C commodity price risk management the company is

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Unformatted text preview: mmodity prices, but may utilize them in the future. 18 Nonderivative financial instruments Fair value - the Company considers that the carrying amount of its financial instruments generally approximates fair market value. Fair value have been determined as follows: Cash - the carrying amount of cash is a reasonable estimate of its fair value. Cash equivalents and short-term investments and bank deposits - cash equivalents are represented, principally, by short-term investments. Their fair value, and that of other bank deposits not meeting the definition of cash equivalents, were estimated using the rates currently offered for deposits of similar remaining maturities. 35 Aracruz Celulose S.A. Notes to Consolidated Financial Statements Expressed in thousands of United States dollars (unless otherwise stated) Debt securities - the fair value of the Company's debt securities was estimated by obtaining quotes from major financial institutions and brokers. Short-term debt and long-term debt - interest rates that are currently available to the Company for issuance of debt with similar terms and remaining maturities are used to estimate fair value. The Company´s financial structure does not require...
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