aracruz2000

Accordingly the companys management has concluded

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Unformatted text preview: iously carried out by means of a system of trading bands, when the Central Bank decided to no longer intervene in the foreign exchange markets. Following this decision and the markets’ reaction, the Real devalued to U.S.$ 1: R$ 1.7890 at December 31, 1999 from U.S.$ 1: R$ 1.2087 at December 31, 1998 (U.S.$ 1: R$ 1.9554 at December 31, 2000). Gains and losses resulting from the remeasurement of the financial statements, as well as those resulting from foreign currency transactions, have been recognized in the statements of income. The impact of the devaluation of the Real on the Company’s monetary assets and liabilities in 12 Aracruz Celulose S.A. Notes to Consolidated Financial Statements Expressed in thousands of United States dollars (unless otherwise stated) 2000 was a net gain of U.S.$ 8.8 million (U.S.$ 7.5 million loss in 1999 and U.S.$ 7.8 million loss in 1998). Stockholders' equity included in the consolidated financial statements presented herein differs from that included in the Company's statutory accounting records as a result of the variations in the U.S. dollar exchange rate, the indexation mandated over th...
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