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Investor Presentaiton

(viii) Reform of Interbank offered rates (IBORS): amendments to IFRS 9/ CPC 48 Financial instruments, IAS 39 / CPC 38 Financial instruments - recognition and measurement, IFRS 7 / CPC 40 Financial instruments: disclosure, IFRS 4 / CPC 11 Insurance contracts and IFRS 16 / CPC 06 Leases. The Company analyzed the amendments to the accounting standards mentioned above and did not identify any impacts on its operating and accounting policies. 3.2. New standards issued and amendments to accounting standards not yet adopted by the Company and its subsidiaries The following changes to standards issued by the International Accounting Standards Board (IASB) will be adopted for the first time in periods begin- ning after January 1, 2022: (i) Review of technical pronouncements by the Accounting Pronouncements Committee, No. 19/2021 with amendments to the Technical Pronouncements: CPC 37 (R1) / IFRS 1 - First-time Adoption of International Accounting Standards, CPC 48 / IFRS 9 - Financial Instruments, CPC 27 / IAS 16 - Fixed Assets, CPC 25/IAS 37 - Provisions, Contingent Liabilities and Contingent Assets and CPC 15 (R1) IFRS 3 Business Combinations, as a result of the annual changes related to the 2018-2020 improvement cycle; Fixed Assets - - sales before intended use; Onerous Contract - contract fulfillment costs; and References to the Conceptual Framework. The Company analyzed the amendments to the accounting standards mentioned above and did not identify any impacts on its operating and accounting policies to be adopted retrospectively or at the beginning of the year 2022. 4. Critical accounting estimates and judgments Based on assumptions, the Company and its subsidiaries make estimates regarding the future. By definition, accounting estimates and judgments are continuously reviewed and are based on historical experience and other factors, including expectations of future events, which are considered re- asonable for the circumstances. Revisions to the estimates are recognized prospectively. The accounting estimates will rarely be the same as the actual results. Estimates and assumptions that present a significant risk and are likely to cause a material adjustment to the carrying amounts of assets and liabi- lities for the next fiscal year are described in the respective notes below: (i) Fair value of financial instruments and derivatives (Note 6.1.1); (ii) Trade receivables (Note 11); (iii) Electric power futures contracts (Note 16); (iv) Property, plant and equipment (Note 18); (v) Intangible assets (Note 19); (vi) Lease liabilities (Nota 21); (vii) Current and deferred income and social contribution taxes (Note 23); (viii) Provision (Note 24); (ix) Pension plan (Note 26). = 130
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