aracruz2000

A notes to consolidated financial statements

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Unformatted text preview: filiated companies and debt securities available-for-sale (i) Investments in affiliated companies The Company uses the equity method of accounting for all long-term investments for which it owns between 20% and 50% of the investee’s voting stock and/or has the ability to exercise significant influence over operating and financial policies of the investee. The equity method requires periodic adjustments to the investment account to recognize the Company’s proportionate share in the investee’s results, reduced by receipt of investee dividends and amortization of goodwill. (ii) Debt securities available-for-sale In accordance with SFAS 115 - “Accounting for Certain Investments in Debt and Equity Securities”, the Company’s investments in securities are classified in accordance with their nature and management’s intentions. Available-for-sale debt securities are carried at cost plus accrued interest, adjusted to market value. Any unrealized gains or losses, net of taxes, are excluded from income and recognized as a separate component of stockholders’ equity until realized. (g) Property, plant and equipment Timber resources are stated at co...
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