| ADVANCES FROM CUSTOMERS |
| 18. | ADVANCES FROM CUSTOMERS |
Advances from customers classified as current and non-current
liabilities are comprised as follows. Until the previous reporting period, this information was disclosed in the ‘Other payables’
note:
| Schedule of contract liabilities |
|
|
|
|
|
|
| |
|
|
|
|
|
Consolidated |
| |
|
|
|
12/31/2025 |
|
12/31/2024 |
| Iron ore |
|
|
|
11,597,794 |
|
11,625,627 |
| Others |
|
|
|
1,776,909 |
|
2,143,962 |
| |
|
|
|
13,374,703 |
|
13,769,589 |
| |
|
|
|
|
|
|
| Classified: |
|
|
|
|
|
|
| Current |
|
|
|
4,347,937 |
|
3,648,639 |
| Non-current |
|
|
|
9,026,766 |
|
10,120,950 |
| |
|
|
|
13,374,703 |
|
13,769,589 |
Iron Ore: refers to iron ore supply contracts
with important international players executed by the Company.
Advances were made as follows:
| (i) | Contracts entered by subsidiaries |
| Schedule of contract liability advances from subsidiaries |
|
|
|
|
|
|
| Transaction Date |
|
Amount |
|
Volume |
|
Term |
| 06/28/2024 |
|
US$ 255 million |
|
6,5 millions tons |
|
4 years |
| 09/25/2024 |
|
US$ 450 million |
|
9,7 millions tons |
|
4 years |
| 09/27/2024 |
|
US$ 300 million |
|
7,2 millions tons |
|
4 years |
| 12/17/2024 |
|
US$ 355 million |
|
8,1 millions tons |
|
5 years |
| 06/30/2025 |
|
US$ 241 million |
|
5,9 millions tons |
|
4 years |
| 08/29/2025 |
|
US$ 300 million |
|
7,2 millions tons |
|
4 years |
| (ii) | Intercompany agreements entered by and between subsidiaries |
| Transaction Date |
|
Amount |
|
Volume |
|
Term |
| 11/03/2025 |
|
US$ 367 million |
|
7,9 millions tons |
|
4 years |
| 12/03/2025 |
|
US$ 405 million |
|
9,7 millions tons |
|
3 years |
| 12/03/2025 |
|
US$ 150 million |
|
3,2 millions tons |
|
4 years |
| 12/03/2025 |
|
US$ 158 million |
|
3,8 millions tons |
|
4 years |
| 12/03/2025 |
|
US$ 300 million |
|
7,2 millions tons |
|
5 years |
| 12/26/2025 |
|
US$ 241 million |
|
5,9 millions tons |
|
4 years |
Accounting Policy
The Company recognizes as advances from customers the advance
receipts from customers, until the contractual criteria for revenue recognition and amortization of the amounts received are met.
In addition, the Company recognizes as customer advances
the payments received in excess due to adjustments by the Platts index quotation that determines the price practiced in iron ore sales
contracts.
|