(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)



    2009 2008
           
Financial income:        
Income from short-term investments
 50,218 116,127
Interest on postponed receivables
 3,742 7,663
Interest – securitization abroad
 22,208 28,804
Reversal of contingencies’ fine and interest
4,490 -
Reversal of fine and interest on the federal tax installment program (a)
17,712 -
Other financial income
 1,381 811
99,751 153,405
Financial expenses:        
Interest – securitization abroad
 (22,208) (28,804)
Late payment interest and fines
 (12,206) (8,129)
Contingencies’ fine and interest
(2,830) -
Fine and interest on the federal tax installment program (a)
(11,103) -
Interest payable
 (2,995) (21,105)
Other financial expenses
 (5,177) (1,837)
(56,519) (59,875)
       
Income from prepayment of receivables:        
Prepayment of receivables
 218,150 17,388
       
Adjustment to present value expenses:        
Adjustment to present value of receivables (b)
 (35,266) -
       
Exchange rate variation, net (c) 1,903 947
Total 228,019 111,865

(a)  See Note 32.
(b)  As described in Note 7.(a), the adjustment to present value recorded in the financial statements was calculated on receivables prepayments. The assumptions adopted for the calculation are as follows:
  • Interest rates used are those contracted for the transactions of up to 4.2% per month.
  • Calculations were carried out separately, discounting cash flows for each recorded receivable.
The Company's Management recognized the adjustment to present value of accounts receivable balance in view of the materiality of values adjusted, of interest rates and transaction terms.
Management reviews the assumptions mentioned on a monthly basis and changes are recorded in the statement of income.
(c)  Arises basically from the receivables securitization abroad transaction and gains and losses originally denominated in foreign currency, represented by income in the amount of R$126,625 (R$391,812 as of December 31, 2008) and expenses in the amount of R$124,722 (R$390,865 as of December 31, 2008).