Other investments consist primarily of investments in financial instruments and time deposits with a maturity of more than
three
months at the date of purchase.
Certain non-derivative financial assets that the Company has both the ability and the intention to hold to maturity have been categorized as held to maturity financial assets. They are carried at amortized cost and the results are recognized in
Financial Results
in the Consolidated Income Statement using the effective interest method. Held to maturity instruments with maturities greater than
12
months after the balance sheet date are included in the non-current assets.
All other investments in financial instruments and time deposits are categorized as financial assets “at fair value through profit or loss” because such investments are both (i) held for trading and (ii) designated as such upon initial recognition because they are managed and their performance is evaluated on a fair value basis. The results of these investments are recognized in
Financial Results
in the Consolidated Income Statement.
Purchases and sales of financial investments are recognized as of their settlement date.
The fair values of quoted investments are generally based on current bid prices. If the market for a financial investment is
not
active or the securities are
not
listed, Tenaris estimates the fair value by using standard valuation techniques (see Section III Financial Risk Management).
