- 1. Operations
- 2. Description of the Significant Accounting Policies
- 3. Transition to IFRS
- 4. Business combinations
- 5. Net Sales
- 6. Cost of services rendered
- 7. Finance results
- 8. Expenses by nature
- 9. Cash and cash equivalents
- 10. Trade accounts receivable
- 11. Inventories
- 12. Judicial deposits
- 13. Income taxes and social contribution
- 14. Deferred and recoverable taxes
- 15. Property and Equipment
- 16. Intangible assets
- 17. Trade Accounts Payable
- 18. Accounts Payable – Programming Suppliers
- 19. Financial liabilities
- 20. Copyright Payable – ECAD
- 21. Related parties
- 22. Commitments and provisions
- 23. Shareholders’ equity
- 24. Guarantees
- 25. Earnings per Share
- 26. Financial Instruments
- 27. Measurement and fair value hierarchy
- 28. Insurance
Fair value is an existing price representing the value that would be received from the sale of an asset, or that would be paid to transfer a liability in a normal transaction between market participants.
Therefore fair value is a market-based measurement and should be determined using the assumptions market participants would make when pricing an asset or liability. As a basis for consideration of the latter, a fair value hierarchy is determined on three levels prioritizing the inputs used in measuring fair value as follows:
| • • • |
Level 1: Observable inputs such as those with prices quoted in active markets; Level 2: Inputs other than those with prices quoted in active markets, which are observable either directly or indirectly; and Level 3: Unobservable inputs, for which there are few or no market data, which requires the reporting entity to develop its own premises. |
| Description | Measurement of Fair Value on December 31, 2009  |
|||
|---|---|---|---|---|
| Balance on December 31, 2009 |
Quoted prices in active markets for identical assets (Level 1) |
Other Significant Observable Sources (Level 2) |
Significant Unobservable Inputs (Level 3) |
|
| Derivative Instruments – currency swap contracts | (R$ 19,580) | R$ - | (R$19,580) | R$ - |
Currency swap derivative instruments are tools for managing risk arising from the effects of a major devaluation of the Brazilian real against the US dollar, which are inputs, other prices quoted in active markets, which are directly or indirectly observable.
During the year ended December 31, 2009, there were not transfers between Level 1 and Level 2 of the measurement of the fair value or transfers to Level 3.