US GAAP

Transcription

US GAAP

Cyrela Brazil Realty S/A
Empreendimentos e Participações and
subsidiaries
Financial Statements accompanied by the
Report of Independent Public Accountants
December 31, 2007 and 2006
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Report of independent public
accountants
(Translation of the report originally issued in Portuguese language. See note 26 to
the financial statements.)
To the management and shareholders
Empreendimentos e Participações:
of
Cyrela
Brazil
Realty
S.A.
1.
We have audited the (individual and consolidated) balance sheets of Cyrela Brazil
Realty S.A. Empreendimentos e Participações as of December 31, 2007 and 2006
and the respective statements (individual and consolidated) of income, of changes
in shareholders’ equity and of changes in financial position for the years then
ended, prepared under the responsibility of the company’s Management. Our
responsibility is to express an opinion on these financial statements.
2.
We have conducted our audits in accordance with auditing standards generally
accepted in Brazil. Those standards require that we plan and perform the audit
taking into consideration the significance of the balances, volume of transactions
and the accounting and internal control systems of the Company and its investees;
examining, on a test basis, the evidence supporting the amounts and disclosures in
the financial information, and assessing the accounting practices and the
significant estimates made by the Management of the Company and of its
investees, as well as the presentation of the financial statements (individual and
consolidated) taken as a whole.
3.
In our opinion, the financial statements mentioned in paragraph 1 fairly represent,
in all material aspects, the individual and consolidated financial and equity position
of Cyrela Brazil Realty S.A. Empreendimentos e Participações as of December 31,
2007 and 2006, the individual and consolidated result of its operations, the
changes in its shareholders’ equity and the changes in its financial position for the
years then ended, in compliance with the accounting practices adopted in Brazil.
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4.
Our audit was conducted with the purpose of issuing an opinion on the financial
statements referred to in paragraph 1, taken as a whole. The statements of cash
flows (individual and consolidated) for the years ended December 31, 2007 and
2006 which are herein presented in order to provide supplementary information on
the company are not required by the accounting practices adopted in Brazil. The
statements of cash flows have been subjected to the same audit procedures
described in paragraph 2 and it is our opinion that they are fairly represented, in all
material aspects, with regards to the financial statements taken as a whole.
5.
Our audits were conducted with the purpose of issuing a report on the financial
statements referred to in paragraph 1, taken as a whole, which were originally
issued on March 11, 2008. However, as disclosed in note 27, the Company’s
management decided to reissue these statements to include additional information,
in order to allow additional analyses, are not required as an integral part of the
basic financial statements, pursuant to the accounting practices adopted in Brazil.
Accounting practices adopted in Brazil vary in certain significant respects from
accounting principles generally accepted in the United States of America (U.S.
GAAP). The Company has presented the nature and effect of such differences in
Note 27 to the consolidated financial statements.
São Paulo, March 11, 2008.
(April 28, 2008 just for Explanatory Note 27)
Auditores Independentes
José André Viola Ferreira
Partner - accountant
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Cyrela Brazil Realty S.A. Empreendimentos e Participações and Cyrela
Brazil Realty S.A. Epreendimentos e Participações and controlled
companies
Comparative consolidated balance sheets
as of December 31, 2007 and 2006
(Translation of the original issued in the portuguese)
(In thousands of Reais)
ASSETS
Controlling company
2007
Notes
Current assets
Cash and cash equivalents
Financial investments
Marketable securities
Accounts receivable
Real estate for sale
Current accounts with ventures partners
Recoverable taxes and contributions
Selling expenses to be appropriated
Prepaid expenses
Other accounts receivable
3
3
4
5
7
14
-
9.862
51.881
16.109
16.111
13.034
1.798
3.207
11.569
14.724
138.295
Non-current assets
Long term assets
Accounts receivable
Accounts receivable due to expropriation
Related parties
Deferred income tax and social contribution
Advances due to real estate acquisition
Long-term real estate for sale
Other accounts receivable
5
3
6
13 (a)
18 (a)
16 (a)
7
-
Permanent assets
Investments
Goodwill
Fixed assets
Deferred charges
Intangible assets
8 (b)
8 (b)
9
10 (a)
10 (b)
Total assets
2006
(Reclassified)
2.091
6.406
18.873
9.412
3.911
4.090
1.425
Consolidated
2007
2006
(Reclassified)
11.169
57.377
87.256
121.497
62
788.504
1.029.910
25.531
18.521
173.544
11.569
80.446
2.336.840
57.524
19.536
2.462
549.553
787.159
23.132
12.170
101.750
62.168
1.615.454
8.085
297.388
234.138
32.581
12.786
16.065
3.208
604.251
9.021
337.708
166.198
20.280
11.824
319
545.350
678.088
474.044
19.802
275.617
32.581
17.580
40.001
570.386
46.637
2.154.736
298.967
481.117
15.739
117.846
20.280
32.399
40.212
189.023
2.241
1.197.824
2.220.977
57.059
7.945
1.839
7.661
2.295.481
1.466.030
52.164
6.760
1.524.954
152.583
58.978
10.523
1.839
8.068
231.991
67.859
143.842
532
212.233
3.038.027
2.127.681
4.723.567
3.025.511
The explanatory notes are an integral part of the financial statements.
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companies
Comparative consolidated balance sheets
LIABILITIES and SHAREHOLDERS' EQUITY
Notes
Current liabilities
Loans and financings
Debentures
Suppliers
Payable taxes and contributions
Deferred taxes and contributions
Salaries, charges and sharings
Accounts payable due to real estate acquisition
Proposed dividends
Related parties
Current accounts with venture partners
Advances from clients
Other accounts payable
Non-current liabilities
Long term liabilities
Loans and financings
Debentures
Accounts payable due to real estate acquisition
Payable taxes and labor proceedings
Deferred taxes and social contribution
Other accounts payable
Controlling company
2006
(Reclassified)
2007
5.376
13.510
27.924
1.404
8.770
8.011
14.574
168.297
21.831
65
536
1.352
2.511
1.244
30.183
57.279
27.525
15 (c)
859
13.171
283.727
799
24.604
146.098
11
12
16 (b)
17
18 (a)
137.024
500.000
9.934
3.628
29.849
3.111
683.546
3.384
28.886
763
33.033
-
-
11
12
18 (a)
16 (b)
17 (c)
13 (a)
14
Minority interest
Consolidated
2007
2006
(Reclassified)
76.762
13.510
49.570
75.403
697
12.226
405.020
14.574
81.004
24.290
87.879
80.537
921.472
57.236
50.144
43.884
12.103
250.119
30.183
23.416
21.537
83.988
70.933
643.543
228.527
500.000
67.493
-
595.708
26.258
89.430
100.439
26.768
97.174
92.649
1.532.572
41.242
333.116
198.769
100.302
Shareholders' equity
Capital stock
Profit reserves
Treasury shares
19 (a)
19 (b)
Total liabilities and shareholders' equity
1.356.156
714.609
(11)
2.070.754
1.581.527
367.034
(11)
1.948.550
1.356.156
714.609
(11)
2.070.754
1.581.527
367.034
(11)
1.948.550
3.038.027
2.127.681
4.723.567
3.025.511
11/86
companies
Comparative consolidated statements of income
Controlling company
2006
(Reclassified)
2007
Notes
Gross operating revenue
Real estate development and sales
Lease of properties
Service rendering and other services
Deductions from gross revenue
Operating net revenue
Costs of sales
Sold properties
Service rendering and other services
-
-
Operating income (expenses)
Selling expenses
General and administrative expenses
Management fees
Result of equity interest:
Equity accounting and quota valorization
Other results in investments (i)
Financial expenses
Financial income
Other operating income (expenses), net
Expenses with public distribution of shares
Minority interest
Net income before the reversal of interest
on own capital
Reversion of interest on own capital
Net income for the year
15.011
14.404
607
(1.091)
13.920
1.780.281
1.731.167
698
48.416
(72.972)
1.707.309
1.156.768
1.082.508
52.423
21.837
(40.087)
1.116.681
(7.534)
(7.534)
(13.210)
(332)
(13.542)
(984.212)
(19.854)
(1.004.066)
(629.377)
(15.797)
(645.174)
378
703.243
471.507
(10.292)
(76.096)
(2.033)
(21.148)
(45.638)
(1.617)
(202.649)
(127.496)
(3.297)
(131.233)
(72.949)
(1.797)
8 (b)
-
401.694
113.697
(64.853)
67.903
(15.987)
108.996
(118.954)
144.188
1.413
-
414.033
277.295
(6.092)
(41.499)
73.213
36
(20.827)
213.723
(197.799)
(2.882)
(84.450)
133.293
6.202
(20.827)
(174.643)
425.149
214.101
505.444
296.864
-
785
785
(10.721)
(44.989)
(55.710)
(17.148)
(40.860)
(58.008)
425.149
214.886
449.734
238.856
(3.000)
422.149
(4.603)
210.283
(3.000)
446.734
(4.603)
234.253
(24.585)
(23.970)
18 (a)
18 (b)
Profit before statutory interest
Employees and management interest
Net income before minority interest
2006
(Reclassified)
-
Income before income tax and social
contribution (carried forward)
Income tax and social contribution
Deferred charges
Of the year
2007
20,510
13.160
91
7.259
(1.860)
18.650
11.116
Gross profit
Consolidated
21 (b)
-
2 (p)
-
-
422.149
210.283
422.149
210.283
422.149
32.000
242.283
422.149
32.000
242.283
12/86
Cyrela Brazil Realty S.A. Empreendimentos e Participações and Cyrela Brazil Realty S.A.
Epreendimentos e Participações and controlled companies
Statement of changes in Shareholders’ Equity
for the years ended December 31, 2007 and 2006
(Translation of the report originally issued in Portuguese)
Notes
As of December 31, 2005
Capital increase
By merger (Note 1)
by public subscription
Profit allocation:
Legal reserve
Proposed dividends
Distributed interest on own capital
Profit retention reserve
819.045
1
17(a)
-
1.581.527
1(ii)
17(a)
17(c)
17(c)
-
20.627
33.832
728.650
-
17(c)
17(c)
-
Capital stock decrease by partial spin-off
Capital increase by share granting
Profit allocation:
Legal reserve
Proposed dividends
Distributed dividends
Profit reserve to be recognized
Profit retention reserve
Capital stock
Profit reserves
Profit
Legal
retention
(228.222)
2.851
1.356.156
Retained
earnings
179.122
-
-
12.114
-
(12.815)
167.986
32.741
334.293
-
-
Shares in
treasury
-
Total
(11)
1.018.783
242.283
-
33.832
728.650
242.283
(12.114)
(30.183)
(32.000)
(167.986)
-
(30.183)
(44.815)
-
-
(11)
1.948.550
422.149
-
(228.222)
2.851
422.149
-
(14.574)
(60.000)
-
21.107
-
102.746
223.722
(21.107)
(14.574)
(60.000)
(102.746)
(223.722)
53.848
660.761
-
(11)
2.070.754
10/86
Cyrela Brazil Realty S.A. Empreendimentos e Participações and Cyrela Brazil
Realty S.A. Epreendimentos e Participações and controlled companies
Statement of changes in financial position
(Translation of the report originally issued in Portuguese)
Controlling company
2006
2007
(Reclassified)
Source of funds
Interest and monetary variation of long-term assets
Depreciation and amortization
Goodwill amortization
Provision for contingencies
Social charges of long-term liabilities
Profit sharing of minority shareholders
Funds applied in social operations
Transfer from long-term assets to current assets
Accounts receivable
Advances due to real estate acquisition
Budgeted costs and property accounts payable
Dividends received or receivable
Transfer from property, plant and equipment to inventories
Increase in long-term liabilities
Loans and financing
Funding in debentures
Other accounts
Increase in minority interest
From shareholders
Capital increase
Capital increase due to real estate development
Total funds obtained
422.149
260
1.622
(401.694)
22.337
-
242.283
(63.899)
913
(277.295)
507
413
(785)
(97.863)
Consolidated
2006
(Reclassified)
2007
422.149
1.087
1.751
8.881
(510)
10.024
24.585
467.967
97.863
242.283
(101.052)
3.564
1.494
(735)
17.188
17.148
23.970
203.860
-
-
40.320
9.934
170.902
2.593
139.557
500.000
936
-
7.763
355.128
40.387
114.732
6.040
323
-
7.073
495.270
78.450
225.146
500.000
136.033
73.883
2.965
41.457
8.016
175
3.650
87.713
4.094
85.959
34.971
-
2.851
-
728.650
33.832
2.851
-
728.650
33.832
889.430
966.855
1.986.673
1.235.342
Controlling company
2006
2007
(Reclassified)
Consolidated
2007
2006
(Reclassified)
Application of funds
In social operations
In long-term assets
Accounts receivable
Related parties
In investments
In fixed assets
Long-term payable taxes
Income from real estate sales to be appropriated
Transfer to current liabilities from loans and financing
Reduction in minority interest
Dividends proposed/paid and interest on own capital
Capital decrease due to spin-off
18.954
67.940
12.301
529.050
12.307
2.793
74.574
228.222
97.863
148.038
10.516
724.868
1.581
18.006
74.998
-
429.611
379.121
157.771
12.301
152.583
13.840
95.193
74.574
228.222
189.023
27.976
98.639
9.824
67.539
41.914
32.029
7.509
144.362
2.202
74.998
-
Total funds applied
946.141
1.075.870
1.543.216
696.015
10/86
Cyrela Brazil Realty S.A. Empreendimentos e Participações and Cyrela Brazil Realty S.A.
Epreendimentos e Participações and controlled companies
Statement of cash flow
Controlling company
2006
2007
(Reclassified)
Operating activities
Net income for the period
Expenses (income) not affecting net working capital:
Fixed assets depreciation
Goodwill amortization
Increase (decrease) in long-term taxes payable
Interest, monetary variations on loans
Deferred taxes
Profit sharing of minority shareholders
Proposed dividends
Variation in current and long-term assets and liabilities:
Decrease (increase) in financial investments
Decrease (increase) in accounts receivable
Decrease (increase) in real estate for sale
Decrease (increase) in current account with venture partners
Decrease (increase) in related parties
Decrease (increase) in other assets
Increase (decrease) in accounts payable due to real estate acquisition
Increase (decrease) in provision for costs budgeted to be incurred
Increase (decrease) in taxes payable and labor proceedings
Increase (decrease) in taxes and contributions to be collected
Increase (decrease) in other liabilities
Increase (decrease) in minority interest
Net cash and cash equivalents applied to operating activities
Consolidated
2007
2006
(Reclassified)
422.149
242.283
422.149
242.283
1.622
3.814
(401.694)
244
52.249
(14.574)
63.810
(5.155)
3.700
(22.764)
(14.817)
43.119
(29.805)
16.701
52
6.181
-
913
507
(277.295)
413
(785)
(33.964)
24.043
(3.095)
21.050
13.979
(116.748)
28.805
164
(16.264)
127
25.551
-
1.751
8.881
67.291
10.721
24.585
(14.574)
520.804
(94.888)
(618.072)
(624.114)
354
65.837
(169.092)
650.170
(510)
31.519
(46.350)
73.883
3.564
1.494
(735)
647
17.148
23.970
288.371
(19.079)
(404.700)
(555.268)
12.650
(85.490)
(88.424)
260.815
24.882
(12.647)
14.314
81.475
2.202
61.022
(56.352)
(210.459)
(480.899)
Operating activities:
Acquisition of assets in property, plant and equipment
Acquisition of investments
Resources applied to deferred assets
(2.807)
(361.962)
(9.500)
4.458
(610.136)
-
(4.458)
(152.583)
(9.375)
(37.299)
(67.539)
(521)
Net cash and cash equivalents applied to investment activities
(374.269)
(605.678)
(166.416)
(105.359)
139.557
500.000
(33.168)
606.389
1.305
(28.555)
1.799
(25.451)
278.655
500.000
(53.509)
(33.168)
691.978
150.424
(246.069)
16.540
(79.105)
(60.000)
2.851
(228.222)
(285.371)
(74.998)
728.650
33.832
687.484
(60.000)
2.851
(228.222)
(285.371)
(74.998)
728.650
33.832
687.484
Financing activities:
Entrance of new loans and financing
Debentures
Payment of loans and financing
Interest paid
Shareholders' activities
Dividends distribution
Capital Increase
Increase (decrease) from merger and split-off capital
Increase of cash and cash equivalents:
At the beginning of the period
At the end of the period
Increase of cash and cash equivalents:
7.771
3
29.732
22.121
2.091
9.862
2.088
2.091
57.524
87.256
35.403
57.524
7.771
3
29.732
22.121
11/86
Notes to the financial statements (individual and
consolidated) as of December 31, 2007 and 2006
(In thousands of Reais, except when indicated)
1.
Operating context
Cyrela Brazil Realty S/A Empreendimentos e Participações (“Company”) is a
publicly-held joint stock company with headquarters in the city of São Paulo, State
of São Paulo, with its shares traded on the São Paulo Stock Exchange - BOVESPA
- Novo Mercado - under the ticker CYRE3.
The Company has as corporate purpose and main activity the development and
construction of residential property, mainly jointly with other partners through the
interest in controlled companies or consortia. In this context, with the purpose of
leveraging the business in common, generating synergy and knowledge for a
combined growth, as of 2006 the Company adopted as strategy to enter into Joint
Ventures. In this context the Company started to operate in a greater variety of
geographical regions and also in the so called economic housing segment.
The controlled companies share the corporate, managerial and operational costs
and structures of the Company or of the partner, as each case.
Corporate reorganization and restructure
a) RJZ Participações e Investimentos S.A.
In the first quarter of 2006, 18.5% of the interest on capital stock of RJZ
Participações e Investimentos S.A (RJZ) was acquired in the amount of R$29,330.
During the Extraordinary General Meeting held on May 24, 2006, the merger of the
above-mentioned Company was approved with the consequent capital stock
increase of the Company in the amount of R$33,832, arising from issuance of
3,820,402 new common shares, which was necessary for the substitution of the
integrant shares of the capital stock of RJZ, corresponding to the 81.5% of
shareholders’ interest of the Company, which were eliminated due to the merger
(merged net assets of R$41,517 vs. 81.5%).
12/86
The merged net assets of RJZ as of January 11, 2006, base date of merger, and
consonant appraisal report in account value issued by our independent
accountants as of March 30, 2006, may be summarized as follows:
Current assets
Non-current assets
9,273
43,985
53,258
Current liabilities
(86)
(11,655)
Net equity
41,517
The equity variations that happened after the appraisal’s reference date were
directly appropriated from the Company’s income, as from April 2006.
The amount of RJZ’s economic report used to replace the shares, in the amount of
R$129,099 (R$158,429 deducted from the amount paid by the acquisition of
18.5%) was lower than the amount ascertained in the economic appraisal report
prepared by an independent financial institution with international reputation. The
share value used for the referred relation was calculated based on the average
market value of January 2006, as published by BOVESPA (average amount of
R$33,83 x 3,820,402 = R$129,099)
b) Cyrela Commercial Properties S.A. Empreendimentos e Participações
(“CCP”)
i)
Partial spin-off of the Company for the constitution of CCP
In the third quarter of 2006, the centralization of certain commercial projects
was approved, in the segment of corporate buildings and malls, which were
used as capital paid in Cyrela Comercial Properties Investimentos Imobiliários
S.A. (“CCP Investimentos”), in the amount of R$199,023, as follows:
R$
Securities
Investments
Capital payment amount
2,373
196,650
199,023
The investments in controlled companies which composed the referred capital
payment, received, during 2006, real estate and financial resources as capital
investment of the parent company, as shown below:
Corporate buildings under construction, classified as inventories
Completed corporate buildings, classified as inventories
Completed corporate buildings, classified as property,
plant and equipment
10,712
12,413
Total real estate
Financial funds
26,481
2,969
Total capital paid-in in subsidiaries
29,450
3,356
13/86
Additionally, financial resources totaling R$25,181 were paid-in by the parent
company directly in CCP Investimentos, mainly aiming at the acquisition of
corporate buildings ready to meet the cash needs related to the corporate
buildings under construction, used as capital increase.
At the Extraordinary General Meeting held on April 11, 2007 the partial spin-off
of the Company’s shareholders’ equity was approved, represented by the total
interest held in the controlled company CCP Investimentos, evaluated at book
value at R$228,222 , whose assets are related to the development and
acquisition activities of corporate buildings and malls, directly or by means of
Investment Funds created exclusively for this purpose, in addition to the
management activity of these properties, representing 11.7124% of the total
shareholders’ equity. The shareholders of the Company received an interest in
the capital stock of CCP proportional to their interest in the capital stock of the
Company.
ii) Sale of shares of CCP
On June 28, 2007, the subsidiaries of the Company - Century de Investimentos
Imobiliários Ltda.; Cybra de Investimento Imobiliário Ltda.; Cyrela Comercial
Imobiliária Ltda.; Cyrela Imobiliária Ltda.; Cyrela Investimentos e Participações
Ltda.; Cyrela Roraima Empreendimentos Imobiliários Ltda.; CZ6
Empreendimentos Comerciais Ltda.; Expand de Investimentos Imobiliários
Ltda., and Option de Investimentos Imobiliários Ltda. (“Subsidiaries of the
Company”) received a notification of exercise of a purchase option by CCP,
company resulting from the partial spin-off of the Company’s shareholders’
equity, of the total of 76,269,934 shares that the Subsidiaries of the Company
hold in the capital stock of the controlled company of CCP Investimentos,
shares representing 26.86% of the capital stock of CCP Investimentos,
pursuant to the Private Instrument of Granting of Stock Option and other
Covenants entered into on May 30, 2007 between CCP and the Subsidiaries of
the Company, by the amount of R$76,270.
2.
Main accounting practices and presentation of financial
statements
The financial statements presented herein were approved by the Company’s Board
of Directors on March 11, 2008.
The financial statements were prepared in compliance with the accounting
practices adopted in Brazil, based on the provisions in the Corporate Law and on
the rules established by the Brazilian Securities and Exchange Commission - CVM.
14/86
In the preparation of the financial statements, it is necessary to use estimates for
recording certain assets, liabilities and other operations. Thus, the Company’s
financial statements include several estimates related to the selection of the useful
life of the assets in property, plant and equipment, necessary provisions for
contingent liabilities, the calculation of provisions for taxes, budgeted costs and
other similar ones. The actual results may present variation in relation to the
estimates.
The main accounting practices adopted in the preparation of these consolidated
financial statements are defined below:
(a)
Cash and cash equivalents include investments in investment funds, stated at the
value of the quota on the balance sheet date and public debt securities, stated at
cost, plus the yield earned until the balance sheet date less, when applicable, the
provision for adjustment to its net realization value.
(b)
The financial investments to be maintained up to their maturity date are stated at
cost, increased by the yield earned up to the balance sheet date. Those
investments that are intended for negotiation are stated at cost and adjusted by a
provision that might be necessary so that they are not stated in an amount higher
than the market value.
(c)
Determination of income regarding the development activities and sales of
real estate, among others
For sales of units completed, income is appropriated at the time the sale is made
effective, regardless of the maturity term for receiving the contractual value.
For sales of units not yet completed, the following procedures are observed:
(i) Projects launched and made effective up to December 31, 2003
The financial statements on December 31, 2006 comprise a project under
construction launched and made effective in a period prior to December 31,
2003, which, in 2007, integrated the spun-off net equity of the parent company
used for capital payment in CCP, as mentioned in Note 1 (b).
15/86
Consequently, the financial statements on December 31, 2007 no longer
comprise projects launched and made effective in the period prior to December
31, 2003, for which the following procedures were observed in the sales of
unconcluded units:
The criteria established in the Official Circular Letter/CVM/SEP/SNC no.
05/95 have been maintained, in which income is appropriated based on the
percentage of the physical evolution of each project. That percentage is
measured according to the measurement of the physical progress of the
work, applied over revenues (adjusted according to the conditions of the
sales agreements), the total construction cost (incurred and to be incurred),
and the selling expenses;
The provision for budgeted costs to be incurred is represented by the
estimate of the cost to be incurred of sold units, performed based on reports
prepared by the technical area in charge, having as initial contra entry the
account “Income from sales of property to be appropriated”. The alterations
in the budgeted costs are registered as they are known and allocated
between income (sales costs) and the income from sales of property to be
appropriated, in non-current liabilities;
Income from sales of real estate to be appropriated is represented by the net
amount of the values relative to the sales of units; therefore deducted from
the construction costs, land costs and from the selling expenses inherent to
the respective real estate developments, for which income is realized in
accordance with the physical progress of the works.
(ii) Projects launched and made effective as from 2004
The procedures and standards established by Resolution CFC no. 963 of the
Federal Accounting Council for such projects are:
The cost incurred (including the cost of the land), corresponding to the units
sold, is totally appropriated to income;
The percentage of the cost incurred regarding units sold (including the cost
of the land) is calculated in relation to its total budgeted cost. That
percentage is applied on the revenue from units sold, adjusted according to
the conditions in the sales agreements, and on selling expenses so as to
determine the amount of sales revenue and expenses to be recognized;
The amounts related to the calculated sales revenues, including monetary
restatement, net of installments already received, are recorded as accounts
receivable or as advances from clients when applicable;
The interest and monetary variation, incurring on the accounts receivable as
of the delivery of the keys, are appropriated to the financial result when
incurred, in compliance with the accrual basis of accounting;
The financial charges of accounts payable due to acquisition of plots of land
and real estate credit operations during the construction period are
appropriated to the cost incurred and reflected in the result due to the sale of
units of the project to which they are directly related. The financial charges of
the other financing operations are appropriated to the financial result when
incurred, as well as accounts payable of plots of land and real estate credit
operations incurred after the conclusion of the construction.
14/86
The main changes in the criteria adopted as from 2004, regarding the units sold
and still not completed are as follows:
Changes in the way sales agreements of the units not completed are
(d)
registered, limited to the registration of the installment corresponding to the
revenue ascertained, as previously mentioned; due to that, the balance of
the accounts receivable of units sold and not yet completed is not reflected in
the financial statements, since its registry is limited to the installment of the
revenue recognized accounting wise, net of the installments already
received, as presented in Note 15 (c);
Discontinuity of the practice of bookkeeping the budgeted costs to be
incurred for the units sold, as well as of the income from sales of property to
be appropriated; and changes in the criterion for appropriating income from
sales of units not completed (sales revenue, minus selling costs and
expenses), change from the physical progress of the work method to the
incurred cost method in relation to the total budgeted cost.
Accounts receivable
The accounts receivable of units not completed is determined according to the
criteria mentioned in the previous item.
The prefixed interest of accounts receivable of units completed is appropriated to
the result, observing the accrual basis, regardless of when it is received.
The allowance for doubtful accounts is established when there is an objective
evidence that the Company will not be able to collect all amounts due according to
the original terms of the accounts receivable. The Company deems the credit risk
low, since there is actual guarantee of recovery of the assets sold and it does not
constitute an allowance for doubtful debts.
The provision existing on December 31, 2006 was constituted on the remaining
credits receivable not related to real estate development, in a controlled company,
which, subsequently, integrated the spun-off net equity, as mentioned in Note 1 (b).
Consequently, the financial statements on December 31, 2007 do not comprise the
allowance for doubtful accounts.
(e)
Inventories
The real estate ready to be sold are stated at construction costs, which do not
exceed their net realizable value. In the event of real estate under construction, the
portion in the inventory corresponds to the cost incurred of the units not yet sold.
The construction cost comprises materials, labor (own or contracted from third
parties) and other related construction costs, including the financial cost of the
capital invested (financial charges of the real estate credit operations, incurred
during the construction period).
The net realizable amount is the sale price estimated for the normal course of the
businesses, less execution costs and selling expenses and taxes.
15/86
The plots of land are stated at the acquisition cost. In the event of exchanges for
units to be built, their cost corresponds to the cost incurred plus the cost budgeted
until the conclusion of the units to be built and delivered in exchange.
(f)
Selling expenses
Selling expenses to be appropriated are represented by costs and expenses
incurred in the construction and maintenance of the sales kiosks and other
correlated expenses, directly related to each project and are appropriated to
income by observing the same criterion adopted for the recognition of revenues
and costs of the units sold (Note 2(c)).
The charge related to the sale commission belongs to the acquirer of the real
estate, not constituting a revenue or expense of the Company and its controlled
companies.
The other selling expenses, including advertising, are appropriated to the result
when incurred, according to the accrual basis of accounting, having as reference
their insertion.
(g)
Income tax and social contribution on profit
In the companies taxed by the actual profit, income tax and social contribution are
calculated at the regular rates of, 15%, increased of an additional rate of 10%, for
income tax and 9% for social contribution, on the accounting profit for the year,
adjusted according to criteria established by the tax legislation in force.
As allowed by the tax legislation, certain controlled companies, that records annual
revenue lower than R$48,000 in the previous year, have chosen the presumed
profit tax regime. For those companies, the income tax basis is calculated at the
rate of 8% and the tax basis for social contribution is calculated at the rate of 12%
over gross revenues (32% when the income stems from service rendering and
100% from financial revenues), over which the regular rates of the respective tax
and contribution are applied.
Also as allowed by law no. 10,931/2004, which instituted the special taxation
regime (RET), certain controlled companies decided to submit their projects to the
detached assets, which are made irrevocably and irreversibly upon their
registration. For these projects, the charge of the income tax and social
contribution is calculated at the ratio of 3.35% on gross revenues (7% also
considering the charge of the Contribution for the Social Security Financing COFINS and the Social Integration Program - PIS).
Deferred tax assets are recognized in the extension in which is probable that the
future taxable income is available to be used in the compensation of temporary
differences, based on projections of future results prepared and based on internal
assumptions and on future economic scenarios that may, therefore, undergo
changes. The deferred income tax and social contribution are presented in Note
18.
16/86
(h)
Investments
(i) In controlled companies - book value
When the Company holds more than half of the voting capital stock of other
company, it is considered a controlled company. In the companies in which the
Company holds less than 50% of the voting capital, agreements ensure the
Company the right of veto in decisions that significantly affect the businesses
of the controlled company, ensuring it the shared control.
The investments in controlled companies are recorded by the equity method of
accounting. According to this method, the participation of the Company in the
increase or in the decrease of the shareholders’ equity of the controlled
companies, after the acquisition, due to the determination of the net income or
loss in the period or due to gains or losses in capital reserves or adjustments
from previous years is recognized as operating revenue (or expense). The
cumulative movements after the acquisitions are adjusted against the
investment cost.
The investments of the Company in the controlled companies and associated
companies include goodwill (net of accumulated amortization) in the
acquisition. When the participation of the Company in losses of the associated
companies and controlled companies is equal or exceeds the investment
amount, the Company does not recognize additional losses, unless it assumed
obligations, made payments on behalf of these companies or made advances
for future capital increase.
The acquisition cost of a controlled company or associated company is
measured by the amount of assets granted or liabilities assumed on the date of
the acquisition, plus costs directly attributable to the acquisition. The amount of
the acquisition cost which exceeds the book vale of the net assets of the
controlled company acquired is recorded as goodwill.
When necessary, the accounting practices of the controlled companies are
changed to ensure consistence with the practices adopted by the Company.
(ii) Goodwill
The goodwill is ascertained in the acquisition or subscription of capital in other
company, represented by the value of the acquisition cost of the investment
which exceeds the value of the equity accounting, calculated from the
percentage of acquisition or subscription on the value of the shareholders’
equity of other company.
17/86
The goodwill is amortized according to the foundation that determined it during
the estimated useful life. The management establishes the estimated useful
life of the investment based on its evaluation of the respective companies
acquired at the moment of the acquisition, considering factors such as
inventories of plots of land, the capacity of generation of results in the projects
launched and/or to be launched in the future and other inherent factors. The
goodwill not justified by economic foundations is immediately recognized as
loss, in the result of the year.
On the date of each balance sheet, the Company evaluates if there are
evidences of permanent loss (impairment). If such evidences exist, an analysis
is carried out to evaluate if the book value of the goodwill may be totally
recovered. If the book value exceeds the recoverable value, the amount is
reduced.
(iii) In associated company - cost value
Due to the Public Offering of Shares carried out by Agra Empreendimentos
Imobiliários S.A. (“Agra”) concluded in April 2007, the interest of the Company
in its capital was reduced from 42.5% to 19.0%. In view of that, the investment
nd
in this company, as of the 2 quarter of 2007, started to be evaluated by the
cost method, for it no longer meets the accounting practices and requirements
to apply the equity method of accounting and consolidate its statements, as
occurred until the period ended on March 31, 2007.
(i)
Tangible assets
Stated at the acquisition cost, combined with the depreciation calculated by the
straight-line method, at annual rates mentioned in Note 9, which take into account
the term of economic-useful life of the assets.
(j)
Intangible assets
Stated at the acquisition cost, combined with annual amortization rates - by the
straight-line method - mentioned in Note 10(b).
(k)
Benefits to employees and managers
The Company and its controlled companies do not maintain private pension plans
or any retirement plan or benefit after leaving the Company.
The Company has a benefit program for:
Profit sharing - PLR: see details in Note 21(b);
Stock options: see details in Note 21 (c).
18/86
(l)
Accounts payable in the acquisition of real estate
The obligations in the acquisition of real estate are recognized by the amounts
corresponding to the contractual obligations assumed. Subsequently, they are
presented by the amortized cost, i.e., plus, when applicable, charges and interest
proportional to the period incurred until the balance sheet date.
In the event of obligations related to exchanges of plots of land for units to be built,
they are recognized by the budgeted cost to incur in the construction of the units to
be exchanged. Subsequently, they are presented by the amortize costs, i.e., less
costs incurred in the construction of units exchanged and adjusted, when
applicable, by the budgetary variations of the cost to incur of the referred units until
the balance sheet date.
(m) Loans, financings and debentures
The loans taken are recognized initially in the receipt of resources, net of
transaction costs. Subsequently, the loans taken are presented by the amortized
cost, i.e., plus charges and interest proportional to the period incurred until the
balance sheet date.
(n)
Contingent liabilities and legal obligations
Contingent liabilities are provisioned when losses are evaluated as probable and
the amounts involved are measurable with sufficient security. When the losses are
considered as probable, but the amounts involved are not measurable with
sufficient security or when losses are considered possible, they are disclosed in
Note 20. The other contingent liabilities, whose losses are considered remote, are
not provisioned neither disclosed.
The legal obligations are recorded when incurred.
(o)
Other assets and liabilities
They are presented at the cost or realization value (assets), or for known or
calculable values (liabilities), plus, when applicable, proceeds and financial charges
incurred.
(p)
Interest on own capital
The interest on own capital paid or provisioned is accounted for as financial
expense. For purposes of presentation of the financial statements, this interest is
reclassified to the account of retained earnings.
(q)
Net earnings per share
The net earnings per share are calculated based on the number of outstanding
shares on the balance sheet dates.
19/86
(r)
Consolidated financial statements
The consolidated financial statements comprehend the Company’s financial
statements and those of its controlled companies (individually and under common
control or created for specific purposes regarding the management of real estate
projects), as mentioned in Note 8. The current accounts, the revenues and
expenses among the consolidated companies, as well as the investments, for
which minority interest is highlighted, have been eliminated from the consolidated
financial statements. As for controlled companies under common control, the
financial statements are proportionally consolidated.
(s)
Statement of cash flow - supplementary information
With the purpose of providing additional information, the Company is presenting
the statements of cash flows, prepared in accordance with NPC no. 20 issued by
the Institute of Independent Auditors of Brazil (IBRACON).
(t)
Reclassification of the comparative financial statements on December 31,
2006
The financial investments and real estate for sale were reclassified in the balance
sheet of December 31, 2006 from current assets to non-current assets, as well as
the balances of the account of result of sales of real estate to be appropriated from
the non-current liabilities to the account of accounts receivable in the current
assets, consequently the statements of changes in financial position and cash flow
were readapted.
20/86
3.
Cash, cash equivalents and financial investments
Equivalent in
Thousands of
US Dollars
Controlling Company
2007
2006
Consolidated
2007
Consolidated
2006
2007
2006
Cash and Banks
National currency
9,862
2,091
80,539
50,103
Foreign currency
-
-
125
164
71
77
-
-
4,122
4,144
2,328
1,938
-
-
2,470
3,113
1,395
1,456
9,862
2,091
87,256
57,524
3,794
3,471
204,933
113,794
257,952
157,607
144,336
230,320
337,589
343,046
349,269
344,114
595,541
500,653
(297,388)
(337,708)
(474,044)
(481,117)
121,497
19,536
Investment funds - variable income
Foreign currency
Public debt securities (ii)
Foreign currency (cost)
Financial investments - variable income
National currency
Bank deposit certificates
National currency (i)
Long-term assets
Current assets
51,881
6,406
(i)
Average monthly rates equivalent to 100% of the Interbank Deposit
Certificate (CDI);
(ii) Valuation as per the Nikkei index.
4.
Marketable securities
They correspond to interest on December 31, 2007, in the consolidated, of 0.26%
(8.31% in December 2006) in Fundo Financial Center de Investimento Imobiliário,
presented at the cost of acquisition adjusted by provision for adjustment to its net
realization value, in the amount of R$62 (2006 - R$2,462) - (Note 22 - b).
The reduction occurred in the year is due to the partial spin-off of the Company
mentioned in Note 1.
21/86
5.
Accounts receivable
Controlling Company
2007
2006
Consolidated
2007
2006
13.014
22.254
19.815
(8.956)
10.859
9.643
(4.089)
5.554
1.953.232
(1.028.515)
924.717
1.519.209
(961.560)
557.649
23.873
27.808
1.462.402
840.533
77
244
321
86
86
72
4.118
4.190
Total accounts receivable
24.194
27.894
1.466.592
Long-term assets
(8.085)
(9.021)
(678.088)
(298.967)
Current assets
16.109
18.873
788.504
549.553
Concluded projects
Projects under construction:
Appropriated income
Installments Received
Appropriated accounts receivable
Rentals
Assignments for use
Administration services
Provision for doubtful receivables
537.685
282.884
8.398
338
1.283
(2.032)
7.987
848.520
As mentioned in Note 2(c), the Company and its controlled companies adopt the
procedures and standards established by Resolution CFC no. 963 for the
accounting recognition of the taxable income earned regarding the real estate
operations carried out. Consequently, the accounts receivable balance of units sold
and not completed, is not fully reflected in the financial statements, since its
recording is limited to the portion of the income that is recognized accounting wise,
net of the installments already received.
As complementary information, the balance of accounts receivable as of December
31, 2007 and 2006, referring to the activity of real estate development and sales,
already deducted from the installments received, may be stated as follows:
Controlling Company
2007
2006
Current
Long-term
Consolidated
2007
2006
15,788
8,085
18,787
9,021
784,314
678,088
541,566
298,967
23,873
27,808
1,462,402
840,533
Revenue from sales to be appropriated (Note 15(a))
Installment classified as advances from clients (Note 15(a))
1,306
25,179
10,804
38,612
3,201,994
(57,882)
4,606,514
1,577,513
(55,120)
2,362,926
Current
Long-term
16,546
8,633
25,179
10,128
28,484
38,612
963,883
3,642,631
4,606,514
619,795
1,743,131
2,362,926
22/86
The accounts receivable are substantially updated by the variation of the Civil
Construction National Index - INCC - up to the delivery of the keys and later by the
variation of the General Market Price Index - IGP-M.
The accounts receivable may be stated as follows, by year of maturity:
Schedule for the Portfolio of Receivables
Year
Controlling Company
2007
2006
Consolidated
2007
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
until 2027
16,978
2,879
1,818
1,247
741
533
424
215
168
176
14,958
16,536
2,825
1,851
1,182
518
429
293
20
-
1,055,454
960,169
760,045
385,896
296,265
268,063
226,636
196,444
161,949
295,593
653,572
440,225
453,804
225,741
160,496
130,312
107,782
78,323
112,671
-
Total
25,179
38,612
4,606,514
2,362,926
6.
They are represented by the value receivable from the State of São Paulo Finance
Department, relative to the expropriation of commercial property, receivable in
annual installments the final maturity date of which has been forecast for the year
2012. The restatement of the installments is performed based on the index for the
updating of debts, disclosed by the Court of Justice. The balance receivable on
December 31, 2007 is R$19,802 and R$15,739 in 2006.
7.
Real estate for sale
They are represented by the costs of the property units (both ready and under
construction) and land for future developments, as shown below:
Controlling Company
2007
2006
Consolidated
2007
2006
Property under construction
Completed property
Land
1,301
8,665
22,210
32,176
2,395
2,778
4,239
9,412
570,145
31,181
998,970
1,600,296
301,501
138,070
536,611
976,182
Short-term
Long-term
16,111
16,065
32,176
9,412
9,412
1,029,910
570,386
1,600,296
787,159
189,023
976,182
23/86
8.
Investments
(a)
The main information on interest held in companies is summarized below:
Interest - %
Net
profit (loss)
Total
2007
Direct
2007
2006
2007
for the year
2006
2007
2006
Directly and indirectly controlled companies
Abc II de Investimentos Imobiliarios Ltda
63.92
34.00
34.00
9,062
9,566
(504)
1,438
Abc Realty De Investimentos Imobiliarios Ltda
95.00
95.00
95.00
14,303
15,487
797
1,509
Agra Cyrela Spe Ltda
55.94
25.00
25.00
11,577
12,179
(751)
Aldeia Da Colina Empreend Imobil Spe Ltda
55.00
55.00
-
Angra Dos Reis Empreendimentos Imobiliarios Ltda
99.99
99.99
-
29
-
(2)
Atlantida Empreendimentos Imobiliarios Spe Ltda
80.00
60.00
-
16,709
-
(426)
-
100.00
100.00
7,805
569
4,138
B R - Servicos E Invest. Ltd - Bahamas
100.00
8,147
7,035
1
-
2,284
Barra Do Pirai Empreendimentos Imobiliarios Ltda
99.99
99.99
-
Brazil Realty - Cia Securitizadora De Creditos Imo
98.00
98.00
98.00
10
10
675
-
-
-
-
-
Brc Administracao E Participacao Ltda
99.99
99.99
99.99
1,096
66,471
Cabo Frio Empreendimentos Imobiliarios Ltda
99.99
99.99
24.00
5
395
Calafete Investimentos Imobiliarios Ltda
99.99
99.90
-
4,385
1
4,384
-
Caninde De Investimento Imobiliario Ltda
96.84
53.35
53.35
19,019
17,678
1,341
1,471
Canoa Quebrada Empreendimentos Imobiliarios Ltda
99.99
99.99
-
Capital Realty De Investimentos Imobiliarios Ltda
99.99
99.99
99.99
6,424
6,364
Carcavelos Empreendimentos Imobiliarios Ltda
99.99
99.99
-
6,119
12
(5)
-
114
(1)
(5)
4,701
(523)
-
(39)
1,991
8
-
Cbr 002 Empreendimentos Imobiliarios Ltda
99.99
99.99
-
1,433
-
(235)
99.99
99.99
-
4
-
(2)
-
99.99
99.99
-
258
-
(2)
-
99.99
99.99
-
9
-
(1)
-
99.99
99.99
-
(1)
-
(1)
-
99.99
99.99
-
(1)
-
(1)
-
99.99
99.99
-
(1)
-
(1)
-
Century De Investimentos Imobiliarios Ltda.
99.99
99.99
99.99
135,893
84,040
City Parque Morumbi Empreendimentos Imobiliarios S
80.00
80.00
80.00
962
178
Cotia Empreendimentos Imobiliarios Ltda
99.99
99.99
-
Country De Investimentos Imobiliarios Ltda
97.24
72.24
72.25
2,269
85,316
-
33,437
(90)
(7)
59,401
33,290
47,974
(17)
12,647
Cybra De Investimento Imobiliario Ltda
99.99
99.99
99.99
79,123
22,023
17,105
3,505
Cyrela Aconcagua Empreendimentos Imobiliarios Ltda
99.99
99.99
99.00
36,931
20,407
10,768
(1,412)
Cyrela Andrade Mendonca Empreendimentos Imobiliari
80.00
80.00
-
31,746
2,969
6,464
Cyrela Bahia Empreendimentos Imobiliarios Ltda
99.99
99.99
99.99
19,769
3,442
(665)
Cyrela Bracy De Investimentos Imobiliarios Ltda
96.41
61.24
61.25
57,165
37,309
16,611
Cyrela Braga Empreendimentos Imobiliarios Ltda
99.99
99.99
99.99
28,959
8,843
2,060
Cyrela Braganca Empreendimentos Imobiliarios Ltda
90.00
90.00
-
955
203
(554)
(1,264)
99.99
99.99
99.99
19,471
13,163
99.99
99.99
-
13,561
1
3,599
Cyrela Classic De Investimento Imobiliario Spe Ltd
95.63
50.00
50.00
16,656
14,045
10,663
Cyrela Coimbra Empreendimentos Imobiliarios Ltda
99.99
99.99
99.99
Cyrela Comercial Imobiliaria Ltda.
88.99
88.99
89.00
(2)
21,780
(2)
-
Cyrela Brazil Realty Rjz Empreendimentos Imobiliar
(5)
8,256
(103)
Cyrela Chile Empreendimentos Imobiliarios Ltda
27,446
(627)
(3)
9,568
5,456
(2)
5,686
24/86
Interest - %
Total
2007
Cyrela Construtora Ltda
Cyrela Dinamarca Empreendimentos Imobiliarios Ltda
Cyrela Dinamica De Investimentos Imobiliarios Ltda
Cyrela Elwing Empreendimentos Imobiliarios Spe Ltd
Cyrela Empreendimentos Imobil. Coml. Import. E Exp
Cyrela Europa Empreendimentos Imobiliarios Ltda
Cyrela Greenfield De Investimentos Imobiliarios Lt
Cyrela Grenwood De Investimentos Imobiliarios Ltda
Cyrela Havai Empreendimentos Imobiliarios Ltda
Cyrela Holanda Empreendimentos Imobiliarios Ltda
Cyrela Iberia Empreendimentos Imobiliarios Ltda
Cyrela Imobiliaria Ltda
Cyrela Japao Empreendimentos Imobiliarios Spe Ltda
Cyrela Lakewood Empreendimentos Imobiliarios Ltda
Cyrela Mac Amazonas Empreendimentos Imobiliarios S
Cyrela Mac Monterey Empreendimentos Imobiliarios S
Cyrela Magik California Empreend Imobiliarios Spe
Cyrela Magik Monaco Empreendimentos Imobiliarios S
Cyrela Mexico Empreendimentos Imobiliarios Ltda
Cyrela Monza Empreendimentos Imobiliarios Ltda
Cyrela Niss Empreendimentos Imobiliarios Ltda
Cyrela Oceania Empreendimentos Imobiliarios Ltda
Cyrela Parana Empreendimentos Imobiliarios Ltda
Cyrela Paris Empreendimentos Imobiliarios Ltda
Cyrela Participacoes E Empreend Imoliarios Ltda
Cyrela Pompeia Empreendimentos Imobiliarios Ltda
Cyrela Porto Empreendimentos Imobiliarios Ltda
Cyrela Portugal Empreendimentos Imobiliarios Ltda
Cyrela Rjz Construtora E Empreendimentos Imobiliar
Cyrela Rjz Empreendimentos Imobiliarios Ltda
Cyrela Rondonia Empreendimentos Imobiliarios Ltda
Cyrela Roraima Empreendimentos Imobiliarios Ltda
Cyrela Sanset De Investimentos Imobiliarios Spe L
Cyrela Sao Paulo Empreendimentos Imobiliarios Ltda
Cyrela Sintra Empreendimentos Imobiliarios Spe Ltd
Cyrela Suecia Empreendimentos Imobiliarios Ltda
Cyrela Vermont De Investimentos Imobiliarios Ltda
Cyrela Vila Do Conde Empreendimentos Imobiliarios
Cyrela Vila Real Empreendimentos Imobiliarios Ltda
Cyrela White River De Investimento Imobiliario Spe
Cyset Empreendimentos Imobiliarios Ltda
Cyte Empreendimentos Imobiliarios Ltda
Cz6 Empreendimentos Comerciais Ltda
Egito Empreendimentos Imobiliarios Ltda
Embu Empreendimentos Imobiliarios Ltda
Fifty De Investimento Imobiliario Ltda
99.99
99.99
96.38
80.00
99.98
99.99
95.63
95.69
99.99
99.99
99.99
99.75
80.00
95.63
79.98
62.97
75.87
80.00
99.99
99.99
75.00
60.00
99.99
99.99
85.98
99.99
60.00
75.99
99.15
97.35
99.99
99.99
73.41
99.99
75.00
99.99
97.89
99.99
99.99
96.43
69.91
75.00
99.91
99.99
80.00
97.24
Direct
2007
99.99
99.99
50.00
80.00
99.98
99.99
50.00
55.00
99.99
99.99
99.99
99.75
80.00
50.00
60.00
33.00
56.00
80.00
99.99
99.99
75.00
60.00
99.99
99.99
79.00
99.99
60.00
75.99
86.02
59.90
99.99
99.99
38.00
99.99
75.00
99.99
50.00
99.99
99.99
50.00
37.00
75.00
63.99
99.99
60.00
72.24
2006
2007
2006
99.99
50.00
50.00
80.00
99.98
50.00
55.00
99.76
50.00
60.00
33.00
56.00
80.00
99.99
60.00
99.99
99.99
79.00
99.99
55.00
99.99
38.00
50.00
50.00
37.00
64.00
72.25
11,768
713
44,320
30,147
178,226
2
2,785
36,106
3,644
6,093
6,692
139,202
3,973
15,585
22,347
2,546
40,525
33,162
988
33,200
4,422
2,979
15,100
91,891
41,944
19
1,632
27,113
69,432
152,032
168
17,287
39,785
3
4,503
1,245
9,143
4
326
63,559
2,053
6,769
59,344
(3)
4,704
7,380
7,785
263
52,877
23,609
172,306
2,695
13,501
56
103,130
1
9,134
18,686
3,757
29,149
18,676
3,498
883
2,719
51,373
29,777
124
12,941
78,535
21,415
36,780
4
1
9,229
11
199
26,014
2,006
36,296
14,101
Net
profit (loss)
for the year
2007
1,778
(94)
6,343
10,433
21,760
2
(78)
17,910
(1,504)
2,672
(293)
55,615
258
1,101
3,383
(256)
13,577
2,154
(193)
(1,259)
2,096
1,739
8,437
8,304
(10)
(157)
(1,466)
(2,188)
44,899
(1,143)
(41)
8,016
1,522
(524)
(280)
(7)
(5)
17,109
47
(1,267)
14,830
(8)
(3)
792
2006
(1,198)
3,741
(86)
14,655
(46)
7,364
28,153
4,119
5,339
(403)
10,116
2,732
(873)
(1,354)
(12)
5,859
9,312
(1,996)
(3,755)
(1,411)
16,103
(205)
14,573
48
21,529
6,557
25/86
Interest - %
Total
Flamingo Investimentos Imobiliarios Ltda
Gliese Incorporadora Ltda
Goiania Empreendimentos Imobiliarios Ltda
Gv 10 Empreendimentos Imobiliarios Ltda
Jardim America Incorporadora Spe Ltda
Jardim Cedro Do Libano Empreendimentos Imobiliario
Lc Empreendimentos Imobiliarios Spe Ltda
Lombok Incorporadora Ltda
Lyon Empreendimentos Imobiliarios Ltda
Mac Cyrela Mafra Empreendimentos Imobiliarios Ltda
Mesopotamia Empreendimentos Imobiliarios Ltda
Nilo Empreendimentos Imobiliarios Ltda
Nova Iguacu Empreendimentos Imobiliarios Ltda
Oaxaca Incorporadora Ltda
Option De Investimentos Imobiliarios Ltda.
Peru Empreendimentos Imobiliarios Ltda
Petropolis Empreendimentos Imobiliarios Ltda
Plano & Plano Construcoes E Participacoes Ltda
Plano Amoreira Empreendimentos Imobiliarios Spe Lt
Praca Oiapoque Empreend Imobil Spe Ltda
Praia Do Forte Empreendimentos Imobiliarios Ltda
Rua Do Orfanato Empreendimentos Imobiliarios Spe L
Sao Goncalo Empreendimentos Imobiliarios Ltda
Scp - Voluntarios Da Patria
Seller - Consultoria Imobiliaria E Repres. Ltda
Sevilha Empreendimentos Imobiliarios Ltda
Sociedade Residencial Gran Bueno S/A
Spe Goiania Incorporacao 5 S/A
Tal De Investimento Imobiliario Ltda.
Tal Empreendimentos Imobiliarios Ltda
Tal Portfolio Investimentos E Participacoes Ltda
Tunisia Empreendimentos Imobiliarios Ltda
Unique De Investimentos Imobiliarios Ltda
Vereda Paraiso Empreendimentos Imobiliarios Ltda
Direct
2007
2007
2006
2007
97.24
99.96
55.85
80.00
70.00
60.00
70.00
100.00
51.39
99.99
64.98
99.99
99.99
99.99
51.39
99.99
99.99
99.99
79.00
91.60
70.00
99.99
80.00
99.99
100.00
98.93
99.99
70.00
70.00
99.99
99.99
99.99
99.99
96.49
57.36
72.24
99.96
45.50
80.00
70.00
60.00
70.00
100.00
40.00
99.99
45.00
99.99
99.99
99.99
40.00
99.99
99.99
99.99
79.00
60.00
70.00
99.99
80.00
99.99
100.00
98.93
99.99
70.00
70.00
99.99
99.99
99.99
99.99
46.00
10.00
72.25
70.00
60.00
50.00
99.99
90.46
79.00
77.78
98.99
99.99
99.99
36.00
30.00
7,380
1,502
4,682
2,153
6,018
4,962
3,189
30,013
16,890
17
67,110
(190)
478
1
18,187
135,586
4
1
43,527
(343)
667
4,418
1
7,006
6,011
450
2,346
4,201
3,114
39,965
5
1,014
8,192
19,760
2006
14,101
1,500
(3)
2,221
27,022
2,701
65,709
4
9,547
6,707
1,229
2,994
33,474
3,827
15,759
Net
profit (loss)
for the year
2007
792
(8)
(163)
(868)
4,266
2,741
173
2,990
1,520
(3)
(161)
(190)
(22)
(38)
52,966
(5,472)
(343)
(466)
(5)
(568)
298
2,791
133
1,201
35
12,124
(26)
(106)
9,523
2006
6,557
(3)
1,748
(538)
34,276
(1,880)
14
(424)
(21)
12,705
525
15,876
26/86
Interest - %
Total
Alpen Haus Negocios Imobiliarios S/A
Arizona Investimentos Imobiliarios Ltda
Bento Goncalves Empreendimentos Imobiliarios Ltda
C.E.A. Empreendimentos Imobiliarios Spe Ltda
Calendula Desenvolvimento Imobiliario S/A
Camargo Correa - Cyrela Empreend Imobil Ltda - Spe
Cury Construtora E Incorporadora S/A
Cyrela Gafisa Spe Ltda
Cyrela Magik Tecnisa Empreendimentos Imobiliarios
Cyrela Minas Empreendimentos Imobiliarios Spe Ltda
Cyrela Tecnisa De Invest Imob Ltda
Cyrela Tecnisa Klabin Segall Empreend. Imobiliario
Cyrsa S/A
Forest Hill De Investimentos Imobiliarios Ltda
Goldsztein Cyrela Empreendimentos Imobiliarios S/A
Klabin Segall Cyrela Spe Ltda
Klabin Segall Vergueiro Emp. Imobil Spe Ltda
Lao Empreendimentos Imobiliarios Ltda
Lorena Empreendimentos Imobiliarios Spe Ltda
Lucio Brazil Real Estate S/A
Mac Construtora Ltda
Mac Cyrela Italia Empreendimentos Imobiliarios Ltd
Mac Empreendimentos Imobiliarios S/A
Mac Espanha Empreendimentos Imobiliarios Ltda
Mac Italia Empreendimentos Imobiliarios Ltda
Mac Portugal Empreendimentos Imobiliarios Ltda
Magnum Investimentos Imobiliarios Ltda
Mv 1 Empreendimento Imobiliario Spe Ltda
Nova Vila Guilherme Empreendimentos Imobiliarios S
Parque Turiassu Empreendimentos Imobiliario Spe Lt
Plarcon Cyrela Empreendimentos Imobiliarios Spe Lt
Queiroz Galvao Cyrela Empreendimento Imobiliario S
Queiroz Galvao Cyrela Oklahoma Empreend Imobil Spe
Queiroz Galvao Mac Cyrela Veneza Empreend. Imobil.
Rummaala S/A
Savona Empreendimento Imobiliario Spe Ltda
Sk Realty Empreendimentos Imobiliarios S/A
Slk Empreendimento Imobiliario Spe Ltda
Tibirica Empreendimentos Imobiliarios Ltda
Direct
2007
2007
23.99
50.00
50.00
50.00
24.00
50.00
50.00
46.49
36.67
50.00
50.00
32.41
50.00
49.44
49.99
37.93
38.50
39.97
50.00
50.00
49.97
49.97
49.95
49.95
49.95
49.95
30.00
50.00
50.00
40.00
50.00
38.62
48.89
29.98
50.00
50.00
50.00
29.99
50.00
23.99
50.00
50.00
50.00
24.00
50.00
50.00
25.00
30.00
50.00
50.00
20.00
50.00
25.00
49.99
20.75
38.50
10.00
50.00
50.00
20.00
20.00
44.58
0.01
0.01
0.01
30.00
50.00
50.00
40.00
50.00
32.00
40.00
15.00
10.00
50.00
50.00
29.99
50.00
2006
50.00
50.00
50.00
25.00
30.00
50.00
50.00
20.00
25.00
50.00
20.75
38.50
40.00
50.00
0.01
0.01
30.00
50.00
50.00
32.00
40.00
10.00
-
2007
803
(82)
9,266
2,306
4,633
7,034
10,199
7,405
22,392
3,047
54,835
32,142
23,184
4,188
22,437
9,548
6,135
10,524
5,052
(15,927)
30,270
5,438
127,622
8,703
(230)
32,127
18,195
742
2,175
3,007
65,163
9,002
16,629
25,811
23,356
3,096
(151)
3,053
(56)
2006
(589)
149
4,267
14,077
20,375
295
65,910
46,662
4,834
2,673
9,142
6,889
7,427
70,993
2,509
10,062
2,279
8,541
10,318
8,842
16,781
-
Net
profit (loss)
for the year
2007
77
506
(408)
(86)
644
(493)
(2,103)
(733)
13,056
1,304
(2,198)
2,545
778
9,157
406
(754)
5,077
3,578
(15,927)
8,773
1,270
8,689
(1,281)
(220)
1,687
8,133
(1)
(213)
307
35,099
2,183
3,396
1,348
(2)
(1,635)
(947)
(56)
2006
(589)
(1)
(505)
262
8,565
(640)
52,138
28,735
559
(327)
4,521
3,341
3,512
5,676
9,678
(212)
(479)
809
(959)
(42)
-
27/86
(b)
The changes in investments are set forth as follows:
B a la nc e o n
D e c e m be r 3 1
2006
E v a lua t e d by t he c o s t m e t ho d:
A gra Empreend Imo bil S/A
D ire c t ly a nd indire c t ly c o nt ro lle d c o m pa nie s
A bc II De Investimento s Imo biliario s Ltda
A bc Realty De Investimento s Imo biliario s Ltda
A gra Cyrela Spe Ltda
A ldeia Da Co lina Empreend Imo bil Spe Ltda
A ngra Do s Reis Empreendimento s Imo biliario s Ltda
A tlantida Empreendimento s Imo biliario s Spe Ltda
A ustralia Empreeendimento s Imo biliario s Ltda
B R - Servico s E Invest. Ltd - B ahamas
B arra Do P irai Empreendimento s Imo biliario s Ltda
B razil Realty - Cia Securitizado ra De Credito s Imo
B rc A dministracao E P articipacao Ltda
B rx A dministracao De Sho pping Centers S/C Ltda
Cabo Frio Empreendimento s Imo biliario s Ltda
Calafete Investimento s Imo biliario s Ltda
Caninde De Investimento Imo biliario Ltda
Cano a Quebrada Empreendimento s Imo biliario s Ltda
Capital Realty De Investimento s Imo biliario s Ltda
Carcavelo s Empreendimento s Imo biliario s Ltda
Cbr 002 Empreendimento s Imo biliario s Ltda
Cbr 011Empreendimento s Imo biliario s Ltda
Cbr 110 Empreendimento s Imo biliário s Ltda.
Cyrela Niss Empreendimento s Imo biliario s Ltda
Tibirica Empreendimento s Imo biliario s Ltda
Century De Investimento s Imo biliario s Ltda.
City P arque M o rumbi Empreendimento s Imo biliario s S
Co tia Empreendimento s Imo biliario s Ltda
Co untry De Investimento s Imo biliario s Ltda
Cybra De Investimento Imo biliario Ltda
Cyrela A co ncagua Empreendimento s Imo biliario s Ltda
Cyrela A ndrade M endo nca Empreendimento s Imo biliari
Cyrela B ahia Empreendimento s Imo biliario s Ltda
Cyrela B racy De Investimento s Imo biliario s Ltda
Cyrela B raga Empreendimento s Imo biliario s Ltda
Cyrela B raganca Empreendimento s Imo biliario s Ltda
Cyrela B razil Realty Rjz Empreendimento s Imo biliar
Cyrela Chile Empreendimento s Imo biliario s Ltda
Cyrela Classic De Investimento Imo biliario Spe Ltd
Cyrela Co imbra Empreendimento s Imo biliario s Ltda
Cyrela Co mercial Imo biliaria Ltda.
Cyrela Co mercial P ro perties Investimento s Imo biliario s S.A
Cyrela Co nstruto ra Ltda
Cyrela Dinamarca Empreendimento s Imo biliario s Ltda
Cyrela Dinamica De Investimento s Imo biliario s Ltda
Cyrela Elwing Empreendimento s Imo biliario s Spe Ltd
Cyrela Empreendimento s Imo bil. Co ml. Impo rt. E Exp
Cyrela Euro pa Empreendimento s Imo biliario s Ltda
Camargo Co rrea - Cyrela P aulista 1230
Cyrela Greenfield De Investimento s Imo biliario s Lt
Cyrela Grenwo o d De Investimento s Imo biliario s Ltda
Cyrela Havai Empreendimento s Imo biliario s Ltda
Cyrela Ho landa Empreendimento s Imo biliario s Ltda
Cyrela Iberia Empreendimento s Imo biliario s Ltda
Cyrela Imo biliaria Ltda
Cyrela Japao Empreendimento s Imo biliario s Spe Ltda
Cyrela Lakewo o d Empreendimento s Imo biliario s Ltda
Cyrela M ac A mazo nas Empreendimento s Imo biliario s S
Cyrela M ac M o nterey Empreendimento s Imo biliario s S
Cyrela M agik Califo rnia Empreend Imo biliario s Spe
C a pit a l
s ubs c ript io n
( re duc t io n)
41,662
9,552
3,252
14,712
3,045
1
7,805
10
932
411
1
9,430
6,363
12
84,039
142
42,917
22,023
20,407
2,375
3,442
22,852
8,842
183
13,162
1
7,023
19,384
234,611
7,784
263
26,444
18,887
172,277
2,036
1,348
7,425
56
102,878
4,567
11,211
1,240
16,324
37
3,224
31
10,281
(1)
(770)
1
50
(411)
6
1
100
6,107
1,668
6
260
10
3,317
18,416
700
2,276
55,769
5,756
17,850
16,993
18,056
770
6,863
13,560
821
2,205
544
5,161
9,023
1
(2,036)
84
5,882
5,148
3,421
6,930
24,806
2,971
2,675
167
2,127
S ha re ho lde rs '
D iv ide nds
e quit y
(1,377)
(1,883)
(1,991)
(5,328)
(15,774)
1,987
(3,599)
(4,848)
(3,473)
(6,383)
(7,450)
(8,277)
(24,860)
(3,300)
(44,302)
(3,360)
O t he r
B a la nc e o n
D e c e m be r 3 1
2007
-
102,746 (a)
152,583
(171)
757
(188)
1,256
(2)
(255)
(469)
114
(1)
4,380
715
(5)
(39)
1,991
(235)
(2)
(2)
(1)
(1)
(1)
(1)
(28)
33,437
(72)
(7)
24,052
17,105
10,467
5,171
(665)
10,174
2,060
(92)
(554)
3,599
5,332
(3)
8,515
1,778
(94)
3,172
8,346
21,756
2
(39)
9,851
(1,504)
2,672
(293)
55,481
206
550
2,030
(84)
7,603
464
(5)
(3)
1
1
1
309
(2)
(228,228) (b)
(2)
(315)
-
3,081
13,586
2,894
4,480
29
10,026
7,030
1
10
1,096
4,382
10,145
(5)
6,424
6,119
1,433
1
258
9
3,317
(28)
135,892
770
2,269
61,641
79,123
36,939
25,396
19,770
35,013
28,958
861
19,471
13,561
8,328
(5)
24,426
11,767
713
22,166
24,117
178,196
1
1,393
19,858
3,644
6,093
6,693
138,863
3,177
7,792
13,408
841
22,694
28/86
Cyrela Magik Monaco Empreendimentos Imobiliarios S
Cyrela Mexico Empreendimentos Imobiliarios Ltda
Cyrela Monza Empreendimentos Imobiliarios Ltda
Cyrela Oceania Empreendimentos Imobiliarios Ltda
Cyrela Parana Empreendimentos Imobiliarios Ltda
Cyrela Paris Empreendimentos Imobiliarios Ltda
Cyrela Participacoes E Empreendimentos Imobiliario
Cyrela Pompeia Empreendimentos Imobiliarios Ltda
Cyrela Porto Empreendimentos Imobiliarios Ltda
Cyrela Portugal Empreendimentos Imobiliarios Ltda
Cyrela Rjz Empreendimentos Imobiliarios Ltda
Cyrela Rondonia Empreendimentos Imobiliarios Ltda
Cyrela Roraima Empreendimentos Imobiliarios Ltda
Cyrela Sanset De Investimentos Imobiliarios Spe L
Cyrela Sintra Empreendimentos Imobiliarios Spe Ltd
Cyrela Suecia Empreendimentos Imobiliarios Ltda
Cyrela Vermont De Investimentos Imobiliarios Ltda
Cyrela Vila Do Conde Empreendimentos Imobiliarios
Cyrela Vila Real Empreendimentos Imobiliarios Ltda
Cyrela White River De Investimento Imobiliario Spe
Cyset Empreendimentos Imobiliarios Ltda
Cz6 Empreendimentos Comerciais Ltda
Egito Empreendimentos Imobiliarios Ltda
Embu Empreendimentos Imobiliarios Ltda
Estela Borges Empreendimentos Imobiliarios S/A
Cyrela Rjz Construtora E Empreendimentos Imobiliar
Flamingo Investimentos Imobiliarios Ltda
Gliese Incorporadora Ltda
Global Park Residencial Empreendimentos Imobiliari
Goiania Empreendimentos Imobiliarios Ltda
Gv 10 Empreendimentos Imobiliarios Ltda
Rua Do Orfanato Empreendimentos Imobiliarios Spe L
Jardim America Incorporadora Spe Ltda
Jardim Cedro Do Libano Empreendimentos Imobiliario
Cyte Empreendimentos Imobiliarios Ltda
Lc Empreendimentos Imobiliarios Spe Ltda
Lombok Incorporadora Ltda
Lyon Empreendimentos Imobiliarios Ltda
Mac Cyrela Mafra Empreendimentos Imobiliarios Ltda
Mesopotamia Empreendimentos Imobiliarios Ltda
Nilo Empreendimentos Imobiliarios Ltda
Nova Iguaçu Empreend. Imobil. Ltda.
Concima Empreendimentos e Construções Ltda.
Oaxaca Incorporadora Ltda
Option De Investimentos Imobiliarios Ltda.
Padre Adelino Empreendimentos Imobiliarios S/A
Peru Empreendimentos Imobiliarios Ltda
Petronio Portela Empreend Imobiliarios S/A
Petropolis Empreendimentos Imobiliarios Ltda
Plano & Plano Construcoes E Participacoes Ltda
Plano Seringueira Empreendimentos Imobiliarios Ltd
Praca Oiapoque Empreend Imobil Spe Ltda
Praia Do Forte Empreendimentos Imobiliarios Ltda
Santa Genebra Empreendimentos Imobiliarios S/A
Sao Goncalo Empreendimentos Imobiliarios Ltda
Scp Voluntarios Da Patria
Seller - Consultoria Imobiliaria E Repres. Ltda
Sevilha Empreendimentos Imobiliarios Ltda
Sociedade Residencial Gran Bueno S/A
Spe Goiania Incorporacao 5 S/A
Tal De Investimento Imobiliario Ltda.
Tal Empreendimentos Imobiliarios Ltda
Tal Portfolio Investimentos E Participacoes Ltda
Torres Vedras Empreendimentos Imobiliarios Ltda
Tunisia Empreendimentos Imobiliarios Ltda
Unique De Investimentos Imobiliarios Ltda
Vereda Paraiso Empreendimentos Imobiliarios Ltda
Viana Do Castelo Empreendimentos Imobiliarios Ltda
Vila Maria Empreendimentos Imobiliarios Spe Ltda
Balance on
December 31
2006
Capital
subscription
(reduction)
14,941
3,498
530
2,719
51,368
23,524
124
12,940
43,194
21,413
13,976
4,615
11
199
13,007
742
23,229
1,202
19,551
10,188
1,500
271
1,333
631
13,510
2,701
1
59,440
1,926
4
975
7,542
218
653
1,462
5,217
1,217
2,994
33,471
2,578
1,378
4,728
1,371
323
9,865
1,181
30,962
10,643
32,086
3,052
29
950
8,780
20,979
1,311
(4,084)
2,235
1,769
97
133
10,218
5,260
5
2,823
(1,201)
42,061
11
2,204
(271)
2,417
1,226
3,988
1,480
6,027
15,341
6,148
20
27,571
500
1
(1)
7,290
22,825
(1,925)
(975)
1
31,167
(218)
140
5
(1,462)
1
1,490
1,970
450
1,549
2,004
5
(2,579)
1,040
2,014
(1,371)
(323)
Dividends
(1,905)
(5,429)
355
93
(5,632)
426
(3,704)
-
Equity
accounting
1,723
(193)
(1,259)
1,258
1,738
8,436
6,560
(10)
(94)
(1,114)
26,894
(1,143)
(41)
3,046
1,142
(524)
(140)
(7)
(5)
8,555
17
9,491
(8)
(1,882)
572
(8)
(74)
1,459
(694)
2,986
(454)
1,645
121
(950)
1,160
608
(3)
(73)
(190)
(22)
(1)
(15)
52,966
673
(4,323)
(327)
(5)
298
2,762
93
937
35
12,123
(26)
(49)
952
81
-
Other
(1,459)
(1)
(673)
(1)
(81)
-
Balance on
December 31
2007
26,529
988
33,201
1,788
15,100
91,890
33,136
19
980
20,606
91,067
168
17,288
15,117
3,377
1,245
4,572
4
327
31,780
759
37,980
(3)
2,823
1
59,730
5,331
1,503
2,130
1,723
4,212
3,534
2,978
2,232
5,077
30,011
6,756
17
30,199
(190)
478
7,275
135,586
4
1
34,386
466
7,005
5,949
450
1,642
2,941
3,122
39,962
5
(1)
1,014
3,769
1,976
-
29/86
Controlled companies under common control
Plano Amoreira Empreendimentos Imobiliarios Spe Lt
Cyrela Mac Everest Empreendimentos Imobiliarios Sp
Cyrsa S/A
Mac Dinamarca Empreendimentos Imobiliarios Ltda
Mac Espanha Empr.Imob.Ltda.
Mac Portugal Empr.Imob.Ltda.
Rummaala S/A
Balance on
December 31
2006
Capital
subscription
(reduction)
75
95
2,134
3,519
6,112
147
32,955
9,332
1,209
1,337
1,897
2,652
2,971
959
35,496
3,019
1,140
4,270
3,302
3,537
1,678
-
174
(294)
5,154
1,121
863
1,630
5,972
410
724
11,592
5,302
737
4,299
442
1,440
21,082
1
3
371
54
1,080
10,761
1,755
1,991
2,336
1,549
742
1,200
Dividends
(1,485)
(3,312)
(4,438)
(3,415)
(356)
(3,335)
(568)
(2,859)
(1,120)
-
Equity
accounting
18
253
(521)
(43)
155
(247)
(206)
(872)
(183)
3,916
652
(1,099)
509
194
4,578
84
(290)
1,416
1,789
(7,963)
1,754
254
3,925
2,440
(1)
(107)
123
17,549
699
1,358
202
(1)
(818)
(284)
Other
(410)
-
Balance on
December 31
2007
192
(41)
4,633
1,153
1,113
3,517
(206)
5,100
1,851
6,716
1,523
27,418
6,426
11,592
1,047
11,217
1,981
2,362
1,052
2,526
(7,963)
6,053
1,087
1,440
57,644
1
3
5,459
370
1,087
1,203
32,580
2,881
6,650
3,871
2,336
1,548
(76)
916
Total equity accounting method
1,424,368
642,261
(169,525)
401,694
(230,412)
2,068,394
Total investments
1,466,030
-
651,813
(170,902)
401,694
(127,666)
2,220,977
(124)
(2,151)
(782)
(359)
(112)
(18)
(129)
(139)
(3,814)
653
11,321
4,119
1,889
1,984
717
3,352
12,932
5,433
14,659
57,059
Goodwill to amortize
Canindé de Investimentos Imobiliários Ltda
Cyrela RJZ Empreendimentos Imobiliários Ltda
Option de Investimentos Imobiliários Ltda
CZ6 Empreendimentos Comerciais Ltda
Lao Empreendimentos Imobiliários Ltda
Agra Empreendimentos Imobiliários S.A
Sociedade Residencial Gran Bueno S.A
SLK Empreendimento Imobiliário SPE Ltda
Calafate Investimentos Imobiliários Ltda
Cury Construtora e Incorporadora S.A
Cyrela Estoril Empreendimentos Imobiliários Ltda
777
13,472
4,901
2,248
1,757
16,077
12,932
52,164
339
(16,077)
735
3,481
5,572
14,659
8,709
-
-
Total changes in 2007
1,518,194
660,522
(170,902)
401,694
(131,480)
2,278,036
Total changes in 2006
631,270
870,178
(114,732)
277,295
(145,817)
1,518,194
30/86
In the consolidated of December 31, 2007 the amount of R$1,919 is added to the
goodwill to amortize, coming from the controlled companies Cury Construtora e
Incorporadora S/A and Mac Empreendimentos Imobiliários S/A. In the consolidated
of December 31, 2006 the amount of R$15,695 is added to the goodwill to
amortize, coming from Fundo ABC Plaza, fully transferred upon the partial spin-off
of the Company (Note 1(b)) due to the partial spin-off of the Company for
constitution of CCP.
(i) Proportional Consolidation - Instruction CVM no. 247/96;
(ii) Controlled company the direct and indirect interest of which is higher
than 50%.
a)
It contains a capital gain resulting from the public issuance of shares occurred in
the investee (Note 1);
b)
Write-off upon the ratification of the spin-off occurred on April 11, 2007 (Note 1).
31/86
(c)
The main information on indirect investments of the parent company is summarized
as follows:
Total interest - %
2007
Controlled companies
Abdo Empreendimentos Imobiliarios Ltda
Adiel Empreendimentos Imobiliarios Ltda
Australia Empreeendimentos Imobiliarios Ltda
Betabens Administracao De Bens Ltda
Boa Vista Empreendimentos Imobiliarios Spe Ltda
Cananeia Empreendimentos Imobiliarios Ltda
Concima Participacoes Ltda
Cyrela Investimento E Participacoes Ltda
Cyrela Rjz Gulf Empreendimentos Imobiliarios Ltda
Cyrela Somerset De Investimentos Imobiliarios Ltda
Cyte Magik Empreendimentos Imobiliarios Ltda
Estrada Rodrigues Caldas Empreend Imobiliarios Spe
Fomento Empreendimentos Imobiliarios Ltda
Funchal Empreendimentos Imobiliarios Ltda
Garibaldi Empreendimentos Imobiliarios Ltda
Global Park Residencial Empreendimentos Imobiliari
Himalaia Empreendimentos Imobiliarios Ltda
Jaguariuna Empreendimentos Imobiliarios Ltda
Living Empreendimentos Imobiliarios Ltda
Londrina Empreendimentos Imobilliarios Ltda
Miralta Empreendimento Imobiliario Spe Ltda
Monte Alegre Empreendimentos Imobiliarios Ltda
Nepal Empreendimentos Imobiliarios Ltda
North Place Empreendimentos Imobiliarios Ltda
Peniche Empreendimentos Imobiliarios Ltda
Plano Araucaria Empreendimentos Imobiliarios Ltda
Plano Aroeira Empreendimentos Imobiliarios Ltda
Plano Cambara Empreendimentos Imobiliarios Ltda
Plano Castanheira Empreendimentos Imobiliarios Ltd
Plano Cedro Empreendimentos Imobiliarios Ltda
Plano Cerejeiras Empreendimentos Imobiliarios Ltda
Plano Figueira Empreendimentos Imobiliarios Ltda
Plano Flambouyant Empreendimentos Imobiliarios Ltd
Plano Guapira Empreendimentos Imobiliarios Ltda
Plano Ipe Empreendimentos Imobiliarios Ltda
Plano Jacaranda Empreendimentos Imobiliarios Ltda
Plano Jatoba Empreendimentos Imobiliarios Ltda
Plano Macieira Empreendimentos Imobiliarios Ltda
Plano Manaca Empreendimentos Imobiliarios Ltda
Plano Mangueira Empreendimentos Imobiliarios Ltda
99.97
99.97
68.00
79.99
79.99
79.99
99.97
99.97
99.97
99.97
99.97
79.99
99.97
77.88
82.79
60.00
69.99
95.48
74.99
99.97
79.99
99.97
99.97
99.98
99.97
51.35
99.97
59.99
57.06
79.99
78.97
78.97
78.97
78.97
78.97
78.97
78.97
78.97
78.97
78.97
78.97
78.97
78.97
78.97
78.97
2006
99.99
73.97
82.80
99.99
57.06
78.98
-
2007
652
25,853
1,004
357
720
4
(1)
(1)
(125)
48,742
12,153
61,355
8,785
1,488
49
2
8,662
237
611
56,216
1
4,793
5
8
3,531
(60)
6,977
3,956
1
16
1,616
95
3,826
2,675
1
316
1,880
2,493
11
1
1,074
2006
63,508
2,158
40,389
3
2,079
1,000
-
Net profit (loss)
for the year
2007
(2)
(310)
5,964
(51)
(13)
(1)
(1)
(1)
(125)
3,906
5,905
21,837
(311)
(17)
(1)
(3)
(394)
(37)
(5)
10,323
(1)
690
(1)
(1)
28
(70)
944
(125)
(11)
(87)
(19)
402
(63)
(70)
(115)
(445)
(2)
(7)
2006
5,878
(85)
16,922
(2)
4
-
32/86
Total interest-%
2007
Net profit (loss)
for the year
2006
2007
2006
2007
Controlled companies
Plano Mogno Empreendimentos Imobiliarios Ltda
Plano Paineira Empreendimentos Imobiliarios Ltda
Plano Palmeiras Empreendimentos Imobiliarios Ltda
Plano Pitangueiras Empreend Imobiliarios Ltda
Plano Seringueira Empreendimentos Imobiliarios Ltd
Teresopolis Empreendimentos Imobiliarios Ltda
Torres Vedras Empreendimentos Imobiliarios Ltda
Toulon Empreendimentos Imobiliarios Ltda
Vero Campo Belo Empreend. Imobil. Spe Ltda
Vero Sta Isabel Empreend. Imobil. Spe Ltda
Viana Do Castelo Empreendimentos Imobiliarios Ltda
Vinhedo Empreendimentos Imobiliarios Ltda
Vix One Empreend. Imobiliarios Spe Ltda
Vix One Empreendimentos Imobiliarios Spe Ltda
78.97
78.97
78.97
78.97
78.97
79.99
79.99
99.97
50.02
71.10
69.99
79.99
65.00
64.99
50.02
71.10
65.00
1
1
699
934
2,003
266
13,654
68
1,548
2,026
12,192
12,065
3,248
9,477
699
497
7,758
Controlled companies under common control
Alexandria Empreendimentos Imobiliarios Ltda
Aspen Desenvolvimento Urbano Spe Ltda
Augusto De Miranda Empreendimentos Imobiliarios Sp
Autentico Vila Carrao Empreend Imobil Spe Ltda
Brigadeiro Galvao Empreendimentos Imobiliarios Spe
Caiobas Empreend. Imobiliarios Spe Ltda
Caiobas Empreendimentos Imobiliarios Spe Ltda
Capri Incorporadora Spe Ltda
Cedro Consultoria Imobiliaria Ltda
Chamomix Desenvolvimento Urbano Spe Ltda
Cubatao Empreendimentos Imobiliarios Ltda
Cyrela Milao Empreendimentos Imobiliarios S/A
Cyrela Tennessee Empreendimentos Imobiliarios S.A
D Empreendimentos E Participacoes Ltda
Dalia Empreendimentos Imobiliarios Ltda
Europa Brasil Empreendimento Imobiliario Spe Ltda
Fabia Empreendimentos Imobiliarios Spe Ltda
Farroupilha Empreendimentos Imobiliarios S/A
Galeria Boulevard Desenvolvimento Imobiliario S/A
Galeria Boulevard Negocios Imobiliarios S/A
Gcm Empreendimentos Imobiliarios Ltda
Girassol - Vila Madalena Empreend Imobil S/A
Jardim Real Empreendimentos Imobiliarios Ltda
Klabin Segall Cyrela Rjz Empreendimento Imobiliari
Mac Brasil Empreendimentos Imobiliarios Ltda
Mac Franca Empreendimentos Imobiliarios Ltda
Mac Grecia Empreendimentos Imobiliarios Ltda
Mac Holanda Empreendimentos Imobilairios Ltda
Mac Irlanda Empreendimentos Imobiliarios Ltda
Mac Japao Empreendimentos Imobiliarios Ltda
Mac Mexico Empreendimentos Imobiliarios Ltda
Mac Monaco Empreendimentos Imobiliarios Ltda
Mac Venezuela Empreendimentos Imobiliarios Ltda
Madagascar Incorporadora Ltda
Madison Propriedades Imobiliarias Ltda
Mckinley Desenvolvimento Urbano Spe Ltda
Merito Empreendimentos Imobiliarios Spe Ltda
Mestre Alvaro Empreendimentos Imobiliarios Ltda
Mont Blanc Desenvolvimento Urbano Spe Ltda
Nova Delhi Incorporadora Spe Ltda
Np Empreendimentos Imobiliarios Ltda
Prime Planejamento Imobiliario Ltda
Provincia Incorporadora Ltda
Quality Mac Belgica Empreendimentos Imobiliarios L
Residencial Sao Conrado Empreendimentos Imobiliari
Salmiana Empreendimentos S/A
Salto Empreendimentos Imobiliarios Spe Ltda
Scp Classic/Galli
Svr Empreendimentos Imobiliarios Ltda
Topazio Brasil Empreendimento Imobiliario Spe Ltda
Urimonduba Empreendimentos Imobiliarios Spe Ltda
Viena Incorporadora Spe Ltda
49.99
47.50
49.99
49.99
49.94
49.99
49.99
50.00
50.00
38.00
49.99
41.53
48.67
48.67
48.67
35.05
48.62
49.99
49.99
32.50
49.99
48.62
48.62
24.99
25.00
49.99
48.67
49.94
49.94
49.94
49.94
49.94
49.94
49.94
49.94
49.94
50.00
49.99
47.50
49.99
49.99
38.00
49.99
34.95
49.99
49.99
49.99
50.00
24.97
48.67
24.99
49.99
49.99
47.81
24.99
49.95
49.99
49.99
49.99
47.50
50.00
41.56
43.23
69.34
35.14
48.62
48.62
37.93
34.96
46.23
47.82
-
(48)
(384)
1,906
5,207
3,550
15,140
(36)
(37)
3,440
40,456
34,477
(6)
13,395
6,149
(189)
2,271
6,700
24,692
4,570
3,548
9,589
54
2,296
93
15
3,523
4,730
1
10
283
401
5,910
2,920
11,917
(407)
11,973
4,183
2,548
210
2,722
18,902
13,180
(393)
7,540
46,190
1,116
(14,733)
(708)
148
3,762
4
932
3,006
24,402
25,885
(2)
11,427
(1,985)
4,265
(432)
12,018
24,129
-
2006
-
(6)
(85)
(353)
(99)
3,289
(8)
679
(344)
3,661
2,609
3,305
(15)
(48)
(124)
(384)
128
(927)
1,041
(58)
(44)
(59)
(37)
2,633
13,249
9,845
(4)
(137)
970
(189)
825
(239)
22,644
1,229
3,547
6,523
(1)
(4)
(4)
(1)
(2)
(29)
(1)
(2)
(11)
(90)
1,694
1,605
(253)
(546)
293
3,282
1,605
2,148
(3)
(35)
4,617
8,779
(393)
(134)
21,522
16
(14,734)
(708)
(37)
(109)
(88)
(271)
(3)
(1)
64
3,721
11,369
(6,435)
(7)
65
(4,091)
293
110
2,146
11,067
-
33/86
(d)
The total balances of the equity accounts and the taxable income of the controlled
companies under common control, both directly and indirectly, considered in the
consolidated financial statements as of December 31, 2007 and 2006,
proportionately to the interest held, may be summarized as follows:
December 31, 2007
Cyrsa S/A
Assets
Interest
-%
49.99
23.99
50.00
47.50
49.99
49.99
50.00
49.94
50.00
49.99
49.99
24.00
50.00
50.00
50.00
38.00
49.99
50.00
46.49
41.53
36.67
48.67
48.67
50.00
50.00
32.41
48.67
50.00
35.05
48.62
49.99
49.99
32.50
49.99
49.44
48.62
48.62
24.99
25.00
49.99
49.99
48.67
37.93
38.50
39.97
50.00
50.00
49.94
49.97
49.97
Current
2,959
3,830
28,253
1,774
1,664
513
5,720
239
6,484
8,323
3,258
16,642
1
3,995
192
5,758
7,294
9,063
15,889
9,513
35,980
46,529
18,271
80,521
1
9,316
7,545
74
(11,659)
8,007
(248)
26,567
25,846
8,941
5,240
66,630
3,991
16,932
3,979
8,594
24,800
10,435
6
11,577
34,117
4,483
Non-current
70
1,980
8,812
8,845
1,521
12,401
3,537
8,049
15,267
45,094
2,974
27,126
6,529
20,228
1,628
6,025
3,572
17,054
12,111
1,352
962
8,257
5,362
6,733
2,080
3
16,464
9,195
Permanent
7
30
38,233
712
8
3
11,932
-
Total
2,959
3,900
28,253
1,774
3,651
9,325
5,720
9,084
8,005
8,323
15,659
16,642
31
3,995
38,425
9,295
15,343
24,330
60,983
12,487
63,106
53,058
38,499
82,861
1
15,341
11,117
74
5,395
8,007
11,863
26,567
27,198
9,911
5,243
86,819
3,991
22,294
10,712
10,674
24,803
10,435
16,470
11,577
34,117
13,678
34/86
December 31, 2007
Rummaala S/A
Scp Classic/Galli
Assets
Interest
-%
49.95
49.95
49.94
49.94
49.94
49.94
49.95
49.94
49.94
49.94
49.95
49.94
50.00
49.99
30.00
47.50
49.99
49.99
38.00
50.00
49.99
50.00
34.95
49.99
40.00
49.99
50.00
49.99
50.00
24.97
38.62
48.89
29.98
48.67
50.00
24.99
49.99
49.99
50.00
47.81
50.00
29.99
24.99
50.00
49.95
49.99
49.99
49.99
Current
68,224
9,491
2,297
93
15
13,265
5,618
9,306
1
10
37,037
284
401
118
45,116
1,215
6,103
16
10,925
1,226
3,942
6,086
5,986
6,245
92,464
11,437
210
3,290
5,123
12,397
25,305
21,832
50,232
17,903
4,043
7,544
4,762
32,128
106
5,360
4,578
2,973
15,328
12,444
1,128
4,413
Non-current
13,080
8,415
5,926
3,082
1,241
3,654
2,120
7,619
6,683
2,113
19,120
3,023
6,216
5,317
11,250
9,557
1,241
3,210
32,811
29
622
4,924
-
Permanent
153,330
2
1,933
15
-
Total
234,634
9,491
2,297
93
15
13,265
5,618
9,306
1
10
37,037
284
401
118
53,531
7,141
9,185
1,257
14,581
3,346
11,561
12,769
8,099
6,245
111,584
14,460
210
3,290
11,339
17,714
36,555
31,389
51,473
17,903
4,043
7,544
4,762
35,338
34,850
5,389
5,215
2,973
20,252
12,444
1,128
4,413
35/86
December 31, 2007
Cyrsa S/A
Liabilities
Interest
-%
49.99
23.99
50.00
47.50
49.99
49.99
50.00
49.94
50.00
49.99
49.99
24.00
50.00
50.00
50.00
38.00
49.99
50.00
46.49
41.53
36.67
48.67
48.67
50.00
50.00
32.41
48.67
50.00
35.05
48.62
49.99
49.99
32.50
49.99
49.44
48.62
48.62
24.99
25.00
49.99
49.99
48.67
37.93
38.50
39.97
50.00
50.00
49.94
49.97
49.97
Current
502
2,896
5,288
2,158
174
5
513
6,778
570
3,563
591
1,502
67
2
25,862
800
11,480
1,075
3,762
6,043
7,472
20,491
2,610
2,748
7
1,856
174
144
3,012
1,295
7,675
1,263
20,797
2,692
158
18,380
3,149
12,337
969
958
13,576
264
16,052
11,523
2,429
3,388
Non-current
2,505
201
23,047
1,571
54
3,885
127
8,034
4,030
2,364
1,090
423
863
16,765
3,397
799
425
1,412
56,929
90
4,794
119
112
12
612
1,831
3,671
46,002
842
368
195
3,581
703
5,119
16,345
1,418
4,852
Shareholders'
Equity
(48)
803
(82)
(384)
1,906
9,266
5,207
2,306
3,550
4,633
7,034
15,140
(36)
(37)
10,199
7,405
3,440
22,392
40,456
3,047
54,835
32,142
34,477
23,184
(6)
13,395
6,149
(189)
2,271
6,700
4,188
24,692
4,570
3,548
5,085
22,437
9,589
9,548
6,135
10,524
5,052
(15,927)
54
30,270
5,438
Total
2,959
3,900
28,253
1,774
3,651
9,325
5,720
9,084
8,005
8,323
15,659
16,642
31
3,995
38,425
9,295
15,343
24,330
60,983
12,487
63,106
53,058
38,499
82,861
1
15,341
11,117
74
5,395
8,007
11,863
26,567
27,198
9,911
5,243
86,819
3,991
22,294
10,712
10,674
24,803
10,435
16,470
11,577
34,117
13,678
36/86
December 31, 2007
Rummaala S/A
Scp Classic/Galli
Liabilities
Interest
-%
49.95
49.95
49.94
49.94
49.94
49.94
49.95
49.94
49.94
49.94
49.95
49.94
50.00
49.99
30.00
47.50
49.99
49.99
38.00
50.00
49.99
50.00
34.95
49.99
40.00
49.99
50.00
49.99
50.00
24.97
38.62
48.89
29.98
48.67
50.00
24.99
49.99
49.99
50.00
47.81
50.00
29.99
24.99
50.00
49.95
49.99
49.99
49.99
Current
7,003
788
1
9,742
3,509
4,576
4,588
1
42,872
1,038
2,653
515
2,544
1,161
11,828
458
2,219
413
37,776
3,638
568
2,249
909
4,846
2,325
5,164
4,314
4,436
4
1,290
(12,773)
35,001
2,336
2,009
2
18,640
13,152
30
646
Non-current
100,009
2,339
322
118
(7,536)
193
3,612
120
10
140
338
2,873
1,649
8,645
8,274
88
176
5,898
10,162
22,953
409
376
1,921
2,090
3,027
16,345
950
5
Shareholders'
Equity
127,622
8,703
2,296
93
15
3,523
(230)
4,730
1
10
32,127
283
401
18,195
5,910
2,920
742
11,917
2,175
(407)
11,973
3,007
4,183
65,163
2,548
210
2,722
9,002
16,629
25,811
18,902
23,356
13,180
(393)
7,540
3,096
46,190
(151)
3,053
1,116
(56)
(14,733)
(708)
148
3,762
Total
234,634
9,491
2,297
93
15
13,265
5,618
9,306
1
10
37,037
284
401
118
53,531
7,141
9,185
1,257
14,581
3,346
11,561
12,769
8,099
6,245
111,584
14,460
210
3,290
11,339
17,714
36,555
31,389
51,473
17,903
4,043
7,544
4,762
35,338
34,850
5,389
5,215
2,973
20,252
12,444
1,128
4,413
37/86
December 31, 2007
Augusto De Miranda Empreendimentos Imobiliarios
Cyrsa S/A
Taxable Income
Interest
-%
49.99
23.99
50.00
47.50
49.99
49.99
50.00
49.94
50.00
49.99
49.99
24.00
50.00
50.00
50.00
38.00
49.99
50.00
46.49
41.53
36.67
48.67
48.67
50.00
50.00
32.41
48.67
50.00
35.05
48.62
49.99
49.99
32.50
49.99
49.44
48.62
48.62
24.99
25.00
49.99
49.99
48.67
37.93
38.50
39.97
50.00
50.00
49.94
49.97
49.97
Net
income
(13)
15,364
2,592
5,850
1,731
3,936
5
14,728
29,568
39,603
11,207
2,614
2,626
24,754
106
4,465
5,822
1,027
24,406
10,066
10,964
29,731
14,069
8,121
2,966
29,678
9,751
41,363
9,582
Costs
(15)
(10,455)
(123)
(1,659)
(3,467)
(799)
(2,619)
(10,930)
(13,312)
(23,329)
(8,200)
(73)
(7)
(12,905)
(333)
(3,012)
(2,902)
(217)
(754)
(7,633)
(6,612)
(20,346)
(6,364)
(6,409)
(2,319)
(22,261)
(3,814)
(24,931)
(6,119)
Operating
expenses
(45)
(9)
(1,353)
(1)
(373)
(719)
(334)
(919)
(87)
(1,073)
(96)
(87)
(29)
(44)
(59)
(34)
(2,551)
(187)
(476)
(1,335)
(1,256)
(1,305)
(4,497)
(9)
(1,381)
(4)
(15)
(322)
(189)
(1,821)
(59)
(7)
(211)
(1,247)
(445)
(75)
(8,109)
(818)
(547)
(514)
(1,124)
(1,756)
(44)
(1)
(5,850)
(2,011)
Financial
income
(3)
164
(57)
(1)
(11)
(7)
(74)
(8)
2
(48)
(135)
(378)
(29)
(5)
(1,706)
(284)
(173)
(574)
(297)
6
55
(5)
271
170
(19)
(1)
(110)
(180)
(1)
(48)
1,221
(42)
(12)
(22)
89
(369)
214
(258)
(309)
(1,107)
(366)
437
Other
income and
expenses
3
960
5
3
9
15
18
78
(20)
8,317
(14,775)
19
-
Income tax and
social contribution current and deferred
(50)
(2,993)
(79)
(1)
(220)
(56)
(29)
(1)
(123)
(272)
(516)
(1,294)
(1,481)
(403)
(314)
(60)
(911)
(64)
(142)
(165)
(24)
(749)
(1,256)
(299)
(415)
(454)
(390)
(1,100)
(958)
(294)
(1,296)
(620)
Total
(48)
77
506
(125)
(384)
128
(408)
(927)
(86)
1,042
645
(494)
(58)
(44)
(59)
(37)
(2,103)
(733)
2,633
13,056
13,249
1,305
(2,200)
2,545
9,846
(4)
(136)
970
(190)
824
(239)
778
22,644
1,229
3,546
(87)
9,156
6,522
406
(753)
5,077
3,578
(15,926)
(1)
8,939
1,269
38/86
December 31, 2007
Rummaala S/A
Scp Classic/Galli
Taxable Income
Interest
-%
49.95
49.95
49.94
49.94
49.94
49.94
49.95
49.94
49.94
49.94
49.95
49.94
50.00
49.99
30.00
47.50
49.99
49.99
38.00
50.00
49.99
50.00
34.95
49.99
40.00
49.99
50.00
49.99
50.00
24.97
38.62
48.89
29.98
48.67
50.00
24.99
49.99
49.99
50.00
47.81
50.00
29.99
24.99
50.00
49.95
49.99
49.99
49.99
Net
income
12,168
19,179
6,674
9,147
3,910
226
11,515
8,824
5,257
104,505
14,252
9,441
11,670
39,674
17,881
12,902
35,582
4,417
1,555
4,230
-
Costs
(1)
(7,956)
(10,829)
(94)
(3,988)
(6,173)
(2,775)
(9)
(7,273)
(5,675)
(3,284)
(61,235)
(10,335)
(6,859)
(6,090)
(25,532)
(11,427)
(2,932)
(10,940)
(2,407)
(1,033)
(3,261)
-
Operating
expenses
(2,469)
(1,267)
(3)
(3)
(1)
(1)
(170)
(28)
(1)
(2)
(2,121)
(11)
(5)
(1)
(751)
(1,061)
(252)
(1)
(1,520)
(212)
(21)
(572)
(1,694)
(177)
(4,416)
(1,412)
(3)
(34)
(450)
(1,959)
(10,864)
(627)
(199)
(377)
(113)
(1,412)
(1,276)
(2,788)
(458)
(55)
(15,333)
(621)
(36)
(30)
Financial
income
(2,775)
(13)
(1)
(1)
(50)
(1)
(22)
427
(33)
(21)
(1)
(1)
(38)
(2)
156
(26)
(872)
(37)
(415)
24
(1)
930
109
(347)
(316)
(579)
(21)
(21)
(2)
122
(794)
(24)
(11)
(1)
(283)
(88)
(79)
Other
income and
expenses
13,934
10
4
2
(4)
7
435
1
-
Income tax and
(383)
(650)
(209)
(287)
(124)
(60)
(363)
(276)
(154)
(3,343)
(377)
(879)
(333)
(1,584)
(893)
(414)
(2)
(1,831)
(144)
(37)
(87)
-
Total
8,689
(1,280)
(4)
(3)
(1)
(2)
(220)
(29)
(1)
(2)
1,686
(11)
8,132
(91)
1,693
1,605
(253)
(2)
(547)
(214)
292
3,281
307
1,605
35,098
2,148
(3)
(35)
2,183
3,397
1,347
4,618
8,778
(393)
(134)
(2)
21,521
(1,635)
(946)
16
(56)
(14,734)
(708)
(36)
(109)
39/86
Assets
2006
Interest
-%
Agra Cyrela SPE Ltda.
46.45
Agra Empreendimento Imobiliário S.A
42.14
Araguaia Empreendimentos Imobiliários Ltda
19.60
Araucária Incorporadora Ltda.
24.50
Arizona Investimento Imobiliário Ltda.
50.00
Aroaba Empreendimentos Imobiliários Ltda.
29.40
Aspen Desenvolvimento Urbano SPE Ltda.
47.50
Astroméria Incorporadora Ltda
25.48
Buganvília Incorporadora Ltda
48.99
C.E.A Empreendimentos Imobiliários Ltda (anteriormente: Cyrela Algarve)
50.00
Caiobas Empreendimentos Imobiliários Ltda
50.00
Calêndula Desenvolvimento Imobiliário S.A
24.00
Camargo Corrêa Cyrela Empreendimentos Imobiliários Ltda.
50.00
Chamonix Desenvolvimento Urbano SPE Ltda
38.00
Ciclame Incorporadora Ltda
25.48
Condessa Empreendimentos Imobiliários Ltda
19.60
Cyrela Évora Empreendimentos Imobiliários Ltda
50.00
Cyrela Gafisa SPE Ltda.
46.50
Cyrela Mac Everest Empreendimentos Imobiliários Ltda.
41.56
Cyrela Magik Tecnisa Empreendimentos Imobiliários Ltda.
36.67
Cyrela Milão Empreendimentos Imobiliários S.A.
46.23
Cyrela Tecnisa de Investimento Imobiliário Ltda.
50.00
Cyrela Tecnisa Klabin Segall Empreendimentos Imobiliários SPE
32.42
D Empreendimentos e Participações Ltda.
35.14
Dália Empreendimentos Imobiliários Ltda.
48.62
Estela Borges Empreendimentos Imobiliários Ltda.
50.00
Forest Hill de Investimentos Imobiliários Ltda.
49.44
Fundo Brasílio Machado de Investimento Imobiliário
50.00
Fundo de Investimento Imobiliário Centro Têxtil Internacional
49.23
Galeria Boulevard Negócios Imobiliários S.A.
48.62
Gerbera Incorporadora Ltda
24.50
Goldztein Cyrela Empreendimentos Imobiliários Ltda
50.00
Heliconia Incorporadora Ltda.
24.50
Housing 3 Empreendimentos Imobiliários Ltda
24.50
Imperatriz Leopoldina Empreendimentos Imobiliários Ltda
29.40
Jacarandá Incorporadora Ltda.
15.68
Jardim das Vertentes Incorporadora SPE Ltda.
44.70
Kaiapo Empreendimentos Imobiliários Ltda.
19.60
Kamayura Empreendimentos Imobiliários Ltda.
19.60
Kantarure Empreendimentos Imobiliários Ltda.
17.15
Klabin Segall Cyrela RJZ Empreendimento Imobiliário SPE Ltda.
37.93
Klabin Segall Cyrela SPE Ltda.
37.93
Klabin Segall Vergueiro Empreendimentos Imobiliários SPE Ltda.
38.50
Laguna Incorporadora SPE Ltda.
17.15
Lao Empreendimentos Imobiliários Ltda.
40.00
LC Empreendimentos Imobiliários SPE Ltda. (anteriormente Cyrela Estoril)
50.00
Leituga Incorporadora SPE Ltda.
48.99
Lisianthus Incorporadora SPE Ltda.
19.60
50.00
MAC Cyrela Itália Empreendimentos Imobiliários Ltda. (anteriormente Cyrela Itália)
50.00
Mac Empreendimentos Imobiliários S.A.
50.00
Current
23,838
400,419
4,911
1,172
14,137
9,165
123
4,338
8,440
8,827
1,009
5,858
12,419
59
8,271
8,428
127,522
7,809
7,789
25,500
10,707
45,033
36,717
9,370
2,593
9,697
811
2,367
50,921
131
11,743
4,616
6,031
1,564
15,478
1,966
8,886
9,918
4,955
9,513
14,512
8,072
13,870
6,070
27,492
4,549
2,554
32,481
14,963
918
Non-current
5,000
25,010
101
18
7,628
694
7,303
16,566
29,442
17,479
3,210
2,342
1,525
2,654
5,768
3,098
1,913
6,265
250
13,743
Permanent
1
7,468
82
12,058
40,405
38
358
82
58,515
Total
28,839
432,897
4,911
1,172
14,137
9,165
123
4,338
8,440
8,928
1,027
5,858
12,419
59
8,271
8,428
127,522
15,437
8,483
32,803
27,273
74,475
54,196
12,580
2,593
12,121
12,869
42,772
52,446
131
11,781
4,616
6,031
1,564
15,478
1,966
8,886
9,918
4,955
12,525
20,280
11,170
13,952
7,983
33,757
4,549
2,554
32,481
15,213
73,176
40/86
Assets
Mac Espanha
Magnum Investimentos Imobiliários Ltda.
Maria Max Kibara
Matheus Leão Empreendimentos Imobiliários Ltda
Mickinley Desenvolvimento Urbano SPE Ltda.
Mont Blanc Desenvolvimento Urbano SPE Ltda.
Munduruku Empreendimentos Imobiliários Ltda.
Nova Guilherme Empreendimentos Imobiliários SPE Ltda.
NP Empreendimentos Imobiliários Ltda.
Padre Adelino Empreendimentos Imobiliários Ltda
Pereira Barreto Empreendimentos Imobiliários SPE Ltda. (Cyrela Roma)
Petro Portela Empreendimentos Imobiliários Ltda
Plarcon Cyrela Empreendimentos Imobiliários SPE Ltda. (anteriormente Cyrela França)
Poli Investimentos Imobiliários Ltda
Queiroz Galvão Cyrela Empreendimento Imobiliário S.A.
Queiroz Galvão Cyrela Oklahoma Empreendimento Imobiliário
Queiroz Galvão Mac Cyrela Veneza Empreendimentos Imobiliários S.A.
Residencial São Conrado Empreendimentos Imobiliários SPE
Santa Genebra Empreendimentos Imobiliários Ltda
SCP - Broz Realty
SCP - Cyrela Classic e Cesário Galli
Tapirape Empreendimentos Imobiliários Ltda
Tulipa Incorporadora Ltda
Waura Empreendimentos Imobiliários Ltda
2006
Interest
-%
50.00
50.00
50.00
30.00
17.15
24.50
47.50
38.00
17.15
50.00
34.96
50.00
34.30
50.00
50.00
19.60
38.62
48.90
30.00
46.23
50.00
19.00
47.82
15.68
24.50
19.60
Current
14,963
918
6,052
39,392
2,959
3,775
98
225
7,751
2,866
4,030
7,298
14,476
2,094
25,943
14,859
4,778
9,536
16,790
12,298
5,577
4,051
21,040
8,002
183
4,550
Non-current
250
13,743
18,840
730
485
7,188
6
4
1,869
7,496
20
1
4,356
-
Permanent
58,515
1
2
-
Total
15,213
73,176
6,052
58,232
2,959
3,775
98
226
8,483
3,351
11,218
7,304
14,476
2,098
27,812
14,859
12,274
9,536
16,810
12,299
5,577
4,051
25,396
8,002
183
4,550
41/86
Liabilities and shareholders' equity
C.E.A Empreendimentos Imobiliários Ltda (anteriormente: Cyrela Algarve)
Cyrela Tecnisa Klabin Segall Empreendimentos Imobiliários SPE
LC Empreendimentos Imobiliários SPE Ltda. (anteriormente Cyrela Estoril)
2006
Interest
-%
46.45
42.14
19.60
24.50
50.00
29.40
47.50
25.48
48.99
50.00
50.00
24.00
50.00
38.00
25.48
19.60
50.00
46.50
41.56
36.67
46.23
50.00
32.42
35.14
48.62
50.00
49.44
50.00
49.23
48.62
24.50
50.00
24.50
24.50
29.40
15.68
44.70
19.60
19.60
17.15
37.93
37.93
38.50
17.15
40.00
50.00
48.99
19.60
50.00
Current
16,027
183,740
13
712
142
198
119
4,247
40
8,779
95
2,812
3,623
52
8,015
1,488
43,450
924
5,313
4,926
2,118
8,112
6,672
2
1,111
190
7,287
168
257
53,301
2,367
1,910
110
252
7,312
1,392
1,852
1,941
2,008
1,966
10,752
683
817
407
6,735
22
78
917
Non-current
633
148,334
2,984
14,584
2,427
7,949
2,651
4,529
6,175
80,000
436
164
7,502
753
453
862
42
432
1,130
131
6,741
2,782
5,016
2,971
3,772
7,006
94
6,294
386
3,598
1,891
149
4,280
1,607
128
Shareholders'
equity
12,179
100,823
1,914
460
(589)
6,540
4
91
451
149
932
395
4,267
7
256
765
4,072
14,077
3,006
20,375
24,402
65,910
46,662
(2)
11,427
2,403
4,834
12,701
42,083
(1,985)
2,673
(76)
905
1,312
5,195
574
3,262
971
2,853
4,265
9,142
6,889
11,244
7,427
27,022
247
869
31,436
Total
28,839
432,897
4,911
1,172
14,137
9,165
123
4,338
8,440
8,928
1,027
5,858
12,419
59
8,271
8,428
127,522
15,437
8,483
32,803
27,273
74,475
54,196
12,580
2,593
12,121
12,869
42,772
52,446
131
11,781
4,616
6,031
1,564
15,478
1,966
8,886
9,918
4,955
12,525
20,280
11,170
13,952
7,983
33,757
4,549
2,554
32,481
42/86
Liabilities and shareholders' equity
Mac Espanha
Maria Max Kibara
Nova Guilherme Empreendimentos Imobiliários SPE Ltda.
Pereira Barreto Empreendimentos Imobiliários SPE Ltda. (Cyrela Roma)
Plarcon Cyrela Empreendimentos Imobiliários SPE Ltda. (anteriormente Cyrela França)
Queiroz Galvão Cyrela Empreendimento Imobiliário S.A.
Queiroz Galvão Mac Cyrela Veneza Empreendimentos Imobiliários S.A.
SCP - Broz Realty
W aura Empreendimentos Imobiliários Ltda
2006
Interest
-%
50.00
50.00
50.00
30.00
17.15
24.50
47.50
38.00
17.15
50.00
34.96
50.00
34.30
50.00
50.00
19.60
38.62
48.90
30.00
46.23
50.00
19.00
47.82
15.68
24.50
19.60
Current
7,938
2,183
3,543
31,634
1,103
1,049
90
226
9,126
1,072
11,494
3,453
178
120
17,783
2,966
1,629
694
29
228
2,653
1,800
990
3,945
23
816
Non-current
266
16,536
1,384
2,919
80
156
28
1,488
5,338
327
53
277
1,600
166
3,325
Shareholders'
equity
7,009
70,993
2,509
10,062
472
(193)
8
(723)
2,279
(432)
3,851
14,298
1,950
8,541
6,555
10,318
8,842
16,781
12,018
2,924
2,251
24,129
2,457
(6)
409
Total
15,213
73,176
6,052
58,232
2,959
3,775
98
226
8,483
3,351
11,218
7,304
14,476
2,098
27,812
14,859
12,274
9,536
16,810
12,299
5,577
4,051
25,396
8,002
183
4,550
43/86
Taxable income for the year
2006
Interest
-%
46.45
42.14
19.60
24.50
50.00
29.40
47.50
25.48
48.99
C.E.A Empreendimentos Imobiliários Ltda (ant.Cyrela Algarve)
50.00
50.00
24.00
50.00
38.00
25.48
19.60
50.00
46.50
41.56
36.67
46.23
50.00
Cyrela Tecnisa Klabin Segall Empreendimentos Imobiliários
32.42
35.14
48.62
50.00
49.44
50.00
49.23
48.62
24.50
50.00
24.50
24.50
29.40
15.68
44.70
19.60
19.60
17.15
37.93
37.93
38.50
17.15
40.00
LC Empreendimentos Imobiliários SPE Ltda. (ant. Cyrela Estoril)
50.00
48.99
19.60
50.00
Net
income
18,824
109,126
368
4,348
13,135
31,828
35,658
57,520
29,770
44
774
3,314
4,685
6,735
5,581
8,156
18,949
9,147
14,842
9,712
6,752
4,540
Costs
(14,467)
(70,858)
(268)
(49)
(2,443)
(8,130)
(20,398)
(21,117)
(2,445)
(478)
(15)
(133)
(307)
(992)
(4,744)
(4,085)
(5,594)
(13,214)
(5,234)
(9,305)
(5,655)
(4,396)
(2,759)
Operating
expenses
(2,854)
(16,318)
(33)
(91)
(12)
(1)
(27)
(98)
(36)
(17)
(768)
(848)
(1,429)
(2,111)
(1,525)
(3)
(7)
(39)
(3)
(4)
(475)
(2,735)
(6,259)
(1,940)
(27)
(10)
(9)
(406)
(56)
(20)
(1,802)
(401)
(1,209)
(11)
(426)
(2,602)
(110)
(1,792)
Financial
income
215
(5,484)
(8)
(16)
(556)
(52)
(1)
(1)
(2)
(1)
(375)
(407)
(2)
(3)
207
(23)
51
240
416
4
124
(1)
33
255
(217)
(1)
112
(50)
(4)
(5)
124
(35)
(18)
(7)
(15)
270
(196)
(10)
(2,573)
338
185
(1)
(4)
(26)
Other
income and
expenses
(1,113)
(1)
16
16
8
3
(1)
5
65
1
-
Income tax and
(1,043)
(2,097)
(8)
(99)
(1,098)
(413)
(1,503)
(1,309)
(1,831)
(558)
(48)
(77)
394
(1)
(1)
(737)
(682)
647
(1,891)
(457)
(478)
(140)
Total
675
13,256
(8)
(16)
(589)
(143)
(1)
(13)
(2)
(1)
64
(523)
(505)
(1)
(38)
(20)
262
3,721
8,565
11,369
52,138
28,735
(7)
65
(3)
559
2,565
1,213
(4,091)
(1)
(327)
(77)
(14)
(14)
(283)
(36)
(74)
(7)
(35)
293
4,521
3,341
1,062
3,512
(538)
(1)
(114)
(177)
44/86
Taxable income for the year
2006
Interest
Net
Operating
Financial
-%
income
Costs
expenses
income
50.00
4,540
(2,759)
(1,792)
(26)
MAC Cyrela Itália Empreendimentos Imobiliários Ltda. (anteriormente
50.00
Cyrela
10,608Itália) (6,849)
(1,154)
(13)
50.00
(274)
(5)
Mac Espanha
50.00
30.00
30,565
(19,409)
(165)
(337)
Maria Max Kibara
17.15
(20)
(8)
24.50
(162)
(33)
47.50
38.00
(1)
(1)
17.15
6,318
(3,647)
(2,155)
(28)
Nova Guilherme Empreendimentos Imobiliários SPE Ltda.50.00
(210)
(2)
34.96
131
(178)
161
50.00
(11)
(5)
Pereira Barreto Empreendimentos Imobiliários SPE Ltda. (Cyrela
34.30 Roma) (77)
(89)
50.00
869
(603)
(39)
(62)
Plarcon Cyrela Empreendimentos Imobiliários SPE Ltda. (anteriormente
50.00
12,452
Cyrela França)
(7,205)
(5,254)
(77)
19.60
(16)
(94)
Queiroz Galvão Cyrela Empreendimento Imobiliário S.A. 38.62
6,669
(6,439)
256
991
48.90
(6)
(597)
(718)
364
Queiroz Galvão Mac Cyrela Veneza Empreendimentos Imobiliários
30.00
S.A. (38)
(4)
46.23
8,394
(5,647)
(213)
26
50.00
(43)
(9)
SCP - Broz Realty
19.00
31
(8)
(14)
1
47.82
20,178
(7,634)
(859)
109
15.68
(215)
84
24.50
(6)
(1)
Waura Empreendimentos Imobiliários Ltda
19.60
(13)
(2)
Other
income and
expenses
5,955
19
9
2
-
Income tax and
(140)
(344)
(995)
(1)
(177)
(4)
(1)
(28)
(404)
(668)
(4)
(414)
27
(727)
(56)
-
Total
(177)
2,248
5,676
9,678
(28)
(195)
(1)
(2)
311
(212)
110
(16)
(167)
137
(479)
(110)
809
(959)
(42)
2,146
(52)
37
11,067
(187)
(7)
(15)
Investments abroad
The financial statements of the controlled company Brazil Realty Serviços e
Investimentos Ltda. (with headquarters in the Bahamas), expressed in US dollars,
were converted into Reais by the current rate method, for which the exchange rate
effective as of December 31, 2007 was used - R$1.7705 (R$2.1372 in December
2006).
The accounting statements of the controlled companies under common control
Cyrsa S.A. and Rummala S.A. (headquartered in Argentina), expressed in pesos,
were converted into reais by the current rate method, for which the exchange rate
effective as of December 31, 2007 was used - R$0.562064.
The amounts of exchange variation ascertained in the years were recorded in the
result of the year.
45/86
9.
Fixed assets
Controlling Company
2007
Land (a)
Construction in progress (a)
Buildings (cost) (a)
Accumulated depreciation (a)
Machinery and equipment (cost)
Accumulated depreciation
Furniture and fixtures (cost)
Computers (cost)
Facilities (custo)
Vehicles (cost)
Brands, Patents and Rights
Improvements in third-party properties
Other (cost)
86
545
(177)
1,619
(382)
4,953
(2,245)
2,392
(776)
92
(32)
20
2,256
(406)
7,945
2006
945
1,599
(140)
609
(151)
725
(313)
3,239
(1,393)
1,804
(589)
92
(14)
347
6,760
Consolidated
2007
87
719
(234)
2,392
(927)
6,853
(2,666)
2,554
(821)
636
(572)
268
2,337
(406)
303
10,523
2006
35,842
122,232
(20,461)
915
(204)
1,653
(865)
4,338
(1,784)
2,253
(653)
623
(527)
480
143,842
Annual depreciation
rate - %
1,27 a 4,0
10
10
20
10
20
(a) According to Note 1, the reduction occurred in the period is mainly
dye to the partial spin-off of the Company for constitution of CCP.
10. Deferred charges and Intangible assets
a)
Deferred charges
They refer to expenses with the issuance of debentures to be amortized according
to the maturity term (7 years).
Cost from debenture issue
( - ) Amortization
2007
2,032
(193)
1,839
46/86
b)
Intangible assets:
Annual
Amortization
Rate
%
Costs from projects under development
Costs from software
Controlling Company
2007
2006
20%
20%
106
7,555
7,661
Consolidated
2007
2006
-
106
7,962
8,068
532
532
11. Loans and financings
Equivalent in
Thousands of US Dollars
Controlling Company
2007
Loans - foreign currency
-
Loans - national currency
1,654
Financing - national currency
Consolidated
2006
2007
65
Consolidated
2006
2007
2006
14,170
17,104
8,000
88,097
12,752
-
8,000
-
-
-
139,828
-
201,739
94,225
Interest to be paid - national currency
918
-
1,002
338
-
-
Interest to be paid - foreign currency
-
-
281
310
159
298
305,289
124,729
8,159
8,298
(65)
(76,762)
(57,236)
-
228,527
67,493
142,400
Current liabilities
(5,376)
137,024
65
The loans made in foreign currency, in the total amount equivalent to US$8,000
thousand are subject to LIBOR variation rate and interest of 2.75% per year; all of
them increased by exchange variation and maturity date in March 2008, for which
the warrant is the guarantee from the controlling shareholder.
The financings made in national currency are subject to interest rates ranging from
10.5% to 12% per year, increased by the variation of the Referential Rate - TR. As
a warrant for the aforementioned financings the guarantees from the controlling
shareholder, a mortgage and collateral for accounts receivable were offered.
The agreements of real estate credit operations have advance maturity clauses in
the case of the non-compliance with commitments assumed, such as the
investment of resources in the purpose of the agreement, mortgage registration of
the project, compliance with the schedule of works and others. The commitments
assumed have been complied with by the Company in the terms contracted.
47/86
The guarantees to the loans and financings by the controlling shareholder totaled
R$14,452 in 2007 (R$17,414 in 2006) and the mortgages and surety of accounts
receivable of projects totaled R$125,474 in 2007 (R$72,430 in 2006).
Long-term amounts have the following composition, as per maturity year:
Year
2008 (Oct to Dec/08)
2009
2010
2011
2012
2013
Total
Controlling Company
2007
2006
Consolidated
2007
2006
48,326
46,605
30,010
10,949
1,134
-
132,614
49,245
32,656
12,878
1,134
55,531
11,423
384
155
-
137,024
-
228,527
67,493
12. Debentures
On April 1, 2007 the amount of R$500,000 was issued in simple debentures, not
convertible into shares, in a single tranche, registered and book-entry, of the
unsecured type, with real or floating guarantee.
The maturity term of the debentures is seven (7) years counted from the date of
their issuance, and their amortization is annually in three (3) annual, equal and
consecutive installments as of April 1, 2012 with final maturity on April 1, 2014.
The debentures are not subject to early redemptions at the discretion of the Issuer,
except, however, the right of the Issuer to acquire at any time outstanding
debentures, in compliance with the legislation in force.
The charges of the debentures correspond to one hundred percent (100%) of the
accumulated variation of the daily average rates of one-day interbank deposits
daily disclosed by CETIP, plus a spread of 0.48% per annum, on the nominal unit
value not yet amortized, paid semiannually, with the first maturity on October 1,
2007. The interest is appropriated “pro-rata temporis” of the issuance date until the
payment date and amounts to R$13,510 on December 31, 2007, stated in the
same item.
48/86
Contractual clauses (Covenants)
The private instrument of deed of the issuance of debentures has restrictive
clauses establishing maximum indebtedness and leverage levels, as well as
minimum levels of coverage of installments to mature and costs to incur. In
addition to these financial commitments, there are other commitments assumed,
such as:
Non-renewal of authorizations and licenses, including environmental ones;
Transformation into a limited company;
Non-compliance with judicial decisions made final and unnappealable;
Reduction of the capital stock not for the absorption of losses;
Transfer or assignment of shareholding; and
Changes in the corporate structure, such as mergers, spin-offs and
incorporations in transactions which cede 10% of the shareholders’ equity.
These contractual clauses were totally complied with in the year ended December
31, 2007.
The expenses with the issuance of debentures totaled R$2,032, out of which
R$1,839 is presented in the assets to be amortized in the result according to the
term of the debêntures:
Debentures (maturing in 2014)
Interest on debentures
Controlling Company
Consolidated
2007
2007
500,000
500,000
13,510
13,510
513,510
513,510
13. Related parties
(a)
Loan operations
The balances of loan operations maintained with related parties do not have a
previously established maturity date and are not subject to financial charges,
except those entered into with the Joint Ventures; the one maintained with the
company Brazil Realty Serviços e Investimentos Ltda., in the amount equivalent to
US$180 thousand, is subject to exchange variation.
49/86
The balances in the financial statements of the controlling company and the
consolidated ones are presented as follows:
C o n t ro l li n g C o m pa n y
A s s e ts
2 007
C o n s o li da te d
Li a b i li ti e s
2 006
2 007
A sset s
2006
2 007
L ia b il it ie s
20 06
2007
200 6
U n it ho l de r s , s h a r e h o l d e rs a n d
a dm i ni s tr a ti n g p a rt n e r s
C o nt ro llin g partn er
Othe r pa rt ners and a dm inistrat o rs – ind iv id uals
116
913
-
2,381
2,827
15,602
3 ,2 27
3,28 0
1,20 5
-
2,56 7
2 0,394
11,561
2,217
4,948
2 3 ,2 2 1
3,396
2 , 118
-
2 7 ,16 3
5 ,4 4 4
3,32 6
3,56 2
6,888
J o in t -V e n tur e s
Go ld szt ein P articipa çõ es S .A
2,58 4
M a c Em pre end im en to s Im o biliário s S.A
47
887
-
-
5,056
-
-
-
165
29 4
-
-
-
-
P la no & P la no C o nst ruçõ e s e P art icipaçõ es
-
-
-
-
-
-
2 ,0 80
SKR Enge nharia Lt da
-
-
-
-
1,167
-
1,16 1
-
-
-
-
7,005
664
-
-
887
16 5
294
13 ,2 2 8
664
3,241
-
-
2 ,0 96
4,32 2
Tecn um & C o rpo rat e Em preen dime nto s Im o b iliário s L td a
3,80 3
6,434
Ot h e r p a r tne rs a n d s ha r e h o ld e rs :
A bya ra P lane ja m ent o Im o b iliário S.A
-
A gra Inc o rp o ra do ra Lt da
-
A lf a R ealt y Em preen dime nt o s Im o b iliário Lt da
B ert o lleti P lanejam e nto e D e senv o lv im e nto Im o biliá rio Lt da
332
-
-
6
19,330
-
-
-
32,845
25,307
332
-
-
433
-
-
315
5 08
-
82
-
-
-
293
-
2 29
B ras can Im o biliá ria Lt da
-
-
-
-
32
-
4 95
-
B ricke ll Em preen dime nt o s e P articipaç õ es Lt da
-
-
-
-
-
2 11
1,0 58
3,98 6
B ueno N e tt o Gest ão Imo biliária Ltd a
-
-
-
-
759
-
B ullish P a rt ic ip açõ e s Lt da
-
-
-
-
-
875
-
-
C açap ava Em p ree it ad a
-
-
-
-
1,981
-
3 09
-
C andide Ind úst ria e C o m ércio Lt da
-
-
-
-
1,301
-
-
-
C D C EM P R EEN D IM EN TOS E P A R TIC IP A C OES L TD A
-
-
-
-
-
-
83 1
-
C IP A SA VOTOR A N T IM EM P R EEN D IM B ILIA R IOS S/ A
3 11
-
-
-
3 11
-
-
-
-
-
-
-
-
C ON ST R UT OR A M A R QUIS E S /A
Elw in g Em pre end im en to s Im o biliário s Lt da
EN GELUX C OM ER C IA L E C ON ST R UT OR A LT D A
Fal 2 Inc o rp o ra do ra Lt da (ii)
3,66 0
-
4,89 8
-
-
5,633
-
263
5 ,101
-
-
-
-
-
-
-
-
379
378
-
1,99 3
-
-
-
-
-
2,032
-
-
Fund o d e In ves tim ent o P act ual
-
-
35
35
-
875
-
-
170
170
-
-
218
131
57 1
13 7
5
-
-
-
5,753
2,373
7
30 0
1,89 8
Go ld fa rb Inco rpo raç õ es e C o n struçõ es Lt da
In co rtel Inco rpo raçõ es H o t eleiras L tda
379
-
-
1,105
Fig ueira In co rpo rado ra Lt da
Giro np ark d o B ras il Em preen dime nto s Im o b iliário s L td a
379
758
-
-
-
1,981
Kla bin Sega ll S.A
-
-
-
-
472
934
-
-
Ko em a Em preen dim ent o s e P articipaç õ es Lt da
-
-
-
-
600
-
-
-
M a gik Em pre end im en to s Im o biliário s Lt da
M A C Inve stim en to s e P a rt ic ip açõ e s Ltd a
M M D EM P R EEN D IM EN T OS E P A R T IC IP A ÇÕES LTD A
M o rar C o nst ru to ra e Inco rpo rad o ra Lt da .
15,689
367
3,08 2
-
1,7 75
-
-
-
19,506
-
1,7 96
-
-
-
-
11,368
3,610
5 ,2 03
-
-
-
-
927
-
-
-
-
-
-
380
-
6 24
-
M V1 Em preend im e nto s Im o b iliário s L tda
-
541
-
-
-
541
-
-
M VL E mp re endim en to s Im o biliá rio s Lt da
82
-
-
-
293
-
2 29
-
-
-
-
-
1,779
-
-
-
N am o ur Inc o rp o ra çõ es e C o nst ruç ão Lt da
50/86
C o n t r o lli n g C o m p a n y
A ssets
20 0 7
C o n s o lid a t e d
L ia b ilit ie s
2 00 6
2 0 07
-
-
-
4,227
-
-
-
125
-
-
-
1,483
-
1,035
-
Orbx Inc orpo rado ra S/A
-
-
-
-
1,999
-
-
-
P ho ení c ia B razil S.A
-
-
-
-
1,075
535
-
-
P larc o n Engenharia S.A
-
2,726
-
-
2,513
14,738
-
-
2,641
-
-
2,091
2,641
300
-
-
-
47
1,546
1,050
-
Om ega SPE Em preendimento s Im o biliário s S/ A
Quas ar Inv es tim ento s Imo biliário s Ltda
2,091
R eal St ate D ev elo pm ent Ltda
20 0 7
19
-
2 00 6
2 00 7
L ia b i lit ie s
-
Oaxac a Inc o rpo rado ra
20 0 6
A ssets
2006
R o s s i R es idenc ial S.A
-
-
-
-
899
358
5,170
-
São J o s é C o ns truç õ es e C o m érc io Ltda
14
14
-
-
14
-
3,189
-
Sarac ura Inv es tim ento s Imo biliario s
-
-
-
-
6,162
-
-
-
SC P - B ALN EA R IO D O SOL
-
-
-
-
435
-
-
-
Setin Em preendim ento s Im o biliário s Ltda.
-
-
-
-
1,382
-
1,224
-
SM C o nstruç õ es e C o m érc io Ltda
-
-
-
-
1,242
2,442
-
-
SUR IN A M E EM P R EEN DIM EN T O S IM OB ILIA R IOS LT DA 545
-
-
-
778
-
-
-
T ec c o T ec no lo gia e C o ns truç ão Lt da
1,809
-
-
-
3,073
-
1,374
-
T ec nis a Engenharia e C om érc io Ltda
1,019
-
8,138
9,922
1,752
-
-
-
-
5,041
3,645
T ec nis a S.A
-
1,019
-
1,749
-
T P R Em preendim ento s e P artic ipaç õ es Ltda
-
-
-
-
599
130
-
-
Viv enda No bre Inc o rpo rado ra Ltda
-
-
-
-
2,499
1,759
-
-
919
-
-
-
8,224
436
2,402
-
1,416
636
-
-
13,999
2,344
1,705
263
36 ,5 2 6
1,7 8 4
35
Viv er Em preendim ento s Im o biliário s Ltda
D em ais
30 ,9 3 2
13 6,2 6 5
7 6 ,6 8 3
3 5 ,8 7 5
14 ,6 46
C o n t r o lle d a n d a f f il iat e d c o m p a n ie s :
A B C II de Inv es tim ento s Im o biliário s Ltda.
-
A B C R ealty de Inv es tim ento s Im o biliários Ltda
4
A gra C yrela SP E Ltda.
-
A gra Em preendim ento s Imo biliário s S.A
-
A LEXA N DR IA EM P R EEN D IM EN T OS IM OB ILIA R IOS
A rizo na Em preendim ent os Im o biliário s Ltda
10,701
34
438
438
-
-
-
-
4
1,519
307
-
-
-
-
-
1,326
1,326
12,018
8,133
-
-
-
-
-
-
33,072
-
-
-
-
-
2,505
-
-
-
-
-
10,698
-
-
-
B razil R ealty Serv iç o s e Inv es tim ento s Ltd.
-
-
331
385
-
-
-
-
B R C P artic ipaç ão e A dminis t raç ão Ltda.
91
396
427
427
-
-
-
-
2,724
2,926
-
-
-
-
-
-
-
-
-
-
C .E.A . Empreendim ento s Im o biliário s Ltda
C alafat e Inv es tim ento s Imo biliario s Ltda
8,117
C anindé de Inv es tim ento s Im o biliário s Ltda
-
C arc av elos Em preendim ento s Im o biliários Ltda
-
C A R LO S GO M ES EM P REEN D IM EN T OS IM OB ILIA R IO
-
C o untry de Inv es tim ento s Im o biliário s Lt da.
C ybra de Inv es tim ento Imo biliário Ltda.
C yrela A mazo nas Em preendim ento s
-
-
-
-
-
-
2,911
-
6,109
-
-
-
-
-
8,315
-
-
-
6,050
1,766
990
1,435
-
-
-
-
5,056
5,056
11,094
6,382
-
-
C yrela A ndrade M endo nça Em preendim ento s Im o biliários Ltda-
-
C yrela B rac y de Inv es tim ento s Im o biliários Ltda.
C yrela C hile Em preend. Imo bil. Ltda.
C yrela C las s ic de Inv es t iment o Im o biliário SP E Ltda.
C yrela C om erc ial Im o biliária Ltda.
C yrela C ons t ruto ra Ltda.
-
1,941
-
C yrela A veiro Em preendiment o s Im o biliário s Ltda
-
9,041
7,967
-
488
488
-
-
1,538
-
5,901
1,399
1,399
5
5
477
477
-
-
-
-
-
-
-
-
-
855
-
1,538
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
596
809
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
C yrela D inâm ic a de Inv estim ento s Im o biliário s Ltda.
-
C yrela Elwing Em preendiment o s Im o biliário s Ltda.
-
-
1,323
C yrela Empreendim ento Im o b. C o m erc ial Im po rt. Expo rt. Ltda. -
-
16,179
16,180
-
-
-
C yrela Everes t Em preendim ento s Im o biliário s Ltda.
-
283
78
-
-
-
-
-
-
-
-
-
-
1
-
-
-
2,530
1,430
-
C yrela F ranç a Em preend Im o b Ltda.
1,488
-
-
C yrela G renwo o d de Inv estim ento s Im o biliário s Ltda
5,245
-
12
3,750
-
-
-
-
4
-
606
-
-
-
-
61
856
-
-
-
-
C yrela Im obiliária Ltda.
C yrela Inves tim ent o s e Partic ipaç õ es Ltda.
352
352
51/86
C o n t ro l lin g C o m p a n y
A s s et s
2007
C yrela Leiria Em preendim ento s Im o biliário s Ltda
20,504
C yrela M ô nac o Em preend. Im o bil. Ltda.
C yrela M o nza Em preendim ento s Im obiliário s Ltda.
C yrela P araná Em preendim ento s Im obiliário s Ltda
405
C yrela P artic ipaç õ es Em preendim ento s Im o biliário s Lt da.
C yrela P o m péia Em preend. Im o bil. Ltda.
2,665
C yrela R J Z Em preendim ent o s Im o biliário s Lt da.
9,714
C yrela Sans et de Inv estim ento Im o biliário SP E Lt da.
766
C yrela Sergipe Em preendim ento s
C yrela Sintra Em preendim ento s Im o biliário s Ltda
C yrela So m ers et de Inv es tim ento s Imo biliário SP E Ltda
66
C yrela T ec nis a de Inv es tim ento s Im obiliário s Lt
C yrela T ec nis a Klabin Segall Em preendim ento s Im o biliário s Ltda.
C yrela T ennes s ee Empreendim ento s Im o biliário s Ltda
C yrela Verm o nt de Inves tim ento s Im obiliário s Ltda.
C yrela Vero na Em preendim ento s Im obiliário s Ltda
1,661
C Z 6 Empreendim entos Im o biliário s Ltda
1,294
Expand de Inv es tim ento s Im o biliário s Ltda.
95,292
F if ty de Inv es t im ent o Im o biliário Ltda.
5,054
F o res t H ill
GV10 Em preendim ent os Im o biliário s Ltda
2,513
Im perial Em preendim ent o s Im o biliários SP E Lt da.
1,145
Klabin Segall C yrela SPE Ltda.
Lo rena Em preendim ento s Im o biliários Ltda
LOR ENA EM P R EEN DIM EN T OS IM OB ILIA R IOS SP E LT2,626
DA
Luc io Brazil R eal Es tate S/A
M A C Co ns t ruto ra S.A
M ac Cyrela Em preendim ent o s Im o biliário s Lt da
M ac Cyrela Itália Em preendim ent o s Imo biliário s Lt da
M ac No ruega Em preendim ento s Im obiliário s Ltda.
M agnum Inv es t im entos Im o biliário s Ltda.
1,533
N am o ur Inc o rpo raç õ es e C o ns truç ões Ltda
N o v a Guilherm e Em preendim ento s Imo biliário s Ltda
251
P EN ICH E EM P R EEND IM EN T OS IM OB ILIA R IOS LT D A
P henix Em preendim ento s P artic ipaç ões e N egó c io s Ltda
P lano & P lano C o ns t r. e P art ic ip. Ltda.
1,179
Seller Co ns t ruto ra Im obiliária e R epres entaç õ es Lt da
145
SK R EALT Y EM P R EEN D IM EN T OS IM OB ILIA R IOS LT D A T al de Inv es tim ento s Im o biliário s Ltda.
T al Empreendim ent o s Im o biliário s Ltda.
T eres ópo lis Em preend. Im o bil. Lt da.
402
T OULON EM P R EEN DIM EN T OS IM OB ILIA R IOS LTD A 5,591
2
Unique de Inv es tim ento s
Vereda P araís o Em preendim ento s Imo biliário s Ltda.
2,480
Ot her
19 3 , 3 7 6
2 3 4 ,13 8
(b)
C o n s o l ida t e d
L ia b ilit i e s
2006
405
9,714
502
66
558
1,661
1,294
60,206
5,054
1,391
770
3,051
1,711
140
145
890
2007
120
7,225
423
10
12,583
2,480
9,230
53,705
1,997
1,757
623
3,327
100
146
2,121
573
344
2,928
4,723
398
A s s e ts
2006
678
2,480
815
1,892
3,190
623
2,367
100
146
483
344
2,551
386
2007
12 6 , 6 6 7
16 6 , 3 4 8
5 2 ,0 0 2
2,513
16,169
1,965
7,257
9 1,5 3 5
16 6 , 19 8
16 8 , 2 9 7
5 7 ,2 7 9
2 7 5 , 6 17
L ia b il it i e s
2006
236
2,455
1,391
770
1,894
2,980
9 ,7 2 6
117 , 8 4 6
2007
13,207
8,224
8,955
3 1, 2 4 1
8 1,0 0 4
20 0 6
31
1,711
140
1, 8 8 2
23 , 4 16
Operations
The operations maintained with related parties mainly correspond to the services
that involve business strategy and viability, as well as technical responsibility of
projects and the control of all of the contractors and specialized labor. The values
and the means of hiring of the aforementioned services correspond to the
conditions practiced by companies that perform in the real estate market.
52/86
In 2007 the revenues earned by the Company in the provision of these services to
the controlled companies totaled R$7,259 and the values contracted from third
parties may be presented as follows:
C o ns olidate d
Cos ts
2007
A lagoa s A s s es soria e Cons ultor ia S/C Ltda.
19 0
DA A T Engenheiros A s soc iados S /C Ltda.
-
RJ Ec o nomis tas A s s oc iados S/C Ltda.
Caç ap av a Empreita da de Lavor S /C Ltda.
(c)
Exp e ns e s
2006
2 007
33
-
128
2006
-
1,515
898
-
-
1,433
898
38,51 0
17, 076
1,177
191
38,70 0
17, 109
4,253
1,987
Operational agreement
On April 11, 2007 an operational agreement was entered into with CCP which has
as purpose to set forth the conditions for the provision of administrative and
marketing services to CCP. The revenue earned by the Company in the provision
of these services in 2007 amounts to R$30 per month.
Additionally, the Operating Agreement sets forth rules of non-mutual
competitiveness by the term of 5 years, which prevents CCP from operating in the
development of residential projects and the Company from operating in the
development of commercial and industrial projects. Both parties may not compete
among themselves, separately or jointly with other companies of the real estate
sector, or by means of any strategic alliance or other form of direct or indirect
association with companies of the real estate sector or business partners or any
third parties, being impeded from entering into any agreement or contract which
may be interpreted as identical or similar to the Operational Agreement, and
assuming, directly or indirectly, any activity that may be interpreted as competitor
with activities of a work. The parties also agree not to practice any act that may be
interpreted as unfair competition, as established by article 195 of Law n. 9.279/96,
which regulates the rights and obligations related to the industrial property.
The Operational Agreement also provides for that the commercial real estate
transferred to CCP due to the partial spin-off of the Company (Note 1), and which
was overtaxed by the Company will be replaced by the Company during the
duration term of the instrument, term in which CCP will provide the registration of
this properties in its name.
53/86
14. Current account with venture partners
The existing balances with the companies are related to the following projects:
Co n tr o llin g C o m p an y
2 007
2006
Pr o j e ct co n s o r tia
Bota f ogo Long Stay
Caes ar Bus ines s B otaf ogo
Chat eau de Toc que v ille
Chat eau Du Parc
Flore s do Campo
Habitat Cambuí
Ic oar ana
Ipiran ga Premium
Lago a Priv ilege
Perd iz es Priv ilege
Perd iz es Projec t
Piaz z a Dell Sport
Plac e de La Conc or de
Plac e de Magnólia
Plac e V endome
Ros s i/Country
V ere da Paraís o
Oth e r p r o je cts
A Re s erv a
A lameda Morumbi
Cent ral Park Prime
Dominio Marajoara
Horiz ontes Cidade Univ ers itária
Paulis tânia Bos que Res idenc ial
V ara nda Pompéia
V ent ura
V illa Lobos Of f ic e Park
V iv a
Bota f ogo Spaz io
Chác ara dos Pás s a ros
Chat eau de Belc as tel
Circ u lar do Bos que
Cent ral Park
Cont emporâneo
Faria Lima Square
Hípic a Boulev ard
Humanari
On T he Park
Parq ue A lf redo V olpi
The City
V illag e Brooklin Tow nhous e
Walk V ila Nov a
Outr os
(1,493)
1,542
(605)
25
(84)
(1,255)
2,617
(833)
974
(400)
(195)
(1,114)
(821)
Bala n ce p r e s e n te d in liab ilitie s
(3,032)
112
683
(87)
139
(1,944)
102
(4,161)
(161)
(445)
(5,840)
(1,139)
(1,215)
1,106
(15,882)
(248)
483
1,454
282
(1,752)
212
(3,804)
(82)
(348)
(6,090)
170
(2,071)
1,106
(4,311)
(14,999)
(349)
(349)
(35)
-
(117)
(341)
(1,033)
(726)
(838)
-
-
-
(832)
(122)
(788)
(411)
2,990
1,010
(553)
3,321
3,890
4,398
74
(269)
3,315
2,707
7,058
1,641
(673)
3,150
1,958
(1,961)
6,305
(803)
3,890
(2,620)
(1,101)
4,298
2,058
489
(482)
807
(136)
69
5,946
(2,318)
831
5,949
(1,141)
4,228
14,721
23,614
14,641
(1,241)
13,404
(1,595)
( 13,034)
(3,911)
(25,531)
(23,132)
21,831
27,525
24,290
21,537
8,797
23,614
(1,241)
(1,595)
9,618
8,797
Bala n ce p r e s e n te d in as s e ts
5,284
2,324
(547)
345
2,146
(874)
965
(614)
1,623
117
(124)
(1,752)
8,893
Co n s o lid ate d
2007
2006
54/86
The Company participates in the development of real estate projects along with
other partners, both directly or by means of related parties, through ownership or
through the formation of consortia. The administrative structure of such projects
and the cash management are centralized at the leading company of the project,
which supervises the development of the works and the budgets. Thus, the
project’s leader ensures that the application of necessary resources is made and
allocated in accordance with the planning. The project’s source and application of
funds (changes in financial position) are reflected in those balances by observing
the respective percentage of interest held, which are not subject to financial
updating or charges and do not have a previously established maturity date.
The average term for development and finalization of the projects in which the
resources are applied is 3 years, always based on the projects and physicalfinancial schedules of each work. That form of allocating resources allows the
conditions negotiated with each partner and in each project to be concentrated in
specific structures that are more appropriate for their characteristics.
15. Income from sales of real estate to be appropriated and
advances from clients
As mentioned in Note 2(c), as from 2004 the Company and its controlled
companies have adopted the procedures and standards established by Resolution
CFC no. 963 for accounting recognition of the income earned from real estate
operations. Consequently, the balances of the costs budgeted related to the units
sold and the income from sales of real estate to be appropriated, stemming from
projects made effective in 2004, are not reflected in the financial statements.
a)
Income from sales of real estate to be appropriated
Co ntr o llin g Co m pany
2007
2006
Cons o lidate d
2007
2006
Projec ts made ef fective as from 2004
(not reflected in the f inancial statements)
Inc ome f rom s ales to be appropriated
Cos ts of units sold to be appropriated
Selling ex pens es to be appropria ted
1,306
(910)
10,804
(5,796)
3,201,994
(1,918,951)
267
(310)
(60,775)
663
4,698
1,222,268
1,577,513
(923,655)
(36,756)
617,102
55/86
b)
Provision for budgeted costs to be paid
Con tro lling Co m pany
2007
2006
Projects made eff ec tiv e as from 2004
(not ref lected in the financ ial statements)
Current
Long-term
c)
910
910
5,734
62
5,796
Cons olidate d
2007
2006
848,346
1,070,605
1,918,951
469,432
454,223
923,655
Advances from clients
Contr o lling Co m pany
2007
V alues rec eived f or the s ales of projec ts
the inc orporation of w hic h has not y et oc c urred
Units s old of projec ts made ef f ec tiv e
as f rom 2004
A ppropriated inc ome
Income rec eiv ed
859
(8,957)
8,957
859
2006
799
(4,089)
4,089
799
Cons o lidate d
2007
29,996
(2,955,552)
3,013,435
57,883
87,879
2006
28,868
(1,464,089)
1,519,209
55,120
83,988
16. Advances and accounts payable due to real estate
acquisition
(a)
Advances due to real estate acquisition – long-term assets
The R$40,001 balance corresponds to advances granted to the company from
which the land was acquired, so that certain improvements may be made to the
land, as established in the agreement. The advances are subject to updating
based on the variation of the Civil Construction National Index (INCC), increased
by interest of 12% per year. The interest matures every month and the principal
will be received at the time the purchase of the land is settled, which will occur
through the participation in the sales of the project to be implemented.
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(b)
Accounts payable due to real estate acquisition - current and long-term
liabilities
Investments have been made in acquiring new plots of land, with the purpose of
launching new projects by the companies, alone or with the participation of third
parties, generating commitments, represented by credits and exchanges for future
units of real estate projects, which had the following maturity schedule which may
be stated as follows, per maturity year:
C o n tr o llin g C o m p an y
Ye ar
200 7
2006
C o n s o lid a te d
200 7
2008
-
-
2009
9, 050
-
246 ,318
14,380
2010
884
-
136 ,299
13,189
2011
-
-
91 ,674
-
2012
-
-
43 ,806
-
2013
-
-
31 ,309
-
2014
-
-
22 ,663
-
2015
-
-
20 ,133
-
2016
-
-
3 ,506
-
9, 934
-
595 ,708
L o n g - te r m in s tallm e n t :
Sh o r t-te r m in s tallm e n t :
T o t al:
In s t allm e n t o f Exch an g e s
-
2006
72,870
100,439
8, 011
1,244
405 ,020
250,119
17, 945
1,244
1,000 ,728
350,558
9, 934
-
512 ,284
-
The accounts payable are substantially updated by the variation of the Civil
Construction National Index (INCC) or by the variation of the General Market Price
Index (IGP-M).
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17. Taxes payable and labor proceedings
They are substantially represented by taxes the liability of which is being
questioned in court, as follows:
Con tr olling Com pany
2007
2006
Con s olidate d
2007
2006
Ex tens ion of the tax bas es regardin g the
Employ ees ’ Prof it Par ticipation Prog ram (PIS)
and the Tax f or Soc ia l Sec urity Fina nc ing
(COFINS)
3,519
3,384
6,250
3,6 89
-
-
9,669
14,4 99
COFINS and Social Contribution on
Net Pro f it (CSLL) lev y f or c ompanie s
w ithou t employ ees (a )
Tax atio n, through inc ome tax and
throug h s ocial c ontrib ution tax on y ields
made a v ailable abroa d
Labor Proc eedigns
-
-
3,519
3,384
109
3,628
3,384
8,935
8,5 80
24,854
26,7 68
1,404
26,258
26,7 68
(a) The reduction occurred in the period is mainly due to the partial spinoff of the Company (Note 1), where some investees were no longer
in the consolidated of 2007 of the Company.
18. Tax operations - income tax, social contribution, PIS and
COFINS
The deferred income tax, social contribution, PIS and COFINS are recorded to
reflect the fiscal effects resulting from the temporary difference between the fiscal
base, which basically determines the moment of the collection, according to the
receipt (Normative Instruction SRF no. 84/79) and the effective appropriation of the
real estate profit (see Note 2g), in conformity with the Resolution no. 963/03 of the
Federal Accounting Council (CFC).
The effective collection of these taxes occurs in a term equivalent to the receipt of
the sales installments, whose maximum term reaches until 2027 (see Note 5).
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(a)
The Company and its controlled companies have the following balances to be
compensated, deducted or increased to the tax basis of the future taxable profit to
be calculated based on taxable income. In addition, certain controlled companies
have differences that will be levied in future years, stemming from profit in real
estate activities taxed on a cash basis and the amount recorded by the accrual
basis, considering the taxation by presumed profit as indicated below:
Controlling Co m pa ny
2007
20 06
(i) Cr edits t o b e com pe ns a te d - tax able in com e
Ta x lo sses to be c ompensa ted w ith fu tu re taxa ble in come - IRPJ
Ne gative so cial contr ib utio n tax bas is to be
co mpen sated w ith f uture ta xab le inc ome - CS LL
Temporar ily n on de duc tible ex pen ses - IRPJ
Temporar ily n on de duc tible ex pen ses - CSLL
(ii) Liabilit ie s t o be ta xe d - t axable inco m e
Dif fe ren ce betw ee n th e pr ofit f rom rea l e sta te a ctiv ities lev ie d
on a ca sh ba sis and the v alue re corde d o n th e acc rua l basis
Temporar ily n on de duc tible inco me - IRPJ an d CSLL
Un re aliz ed prof it( disco unt) a mortized
Taxa ble income f ro m r ea l es ta te e xpr opr iatio n
(iii) L ia bilitie s to be t ax e d - pre s um ed pro fit
Dif fe ren ce betw ee n th e pr ofit f rom rea l e sta te a ctiv ities lev ie d
on a ca sh ba sis and the v alue re corde d o n th e acc rua l basis
Income ta x basis
Soc ia l c ontribution b asis
Cons o lidat ed
2 007
2 006
17 9,8 05
7 0,754
1 83,87 5
153 ,8 81
18 3,4 82
2 5,4 76
1 8,6 69
7 4,279
4 4,530
1 9,054
1 85,47 8
31,04 1
18,66 9
157 ,4 07
59 ,3 93
33 ,9 18
(1 6,0 98)
(1 3,268 )
( 49,63 8)
( 118 ,6 26)
(7 1,6 89)
-
(7 1,689 )
-
( 71,68 9)
( 28,86 1)
( 71 ,6 89)
( 35 ,3 55)
-
-
( 98,00 6)
(1 44,93 3)
( 44 ,0 82)
( 64 ,3 09)
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Due to the aforementioned tax credits and liabilities, the corresponding tax effects
have been recorded (deferred income tax and social contribution), as follows:
Contr olling Com pa ny
2007
20 06
Cons olidate d
2007
200 6
Long-te r m ass e t s
Ta x los ses an d n egative CSLL tax bas is
12 ,7 86
11,824
16,063
-
-
1,517
779
12 ,7 86
11,824
17,580
3 2,399
(5 ,4 75)
( 4,512)
(16,875)
(4 0,332)
-
-
(39,065)
(2 2,281)
Unr ealized p rof it (d is count) amo rtized
(24 ,3 74)
( 24,374)
(24,374)
(2 4,374)
Income f ro m r eal estate expr opr ia tion
-
-
(9,813)
(1 0,187)
(29 ,8 49)
( 28,886)
(90,127)
(9 7,174)
(17 ,0 63)
( 17,062)
(72,548)
(6 4,775)
Diff er ence o f pro fit in re al es tate activities - pres umed pr ofit
Curre nt and long-t e rm liabilit ies
Diff er ence o f pro fit in re al es tate activities - tax able in come
Diff er ence o f pro fit in re al es tate activities - pres umed pr ofit
In come tax and so cial co ntribution net v alue
3 1,620
Por tion ab sor bed by de velopment and a lter atio ns in inter est held
in co ntrolled comp anies
-
785
1,574
Cred it (De bit) in the in come tax and social co ntribution res ult
-
785
(10,721)
2,969
(1 7,148)
Considering the current context of the operations of the parent company, which
substantially constitutes itself of interest held in other companies, the tax credit on
the total balance accumulated regarding tax losses and negative calculation bases
of social contribution has not been constituted; neither has it been constituted on
the balance of the temporarily non-deductible expenses in determining taxable
income, which are substantially represented by taxes the liability of which is being
questioned in court, whose deductibility is conditional to the transit in rem judicatam
of the legal proceeding in progress, within a non-predictable term. Moreover,
certain controlled companies have tax losses and negative calculation bases of
social contribution basis whose realization or recovery is uncertain, consequently,
the corresponding tax credit is not recorded.
The tax losses and negative calculation bases of social contribution to be
compensated with future taxable income do not have prescriptive terms and their
compensation is limited to 30% of the taxable income ascertained for each future
base period.
The taxation of the difference between the profit calculated on a cash basis, and
the one calculated in compliance with the accrual basis, occurs within the average
term of 5 years, considering the term for receiving the sales performed and the
completion of the corresponding works.
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Income tax and social contribution levied on unrealized profits, stemming from the
amortization of the net negative goodwill calculated per controlled company will be
realized at the time of disposal or extinction of the corresponding investees, without
any forecast of whether and when they will occur.
The deferred PIS and COFINS in the consolidated, in the amount of R$48,522 in
2007 and R$27,156 in 2006, calculated on the difference between the revenue tax
by the cash basis and the amount recorded by the accrual basis, are recorded in
the item “Taxes and contributions payable”, in the current liabilities.
(b)
Accounting period
The companies adopt, as allowed by the tax legislation in force, the cash basis for
calculating the taxable income on real estate development and the taxable income
is then calculated according to that system, used in determining taxable income.
Income tax and social contribution charges may be summarized as follows:
A s c ertainmen t method
Tax able inc ome
In c ome tax
S oc ial c ontr ibution tax
RET
In c ome tax
Pre s umed pro f it
In c ome tax
Tot al inc ome t ax and s oc ial c ontribu tion tax ch arges
2007
20 06
4,644
1,707
6,351
8,562
3,123
1 1,685
1,297
678
1,975
-
24,430
12,233
36,663
1 9,981
9,194
2 9,175
44,989
4 0,860
Income tax and social contribution owed on taxable income as well as PIS and
COFINS, of the parent company and its controlled companies, were calculated
according to the criteria mentioned in Note 2(c).
The amounts of PIS and COFINS, recorded in the Company’s consolidated result,
totaled R$20,834 in 2007 and R$5,125 in 2006.
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19. Shareholders’ equity
(a)
Capital stock
The capital stock on December 31, 2007, its movement and the corresponding
quantity of common shares may be shown as follows:
Sh ar e s
A s o f De c e mb e r 3 1 , 2 0 0 5
In c r e a s e d u e t o me r g e r ( i )
In c r e a s e d u e t o s u b s c r ip tio n ( ii)
C a p it a l
1 4 8 ,7 1 2 ,0 3 7
8 1 9 ,0 4 5
3 ,8 2 0 ,4 0 2
2 4 ,7 0 0 ,0 0 0
3 3 ,8 3 2
7 2 8 ,6 5 0
1 7 7 ,2 3 2 ,4 3 9
1 ,5 8 1 ,5 2 7
S h a r e s p lit ( iii)
1 7 7 ,2 3 2 ,4 3 9
A s o f De c e mb e r 3 1 , 2 0 0 6
3 5 4 ,4 6 4 ,8 7 8
Pa r tia l s p in - o f f - B o a r d o f Dir e c to r s
Me e tin g a s o f 0 3 /1 4 /0 7 ( iv )
In c r e a s e d u e t o s u b s c r ip tio n ( v )
A s o f De c e mb e r 3 1 , 2 0 0 7
(i)
(ii)
(iii)
-
1 ,5 8 1 ,5 2 7
( 2 2 8 ,2 2 2 )
1 ,1 8 2 ,5 0 9
2 ,8 5 1
3 5 5 ,6 4 7 ,3 8 7
1 ,3 5 6 ,1 5 6
The extraordinary general meeting held on May 24, 2006 approved
the merger of RJZ Participações e Investimentos S.A. (Note 1 (i));
On July 4, 2006 the Company’s capital increase was ratified, with
the issuance of 24,700,000 non-par registered book-entry common
shares. All shares issued were traded in the domestic market,
capturing R$728,650. The expenses related with the issuance
totaled R$20,827, where R$16,395 is related to commission and
are presented in a specific line of the statement of income;
On November 6, 2006 the Board of Directors approved the split of
all common shares representing the company’s capital stock; after
the split, for each registered common share a new common share
was issued, with the same rights and benefits of the existing
shares;
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(iv)
(v)
Da te of t he Boar d
Spin-off with transfer to CCP of a portion of its net equity, in the
amount of R$228,222, representing 11.7124% of the total
shareholders’ equity related to the activities of development and
acquisition of corporate buildings and malls, as well as the
management services of these properties (Note 1 (ii)). The
shareholders of the Company started to hold an interest in the
capital stock of CCP in the proportion of their interest in the capital
of the Company;
The issuance of 1,182,509 shares was resolved by the Company’s
board of directors to comply with the provisions in the “Company’s
Stock Option Plan”, as stated in Note 21 (c):
Dat e of the Annual Ge ne r al
o f Dire ctor s M e e t ing
Is s ue value
M e e ting tha t appr ove d t he Plan Num be r of S hare s
5/3 1/200 7
6/2 9/200 7
4/28 /2 006
4/30 /1 999
7/3 0/200 7
4/28 /2 006
T otal
P rice of
Am ount of
Shar e Is s ue
S hare Is s ue - R$ t hous and
23,971
1 ,1 53,757
1 5.2
2 .0 9
4,781
15 .1 6
1 ,1 82,509
364
2,415
72
2,851
The Company’s Board of Directors is authorized to increase the capital stock,
regardless of general meeting or bylaws amendment up to the limit of 300,000,000
common shares, for distribution in the country and/or abroad, publicly or privately.
In the event of capital increase by subscription of new shares, the shareholders will
have the preemptive right for subscription pursuant to Law n. 6.404/76.
(b)
Treasury shares
The Company may, by resolution of the board of directors, acquire its own shares,
to be held in treasury and subsequent cancellation or disposal.
As authorized at a meeting of the Board of Directors held on May 13, 2003, 3,000
preferred shares (total after split: 6,000) were acquired and there was not any
authorization or forecast for new acquisitions. The quotation of the aforementioned
shares as of December 31, 2007 was R$24.20 (2006 - R$15.80) per share.
(c)
Profit reserve (expansion and unrealized profits)
(i) Expansion
It refers to the retention of the remaining balance of retained earnings, in order
to meet the Company’s budget for finance additional applications of fixed and
working capital and the expansion of operating activities, which may be formed
with up to 100% of the net profit that remains after the legal and statutory
allocations; nevertheless, it cannot exceed the amount of the paid-in capital
stock.
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(ii) Unrealized profits
They refer to unrealized profits resulting from the financially unrealized equity
variation gain.
(d)
Appropriations of the net income for the year
The net income for the year, after the compensations and deductions provided for
by law and consonant statutory provision will be allocated as follows:
5% for legal reserve, until it reaches 20% of the paid-in capital stock;
25% of the balance, after the appropriation for legal reserve, will be allocated for
the payment of a minimum mandatory dividend to all shareholders.
The Annual General Meeting that approves the accounts of the fiscal year may,
pursuant to the bylaws, determine the distribution of up to 10% of the net income
for the year to the Company’s management as profit sharing.
(e)
Interest on own capital
In conformity with Law no. 9,249/95, the Company’s management, by referendum
of the approval by the Board of Directors at a meeting held on October 14, 2006,
credited to its shareholders interest on own capital, calculated based on the
variation of the Long-Term Interest Rate - TJLP, imputing them to the amount of
the minimum mandatory dividend of the year 2006. In compliance with the tax
legislation, the amount of interest on own capital of R$32,000 (which corresponds
to R$0.21 per share, net of withholding income tax) was accounted for as financial
expense. However, for purposes of these financial statements, the interest on own
capital is presented as distribution of net income for the year, therefore, reclassified
to the shareholders’ equity, by the gross amount, once the fiscal benefits
generated by it are maintained in the result of the year. The withholding income
tax, assumed by the Company, in the amount of R$4,641, was recognized as
expense, directly in the statement of income for the year.
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(f)
Proposed dividends
The proposal of dividends consigned in the financial statements of the Company,
subject to approval of the shareholders at the General Meeting, calculated
pursuant to the bylaws and the referred law, specially, concerning the provisions in
article 196 and 197, is stated as follows:
Contr o llin g Com pan y
2007
200 6
4 22,149
5%
242,2 83
5%
21,107
12,1 14
4 01,042
( 102,746)
2 98,296
25%
230,1 69
230,1 69
25%
M and ator y m in im u m divi d e nd
74,574
57,5 42
Prepa id div idend
Intere s t on ow n capital - (No te 19(c))
Withh olding inc ome tax ov er paid intere st on ow n c apital
( 60,000)
-
(32,0 00)
4,64 1
Divid e nd payab le
14,574
30,1 83
Net p rof it f or the y ear
Legal res erv e c o ns titution - %
Legal res erv e
Calcu lation bas is
Gains w /o c apita l dilution related to the IPO of A gra Empreendimentos (No te 8b)
Adju s te d calcu lation bas is
Statu tory minimu m div idend - %
The Annual and Extraordinary Meeting, held on April 28, 2006, approved the
financial statements as of December 31, 2006 and resolved on distribution of
supplementary dividends, in the amount of R$12,815.
The Board of Directors meeting as of October 17, 2006 approved, by referendum
of the General Meeting, the payment of interest on own capital, to be added to the
minimum mandatory dividend of 2006.
20. Contingencies
The Company and its controlled companies are party to labor, civil and tax
proceedings and are discussing these issues administratively and judicially.
The forecast for the possible losses considered provable resulting from these
proceedings is estimated and updated by the management, based on the opinion
of their legal consultants. On December 31, 2007 the provisions for contingencies
are classified in the item “Instruments Payable and labor proceedings”.
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Possible losses
The Company has tax, civil and labor suits, involving risks of loss classified by the
management as possible, based on the evaluation of its legal consultants, for
which there is no provision constituted, according to the composition as follows:
Civil
Tax
Labor
Total
Consolidated
2007
4,111
53,632
2,750
60,493
2006
5,065
24,800
6,201
36,066
21. Benefits to officers and employees
(a)
Post-retirement benefits
The Company and its controlled companies do not maintain private pension plans
for their employees; nevertheless, they perform monthly contributions based on
payroll to the official retirement and social security funds, which are given entry in
the expenses by the accrual basis.
(b)
Profit sharing program - PLR
The Company and other companies of the group have a program for employee
profit sharing in compliance with the collective agreement signed with the Union of
Civil Construction Industry workers of São Paulo. On December 31, 2007 the
company constituted a provision in the amount of R$3,000, based on the indicators
and parameters defined in the agreement signed.
(c)
Stock option program
At the Annual and Extraordinary General Meeting, held on April 30, 2007, the new
Stock Option Plan for managers and employees was approved.
All managers and employees entitled to annual bonus who do not have as
component of their compensation direct or indirect commission related to the sale
or purchase of assets for Cyrela will be eligible to this modality.
To participate in the program, the manager or employee shall acquire shares from
Cyrela at the market price and in pre-defined terms, upon the use of resources
coming exclusively from the receipt of the annual bonus granted according to the
compensation policy in force.
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In counterpart to the acquisition of shares, Cyrela will enter with each beneficiary
into an Instrument of Granting of Stock Option, by means of which Cyrela will grant,
for each share acquired, stock options within the limits and conditions previously
defined.
The issuance of 1,182,509 share was resolved by the board of directors of the
Company to comply with the provisions in the Company’s Grating Plan of Stock
Option, according to Note 19(v):
22. Financial instruments
The Company and its controlled companies participate in operations involving
financial instruments, all of which are recorded in equity accounts that are intended
for meeting their needs and reducing the exposure to risks related to credit,
currency and interest rates. The administration of such risks is performed by
defining strategies, establishing control systems and determining position limits.
(a)
Comments on risks
(i) Currency risk
As mentioned in Note 11, as of December 31, 2007, the loans in foreign
currency totaled the equivalent to US$8,000 thousand (2006: US$8,000
thousand) as mentioned in Note 3, the financial investments totaled the
equivalent to US$3,794 thousand (December 2006: US$3,471 thousand) and
investments in companies abroad totaled the equivalent to US$11,844
thousand and Argentine Pesos 37,280, without the existence of any instrument
to protect this exposure on this date.
(ii) Interest rate risk
The interest rates on loans and financings are mentioned in Note 11. The
interest rates contracted on financial investments are mentioned in Note 3. On
the accounts receivable from real estate completed, as mentioned in Note 5,
there is interest of 12% per year, appropriated "pro rata temporis". In addition,
as mentioned in Note 11, a substantial portion of the balances maintained with
related parties and the balances maintained with partners in the projects are
not subject to financial charges.
(b)
Valuation of financial instruments
The main assets and liabilities financial instruments are described below, as well
as are the criteria for their valuation:
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(i) Cash and cash equivalents and financial investments
The market value of those assets does not significantly differ from the values
presented in the financial statements (Note 3). The rates agreed upon reflect
the usual market conditions.
(ii) Securities
The market value of the investment maintained in a real estate investment fund
totals R$62 (2,462 in December 2007) and presents a negative variation of
7.09% (2006: 0%) in relation to its book value.
(iii) Investments
Investments in controlled companies are not listed on the stock exchange and,
as a result, there are not enough assumptions for attributing their market value.
The market value of the investment in the associated listed on the stock
exchange totals R$358,241.
(iv) Loans, financings and debentures
The conditions and the terms of the loans and financings obtained are
presented in Note 11. The settlement value of these liabilities is not
significantly different from the values presented in the financial statements.
23. Insurance
The Company and its controlled companies maintain insurance policies, the hired
coverage of which is considered sufficient by the management to cover fortuitous
risks over their assets and/or liabilities, as indicated below:
(a)
Engineering risk: (i) basic - R$1,565,629, (ii) projects - R$1,565,444 and (iii)
other - R$205,662:
Basic - accidents (sudden and unexpected) in the construction sites, such as
acts of god or force majeur, winds, storms, lightning, floods, earthquakes, etc.,
damages inherent to construction, the employment of defective or inadequate
material, flaws in the construction and the collapse of structures;
(ii) Projects - cover indirect damages caused by possible project errors;
(iii) Other - refers to extraordinary expenses, clearing away of debris, disturbances,
strikes, foundation crusades, etc.
(i)
(b)
Sales stand: fire - R$400, robbery - R$180 and other risks - R$65;
(c)
Sundry risks: fire - R$4,597, robbery - R$1,066 and other risks - R$1,498;
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(d)
Loyalty: coverage for financial losses caused by personal actions taken by
employees - R$1,000;
(e)
Contractual security: R$53,265;
(f)
Construction risks: civil liability - R$12,670;
(g)
Civil liability on actions taken by Officers and Managers - US$5,000.
The risk assumptions adopted, given their nature, are not part of the auditing scope
of the financial statements and, consequently, were not audited by our independent
auditors.
24. Changes in the Brazilian Corporate legislation - Law
11,638/07
On December 28, 2007, Law 11,638/07 was enacted, which amends certain
provisions in the Brazilian Corporate Law (Law 6,404 as of December 15, 1976). In
general terms, the new Law requires the reconcilement of the accounting practices
adopted in Brazil with certain international accounting standards derived from rules
issued by the IASB - International Accounting Standard Board, which became
effective on January 1, 2008:
Summary of the amendments originated from Law 11,638 as of 2007
Substitution of the statement of changes in financial position for the statement of
cash flows
Inclusion of the statement of value added, applicable for publicly-held companies,
stating the value added by the Company as well as the composition of the origin
and allocation of such values.
Possibility of keeping the bookkeeping of the transactions separately, complying
with tax legislation and, subsequently, the necessary adjustments for adaptation
to the accounting practices.
Creation of a new subgroup of accounts, intangible assets, which includes
goodwill, for purposes of presentation in the balance sheet. This item will record
the rights whose object are intangible assets destined to the maintenance of the
Company, or exercised with this purpose, including the acquired goodwill.
Rights whose object are intangible assets destined to the maintenance of the
Company’s activities must be recorded under fixed assets, including those
deriving from operations that transfer the benefits, risks and control of the assets
to the Company (example: financial leasing).
Change in the concept for values recorded under deferred charges. Only preoperating expenses and restructuring costs that effectively contribute to the
increase in the income of more than one fiscal year, and that do not represent a
reduction of costs or increase in operating efficiency.
The Company must analyze periodically the recovery capability of values
recorded under fixed, intangible and deferred assets, with the purpose of
ensuring that: (i) the loss for the non-recovery of these assets is recorded as a
result of decisions to discontinue activities related to said assets, or when there is
evidence that the results from operations are not sufficient to ensure the
realization of the said assets; and (ii) the criterion used to determine the useful
life estimate of such assets with the purpose of recording depreciation,
amortization and depletion is revised and adjusted.
Management’s judgment
Already implemented
To be implemented
It disciplines the existence of
differences in practices for
appropriating real estate profit – fiscal
and accounting
Reclassification of the item “goodwill”
to “intangible assets”
We estimate that there will be no
material effect, but each existing
leasing contract will be revisited.
The concepts for appropriation of the
“selling expenses to be appropriated”
shall be revised
We estimate that there is no effect.
However, a periodic revision must be
implemented, as from a request for
evaluation by independent experts.
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Summary of the amendments originated from Law 11,638 as of 2007
Investments in financial instruments, including derivatives, must be recorded: (i)
by their market value or equivalent value, in case the investments are destined
for trade or are available for sale; and (ii) by their acquisition cost value or issue
value, restated according to legal or contractual provisions, adjusted at probable
realization value, whenever it is inferior.
Creation of a new subgroup of accounts, adjustments in equity valuation, in
shareholders’ equity, in order to enable the recording of certain asset valuations
at market prices, especially financial instruments; recording of the exchange
variation on corporate investments abroad by the equity accounting method (up
to December 31, 2007, this exchange variation was recorded in the income for
the year); and adjustments of assets and liabilities at market value, due to the
merger and incorporation that occurred between non-related parties that are
linked to the effective transfer of control.
Introduction of the concept of adjustment at present value for long-term lending
and funding operations and for material short-term operations.
Revocation of the possibility of recording: (i) premium received with the issue of
debentures; and (ii) donations and subsidies for investment (including tax
incentives) directly as capital reserves under the shareholders’ equity account.
This means that the donations and subsidies for investment will start being
recorded in the income for the year. To avoid their distribution as dividends, the
total amount of donations and subsidies may be allocated, after being part of the
result, in the tax incentive reserve.
Elimination of the revaluation reserve. The existing balances in revaluation
reserves must be kept until their effective realization, or reversed until the end of
the fiscal year in which the Law takes force.
The assets and liabilities of the Company to be incorporated, deriving from
transactions that involve incorporation, merger or spin-off between independent
parties linked to the effective transfer of control, must be accounted for by their
market value.
Elimination of the relevance parameter to adjust the investment in associated
and controlled companies by the equity accounting method (comprehension of
the equity valuation criterion) and substitution of the 20% parameter of the
investee’s capital stock for 20% of the investee’s voting capital.
Management’s judgment
We estimate that there is no effect.
However, a periodic revision of the
criteria must be implemented, in line
with the expectation of allocation.
Effects from the exchange variation of
investments (Bahamas and
Argentina) will start being recorded
under the equity adjustment account
We believe that plots of land are
inventories meant for sale (turnover)
not for being kept as equity (for the
latter, it would be necessary to adjust
at fair value)
An adjustment at present value must
be implemented for items “accounts
receivable” and “accounts payable of
plots of land”.
Void
Void
To be assessed as the new
operations are carried out
Void in current investments, to be
assessed as the new operations are
carried out
Presenting the statement of cash flows as supplementary information is already a
procedure for the Company, and it is analyzing the possible impacts of the other
amendments introduced by Law n. 11.638/07 on its financial statements, and if
necessary, these impacts shall be acknowledged throughout 2008 and in
connection with the normative act to be issued by the Brazilian Securities and
Exchange Commission (CVM), according to CVM Technical Notice as of January
14, 2008.
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25. Subsequent events
(a)
Debentures
On January 8, 2008, the Company announced the closure of the offering of primary
public distribution of 49,950 registered book-entry simple debentures, nonconvertible into shares, of the unsecured type with a nominal value per unit of
R$10 as of the issue date, amounting to R$499,500.
This Offering was carried out in the scope of the Issuer’s First Securities
Distribution Program, approved at the Extraordinary General Meeting held on
March 23, 2007, filed at the Brazilian Securities and Exchange Commission
(“CVM”) on March 27, 2007, under the number 1135531/07-9.
(b)
Public Offering of Primary Public Distribution of common shares issued by
the Company - follow-on.
On January 31, 2008, the Company announced to its shareholders and the market
in general the waiver of the request for registration of public offering of primary
distribution of common shares of its issuance, which had been submitted to the
Brazilian Securities and Exchange Commission (“CVM”) on December 18, 2007.
The Company might submit another request for registration of public offering of
shares of its issuance in the future.
26. Explanation added to the translation into the English
version
The accompanying financial statements were translated into the English version
from those statements prepared for local purposes. Certain accounting practices
applied by the Company that conform to those accounting practices adopted in
Brazil may not conform to the generally accepted accounting principles in the
countries where these financial statements may be used.
27. Summary of Differences Between Brazilian Accounting
Practices and Generally Accepted Accounting Principles In
The United States Of America - U.S. Gaap
These financial statements are being reissued to include a summary of the
differences between the Brazilian accounting practices and U.S. GAAP., as follows
disclosed, addressing the requirements from Bovespa, considering that the
Company is listed as Level “Governança Corporativa”.
71/86
I.
Reconciliation of the shareholders’ equity as of December 31, 2005, 2006 and 2007 and the net
income for the years ended December 31, 2007 and 2006 between BR GAAP and US GAAP
Changes in shareholders' equity for the year ended December 31, 2006
Adjustments
reference
Balances in BR GAAP
Real estate cost and revenue (*)
Taxes on real estate cost and revenue (*)
Sales stand (*)
Goodwill in purchase of plots of land by means of interest
held (*)
e
Deferred expenses (*)
f
Stock options plan
g
Expenses with public offering
h
Accounting of the investment in Agra Empreendimentos
Imobiliários S.A. (“Agra Incorporadora”)
j
Translation gains or losses of the financial statements from
foreign subsidiaries
k
Deferred income tax and social contribution tax impacts on
the adjustments indicated with an (*) above
l
Minority interest
Balances in US GAAP
a
b
c
d
Balance
as of
December
31, 2005
1,018,783
(28,079)
4,465
5,743
(11)
(13,321)
Net income
of the year
242,283
(45,007)
(2,396)
3,344
Dividends
and
interest
on equity
(74,998)
249
(744)
(5,419)
20,827
Capital
Other
increase Comprehensiv
public offering e Income - OCI
728,650
-
Capital increase
- interest held
(adjustment (d))
33,832
Adjustment
reclassification
of plots of land
received in
interest held to
correct value
24,877
104,767
(25,612)
(5,693)
215
211,812
79,404
(755)
(18,740)
(20,827)
4,153
6,053
7,883
1,001,516
Balance as of
December 31,
2006
1,948,550
(48,209)
2,069
9,087
4,153
(74,998)
707,823
-
(3,129)
735
135,470
-
(2,034)
8,098
1,981,623
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Changes in shareholders' equity for the year ended December 31, 2007
Adjustments
reference
Balances in BR GAAP
Real estate cost and revenue
Taxes on real estate cost and revenue
Sales stand
Goodwill in purchase of plots of land by means of interest
held (*)
e
Deferred expenses
f
Stock options plan
h
Accounting of the investment in Agra Empreendimentos
Imobiliários S.A. (“Agra Incorporadora”)
j
Translation gains or losses of the financial statements from
foreign subsidiaries
k
Deferred income tax and social contribution tax impacts on
the adjustments indicated with an (*) above
l
Minority interest
Balances in US GAAP
a
b
c
d
Dividends
and
Balance as
of December Net income interest on
31, 2006
of the year equity
1,948,550
422.149
(74,574)
(48,209)
(193.276)
2,069
14.482
9,087
(5.750)
CCP Split
(228,222)
Capital
increase
2,851
Adjustment
reclassificatio
Additional
Capital
n of plots of
capital
increase land received
provided with Other
interest held in interest held
Comprehensiv (adjustment to correct
the stock
e Income - OCI (d))
options
value
-
79,404
(755)
(18,740)
19.892
348
(8.909)
4,153
(85.292)
286,799
-
(1.429)
1,429
(2,034)
8,098
40.967
31.399
(97,511)
1,981,623
234,581
43,435
(44,319)
54,977
(407)
(2,558)
25,091
(74,574)
(228,222)
2,851
25,091
190,716
Balance
as of
December
31, 2007
2,070,754
(198,050)
16,551
3,337
205,660
884
-
(57,694)
39,497
-
2,132,067
73/86
II.
Reconciliation of the differences between BR GAAP and US
GAAP that affect the determination of the net income and
of the shareholders’ equity
Below we present a description of the differences between BRGAAP and USGAAP
that affect the determination of the shareholders’ equity as of December 31, 2005,
2006 and 2007 and the net income for the years ended December 31, 2006 and
2007.
Additionally, there are differences between BR GAAP and US GAAP that affect the
presentation of the financial statements (some of which may have significant
effects in the presentation of the financial statements such as differences between
the consolidation criteria in BR GAAP or in US GAAP) and the disclosures required
in explanatory notes. Such presentation and disclosure differences are not being
presented.
a.
Real estate cost and revenue (SFAS 66 and SOP 81-1)
In accordance with BR GAAP, Resolution n. 963/03 issued by the CFC - Brazilian
Federal Accounting Council (NBC 10.5 - Real Estate Entities) and rule 05/95
released by the local Security and Exchange Commission (CVM), the recognition
of the income from real estate must be made by applying the Percentage-ofcompletion - POC on the revenues from sales of real estate units and over the
costs related to the construction, including: a) land price and additional costs
incurred for its use; b) cost of the projects; c) direct and indirect costs related to the
construction; d) taxes, fees and contributions; and e) financial charges directly
associated to the financing of the construction. The detailed criteria of revenue
recognition applied for BR GAAP purposes are described in Note 2. (c).(i) and
2.(c). (ii).
For US GAAP purposes, the general principle of real estate cost and revenue
recognition is similar. There are differences in specific aspects of its application as
follows:
(i)
Initiating revenue recognition
For BR GAAP purposes, the revenue starts to be recognized based on the
POC as from the moment that each real state project cannot be canceled
anymore (which, in accordance to the legislation in force, may happen at a
certain period of time after the launch, or when a minimum percentage of
sales is accomplished).
74/86
For US GAAP purposes, in accordance with the Statement of Financial
Accounting Standard (SFAS) n. 66 - Accounting for Sales of Real Estate and
the Statement of Position (SOP 81-1), Accounting for Performance of
Construction-Type and Certain Production-Type Contracts, in order to start
the revenue recognition, the following conditions must be met, cumulatively,
for each real state project:
a) The term for cancellation with reimbursement has expired (180 days or
minimum percentage of sales or suspensive condition);
b) The clients' cumulative receipt are equal to or over 10% (ten percent) of
the market value of each unit;
c) The realization of the balance of accounts receivable is probable;
d) The balance of accounts receivable is not subject to the condition of
subordination;
e) There has been progress of the improvements beyond the preliminary
stage of construction, as understood as the finishing of the foundation;
f) The real state project is economically viable.
(ii)
Lands received in bargain
For BR GAAP purposes, the lands acquired (totally or partially) through
bargains, usually in trading for units in the project to be built in the land object
of the bargain do not have any accounting reflexes in the revenue and cost
recognition. In this case, the plots of land are recorded by cost estimated of
the units traded, without any effect in income.
For US GAAP purposes, the land acquired through bargains are recognized
at their estimated market value (which is usually equal to the sales price in the
launching phase of the units delivered in exchange) with the recognition of the
correspondent liability. The cost of the lands received, thus determined,
integrate the cost of the project; as well as the revenue is recognized by the
market value of the units delivered.
As a result of this criterion, we recognize for USGAAP purposes in inventory
account as additional cost of lands acquired through bargains the values
R$105,773, as of December 31, 2006 and of R$340,705, as of December 31,
2007.
(iii) Land acquired through the merger of companies
As described in note (d) below, the Company acquired interest in certain
companies that owned land. The effects arisen from the booking of each plots
of land at fair value were considered in the calculation of the POC for
USGAAP purposes.
75/86
(iv) Interest capitalization
For BR GAAP purposes, the financial charges of the financing obtained to
finance the projects (SFH) are capitalized during the construction period. The
other financial charges relating to other loans and financing not related to the
SFH, as well as those occurred after the construction has been completed,
are directly recorded in financial expenses in the income of the year.
For the accounting in US GAAP, financial charges relating to loans and
financing not related to the SFH and occurred during the construction period,
based on the average funding rate were capitalized as part of cost of
construction of the ventures, complying with what is provided under SFAS n.
34 - Capitalization of Interest Cost.
The adjustments described above totalize R$20,115 as of December 31,
2006 and R$70,671, as of December 31, 2007.
(v)
Adjustment at Present Value (AVP) of the balance of accounts
receivable
Certain projects have balances of accounts receivable subject to monetary
restatement (without interest) for the installments due during the construction
period, until the delivery of the keys. After this date the installments of all of
the projects start to compute the market interest relating to the real estate
sector. For BR GAAP purposes, such balances are recorded by their
respective face value.
For US GAAP purposes, in compliance to the Accounting Principles Board
(APB) Opinion no. 21, Interest on Receivables and Payables, the balances
receivable due until the delivery of the keys (that are subject exclusively to
monetary restatement, without interest) are discounted at their present value
in the period comprised between the balance sheet date and the date
foreseen for the delivery of the keys resulting in a smaller amount of revenue
and interest to be recognized on the maturity date for the payment of the
accounts receivable.
The adjustments for discount of the receivables resulted in reduction in sales
revenues and increase in interest revenues to be recognized); in amount of
R$10,884 and R$105,731 for the years ended December 31, 2006 and 2007,
respectively.
The joint effect of the differences of accouting pratices summarized above,
regarding real state cost and revenue is being presented in the reconciliation
of the net income and shareholders`equity.
b.
Taxes on revenues levied on the real estate income
It corresponds to the effect of taxes on revenues (Social Integration Program - PIS
and Social Security Financing Contribution - COFINS) on the adjustments of real
estate cost and revenue described in this section (a).
76/86
c.
Sales stand
For the purposes the BRGAAP and the USGAAP, expenses with advertising and
publicity, both institutional and of the project itself, are recorded in the income of
the year. The expenses for the construction of the sales stands are recorded in
pre-operational expenses, because these expenses contribute to the formation of
the profit of more than one business year with their amortization is made based on
the development of the construction (“Percentage-of-completion” or “POC”).
However, due to the adjustment mentioned in item II. (a). (i) above and the
recalculation of the percentage of evolution of the work due to adjustments
mentioned in item II.(a).(ii) to (iv), the start period of the amortization of the
expenses for construction of the sales stands is changed for USGAAP purposes in
relation to the date that it starts in BR GAAP.
The adjustments recorded for purposes of reconciliation to USGAAP in the
amounts of R$9,087 and R$3,337 on December 31, 2006 and 2007, respectively,
generated an impact in the amount of R$3,344 (credit) and R$5,750 (debit) in the
income of the years ended December 31, 2006 and 2007, respectively.
d.
Goodwill in the purchase of ownership interest
(i)
Purchase of interest held in RJZ
As described in Note 1 (a), in the year ended December 31, 2006 the Company
acquired 100% ownership interest in the capital of RJZ Participações e
Investimentos Ltda. (“RJZ”).
For BR GAAP purposes, the difference between the amount paid in the acquisition
of RJZ (composed of the cash and the book value per share of the 3,820,420
common shares of the Company issued to the seller) and the historical accounting
balances of the assets and liabilities obtained were recorded as goodwill in the
Investments group. The goodwill is amortized according to the projections of future
profitability, not exceeding a ten year term.
For US GAAP purposes, the amount paid is composed of the amount paid in cash
and the value quoted in the stock exchange of the shares issued by the Company
measured a few days before and a few days after the public announcement of the
transaction, and the assets and liabilities obtained are accounted for at their fair
value estimated on the transaction date, and the goodwill is determined based on
the difference between the amount paid and the fair value of the assets and
liabilities.
77/86
The table below presents the difference between the goodwill determined for BR
GAAP purposes and for US GAAP purposes, in transaction date:
Amount paid
In cash
In Company shares
Total
Assets and liabilities acquired
Lands
Other assets
Short-term liabilities
Long-term liabilities and minority interest
tax on net income
Shareholders’ equity
Goodwill
BR GAAP
US GAAP
29,330
33,833
63,163
29,330
133,714
163,044
93,966
117,322
(34,897)
(134,874)
218,622
117,322
(34,897)
(134,874)
41,517
21,646
(3,129)
163,044
-
As noted above, the difference between the book value and the fair value
estimated of assets and liabilities corresponds mainly to the stock of lands.
The effects of such differences are presented as follows:
a) The difference between the value of the shares issued for the purchase of RJZ,
in the amount of R$99,881, is being presented in a specific column in the
changes in shareholders’ equity in the year of 2006;
b) The corresponding amortization, recognized for BR GAAP purposes in the
amounts of R$249 and R$3,416, is being presented in the columns of the
income of the years ended December 31, 2006 and 2007;
(ii)
Other acquisitions
Additionally, the Company acquired interest in the companies Loo
Empreendimentos Imobiliários (“Loo”), Sociedade Residencial Gram Bueno S.A.
(“Gran Bueno”), SLK Empreendimentos Imobiliários SPE Ltda. (“SLK”), Calafate
Investimentos Imobiliários Ltda. (“Calafate”), Cury Construtora e Incorporadora
S.A. (“Cury”) and Cyrela Estoril Empr. Imob. Ltda. (“LC Empreendimentos”).
For BR GAAP purposes, the difference between the amount paid and the bode
value of the assets and liabilities acquired were received as goodwill in the
investment group, which is amortized based on the projections of future
profitability, not exceeding ten years.
78/86
For USGAAP purposes, the assets and liabilities acquired are booked based on
their estimated fair value at the transaction date, and the goodwill is determined as
the difference between the amount paid and the fair value of the assets and
liabilities acquired. The amounts shown below were allocated to the cost of the
land.
Lao
Gran Bueno
SLK
Calafate
Cury
LC Empreendimentos
(iii)
Acquisition date
2006
1,757
12,932
-
2007
339
735
3,481
5,572
14,659
Fair value of the land indeed in the cost of the real estate projects
The fair value of the land obtained from the allocation of the goodwill, as mentioned
above, are being considered in the real estate project costs upon the beginning of
the respective projects. At this point, the difference in the value of the land from BR
GAAP to USGAAP is demonstrated in the column “land goodwill allocation of fair
value to real estate costs”. The appropriation of such effects in income is presented
in the line “real estate cost and revenue”, described in item II (a) (1).
e)
Deferred expenses
For BR GAAP purposes, the expenses with research, development and preoperational expenses are recorded in the deferred assets and amortized according
to the criteria established for each balance. For USGAAP purposes, these
expenses are recorded in the income of the year.
The adjustments recorded, for purposes of reconciliation to USGAAP in the
amounts of R$532, net of R$212 of minority interest adjustment and R$407, net of
R$83 of minority interest adjustment as of December 31, 2006 and 2007,
respectively, generated impacts in the amount of R$532 (debit) and R$219 (credit)
in the income of the years ended December 31, 2006 and 2007, respectively.
f)
Stock options plan
For BR GAAP purposes, the granting of share option does not produce accounting
effects until it is actually exercised, when the equity increase is recognized based
on the resources actually received.
79/86
In US GAAP, the remuneration to employees in the form of share options must be
recorded as expense. The plans of the Company, whose the strike price is subject
to the indexation based on the Market General Price Index (IGP-M), should be
accounted for as a liability, while the plans whose the strike price does not bear
indexation, should be accounted for in the shareholders’ equity, in compliance with
the SFAS 123-R - Share-Base Payment. The value of the remuneration of the
plans considered as liabilities is remeasured at each closing date while the value of
the remuneration of the plans considered as shareholders’ equity are measured
exclusively on the grant date taking into account the expected extinguishment rate
(forfeitures). The remuneration expense is measured by the fair value of the option
measured using the Black-Scholes valorization model, described in the SFAS 123 Accounting for Stock-Based Compensation. The expense of remuneration
measured as indicated above is recognized in the income between the grant date
of the options and the finalization of the grace period (vesting).
(i) Summary of the data and changes of the plans in 2007 and 2006:
Zero Plan - Grant A
Zero Plan - Grant B
2006 Plan
2007 Plan
2007 Plan - Retention
Year of grant
1997
1998
2006
2007
2008
Strike price - per
share - in R$
1.08 (i)
1.12 (i)
14.60 (ii)
0.01(iii)
0.01(iii)
Grace period
(years)
Zero
Zero
4
5
5
(i) The strike price, corrected according to the IGP-M - General Market
Price Index, of the Zero Plan - Grant A and B was in the amount of
R$1.27 and R$1.30 as of December 31, 2006, respectively;
(ii) The strike price, corrected by the IGP-M, of the 2006 Plan, was in the
amount of R$15.11 and R$15.92 as of December 31, 2006 and 2007,
respectively;
(iii) The strike price is fixed and can not be adjusted.
80/86
Zero Plan - Grant A
Zero Plan - Grant B
2006 Plan
Number of
outstanding options
as of
December 31, 2005
136,666
945,834
-
Zero plan - grant A
Zero plan - grant B
2006 Plan
2007 Plan
2007 Plan - retention
Number of
outstanding options
as of
December 31, 2006
136,666
945,834
526,574
-
Granted
526,574
Granted
668,867
1,010,959
Canceled
-
Canceled
(13,587)
(5,220)
-
Exercised
-
Number of
outstanding options
as of
December 31, 2006
136,666
945,834
526,574
Exercised
(136,666)
(945,834)
(100,009)
-
Number of
outstanding options
as of
December 31, 2007
412,978
663,647
1,010,959
(ii) Amounts of the plans as of December 31, 2007
Total share option granted and pending
( - ) Estimate of forfeitures
Total share option expected to be exercised
Strike price - R$ (adjusted by IGP-M and share
dividends)
Fair value of the options on the grant date - R$ per
option (*)
Fair value per unit of the options as of December 31,
2007 - R$ per option (*)
Fair value of the options as of December 31, 2007 R$ thousand
Average term of exercise of the option on the grant
date (years)
2007 plan retention
1,010,959
(61,144)
949,815
2006 plan
412,978
n/a
n/a
2007 plan
663,647
(35,359)
628,288
15.92
0.01
0.01
n/a
21,02
23,35
6,20
n/a
n/a
2,558
13,208
22,178
2.5
5
5
(*) Calculated considering the Black-Scholes model.
(iii) Economic assumptions used to recognize the costs of employees
remuneration
The fair value of the options granted to the employees calculated through the
Black-Scholes model used the following economic assumptions:
Dividend yield
Share price volatility
Risk free rate of return
Period awaited until maturity (in years)
% - Grants in the % - Grants in the
2006 year
2007 year
0.48
0.87
30
30
14.73
11.34
2.5 to 5
2.5 to 5
81/86
The Company should liquidate this benefit plan delivering shares of its own issue.
g)
Expenses with public offering
For BR GAAP purposes, the expenses with public offering for the issue of
24,700,000 shares in the amount of R$20,827 were recorded in the income of the
year ended December 31, 2006.
For US GAAP purposes, such expenses are recorded in the capital stock account,
reducing the gross resources obtained by the issue of the shares.
h)
Accounting of the investment in Agra Empreendimentos Imobiliários S.A.
(“Agra Incorporadora”)
Cost of the investment
In the year ended December 31, 2006, the Company obtained, through capital
contribution (in cash as well as in real estate units already finished), ownership
interest in Agra Incorporadora, a real estate development company. The initial
ownership interest was obtained in January 2006 and it represented 49.00% of the
voting and total stock of Agra. As a result of non-proportional capital increases of
other shareholders, the ownership interest of the Company was reduced to 42.14%
as from October 2006. In the same manner, due to the public offering and issue of
shares by Agra Incorporadora in April 2007, the Company did not exercise the
additional purchase of shares and once again had its ownership interest reduced to
19.00%.
For BR GAAP purposes, the contributions in capital in units already finished were
accounted for at the historical cost of the units already finished in the Company’s
books. For US GAAP purposes, a gain was recognized by the Company because
of the difference between the fair value of the units transferred (estimated at their
sales price to third parties) and the historical cost multiplied by the percentage of
ownership interest of the other shareholders (51.00%), based on the EITF 01-2
Interpretation of APB Opinion n. 29.
As a result, the cost of investment of the Company in Agra Incorporadora in US
GAAP as of December 31, 2006 and at the public offering date presents a
difference in relation to BR GAAP, as demonstrated below:
Contributions in cash
Contributions in finished units
Total investment cost
On December 31, 2006
BR GAAP
US GAAP
9,907
20,159
41,731
41,731
51,638
61,891
On Agra’s public offering
date
BR GAAP
US GAAP
9,907
20,159
51,283
51,283
61,190
71,443
82/86
Subsequent accounting of the investment
In April 2007 Agra Incorporadora made a public offering in which the Company did
not sell any of the shares held by it. As a result of the public offering the
Company’s ownership interest in Agra Incorporadora suffered a dilution being
reduced to 19%.
For the company accounting, the associated company Agra Incorporadora was
accounted as investment subject to the equity accounting since its acquisition until
the public offering date, actually on December 31, 2006. The accounting through
the equity method was made in accordance with the CVM Instruction 247/1996
which requires the application of the equity method to significant investments when
the investor has influence in the management or the ownership interest percentage
represents 20% or more of the total capital of the associated company. As from the
public offering date the investment in Agra Incorporadora started to be accounted
for by the cost method, which was determined as the book value of the investment
calculated at the public offering date.
For purposes of investment in Agra Incorporadora was maintained at the
acquisition cost until the public offering date, because the management consider
that it has not any significant influence in Agra Incorporadora as a result of formal
refusal of Agra Incorporadora to provide financial information to the Company other
than that publicly available financial information. As from the public offering date,
the shares of Agra Incorporadora have been considered as securities available for
sale in accordance with SFAS n. 115 Accounting For Certain Investments in Debt
and Equity Securities. As a result, on December 31, 2007 for US GAAP purposes
the shares in Agra Incorporadora are valued at their quoted value in the São Paulo
Stock Exchange - Bovespa and the difference with the book cost is recognized
directly in the shareholders’ equity (net of tax effects).
December
31, 2006
December
31, 2007
In BRGAAP
Investment cost, including goodwill
Equity equivalent and other adjusments in net income
Dividends received
Total amount of investments in BRGAAP
51,638
7,426
(1,327)
57,737
67,289
86,669
(1,377)
152,581
In USGAAP
Cost balance
Fair value balance
61,891
61,891
71,443
358,241
Difference in December 31,2006 between investment in
BRGAAP (equity equivalent) and USGAAP (historical cost )
Difference in December 31,2007 between investment in
BRGAAP (historical cost) and USGAAP (market value)
4,153
205,660
83/86
The adjustments arisen out of: (a) recognition in amounts of R$4,153 and
R$85,292 in the years ended December 31, 2006 and 2007,respectively, referring
to the gain due to the transfer of finished units as capital contribution, elimination of
the corporate equity accounting recorded in the income; and (b) recording the
amount of R$286,799 related to unrealized gain derived from the valuation of the
shares at market value as of December 31, 2007 recorded as “Other
Comprehensive Income”.
(i)
Split of Cyrela Commercial Properties S.A. Empreendimentos e Participações
(“CCP”)
According to Note 1. (b), in the third quarter of 2006 the centralization of certain
commercial properties was approved, comprising high standard office buildings
and shopping malls, which were used as payment of capital increase in CCP, a
wholly-owned subsidiary of the Company. Throughout the year of 2006 the
Company and its subsidiaries made additional contributions of properties as capital
contribution in the CCP. Moreover, financial resources totaling R$25,181 was paidin by the Company directly in the CCP Investimentos, mainly, aiming at the
acquisition of already built high standard office buildings and to meet the cash
needs relating to high standard office buildings under construction, used as capital
increase in CCP Investimentos. The assets granted to CCP were accounted for at
their historical cost, thus not generating any gain as loss.
In the Extraordinary General Meeting held on April 11, 2007 the split-off of the
Company’s shareholders’ equity was approved, represented by the entirety of the
ownership interest held in the controlled company CCP Investimentos, CCP’s
wholly-owned subsidiary. The split-off was recorded as a reduction in its
shareholders’ equity to the book value of R$228,222. The Company’s shareholders
received ownership interest in the CCP’s capital stock proportional to their
ownership interest in the capital stock of the company.
There are not any differences between the accounting treatment of the split-off in
BR GAAP and US GAAP, just as there are not any differences between the
historical cost of the CCP’s assets and liabilities for BR GAAP purposes and US
GAAP.
(j)
Translation of financial instruments of foreign subsidiaries
For US GAAP purposes, the Company elected the Brazilian Real as true report
currency, considering that the majority of its operations are held in Brazil. However,
the Company has investments in companies located in Argentina and Bahamas.
The financial statements of such companies are translated from its original
currency to Reais. Assets and liabilities are translated using the exchange rate in
force at balance-sheet date.
84/86
Average exchange rates are used to translate revenues, expenses, gains and
losses of the period Capital increases and dividend distribution are translated using
historical exchange rates. The gains and losses resulting from the translation
processes described above are recorded in the account OCI - Other
Comprehensive Income in shareholders’ equity.
(k)
Deferred income tax and social contribution tax on net income
It corresponds to the deferred income tax and social contribution tax on net income
over the effects of the adjustments stated as follows:
Balance as of Net
December 31, income of Capital
the year
increase
2005
Real state cost
and revenue,
taxes on the real
state income and
(a) sale stand
Goodwill
allocation on the
purchase of
(d) ownership interest
Deferred
(e) expenses
Accounting of the
investment in
Agra
Empreendimentos
Imobiliários S.A.
(“Agra
(h) Incorporadora”)
Deferred income
tax and social
contribution tax
on net income
Land goodwill
allocation at
Balance as of Net
December 31, income of
fair value to
the year
real estate cost 2006
Other
comprehensi
ve income
(OCI)
Land goodwill
allocation at
fair value to
real estate
cost
Balance as
of December
31, 2007
6,053
(4,304)
-
-
1,749
12,084
-
-
(3,129)
735
(2,394)
(105)
-
23
-
-
23
(11)
-
(1,412)
-
-
(1,412)
28,999
6,053
(5,693)
(3,129)
735
(2,034)
40,967
-
13,833
884
(1,615)
-
12
(97,511)
-
(69,924)
(97,511)
884
(57,694)
-
85/86
(l)
Minority interest
The adjustments demonstrated in this note are being presented before the
deduction of the minority shareholders' participation. We demonstrate as follows
the effect on the minority shareholders of the adjustments presented in this note,
already net of the deferred income tax and social contribution tax on net income:
Balance
as of
December
31, 2005
(a)
(e)
(l)
Real state cost and revenue, taxes on the
real state income and sale stand
Deferred expenses
Minority interest
7,883
7,883
Income
of the
year
3
212
215
Balance
as of
December Income of
31, 2006
the year
7,886
212
8,098
Balance
as of
December
31, 2007
31,528
(129)
31,399
39,414
83
39,497
III. Earnings per share
For BR GAAP purposes, the earnings per share are calculated using the net
income of the year dividend by the number of outstanding shares at balance
sheet date.
For US GAAP purposes, the earnings per share include the basic earnings per
share and the diluted earnings per share. The earnings per share are
calculated considering the average number of shares during the period. The
diluted earnings per share consider the potentially dilutive effects of
instruments such as the stock option plans.
The following table demonstrates the calculation of the basic and diluted
earnings per share:
December
31, 2006
Basic:
Net income of the year
Average number of shares during the year
Earnings per share
Diluted:
Net income of the year
Average number of shares during the year basic
Increase in the potential number of shares
arisen from the stock option plans
Average number of shares during the year diluted
Earnings per share
December
31, 2007
211,812
326,265,532
0.6492
234,581
355,066,949
0.6607
211,812
326,265,532
234,581
355,066,949
1,043,022
396,701
327,308,554
355,463,650
0.6471
0.6599
86/86

US GAAP

Transcription

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