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Unformatted text preview: earnings, the earnings and reserves available for distribution as dividends, upon
approval by the Company's stockholders, amounted to the equivalent of U.S.$ 239 million. 29 Aracruz Celulose S.A.
Notes to Consolidated Financial Statements
Expressed in thousands of United States dollars
(unless otherwise stated) Retained earnings that represent unrealized income (principally inflationary income recognized
up to December 31, 1995 in the Company's statutory financial statements) are transferred to
unrealized income reserve and are transferred back to retained earnings as financial resources
become available for dividend distribution.
The investments reserve represents discretionary appropriations, ratified by the stockholders,
for plant expansion and other capital projects, the amount of which is based on an approved
capital budget presented by management. After completion of the projects, the Company may
elect to retain the appropriations until the stockholders vote to transfer all or a portion of the
reserve to capital or to retained earnings, from which a cash dividend may then be paid.
The fiscal incentive reserve results from an option to invest a portion of income tax other...
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.
- Spring '08