INDEX

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3.1. Shareholders equity

Manual of Accounting Policies (MAP) 2010 Updates

About the om
C pliance team
About the IFRS Network
About the Accounting Update & epR orting Alert
About the Accounting Helpdesk Ask the Experts
About the IFRS e-learning erti
C cation
About the Quarterly IFRS Update
Many thanks for your help

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0000 ram
F ework
0100 BPM
0300 Treatment of Changes, Estimates and Errors
in accounting policies
0600 Interim nancial reporting

1-@rrdsr
2.1 Non-current assets
1100
1150
1160
1200
1250
1300
1450
1600
1650

Intangible assets
Property, Plant and Equipment
Service oncession
C
Arrangements
eases
L
Asset etirem
R
ent Obligation (ARO)
Government grant
Investments accounted for using equity method
and other investments
inancial
F
assets
Non current assets held for sale and
discontinued operations

2.2 urrent
C
assets
1700
1750

Inventories
tock
S
margin

2000
2200
2300

Shareholders equity
Share-based payments
Non-controlling interests

being reviewed

3.2 Non-current liabilities

2400
2500
2600

ong
L
term debt
Pensions and other post employment benets
Provisions for liabilities and charges

3.3 urrent
C
liabilities
2700

Trade and other payables

3-s`R sdldmsnenodq`shnmr
3000
3200
3400
3500
3600
3700
3900

evR enue
ost
C of sales
Selling General & Administrative (SG&A)
taff
S
costs
Impairment
Net nancial costs
Income taxes

being reviewed

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4100

Off balance sheet commitments

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4200
4250
4300
4450
4500
4600
4610
4650
4700
4800
4850
4900

Operating segments
Earnings per share
Business combination
under review
Cash ow statement
Effects of changes in foreign exchange rates
Hedge accounting
under review
Embedded derivatives in purchasing contracts
True Sales of eceiv
R
ables (TSR)
Environmental provisions
elated
R
Party Disclosures
Emission rights
under review
Events after the reporting period

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3.2 Non-current liabilities

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2.1 Non-current assets

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2.2 urrent
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he
T IFSR omC liance
p
team is art
p of the Accounting, onsolidation
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& e-R
orting
p
department and is in charge of updating continuously the Manual of
Accounting Policies (MAP) in further developing Group accounting olicies
p
and homogenising critical accounting treatments ithin
w
ArcelorMittal group.

To suport
p the omC liance
p
team in the ost
m efcient ay
w , the Group has
created an IFSR
Network of geographical representatives ho
w
rov
p ides a
channel for discussion and comunication
m
of local issues to Group level and
for imlem
p entation and guidance of Group accounting olicies
p
at local level.

he
T roles of comliance
p
team are to:
- Promote a strong IFSR culture;
- ollow
F
the evolution of new IFSR standards or IFICR interpretations;
- heck
C
the aplication
p
of the MAP rocedures,
p
alerts and guidances in
the hole
w
group;
- Develop new accounting olicies
p
for critical accounting issues;
- date
pU
continuously the hart
C
of Account (CoA);
- entralise
C
the recurrent uestions
q
in the Accounting

elp
H desk; Ask the
Exerts
p
.

n
O the short term, the ArcelorMittal IFSR Networks efforts have een
b
dedicated to rite
w the ArcelorMittal Manual of Accounting Policies (MAP) issued
in the PM
B
ollab
C oration ortal
p
and aplicab
p le as at anuary
J
2008.

he
T Manual of Accounting Policies (MAP) is divided in 4 ain
m arts
p
covering
the ain
m
topics of the nancial

accounts: assets, liabilities, statement of

operation and special accounting issues.
he
T obectiv
j es of the MAP are to:
- reate
C
the conditions of a consistent aplication
p
of AM accounting
olicy
p
throughout all the units
- Give clarity to the duties and tasks of the inance
F
functions;
- Give an overview
of the olicies
p
and rocedures
p
governing the usiness
b
that are art
p of the accountability of comliance;
p
- Make it ossib
p
le to train new accounting staff using the MAP rocedup
res as training documents;
In order to centralise the uestions
q
from all units, the comliance
p
team has
created the Accounting elp
H desk. he
T
aplication
p
allows all em
m ers
b
of
Group to receive accurate answers to their accounting uestions
q
in a 5 days
delay (maximum depending of the nature of the uestion)
q
and to consult the
AQ
F database of the aplication.
p
he
T emm ers
b of the comliance
p
team and their related responsibilities are
the following:
Nayla Germani-oel
C
- iaise
L
ith
w regulatory odies
b
and rofessional
p
organizations for new coing
m standards and oard
b
discussions
- Accounting & epR orting Alerts
- Accounting elp
H desk
Marie-laude
C
Proulx
- Trainings IFSR & PM
B
- Accounting date
pU
- Accounting elp
H desk
- IFSR Network
aurent
L
chum
S acher
- hart
C
of Accounts (CoA)
- MAP and ocket
p
guide
- IFSR Network

n
O a edium
m
and longer term, the Network ill
w e
b active in running IFSR
training rogram
p
es
m and ill
w e
b a direct consultative channel for operating
units and segments.
he
T ArcelorMittal IFSR Network is currently comosed
p
of aprox
p imately
35 emm ers,
b selected for their accounting exerience
p
and IFSR exertise,
p
representative of the following key geographical areas: Argentina, elgium
B
,
raz
B il, Canada, ech
zC
epR ublic,
rance,
F
Germany,
az
K akhstan, ux
L emourg,
b
Mexico, Poland, om
R ania, outh
S
Africa, ain,
pS kraine
U
and nited
U
tates
S
of
America.

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he
T Accounting

update informs the group on new accounting and reorting

p
developent.
m
he
T ain
m urp
p ose of this comunication
m
is to stay
aware of new and upcoming IFSR
standardsand evaluate yb anticipation
the imact
p ithin
w
the group. he
T following ain
m subects
j
have een
b
treated trough the last issues:
Accounting update n1 (Septemer
b 2007)
- IFICR 10 Interim nancial

reporting and imairm

p ent
- IFICR 11 Group and treasury share transactions
- orrow
B
ing costs (2009)
- erating
pO
segments (2009)
Accounting update n2 (February 2008)
- MAP (Manual of Accounting Policies)
- IFSR 7 inancial
F
instruments (disclosures)
- IFICR 12 erv
S ice concession arrangements
- IFICR 13 ustom
C
er loyalty rogram
p
s
Accounting update n3 (July 2008)
- IFSR knowledge Network eeting
m
in outh
S
Africa
- alance
B
core
S
ard
C
(B)CS
- Accounting elp
H desk, New guidance
Accounting update n4 (Decemer
b 2008)
- Accounting elp
H desk, Alerts,
- IFSR now
K ledge Network eeting
m
in rasil
B
- 3 new MAP Procedures
- New guidance (IAS 1, IAS 23, IAS 19 (amendment), IFICR 17)
Accounting update n5 (June 2009)
- Did ou
y know?
- Alerts
- Interesting uestions
q
- Accounting comunity
m
of ArcelorMittal
Accounting update n6 (October 2009)
- BPM trainings,
- MAP Pocket guide 2009
- Interesting questions from the tools Ask

the Experts
- Accounting community, spotlight on ArcelorMittal South Africa
he
T Accounting

and epR orting Alert is issued hen

w
needed and concerns only
one articular
p
accounting topic that needs to eb highlighted to the group.
epR orting Alert #01-2008 (June 2008)
Subject: Onerous (loss-making) contracts

epR orting Alert #04-2009 (August 2009)

Subject: Provision for obsolescence of slow moving Inventory: spare parts

epR orting Alert #02-2008 (October 2008)

Subject: Useful lives teel
S
plant

epR orting Alert #05-2009 (November 2009)

Subject: Preparation of the year-end closing (VRS/,V Impairment, egal
L
reorganization, 2008 onus,
B
randing
B
fees, Emloy
p ee ene
b ts, tockS options)

epR orting Alert #03-2008 (November 2008)

Subject: estricted
R
cash and escrow accounts teel
S
plant
epR orting Alert #04-2008 (December 2008)
Subject: Inventory Net ealisab
R
le alue
V
epR orting Alert #01-2009 (February 2009)
Subject: Net ealisab
R
le alue,
V
Onerous contracts provisions & their reversal
epR orting Alert #03-2009 (June 2009)
Subject: - Inventory - Net ealisab
R
le alue
V
(NRV)
- Impairment testing of long-lived assets
- Bonus 2008 Accounting treatment
- epR airs & Maintenance costs
- Employees on temporary lay-off
- VRS / SV and Employee benets

Those documents are sent by e-mail (pdf les) based on the people registered in Clara application and archived on the BPM ollab
C oration portal.
https:/arcelorm
.my/w
ittal.com/ bpmortal/
BPM ollab
C oration Portal > Accounting Alert & Update

Page

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In order to centralise orldw
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uestions
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and to ensure the constant
aplication
p
of the different rocedure,
p
the comliance
p
service has created
the Accounting elp
H desk. he
T aplication
p
allows all emm ers
b of the group
to receive accurate answers to their accounting uestions
q
in a e
v days
delay and to consult the AQ
F
database of the aplication.
p
he
T
software
has een
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developed internally and the Network has a consultative role
in the aplication
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as the uestions
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are redirect/assigned to the Network
exert
p of that specic area.

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As global capital arkets
m
ecom
b e increasingly integrated, any
m countries are
ov
m ing to International inancial
F
& epR orting tandards
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(IF).SR or
F examle,
p
ost
m European nion
U
countries use IFSR for nancial

reporting and any

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other countries around the orld
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already require IFSR as their local nancial

reporting standards. Moving forward, other countries such as nited

U
tates,
S
ap
J an, orea
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and Canada are also lanning
p
IFSR
convergence during the
upcoming ears.
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his
T aplication
p
is available on the PM
B
ollab
C oration ortal
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in the section
Ask

the Exerts
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All uestions
q
that are of general concern to the group ill
w e
b osted
p
on
the AQ
F database of the aplication
p
after an update of the MAP. All users
that have an access to the ortal
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ill
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b able to access the aplication
p
and
the AQ
F database.
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O a eekly
w
asis,
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the system ill
w send a sumary
m of all the new uesq
tions asked during the eek.
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Each user can subscribe to the newsletter
through the aplication
p
and chose the topics he/she ants
w
to e
b updated
on.
All information regarding the newsletter can e
b found under My
ro
p le
through the aplication.
p

Deloitte has developed high uality

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e-learning odules
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on IFSR
hich
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are
available at the following link: kwsw ghorlw
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his
T training does not only exlain
p
ou
y IFSR standards ut
b also gives ou
y the
oportunity
p
to ractice
p
and aplyp these rincip
p
les through cases studies and
a nal
uiz
q .
At the end of each odule
m
ou
y ll e
b given the ossib
p
ility to rint
p a certicate
(in case ou
y score at least 70%). Please scan our
y
certicate and send it to
inance
F
Academy: nance.

academarcelorm
@y
ittal.com
Additionally, e-learning ased
b
on the MAP ill
w soon e
b available. hose
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odules
m
ill
w focus on AMs thresholds, accounting olicies,
p
chart of accounts
& ow
s, etc. At the end of each section, a small uiz
q ill
w e
b added to ensure
our
y
correct understanding of the rocedure.
p
hese
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odules
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ill
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b available
at the end of the ear
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on the PM
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uarterly
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updates are organized in uxL emourg
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together ith
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A
&Q session. ast
L sessions covered:

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qx ,
Emission Trading chem
S es
Inventory and ap
C acity
Imairm
p ent Testing
A selection of IFSR hot topics: IFSR 7 (Amendment) - inancial
F
Instruments:
Disclosures, Exosure
p
Draft (ED) on onsolidated
C
inancial
F
tatem
S ents, ED
on oint
J
Arrangements, IAS 19 - Emloy
p ee ene
B
ts, ED on Income Taxes
ED on eases,
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Discussion Paper (DP) on evR enue ecognition,
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ED on air
F
alue
V
Measurement.

hsw
, hpehu
IFSR estimated to e
b ub
p lished in 2009
inancial
F
instruments: lassi
C
cation & Measurement
iab
L ilities - Amendments
to IAS 37
urrent
C
roj
p ects to e
b ub
p lished later than 2009
Derecognition: resentation
p
of ED + sumary
m of coment
m letters
received
Extractive activities: resentation
p
of draft of DP osted
p
Annual imrov
p ements
eedb
F ack and sumary
m of coment
m letters received on the following roj
p ects
ED on Income Taxes - om
C ents
m
received until uly
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31, 2009
DP on eases
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- om
C ents
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received until uly
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DP on evR enue ecognition
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- omC ents
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received until une
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19, 2009

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evR aming
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F
iab
L ilities: here
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do ew stand? Amortised cost and imairm
p ent ED
IAS 24R: elax
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disclosures
tatus
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of some IASB roj
p ects: ash
C
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resentation,
p
iab
L ilities, onsolidaC
tion, Derecognition, eases
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International Accounting tandard

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19 - Emloy
p ee ene
B
ts
IFICR dates
pU
on trip
S ing
p osts
C
date
pU
on IASB and IASAS
/BF B oint
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roj
p ects: inancial
F
instruments here
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are e?w imT etable, hases
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2 & 3, nancial

liabilities, Non-nancial

liabilities
In the spotlight: eases,
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revenue recognition, consolidation, nancial

stateent
m resentation,
p
statement of comrehensiv
p
e income, fair alue
v
easum
rements,
Material for these dates
pU
can e
b found on the PM
B
ollab
C oration ortal
p
at the following address: PM
B
ollab
C oration Portal > Manual of Accounting
Policies (MAP) > IFSR date
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PwC
imS ilar initiatives ith
w PWC are eing
b
developed at country level (Brazil, aC
nada, Germany, Poland, kraine,
U
A,
SU outh
S
Africa. or
F further information,
lease
p
contact our
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respective IFSR Network emm er.
b
hese
T
sessions can e
b also oined
j
yb call. or
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further information
rogram
p
, lease
p
contact:
- Marie-laude
C
PRLX
UO (Accounting, onsolidation
C
& epR orting) or
- Nayla GERMANI-ELO C (Accounting, onsolidation
C
& epR orting)

on this

Page

Notes:

Manual of Accounting
Policies (MAP)
2010

March 2010