Real estate inventory
Lands reserved to future development are the main item in Inventory, and stand for 57.7% of its total. Cyrela gives priority to lands that may be acquired through swaps and that have no restriction regarding the term for launching. Real estate already built and under construction as of the balance sheet basis-date (December 31, 2010) stand for a PSV of R$ 4.8 billion (100%) and R$ 3.9 billion (CBR’s percentage).
Advances from Customers
On December 31, 2010, the amount of client advances related to swaps was R$ 1.8 billion. Swaps are liabilities mostly arising from the delivery of future units for acquiring lands, and are assessed at the price of sale of these units under construction. Such liabilities will be amortized with the same recognition procedure used for sales revenues, and as such there will be no effective cash disbursement.
