EFTA01367031.pdf

Amendment #4 Page 602 of 868 .(tat nil, bona , kabftes—Tre Group's Mafiosi labnlies consist principaliv of trade payable. and toncreings and are recorded initially at lair value net of applicable transaction costs and subsequently measured amorteed cost plus interest as applicable Der/vane Inancyalinsnuments—CerwaINe financial instrurrens are recorded at fair value wen subseaLere cnanges value recorded in tre corn:wed income statements, unless they are designated in a qualifying cash flaw or ret awes/men! hedging relator-rasp For Ile penods presented, the Group did not contract or have any outslarding derivative Snancial instruments OffseiNg—Financial assets and Sabot es are offset and recorded net in the combined balance sheets when I here rs a legally enforceabe right to offset the recognized arronts and there is an intention to settle on a nei bass or reside the asset and settle the liability sinkAaneously Property. plant and equipment —Property. plant and equpment consst of Land the Group's energy generation assets. and construction in progress. rilich are measured at the histoncal purchase or construction cost less accumulated depreciation and emendated impairment losses when necessary Tre cost ot sell constructed assets includes the cost of materials and drool labor, and any other costs to bong Ire assets toa working oondton for their intended use Financing costs. consisting of interest expense on borrowings and amortization of deferred (naming costs net of finance income earned on unused financing proceeds as apprade, are capitalized doing the constructon phase until the asset is ready for es intended use Expert:Mint for mapr adotions ard improvements are captalized. three urror replacements. maintenance and repairs are expensed as stewed Property. plant rid equipment are depreciated on a straight-line bass over the est mated economic useful l'Ae of each component from the date the asset a pieced in service and ready for ds intended use The est mated useful Ines used in the determination of the depreciation rates consider the manuals and guides of ANEEL, which approximate tre trseful lives of these assets Fa tre SHPPs the Group considers these rates appropnaie since, based on a legal assessment of the prevalng tegistabah and management's assessment of APE EL Permssion Resolt.ton granting a license to operate as an independent power generator the Group wilt be indemnified for tre residual value of the assets upon termination of these licenses if not renewed. Management considers the renewal of operatog licenses probable As the regulatory agency issues new informabcn or decisions, the arrant depreciation races for such assets may be changed The following strnrnanzes the estimated useful eves of the Group's propeny plant and equsomem Useful Category eyes In years /reservoirs dams and waterrreins 43 Geldings ewe works and Impinvements 26 to 37 Machinery and equipment 21 to 32 Caner 710 19 According to erasion eiectncry rookie:on. those assets and frees used in power generator transinsson. clistnbuton and sale of power are linked to these services and cannot be removed sold assigned or pledged vat rout the prior and express a Lthonzation of the regaratay body F.282 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-0058559 CONFIDENTIAL SDNY_GM_00204743 EFTA01367031