EFTA01367030.pdf

Amendment #4 Page 601 of 868 1shit of Conlon, Common Control Transactions—Ire assets (indurIng goodwil arty) and leblites acquired or transferred from entices 'roe( common contra with the Group are recorded at the carrying value recognized by transferor Tre difference, if any, between the carrying value of the net assets acquired or transferred and the ccrsidecaton paid by the Group is accounted for as an adjustment to Parent's ret iniestrrent Functional Currency—The functional and reporting currency of the Group spume individual financial statements of the entities included in the combined financial statements is Tie Brazilian real (RS) the ammiry economic environment in which they operate Transactions deromnaled in currencies other tren the functional currency, d any, are measured using exchange rates prevaang aI the date of the transactions. Monetary assets and liabilities in foreign curences are translated to be farotonal currency using penodend exchange rates Resifting foreign currency exchange gains and losses from the settlement or translation of foreign currency transactors and balances are recognized in the combined statements of income. Cunng the periods presented, the Group did not enter into any transactions denominated ri currencies offer than Ire Brazilian real Classification of assets andliabilities as current and noncurrent—assets that are expected to be realized or are intended for sale or consumption within twelve mall* as of trio end of the reporting periods are classified as current assets Labelle. that are expected to be settled wear, twelve months as of the end of the reporting periods are cassfied as current All other assets and laLathes are classified as noncurrent FinancialInstruments—Financial assets and babbles are recognized when the Group or its sutsda nes are parties to the underlying contracts and are irately measured at lax value Fmarce, assets—The Group classfies its financial assets as follows He)dffraffy investd_ne.ple—These are assets with fixed or determnatte cash flows and maturites in which the Group intends to hold to maturity The Group has deugnated its reelected deposits (see rote 9) in ths category They are recorded at amp-hied cost pus rterest using the effective interest method. net of arty imparrnent Loans and recewables—These are assets with fixed or determinable payments that are not traded or quoted in an active market The Group's trade recematies (see note 5) are designated in ths category and are initially recognized at far value (generally the orignal intone amount) and are subsequently recorded at amortized cost, net of any impairment Fair value through croft or loss—These are denvabves or assets that are acquired poncipalty tor sellrig in the short term The Groups short-term investments have been descrated in the category as part of its overall cash management strategy These assets are recorded al 134 value we changes recognized in the combined statements a intone Firencol assets are derecognized eten the rights to receive cash flows from Ile investments have opted or have teen transferred and the Group has transferred Substartolly ail The risks and rewards d ownershp Impartment of inarrai assets—Tre Group assesses at the end of each penod whether there s objective evidence that financial assets are unpaired Areanoel asset is considered unpaved and impairment losses are incurred when there is objective evidence of an impairment as a testa of events occurring after the initial recognition Cl the asset and then Mese everts have an mpact on the future cash news of the asset that can De reliably estimated If Fine:wed financial assets are written down to their net recoverable amity-Its with a cotresponcling less reccgraed in the cornbred income statements if n a subsequent period, the amount of trio impairment loss decreases as a result a events subsequent to the recording of the irroarment a reversal of the previous impairment Oss f5 roCognized in the cOrnbned income statements F-281 http://cldocs.btoLto. coin :27638/cf/dry7/pub/edgar/2015/07/20/0001193125-15-256461/d78.. . 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0058558 CONFIDENTIAL SDNY_GM_00204742 EFTA01367030