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Unformatted text preview: e years up to December 31,
1995 for statutory financial statements and adjustments made to reflect the requirements of US
(b) Basis of consolidation
The financial statements of majority-owned subsidiaries have been consolidated, and all
significant intercompany accounts and transactions have been eliminated. Accordingly, the
following companies were consolidated: Aracruz Trading S.A., Aracruz Celulose (USA) Inc.,
Portocel – Terminal Especializado de Barra do Riacho S.A., Mucuri Agroflorestal S.A.,
Aracruz Produtos de Madeira S.A., Aracruz Empreendimentos S/C Ltda. and Terra Plana
Agropecuária Ltda.. (c) Cash and cash equivalents
Cash and cash equivalents represent cash, bank accounts and short-term financial investments
with a ready market and maturities when purchased of 90 days or less, and are stated at the
lower of cost plus accrued interest or market value. (d) Concentration of risk
Financial instruments which potentially subject the Company to concentrations of credit and
performance risk are cash and cash equivalents, debt securities and trade accounts receivable.
The Company limits its credit and performance risk associated with cash and cash equivalents
by placing its investments with...
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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