Investor Presentaiton
(ii) Income and expenses for each statement of income are translated at
average exchange rates;
(iii) All resulting exchange differences are recognized as a separate
component of equity, in Carrying value adjustments.
The amounts presented in the cash flow are extracted from the translated
movements of the assets, liabilities and profit or loss, as detailed above.
On consolidation, exchange differences arising from the translation of the
net investment in foreign operations, and of borrowings and other foreign
currency instruments designated as hedges of such investments, are re-
cognized in equity. When a foreign operation is partially disposed of or sold,
exchange differences that were recorded in equity are recognized in the
statement of income as part of the gain or loss on sale.
Goodwill and fair value arising from the acquisition of an entity abroad are
treated as assets and liabilities of the entity abroad and converted at the
closing rate. Below are the functional currencies defined for the significant
foreign subsidiaries:
Company
Country
Acerbrag S.A.
Argentina
St. Marys Cement Inc - St. Mary's
Canada
Functional currency
Argentine Peso
US Dollar
Main
activity
Steel
Cement
Votorantim Cimentos EAA
Inversiones, S.L. - VCEAA
Spain
Euro
Nexa Resources Cajamarquilla S.A.
Peru
Nexa Resources Perú S.A.A.
Peru
Nexa Resources S.A.
Luxemburgo
US Dollar
US Dollar
US Dollar
Cement
Zinc
Mining
Holding
Votorantim Cimentos International
S.A. - VCI
Luxemburgo
US Dollar
Votorantim FinCo GmbH
Luxemburgo
US Dollar
Janssen Capital B.V.
Netherlands
US Dollar
Holding
Trading
Holding
3. Changes in accounting policies and
disclosures
3.1. New standards issued and amendments to the
accounting standards adopted by the Company and its
subsidiaries
The following changes to standards issued by the International Accounting
Standards Board (IASB) were adopted for the first time for the year begin-
ning January 1, 2021:
(i) Classification of liabilities between current and non-current: changes to
IAS 1/ CPC 26 Presentation of the Financial Statements;
(ii) Gains on the sale of inventories produced while the asset is not ready
for use: changes to IAS 16 / CPC 27 Property, plant and equipment;
(iii) Initial adoption of IFRS in subsidiaries: changes to IFRS 1/ CPC 37 Initial
adoption of international accounting standards;
(iv) Borrowing costs in the derecognition test of financial liabilities: changes
to IFRS 9/CPC 48 Financial instruments;
(v) Lease incentives: amendments to IFRS 16 / CPC 06 Leases
(vi) Cost of fulfilling onerous contracts: changes to IAS 37 / CPC 25
Provision, contingent liabilities and contingent assets, and;
(vii) Concessions related to COVID-19: amendments to IFRS 17 Insurance
contracts.
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