|

Our financial statements and all amounts referenced in this
section include results based on Brazilian Corporate Law.
This differs from amounts reported by us in prior years. Brazilian
Corporate Law is considered to be a comprehensive basis of
GAAP and it is used as the primary basis of reporting in Brazil.
The only material difference between Brazilian Corporate Law
and the financial statements used in our previous annual reports
is that Brazilian Corporate Law does not allow for price-level
accounting for periods after December 31, 1995. It also prohibits
discounting of fixed rate monetary assets and liabilities,
while the "constant currency method" continues to
require price-level accounting and requires discounting if
the effect is material. Brazilian Corporate Law and "constant
currency method" are the same in all other material respects.
A complete reconciliation of Brazilian Corporate Law to "constant
currency method" financial statements is included in
our consolidated financial statements.
|