This excerpt taken from the NETC 20-F filed Jun 1, 2006.
Selected Financial Data
The selected consolidated statement of operations data for each of the three years in the period ended December 31, 2005 and the selected consolidated balance sheet data as of December 31, 2004 and 2005 set forth below are derived from our audited consolidated financial statements included elsewhere in this Form 20-F. Statement of operations data for the years ended December 31, 2001, and 2002 and the balance sheet data as of December 31, 2001, 2002 and 2003 are derived from our previously published audited consolidated financial statements, which are not included in this Form 20-F. All of our consolidated financial statements have been prepared in accordance with U.S. GAAP. The selected consolidated financial data set forth below should be read in conjunction with, and are qualified in their entirety by reference to, Item 5. Operating and Financial Review and Prospects and our consolidated financial statements and notes thereto included elsewhere in this Form 20-F.
We maintain our financial records in Brazilian reais. However, our audited consolidated financial statements and the selected financial data set forth below are presented in U.S. dollars, our reporting currency. In order to prepare our consolidated financial statements, we translated our accounts from reais to U.S. dollars, on the basis described in note 2 to our consolidated financial statements. In comparing amounts in U.S. dollars in different periods, you should consider the historical fluctuations in the Brazilian rate of inflation and in the rate of exchange between the real and the U.S. dollar. See note 2 to our audited consolidated financial statements.