EFTA01367270.pdf

Amendment #4 Page 841 of 868 Ale of co! ent Denvatives are carried as Marcel assets when the fair vane is panne and as financial habeles when Ire far value is negative The far value of an interest rate cap re the estimated amount that the Company would reserve or pay to termnate the cap on the date of Ire statement of financial positon, taking into account current interest rates and the paymert capacity of the counterperte& Charges in far value of the Company dement* financial nstrumerts fiat qualify for hedge accoureng are recognized as follows changes in rte time value of ns(rumerts and any ineffectwenese are taken directly to the rcorre statement while changes in the intrinsic value are recognized as pert of other comprehensive income For hedge ',mooning purposes. the Cowpony's interest rate caps are classified as cash flow hedges At the tegmrg date ri a hedge agreement, the Canaan/ Raman/ designates and Ointments the hedge relationship to which theCOrnOary wishes to apply hedge accounting and the risk rrenagernent olleclms and strategy for undertaking the hedge The documereatum includes dent:cation of the hedging instrument the hedged tern or transaction, the nature of the risk being hedged. ar0 how the witty will assess the hedging instrument's effectiveness n offsetting the exposure to changes in the hedged tem& cash flows Stributable to the hedged risk Such hedges we expected to be highly enceinte in achieving offsetting changes in cash Foos and are assessed on a quarterly basis to detemtne that they actually have been highly effective Irroughout the bronco, report rg periods for which they were designated Cash flow hedges which meet the said criteria for hedge accourting are recorded as fotlows a) the effedwe porton of the gen or loss on the hedging instrumert is recognized directly in equity, within other comprehensive rcome. whirs any ineffectrve porton is reccgnzed imrrecliatetir n the income statement. b) amounts taken to equity are transferred to the income statement when rte hedged transacton affects profit or loss. such as when the hedged finarcial income or (refloat expense is recognized or when a forecast sale occurs. the hedgeng instrument no longer meets the criteria for hedge accouling, expres or is sold, termnated or exercised men the hedge accounting is discontinued. The cumulatwe gem or loss previously recognized in equity remains tore unit tre forecast transactions occurs 4 7.2 Current VOWS noncurrent classification Cenvalwe retruments that are designated as hedges. and are ef eceve hedging instruments, are dasedled consistently with the class/reason of the undeilyirg hedged Real The derivative ratrumere is separated into a current portion and a non-current portion orty d a reliable atocaton can be made 0.8 Project equipment Rofecl equtranent is stated at acqu %ton cost less accumulated depreciation and losses due to impeormert, if any. These costs include the cost of replacing the components of project equpmerr when the cost is incurred, d t meets the requirements for recognition Depreciaton arid those dsbursernerts for repair and maintenance when do not meet the cone tore for recoghten as assets we recognzed as expenses in the year in when they are incurred Dcpreoaton s calculated on a straight-Inc basis over rte useful rte of each type of asset The rens,ining value of the depreciabro assets the estimated useful life and depreciation methods are periodically reviewed by Management and °gusted when necessary. al the end of each financial year The estimated useful Ives for productwe assets is estatlished by the Convent, as the difference between the °ate from which the assets are available for their irterded use and the power purchase agreement expraton date or the assets own estimated useful We. whichever is shorter F-521 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058798 CONFIDENTIAL SDNY_GM_00204982 EFTA01367270