Revenue arising from the sale of goods is recognized when the Group transfers all risks and
benefits of ownership of the asset to the buyer and it is probable that the Group will
receive the agreed payment. The property of risks and benefits is transferred when the
products are shipped with the corresponding sales invoice, taking into account the
incoterms. These conditions are met when the goods are delivered to the buyer, complying
with main freights modalities used by the Corporation.
Revenue is shown net of taxes on returns, rebates and discounts and the consolidated
financial statements are also net of intercompany sales eliminations and unrealized profits
on inventories, between the parent company and its subsidiaries.