Bunge 2004 Annual Report

Common Share Market and Dividends

Five-Year Summary of Selected Financial Data

Management's Discussion and Analysis of Financial Condition and Results of Operations

Consolidated Statements of Income

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Consolidated Statements of Shareholders' Equity

Notes to the Consolidated Financial Statements

Management's Report on Internal Control Over Financial Reporting

Reports of Independent Registered Public Accounting Firm

notes to the consolidated
financial statements

27. argentina
In 2002, Bunge commenced recording, and continues to record, an allowance against certain recoverable taxes owed to it by the Argentine government due to delayed payment and uncertainty regarding the local economic environment. The balance of this allowance fluctuates depending on the sales activity of existing inventories, the purchase of new inventories, seasonality, changes in applicable tax rates, cash payment by the Argentine government and compensation of outstanding balances against income or certain other taxes owed to the Argentine government. At December 31, 2004 and 2003, this allowance for recoverable taxes was $27 million and $25 million, respectively. In the year ended December 31, 2004, Bunge increased this allowance in the amount of $2 million as a result of increased purchases of commodity inventories in the first half of the 2004 year. In the year ended December 31, 2003, Bunge decreased this allowance in the amount of $39 million as a result of either cash recoveries by Bunge or compensation against taxes owed by Bunge to the Argentine government.

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