | | | 3,877,701 | |
| (Increase) in other assets | | (14,558,008 | ) | | (737,052 | ) |
| (Increase) in intangible assets | | (442,376 | ) | | (1,905,577 | ) |
| (Decrease) in trade accounts payable | | (6,269,208 | ) | | (16,143,111 | ) |
| Increase (decrease) in salaries and social security payable | | 274,926 | | | (333,632 | ) |
| (Decrease) in taxes payable | | (12,714,722 | ) | | (10,015,693 | ) |
| (Decrease) in provisions | | (611,088 | ) | | (507,401 | ) |
| (Decrease) in other liabilities | | (746 | ) | | (3,412 | ) |
| (Decrease) in accrued interest | | (2,591,668 | ) | | (1,374,269 | ) |
| |
| |
| |
| Net cash provided by operating activities | Ps. | 61,860,736 | | Ps. | 61,019,550 | |
| |
| |
| |
F-27
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Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 14. | Differences between Argentine GAAP and US GAAP (continued) |
| | | |
| | (b) | Statements of cash flows (continued) |
| | 2001 | | 2000
(Unaudited) | |
| |
| |
| |
| Cash flows from investing activities: | | | | |
| Acquisition of property, plant and equipment | Ps. | (30,440,399 | ) | Ps. | (26,124,511 | ) |
| Net proceeds from sale of fixed assets | | 1,995,130 | | | 3,680,875 | |
| Increase in non-current investments | | (2,000,000 | ) | | — | |
| |
| |
| |
| Net cash used in investing activities | Ps. | (30,445,269 | ) | Ps. | (22,443,636 | ) |
| |
| |
| |
| Cash flows from financing activities: | | | | | | |
| Net increase (decrease) in short-term debt | Ps. | 7,892,732 | | Ps. | (18,741,789 | ) |
| Repayment of long-term debt | | (10,870,524 | ) | | (1,935,165 | ) |
| Proceeds from issuance of long-term debt | | 6,000,000 | | | — | |
| Payment of debt related to the acquisition of property, plant and equipment | | (1,480,567 | ) | | — | |
| Payment of cash dividends to minority interests | | (9,870,000 | ) | | (9,450,000 | ) |
| Payment of cash dividends to shareholders | | (16,980,000 | ) | | (15,450,000 | ) |
| |
| |
| |
| Net cash used in financing activities | Ps. | (25,308,359 | ) | Ps. | (45,576,954 | ) |
| |
| |
| |
| Increase (decrease) in cash and cash equivalents | | 6,107,108 | | | (7,001,040 | ) |
| Cash and cash equivalents as of the beginning of the year | | 1,718,134 | | | 8,719,174 | |
| |
| |
| |
| Cash and cash equivalents as of the end of the year | Ps. | 7,825,242 | | Ps. | 1,718,134 | |
| |
| |
| |
| Supplemental cash flow information: | | | | | | |
| | | | | | | |
| Cash paid during the years for: | | | | | | |
| Interest | Ps. | 41,269,350 | | Ps. | 46,045,339 | |
| Income tax | | 12,768,616 | | | 14,368,168 | |
| | | | | | | |
| Non-cash transactions: | | | | | | |
| Acquisition of property, plant and equipment through an increase in accounts payable | Ps. | — | | | 7,943,127 | |
Under US GAAP, the total amounts of cash and cash equivalents at the end of the years shown in the consolidated statements of cash flows are required to be the same amounts as similarly titled line items shown in the consolidated balance sheets, as of those dates. The following table reconciles the balances included as cash and banks and current investments in the balance sheet to the total amounts of cash and cash equivalents at the beginning and end of the year shown in the statements of cash flows:
| | As of December 31, | |
| |
| |
| | 2001 | | 2000
(Unaudited) | |
| |
| |
| |
| Cash and banks | Ps. | 4,761,248 | | Ps. | 938,179 | |
| Current investments | | 3,083,422 | | | 779,955 | |
| |
| |
| |
| Total cash and banks and current investments as per balance sheet | | 7,844,670 | | | 1,718,134 | |
| |
| |
| |
| Less: Items not considered cash and cash equivalents | | | | |
| – Government bonds | | (19,428 | ) | | — | |
| |
| |
| |
| Cash and cash equivalents as shown in the statement of cash flows | Ps. | 7,825,242 | | Ps. | 1,718,134 | |
| |
| |
| |
F-28
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Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 14. | Differences between Argentine GAAP and US GAAP (continued) |
| | | |
| | (c) | Comprehensive income (loss) |
| | | |
| On July 1, 1998, the Company adopted SFAS No. 130, "Reporting Comprehensive Income". SFAS No. 130 establishes guidelines for the reporting and display of comprehensive income and its components (revenues, expenses, gains and losses) in a full set of general purpose financial statements. SFAS No. 130 requires that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. Accumulated other comprehensive (loss) income is presented below, net of income tax benefit/expense: |
| | |
| | | Year ended December 31, |
| | |
|
| | | 2001 | | 2000
(Unaudited) |
| | |
|
|
| |
|
|
| | Net (loss) income under US GAAP | Ps. | (157,137,980 | ) | | Ps. | 22,597,102 |
| | Other comprehensive loss: | | | | | | |
| | Change in fair value of derivative financial instruments (net of income taxes of Ps. 1,162,485 and minority interest of Ps. 755,616) | | (1,403,286 | ) | | | — |
| | |
|
|
| |
|
|
| | Comprehensive (loss) income | Ps. | (158,541,266 | ) | | Ps. | 22,597,102 |
| | |
|
|
| |
|
|
| | | | | | | | |
| | | As of December 31, |
| | |
|
| | | | 2001 | | | | 2000
(Unaudited) |
| | |
|
|
| |
|
|
| | Accumulated other comprehensive loss | Ps. | (1,403,286 | ) | | Ps. | — |
| | |
|
|
| |
|
|
| | | | | | | | |
| 15. | Other financial statement information |
| | | |
| | The following tables present additional consolidated financial statement disclosures required under Argentine GAAP: |
| | | |
| | a. | Property, plant and equipment, net |
| | | |
| | b. | Intangible assets, net |
| | | |
| | c. | Foreign currency assets and liabilities |
| | | |
| | d. | Other expenses |
F-29
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Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 15. | | Other financial statement information (continued) |
| | | |
| | a. | Property, plant and equipment, net |
| | | |
| | Original value | | Depreciation | | |
| |
| |
| | |
| Principal account | As of the beginning of the year | | Additions | | Deductions | | Reclassifications | | As of the end of the year | | Accumulated
as of the
beginning of
the year | | Decreases | | Current year
depreciation | | Accumulated
as of the end
of the year | | Net carrying value
at year-end |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Land | 818,020 | | — | | (10,811 | ) | — | | 807,209 | | — | | — | | — | | — | | 807,209 |
| Vehicles | 6,627,512 | | 591,662 | | (161,647 | ) | — | | 7,057,527 | | (4,166,322 | ) | 49,096 | | (683,836 | ) | (4,801,062 | ) | 2,256,465 |
| Air and heavy equipment | 2,590,632 | | 145,387 | | — | | — | | 2,736,019 | | (482,327 | ) | — | | (97,009 | ) | (579,336 | ) | 2,156,683 |
| Furniture and fixtures | 1,326,752 | | 69,220 | | — | | — | | 1,395,972 | | (551,261 | ) | — | | (130,845 | ) | (682,106 | ) | 713,866 |
| Information systems | 3,301,424 | | 375,584 | | — | | — | | 3,677,008 | | (2,764,479 | ) | — | | (298,389 | ) | (3,062,868 | ) | 614,140 |
| Transmission lines | 383,110,938 | | — | | — | | 3,635,140 | | 386,746,078 | | (41,386,233 | ) | — | | (8,872,723 | ) | (50,258,956 | ) | 336,487,122 |
| Substations and related works | 292,253,517 | | 1,819,592 | | — | | 17,274,948 | | 311,348,057 | | (40,181,475 | ) | — | | (8,698,368 | ) | (48,879,843 | ) | 262,468,214 |
| Building and civil works | 24,963,222 | | 174,298 | | (186,594 | ) | 3,202,636 | | 28,153,562 | | (2,804,699 | ) | 7,017 | | (688,364 | ) | (3,486,046 | ) | 24,667,516 |
| Labs and maintenance | 930,555 | | — | | — | | — | | 930,555 | | (525,825 | ) | — | | (106,114 | ) | (631,939 | ) | 298,616 |
| Communication equipment | 16,235,868 | | 78,067 | | — | | 7,212,265 | | 23,526,200 | | (4,410,464 | ) | — | | (1,077,835 | ) | (5,488,299 | ) | 18,037,901 |
| Miscellaneous | 1,645,400 | | 47,651 | | — | | — | | 1,693,051 | | (1,401,081 | ) | — | | (130,555 | ) | (1,531,636 | ) | 161,415 |
| Work in progress | 53,680,197 | | 24,647,880 | | — | | (31,412,505 | ) | 46,915,572 | | — | | — | | — | | — | | 46,915,572 |
| Spare parts | 31,816,796 | | 994,254 | | (622,603 | ) | 828,066 | | 33,016,513 | | — | | — | | — | | — | | 33,016,513 |
| Advances to suppliers | 395,431 | | 1,623,947 | | (1,145,604 | ) | (740,550 | ) | 133,224 | | — | | — | | — | | — | | 133,224 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Totals fiscal year 2001 | 819,696,264 | | 30,567,542 | | (2,127,259 | ) | — | | 848,136,547 | | (98,674,166 | ) | 56,113 | | (20,784,038 | ) | (119,402,091 | ) | 728,734,456 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Totals fiscal year 2000 (Unaudited) | 789,231,698 | | 34,134,299 | | (3,669,733 | ) | — | | 819,696,264 | | (79,697,511 | ) | 18,266 | | (18,994,921 | ) | (98,674,166 | ) | 721,022,098 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
F-30
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Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 15. | Other financial statement information (continued) |
| | | |
| | b. | Intangible assets, net |
| | | |
| | Original value | | Amortization | | |
| |
| |
| |
|
| Principal account | As of the beginning
of the year | | Additions | | Deductions | | As of the end
of the year | | Accumulated as
of the beginning
of the year | | Current year
amortization | | Accumulated as
of the end of the
year | | Net carrying
value
at year-end |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Start-up and organization costs | 62,346,096 | | 442,376 | | — | | 62,788,472 | | (49,448,078 | ) | (5,201,590 | ) | (54,649,668 | ) | 8,138,804 |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Totals fiscal year 2001 | 62,346,096 | | 442,376 | | — | | 62,788,472 | | (49,448,078 | ) | (5,201,590 | ) | (54,649,668 | ) | 8,138,804 |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Totals fiscal year 2000 (Unaudited) | 60,440,519 | | 1,952,617 | | (47,040 | ) | 62,346,096 | | (43,532,292 | ) | (5,915,786 | ) | (49,448,078 | ) | 12,898,018 |
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F-31
Back to Contents
Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 15. | Other financial statement information (continued) |
| | | |
| | c. | Foreign currency assets and liabilities |
| | | | | | | | | | |
| Captions | | Currency | | Amount of
foreign
currency | | Current
exchange
rate | | As of
December 31, 2001 | |
|
|
|
|
|
|
|
|
|
| |
| Assets | | | | | | | | | | |
| Current assets | | | | | | | | | | |
| Cash and banks | | US$ | | 3,525,745 | | 1 | | Ps. | 3,525,745 | |
| Investments | | US$ | | 3,081,342 | | 1 | | | 3,081,342 | |
| Trade receivables | | US$ | | 5,087,531 | | 1 | | | 5,087,531 | |
| Other receivables | | US$ | | 3,832,447 | | 1 | | | 3,832,447 | |
| | | | | | | | |
|
| |
| Total current assets | | | | | | | | Ps. | 15,527,065 | |
| | | | | | | | |
|
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| | | | | | | | | | | |
| Non-current assets | | | | | | | | | | |
| Other receivables | | | | | | | | | | |
| Investments | | US$ | | 978,063 | | 1 | | Ps. | 978,063 | |
| Trade receivables | | US$ | | 2,000,000 | | 1 | | | 2,000,000 | |
| | | | | | | | |
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| |
| Total non-current assets | | | | | | | | Ps. | 2,978,063 | |
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| Total assets | | | | | | | | Ps. | 18,505,128 | |
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| Liabilities | | | | | | | | | | |
| Current liabilities | | | | | | | | | | |
| Trade accounts payable | | US$ | | 1,304,102 | | 1 | | Ps. | 1,304,102 | |
| Short-term and long-term debt | | US$ | | 209,974,275 | | 1 | | | 209,974,275 | |
| | | | | | | | |
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| |
| Total current liabilities | | | | | | | | Ps. | 211,278,377 | |
| | | | | | | | |
|
| |
| | | | | | | | | | | |
| Non-current liabilities | | | | | | | | | | |
| Customers prepayments | | US$ | | 69,161,290 | | 1 | | Ps. | 69,161,290 | |
| Long-term debt | | US$ | | 270,827,922 | | 1 | | | 270,827,922 | |
| | | | | | | | |
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| Total non-current liabilities | | | | | | | | Ps. | 339,989,212 | |
| | | | | | | | |
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| Total liabilities | | | | | | | | Ps. | 551,267,589 | |
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F-32
Back to Contents
Compañía Inversora en Transmisión Eléctrica Citelec S.A.
Notes to the Consolidated Financial Statements
(In Argentine Pesos, except as otherwise indicated)
| 15. | Other financial statement information (continued) |
| | | |
| | d. | Other expenses |
| | | | | | | | | | | | | | |
| | Expenses | | | | | | | |
| |
| | | | | |
| Items | | Operating | | Administrative | | Total
fiscal year
2001
| | Total
fiscal year
2000
(Unaudited) | |
| |
|
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| |
|
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| |
| Salaries and social security charges | | Ps. | 27,694,932 | | Ps. | 6,721,643 | | Ps. | 34,416,575 | | Ps. | 33,462,481 | |
| Other personnel costs | | | 608,997 | | | 556,400 | | | 1,165,397 | | | 1,172,099 | |
| Fees for operating services | | | 1,797,818 | | | — | | | 1,797,818 | | | 1,745,795 | |
| Professional fees | | | 690,626 | | | 1,228,974 | | | 1,919,600 | | | 1,609,050 | |
| Equipment maintenance | | | 1,059,384 | | | — | | | 1,059,384 | | | 784,308 | |
| Work for third parties' materials | | | 5,821,779 | | | — | | | 5,821,779 | | | 18,049,992 | |
| Fuels and lubricants | | | 610,781 | | | 28,692 | | | 639,473 | | | 699,197 | |
| General maintenance | | | 6,393,143 | | | 177,784 | | | 6,570,927 | | | 6,613,579 | |
| Electricity | | | 457,130 | | | 41,107 | | | 498,237 | | | 636,435 | |
| Depreciation of property, plant and equipment | | | 18,610,990 | | | 2,045,905 | | | 20,656,895 | | | 18,928,260 | |
| Amortization of intangible assets | | | 2,102,320 | | | 3,099,270 | | | 5,201,590 | | | 5,915,786 | |
| Amortization of other assets | | | 19,145,136 | | | — | | | 19,145,136 | | | 18,106,863 | |
| Administration expenses related to WEM | | | 501,264 | | | — | | | 501,264 | | | 431,417 | |
| Regulatory fees | | | 516,699 | | | — | | | 516,699 | | | 496,664 | |
| ATEERA membership fees | | | — | | | 138,359 | | | 138,359 | | | 144,186 | |
| Communications | | | 2,033,675 | | | 86,593 | | | 2,120,268 | | | 2,389,099 | |
| Transportation | | | 376,805 | | | 7,478 | | | 384,283 | | | 381,668 | |
| Insurance | | | 139,908 | | | 1,705,111 | | | 1,845,019 | | | 1,369,789 | |
| Rents | | | 541,218 | | | 346,459 | | | 887,677 | | | 1,101,847 | |
| Travel and lodging expenses | | | 2,424,053 | | | 197,421 | | | 2,621,474 | | | 2,491,746 | |
| Stationary and printing | | | 174,281 | | | 324,704 | | | 498,985 | | | 544,511 | |
| Taxes and government contributions | | | 1,677,987 | | | 342,486 | | | 2,020,473 | | | 1,123,088 | |
| Directors and syndics fees | | | — | | | 289,273 | | | 289,273 | | | 164,080 | |
| Bank charges | | | 168,337 | | | 186,346 | | | 354,683 | | | 310,843 | |
| Office and substation cleaning | | | 1,072,339 | | | 2,500 | | | 1,074,839 | | | 1,234,387 | |
| Security | | | 733,205 | | | 17,935 | | | 751,140 | | | 773,175 | |
| Electro duct maintenance | | | 408,619 | | | — | | | 408,619 | | | 743,378 | |
| Provisions | | | (238,344 | ) | | — | | | (238,344 | ) | | 3,343,353 | |
| Other | | | 1,470,896 | | | 1,061,650 | | | 2,532,546 | | | 2,460,844 | |
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| Totals fiscal year 2001 | | Ps. | 96,993,978 | | | 18,606,090 | | | 115,600,068 | | | | |
| | |
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|
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| Totals fiscal year 2000 (Unaudited) | | Ps. | 109,585,391 | | | 17,642,529 | | | | | | 127,227,920 | |
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F-33
