EFTA Document EFTA01367029

Amendment #4 Page 600 of 868 . 9f SP! ww As we Group chd not operate as a stend-alone envy n the past, these combined financial statements may not be indicatwe of tie Group's love performance and do not necessanry reflect wtet its comtined rests of operations, financial position and cash floors wood have teen had the Group operated as a separate entity apart from Renova (ming the perces presented. Management of Ire Group authorized the issuance of these combined Inanclal statements on May 6 2015 3. Summary of significant accounting policies The principal siocoithro polices applied in the preparation of these combined financial staterrents are set out below Policies nave been consistently applied to all years presented. unless otherwise stated Accoonfkg Convention—The combined fnancol statements are prepared on a hsloncal cost basis except for certain financial instruments that are recorded at fair value or staled otherwise Use offer/mew-Tr* preparation of tre combned financial statements pursuant to IFRS requires management to make tidgrnents, esemates and animations that affect the application of accountng policies and the reported amounts of assets. lobelia. income and expenses Estimates and assumptions are reviewed on an ongoing basis. and are based on historical experience as well as charges in scenario and other faders considered relevant by management Actual results could differ from those estimates Revisions n relation to accounting estimates are recognized In the perked n which the estimates are reviewed. and in arty futee periods affected The areas where assumptions and °striates are object to honer uncertainties arid exposed to a risk that could result et a matenal adjustment if such assumptions and estimates orange within the next fiscal year include Impamned cf assets—Managernent concluded that there are no eternal or external evidences that would meaty the recognition of a provision for impairment of properly plant and equipment rtargible assets Useful lives end tecodual values of properly. plant and equpment—The Group reviews annually Ire estimated useful lives and residual values of property. plant and equipment and intangible assets with Ince isetd Isms, and the depreciation and amortization rates curers& used are considered representatrre of the useful kites Of these assets Commrtmenfs for sacral aid environments' costs—The estimate is recognized based on estmeted costs required for the obtaining the scenses f01 installation and °anion Of power para. that were rewired by Brazilian regulatory authorities These costs are associated with the beam environmental protect or are in aSditi0n to ms, where the main items are the reforestation of areas, acquisition and regJanzation of Mal areas, restoration and irrprovemem of road infrastructure and the deployment of untts conservation Variation elfin/Wei eistrumera—Note 18 COMMIS detailed information on tie main assumptions used to measure the fair values of financial instruments and a sensitivity anaysis of such assunotons Management believes fiat the selected vakoton techniques and the assuirptens used are appropriate to determine the fair values of fnancial instruments Basis at Cornalnatkin—T he combined fraroisa statements include the accords of all suteidianes in which entities n the Group have a comraing franca interest Control s aciwevea wren the Group has power over the investees, is exposed or has Va. to variable Mums from rs involvement with the investee, and has We ability to use is power to affect its returns Cuing the periods presented, the Group did not have any imeestmerts m entites other than its %ton-owned propct company sutsidenes F.280 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-0058557 CONFIDENTIAL SDNY_GM_00204741 EFTA01367029