Unformatted text preview: st, less accumulated depletion. Tree development costs and
forest maintenance costs are capitalized. Depletion is determined on the unit-of-production
basis, excluding from the amount to be depleted the portion of tree-development costs that
benefits future harvests; such costs are deferred and included in the cost of those harvests.
Other property, plant and equipment are recorded at cost, including interest incurred on
financing during the construction period of major new facilities. Interest on local currency
borrowings is determined as that part of the total finance cost incurred on borrowings net of the
foreign currency translation adjustments arising on such borrowings, and, on foreign currency
borrowings (including those denominated in U.S. dollars), at the contractual interest rates.
Depreciation is computed on the straight-line basis at rates which take into consideration the
useful lives of the assets, principally an average of 25 years for buildings, 10 years for
14 Aracruz Celulose S.A.
Notes to Consolidated Financial Statements
Expressed in thousand...
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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