Additional Information to the Notes to the Financial Statements required by section 68 of the Buenos Aires

Stock Exchange Regulations

Type of stock

Ordinary certified shares of Ps.1 face value and 1 vote each

ASSETS

Current Assets

Cash and banks (Note 4.a.)

Investments (Note 4.b.)

Trade accounts receivable, net (Note 4.c.)

Other receivables (Note 4.d.)

Inventories (Note 4.e.)

Other assets (Note 4.f.)

Total Current Assets

Non-Current Assets

Trade accounts receivable (Note 4.c.)

Other receivables (Note 4.d.)

Inventories (Note 4.e.)

Investments on controlled and related companies (Note 4.b.)

Other investments (Note 4.b.)

Property and Equipment, net (Note 4.g.)

Intangible assets, net (Note 4.h.)

Subtotal Non-Current Assets

Goodwill (Note 4.i.)

Total Non-Current Assets

Total Assets

LIABILITIES

Current Liabilities

Trade accounts payable (Note 4.j.)

Mortgages payable (Note 4.k.)

Short-term debt (Note 4.l.)

Salaries and social security payable (Note 4.m.)

Taxes payable (Note 4.n.)

Advances from customers (Note 4.o.)

Other liabilities (Note 4.p)

Provisions for lawsuits and contingencies (Note 4.q.)

Total Current Liabilities

Non-Current Liabilities

Trade accounts payable (Note 4.j.)

Advances from customers (Note 4.o.)

Long-term debt (Note 4.l.)

Taxes payable (Note 4.n.)

Other liabilities (Note 4.p.)

Provisions for lawsuits and contingencies (Note 4.q.)

Total Non-Current Liabilities

Total Liabilities

Minority interest

SHAREHOLDERS’ EQUITY

Total Liabilities and Shareholders’ Equity

Agricultural production income (Note 6)

Cost of agricultural production (Note 6)

Production Profit – Agricultural

Sales - crops, beef cattle, milk and others (Note 6)

Sales of farm (Note 6)

Cost of sales - crops, beef cattle, milk and others (Note 6)

Cost of farms (Note 6)

Sales profit – Agricultural business

Sales and development of properties (Note 6)

Income from lease and service of offices, shopping centers, hotels, consumer financing and others (Note 6)

Cost of sales and development of properties (Note 6)

Cost of lease and service offices, shopping centers, hotels, consumer financing and others (Note 6)

Sales profit – Real estate business

Gross profit - Agricultural business

Gross profit - Real estate business

Gross profit

Selling expenses

Administrative expenses

Unrealized gain – on farm held for sale

Unrealized loss on inventories (Note 4.r)

Net income from retained interest in securitized receivables

Operating gain

Amortization of goodwill

Financial results

Generated by assets:

Exchange gains

Conversion differences

Interest income

Gain on hedging operations

Tax on bank account operations

Interests of acquired convertible notes

(Loss) gain on financial operations

Others

Subtotal

Generated by liabilities:

Interest paid

Loans and convertible notes

Net income for repurchase of convertible notes (Note 14)

Others

Exchange loss

Subtotal

Financial results, net

(Loss) gain on equity investees

Other income and expenses (Note 4.s)

Management fee

Net gain before income tax and minority interest

Income tax and minimum presumed expenses

Minority interest

Net income for the period

Earnings per share :

Basic net gain per share (Note 5)

Diluted net gain per share (Note 5)

Changes in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the period

Net (decrease) increase in cash and cash equivalents

Causes of changes in cash and cash equivalents

Operating activities

Income for the period

Income tax

Adjustments made to reach net cash flow from operating activities

Loss (gain) on equity investees

Minority interest

Increase in allowances, provisions and accruals

Depreciation and amortization

Unrealized loss on Inventories

Financial results

Loss sales of fixed assets

Adjustment valuation to net realizable value in other assets

Amortization of goodwill

Result from barter of inventories

Result from repurchases of non-convertible notes

Changes in operating assets and liabilities

(Increase) decrease in current investments

(Increase) decrease in trade accounts receivable, leases and services

Increase in other receivables

Increase in inventories

Increase in intangible assets

Increase in social security payables, taxes payable and advances from customers

(Decrease) increase in trade accounts payable

Dividends collected

Increase in accrued interest

Increase in advances from customers

Increase in other liabilities

Cash flows applied to operating activities

Investment activities

Decrease in non-current investments

Increase in interest in equity method investees

Increase in IRSA’s interest

Acquisition, upgrading and collected of fixed assets

Sales of fixed assets

Increase in intangible assets

Increase in goodwill

Purchase and improvements of undeveloped parcels of lands

Loans granted

Payment for subsidiary acquired, net of cash acquired

Cash flows applied to investment activities

Financing activities

Increase in capital

Contributions received by subsidiaries from minority shareholders

Exercise of Warrants and Options

Cash Dividends paid

Proceeds from short-term and long-term debt

Payment of short-term debt

Repurchase of treasury stocks

Expenditures for repurchase of non-convertible notes

Decrease in mortgages payable

Decrease in trade accounts payable

Cash flows (applied to) provided by financing activities

Net (decrease) increase in cash and cash equivalents

Items not involving changes in cash and cash equivalents

Inventory transferred to property and equipment

Increase in other receivables by sale of property and equipment

Acquisition of subsidiary companies through a decrease of non-current investment

Increase in fixed assets through an increase in other liabilities

Decrease in non-current investments by transitory conversion differences

Repayment of financial loans through issue of stock by exercise of conversion right

Repurchase of treasury stock unpaid

Increase in inventory through a decrease in property and equipment

Transfer of undeveloped parcels of land to an inventories

Increase in other receivables through a decrease in undeveloped parcels of land

Decrease in trade accounts payable through a decrease in undeveloped parcels of land

Increase in goodwill through a decrease in minority interest

Increase in fixed assets through an increase in trade accounts payable

Issuance of certificates of participation

Financial costs capitalized

Complementary information

Interest paid

Income tax paid

Acquisition of subsidiaries companies

Investments

Trade accounts receivable and rentals

Other receivables

Inventories

Non-Current Investments

Property and equipment, net

Intangible assets

Goodwill

Trade accounts payable

Mortgage payable

Advances from customers

Financial loans

Salaries and social security payable

Taxes payable

Other liabilities

Minority interest

Acquired assets that do not affect cash, net value

Acquires funds

Acquired assets, net value

Minority interest

Equity method previous to the consolidation

Goodwill generated by the purchase

Purchase value of subsidiaries companies

Acquired funds

a)      Revenue recognition

•        Real Estate Business

1)      Revenue recognition of IRSA Inversiones y Representaciones Sociedad Anónima

•        Sales of properties

IRSA records revenue from the sale of properties when all of the following criteria are met:

•        The sale has been consummated.

•        There is sufficient evidence to demonstrate the buyer’s ability and commitment to pay for the property.

•        The Company’s receivable is not subject to future subordination.

•        The Company has transferred the property to the buyer.

In addition, IRSA uses the percentage-of-completion method of accounting with respect to sales of development properties under construction. Under this method, revenue is recognized based on the ratio of costs incurred to total estimated costs according to budgeted costs. IRSA does not commence revenue and cost recognition until such time as the decision to proceed with the project is made and construction activities have begun. The percentage-of-completion method of accounting requires the Company’s Management to prepare budgeted costs in connection with sales of properties/units. All changes to estimated costs of completion are incorporated into revised estimates during the contract period.

•        Revenues from leases

Revenues from leases are recognized on a straight –line basis over the life of the related lease contracts.

2)      Revenue recognition of Alto Palermo S.A. (APSA)

•        Net income for admission rights and rental of stores and stands

Leases with tenants are accounted for as operating leases. Tenants are generally charged a rent, which consists of the higher of (i) a monthly base rent (the “Base Rent”) and (ii) a specified percentage of the tenant’s monthly gross revenues (the “Percentage Rent”) (which generally ranges between 4% and 10% of tenant’s gross revenues).

Furthermore, pursuant to the rent adjustment clause in most leases, the tenant’s Base Rent generally increases between 7% and 12% each year during the term of the lease. Minimum rental income is recognized following on the accrued criteria.

Certain lease agreements contain provisions, which provide for rents based on a percentage of sales or based on a percentage of revenues volume above a specified threshold. APSA determines the compliance with specific targets and calculates the additional rent on a monthly basis as provided for in the contracts. Thus, these contingent rents are not recognized until the required thresholds are exceeded.

Generally, APSA’s lease agreements vary from 36 to 120 months. Law No. 24,808 provides that tenants may rescind commercial lease agreements after the initial six-months, upon not less than 60 days’ written notice, subject to penalties which vary from one to one and a half months rent if the tenant rescinds during the first year of its lease, and one month of rent if the tenant rescinds after the first year of its lease.

Additionally, APSA charges its tenants monthly administration fees relating to the administration and maintenance of the common area and the administration of contributions made by tenants to finance promotional efforts for the overall shopping centers operations. The administration fees are prorated among the tenants according to their leases which vary from shopping center to shopping center. Administration fees are recognized monthly when earned.

In addition to rent, tenants are generally charged “a non refundable admission fee”, that tenants may be required to pay upon entering into a lease or upon lease renewal. Admission right is normally paid in one lump sum or in a small number of monthly installments. Admission rights are recognized in earnings using the straight-line method over the life of the respective lease agreements.

•        Lease agent operations

Fibesa S.A. and Comercializadora Los Altos S.A. (ALTOCITY.COM S.A.’s continuining company, companies in which APSA have shares of 99.9999% and 100% respectively, act as the leasing agents for APSA bringing together the company and potential lessees for the retail space available in certain of APSA’s shopping centers. Fibesa S.A.’s and Comercializadora Los Altos S.A’s revenues are derived primarily from collected commissions calculated as a percentage of the final rental income value. Revenues are recognized at the time the transaction is successfully concluded.

•        Credit card operations “Consumer Financing”

Revenues derived from credit card transactions consist commissions, financing income, charges to clients for life and disability insurance and for statements of account, among other. Commissions are recognized at the time the merchants’ transactions are processed, while the rests financial income is recognized when accrued. Income generated from granting consumer loans mainly includes financial interests which are recognized by the accrued method during the period irrespective of whether collection has or has not been made.

•        Hotel operations

IRSA recognizes revenues from its rooms, catering and restaurant facilities as accrued on the close of each business day.

b)     Inventories

•        Real Estate Business

A property is classified as inventories upon determination by the Board of Directors that the property is to be marketed for sale in the normal course of business over the next several years.

Properties classified as inventories have been valued at acquisition or construction cost restated as mentioned in Note 1.c. to the basic financial statements or estimated market value, whichever is lower. Costs include land and land improvements, direct construction costs, construction overhead costs, financial costs and real estate taxes.

Inventories on which advance payments that establish price have been received, and the operation’s contract terms and conditions assure that the sale will be effectively accomplished and that the income will be realized, are valued at its fair market value. Profits arising from such valuation are shown in the “Gain from valuation of assets at net realizable value” caption of the Statements of Income.

Properties held for sale are classified as current or non-current based on the estimated date of sale and the time at which the related receivable is expected to be collected by the Company.

The amount recorded in inventories, net of allowances set up, does not exceed their estimated recoverable value at the end of the period/year.

Credits in kind:

IRSA has credits in kinds related to rights to receive certain property units to be built. The units have been valued according to the accounting measuring standards corresponding to inventories receivables and there have been disclosed under “Inventories”.

c)      Others assets

•        Agricultural Business

The other assets for which price-fixing prepayments were received and the contractual conditions of the transaction ensure the actual materialization of the sale and the income and they are valued at net realization value.

Profits arising from such valuation are shown in the “Unrealized gain – on farm held for sale” caption of the Statements of Income.

d)     Non-current investments

•        Real Estate Business

•        Investments in debt securities:

Investments in debt securities were valued based on the best estimate of the discounted amount receivable, applying the corresponding internal rate of return estimated at the time of incorporation to assets, as IRSA will hold them to maturity.

•        Investments in subsidiaries and affiliated companies:

Long term investments in subsidiaries and affiliated companies, have been valued by using the equity method of accounting based on the unaudited financial statements at March 31, 2009 issued by them. The accounting standards used by the subsidiaries to prepare their unaudited financial statements are the same as those used by the Company. The accounting standards used by the related companies to prepare their unaudited financial statements are those currently in effect.

The Financial Statements of Banco Hipotecario S.A. and Banco de Crédito y Securitización S.A. are prepared in accordance with the Central Bank of the Argentine Republic (“BCRA”) standards. For the purpose of the valuation of the investment in IRSA, adjustments necessary to adequate the financial statements to the professional accounting standards have been considered.

This item also includes the lower or higher value paid for the purchase of shares in subsidiaries and affiliated companies assignable to the assets acquired, and goodwill related to the subsidiary Banco Hipotecario S.A. and Manibil S.A.

•        Banco Hipotecario S.A.:

IRSA has an important investment in Banco Hipotecario S.A. This investment is valued according to the equity method due to the significant influence of the economic group on the decisions of Banco Hipotecario S.A. and to the intention of keeping said investment on a permanent basis.

In accordance with the regulations of the BCRA and the contracts signed as a result of Banco Hipotecario S.A.’s financial debt restructuring process, there are certain restrictions on the distribution of profits by Banco Hipotecario S.A. to IRSA.

The negative goodwill arising from the acquisition of shares in Banco Hipotecario (See Note 9.B.1.e.) has been measured at cost, which in turn had been calculated as the difference between the amount paid for such investment and the book value of the equity interest acquired. The Company is now analyzing the effects of the allocation of the purchase value according to the provisions under Technical Resolution No. 21.

•        Tyrus S.A.:

Uruguay-based Tyrus S.A. has been classified as not integrated into the Company’s operations because it is a company engaged in holding the shares pertaining to the investment in Metropolitan (See Note 9.B.1.d) whose operations are carried out fully abroad. IRSA does not control foreign operations, which are conducted with a significant degree of autonomy with respect to the Company’s own operations. Besides, such operations are mainly financed with funds originating in its own transactions or in local loans.

The Tyrus S.A.’s assets and liabilities were converted into Pesos at the exchange rate in force at the close of the period. The Statement of Income accounts have been converted into Pesos at the exchange rates in force at the time of each transaction. Foreign exchange gains/losses arising from the conversion have been charged to the Shareholders’ equity caption of IRSA Inversiones y Representaciones Sociedad Anónima, in the line “Transitory conversion differences” and they amounted to Ps. 14,967 as of March 31, 2009.

The goodwill corresponding to the acquisition of the controlled company Tyrus S.A. has been measured at cost value, which was calculated as the difference between the amounts paid for such investment and the book value of the ownership interest acquired. The Company is now following the procedure to analize the current value of the assets and liabilities acquired for purpose of allocating of the purchase value, in conformity with Technical Resolution No. 21.

•        Certificates of participation in IRSA I financial trust:

The certificates of participation in IRSA I financial trust have been valued at the amount resulting from apportioning the participation certificate holding to the trust assets.

•        Undeveloped parcels of lands:

IRSA acquires undeveloped land in order to provide an adequate and well-located supply for its residential and office building operations. IRSA’s strategy for land acquisition and development is dictated by specific market conditions where the Company conducts its operations.

Land held for development and sale and improvements are stated at cost restated as mentioned in Note 1.c. to the basic financial statements or market value, whichever is lower. As of June 30, 2008, IRSA maintained allowances for impairment of certain parcels of undeveloped land for which their market value is lower than cost. The amount charged to reflect the allowance for impairment and its reversal has been disclosed in “Unrealized (loss) gain on inventories” in the Statement of Income (See Note 4.s).

Land and land improvements are transferred to inventories or fixed assets when construction commences or their trade is decided.

The values thus obtained, net of the allowances recorded, do not exceed their respective estimated recoverable values at the end of the period.

e)      Business combinations

•        Real Estate Business

Entities purchased by the Company were recorded in line with the “acquisition method” set forth in Technical Resolution No.18. All assets and liabilities acquired to third independent parties were adjusted to show their fair value. In to such extent, IRSA identified the assets and liabilities acquired including intangible assets such as:

-        The estimated current value of the costs that IRSA avoids incurring as a result of acquiring effective rent contracts, for which the estimated costs of entering into similar contracts were taken into account as well as other factors such as the geographical location and the size of the area rented. The value of the effective rent contracts is included in intangibles and it is amortized as a rental cost in the remaining initial term of each contract.

-        The value of the rent contracts acquired, for which the market conditions to the date of acquisition were taken into account as well as other factors including geographical location, size and location of the area rented in the building, profile and credit risk conditions of the lessees to determine if the rental contracts acquired have higher or lesser conditions to those of the market at the time of the acquisition. The current value of the difference between the contracts acquired under the terms of the contracts and the market conditions were taken into account, disclosing an asset or a liability (shown in Other liabilities) depending if the contracts acquired are higher or lesser to the market values.

The values thus determined should be amortized as an increase or decrease of the income for rentals during the remaining term of the respective contracts, including any renewal considered in the valuation. If a lessee terminates its rent contract, the non-amortized portion of the intangible assets will be recorded in the Statement of Income.

-        Relationships with clients. The items that IRSA considered to assign value to such relationships include the nature and extension of the commercial relationships currently existing with lessees, growth prospects for development of new business, lessee’s credit qualities and renewal prospects. IRSA has not identified any lessee with whom it has developed a type of relationship allowing the recognition of an intangible asset.

The process of identification and the determination of the price paid is a matter that requires complex judgments and significant estimates.

IRSA used the information contained in valuations estimated by independent appraisers as primary base for assigning the price paid for the land and the building acquired. The amounts assigned to all the other assets and liabilities were based on independent valuations or on the IRSA’s own analysis on comparable assets and liabilities. The current value of tangible assets acquired considers the property value as if it was empty.

In accordance with the terms of Technical Resolution No. 21, the difference between the price paid and the addition of the current values of the net assets acquired generate goodwill. If the value of identified tangible and intangible assets and liabilities exceeds the price paid, the intangible assets acquired are not recognized as they would cause an increase of the negative goodwill generated by these acquisitions at the time of the purchase. The goodwill generated due to an acquisition of net assets is shown in line with the tangible asset acquired. Amortizations have been calculated by the straight line method on the basis of the estimated useful life considering the weight average of the remaining useful life of the tangible assets acquired.

f)      Property and equipment, net

•        Agricultural Business

The tree plantations (wood) comprising this account has been valued at cost less respective accumulated depreciation as the Company has no intention to sell it, but use it in the production process.

Its cost was calculated according to a “Report on forestry mass increase” carried out by a forestry engineer at the request of the preceding shareholders of Agropecuaria Anta S.A. (ex Agropecuaria Cervera S.A.) (ANTA).

ANTA former Board of Directors based on such report as well as on owns estimates accepted the value of the tree plantations (wood) in Ps. 4,320.

Depreciation for the period was calculated based on the remaining concession term.

Other considerations – concessions granted

Among other goods and rights ANTA has the concession planning and execution of an integral development project including: biological, economical and social issues on several real estates located in the department of Anta, province of Salta. The company is also duty authorized to perform a significant agricultural, cattle farming and forestry project which was awarded under resolution No. 190/99 and bidding No. 58/98 of the Ministry of Production and Employment.

Such concession was granted for a 35 year term with a postponement option of 29 additional years by ANTA.

Among other obligations ANTA has to invest Ps. 16,000 in agriculture, cattle farming, hydraulic resources, continuing education, forestry development, forest planting, fauna, natural reserve and eco-tourism, and has to pay an annual US$ 0.06 million cannon to the province of Salta to be paid as from the 20th year as from the commencement of the concession.

On July 2, 2008, a memorandum of understanding was executed by which the concession agreement mentioned in Note 12. was renegotiated.

•        Real Estate Business

Fixed assets comprise primarily of rental properties and other properties and equipment held for use by IRSA Inversiones y Representaciones Sociedad Anónima.

Fixed assets value, net of allowances set up, does not exceed estimated recoverable value at the end of the period/year.

Rental properties

Rental properties are carried at acquisition and/or construction cost, restated as mentioned in Note 1.c. to the basic financial statements, less accumulated

depreciation and allowance for impairment at the end of the period. IRSA capitalizes the financial costs accrued costs associated with long-term construction projects. During the period/year ended March 31, 2009 and June 30, 2008, financial costs were capitalized in the building known as “DIQUE IV” for Ps. 7,561 and Ps. 109, respectively.

Accumulated depreciation is computed under the straight-line method over the estimated useful lives of each asset. Expenditures for ordinary maintenance and repairs are charged to results in the period incurred.

IRSA has allowances for impairment of certain rental properties.

The amount charged to reflect the allowance for impairment and its reversal has been disclosed in “Unrealized (loss) gain on inventories” in the Statement of Income (See Note 4.s).

Significant renovations and improvements, which improve or extend the useful life of the asset are capitalized and depreciated over its estimated remaining useful life. At the time depreciable assets are retired or otherwise disposed of, the cost and the accumulated depreciation of the assets are eliminated from the accounts and the resulting gain or loss is disclosed in the unaudited statement of income.

Other properties and equipment

Other properties and equipment properties are carried at cost, restated as mentioned in Note 1.c. to the basic financial statements, less accumulated depreciation at the end of the period. Accumulated depreciation is computed under the straight-line method over the estimated useful lives of the assets.

g)      Intangible assets

•        Agricultural Business

The total price paid for acquiring Agropecuaria Anta S.A. (ex Agropecuaria Cervera S.A.) was allocated to identified individual assets; they include Ps. 22,453 as concession rights that are booked as intangible assets to these consolidated financial statements.

The amortization of the concession right of Agropecuaria Anta S.A. (ex Agropecuaria Cervera S.A.) is calculated according to its duration, whose remaining time is 30 years.

•        Real Estate Business

Intangible assets are carried at cost restated as mentioned in Note 1.c. to the basic financial statements, less accumulated amortization and corresponding allowances for impairment in value. Included in the Intangible Assets caption are the following:

•        Trademarks

Trademarks include the expenses and fees related to their registration.

•        Pre-operating and organization expenses

This item reflects expenses generated by the opening of new shopping malls restated as mentioned in Note 1.c. to the basic financial statements. Those expenses are amortized by the straight-line method in 3 years, beginning as from the date of opening of the shopping center.

•        Projects development expenses

Intangible assets, related to new projects development expenses, have been valued at acquisition cost and they will be amortized during the period in which IRSA starts developing the project.

•        Saving expenses of contracts

Intangible assets correspond to expenses that IRSA avoids incurring as a result of acquiring effective rent contracts and the estimated costs of entering into rent contracts acquired (See Note 3.e.). These are shown net of their accumulated amortization.

Intangible assets are amortized during the average initial remaining useful life of the rent contracts acquired.

The value of these assets does not exceed its estimated recoverable value as of period/year-end.

h)     Goodwill

•        Real Estate Business

i.       Negative goodwill: Negative goodwill represents the excess of the market value of net assets of the subsidiaries at the percentage of participation acquired over the acquisition cost. Goodwill has been restated following the guidelines mentioned in Note 1.c. to the basic financial statements and amortization has been calculated by the straight-line method based on estimated useful life, that in no case exceed 20 years, considering the weighted-average of the remaining useful life of identifiable assets acquired subject to depreciation.

Includes goodwill originated from the purchase of shares of Emprendimiento Recoleta S.A., Empalme S.A.I.C.F.A y G., Mendoza Plaza Shopping S.A. (the last one through APSA), Palermo Invest S.A., Alto Palermo S.A., Banco Hipotecario S.A. and Tyrus S.A.

The negative goodwill arising from the acquisition of shares in Banco Hipotecario (See Note 9.B.1.e. to the Consolidated Financial Statements) has been measured at cost, which in turn had been calculated as the difference between the amount paid for such investment and the book value of the equity interest acquired. The Company is now analyzing the effects of the allocation of the purchase value according to the provisions under Technical Resolution No. 21.

ii.      Goodwill: the goodwill represents the excess of the acquisition cost over the net assets’ market value of the business acquired to the share percentage.

Includes the goodwill originated by the purchase of shares of Tarshop S.A., Fibesa S.A (these two last through APSA) and Alto Palermo S.A.

Additionally, also includes goodwill originated from the purchase of net assets of Museo Renault y Torre Bank Boston.

Amortizations were calculated through the straight line method on the basis of an estimated useful life considering the weight average of the remaining useful life of the assets acquired.

The residual value of goodwill arising from acquisition of net assets and shares in companies has been shown in the “Goodwill” caption. Amortizations were classified in the “Amortization of Goodwill” caption of the statement of income.

Values thus obtained do not exceed the respective estimated recoverable values at period/year end.

i)       Liabilities in kind related with barter transactions

•        Real Estate Business

Liabilities in kind corresponding to obligations to deliver units to be built are valued considering the cost of the assets received. IRSA estimates that this value does exceed the cost of construction of the units to deliver plus additional costs to transfer the assets to the creditor. Liabilities in kind have been shown in the “Trade account payables”.

j)      Deferred financing cost

•        Real Estate Business

Expenses incurred in connection with the issuance of Negotiable Obligations and proceeds of loans are amortized over the life of the related issuances. In the case of redemption or conversion of these notes, the related expenses are amortized using the accelerated depreciation method.

Amortization has been recorded under “Financial results, net” in the Statements of Income as a greater financing expense.

a.

Cash

Foreign currency

Banks in local currency

Banks in foreign currency

Checks to be deposited

b.

Investments

Current

Mutual Funds (2)

Time deposits

Bonds and Notes(1)

Government bonds

-Pre 2009 bonds

-Pro 2012 bonds

- Participation trust certificates

-Certificates of participation - Tarshop Trust

Allowance for impairment of investments

- Non-convertible Notes IRSA 2017 (US$)

-Global 2010 bonds

-Bocon Pro 1

-Mortgage Bonds

Subtotal

Public shares (1)

Others investments (1)

(1)    Not considered cash equivalent for purposes of Statements of Cash Flows

(2)    As of March 31, 2009 includes Ps. 80,406 corresponding to mutual funds, not considered as cash for the purpose of the Statement of Cash Flows.