Edgar Filing: IRSA INVESTMENTS & REPRESENTATIONS INC

[1] Corresponds to gross leasable area in each property. Excludes common areas and parking spaces.

[2] Calculated dividing occupied square meters by leaseable area on the last day of the period.

[3] Cost of acquisition plus improvements, less cumulative depreciation, plus adjustment for inflation, less allowance for impairment in value, plus recovery of allowances, if applicable. Does not include works in progress.

[4] Excludes Museo de los Niños (3,732 sqm).

[5] Excludes Museo de los Niños (1,261 sqm).

form6k.htm

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15b-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2014

IRSA Inversiones y Representaciones Sociedad Anónima

(Exact name of Registrant as specified in its charter)

IRSA Investments and Representations Inc.

(Translation of registrant´s name into English)

Republic of Argentina

(Jurisdiction of incorporation or organization)

Bolívar 108

(C1066AAB)

Buenos Aires, Argentina

(Address of principal executive offices)

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

IRSA INVERSIONES Y REPRESENTACIONES SOCIEDAD ANÓNIMA

(THE “COMPANY”)

REPORT ON FORM 6-K

Attached is the English translation of the Financial Results for the nine month period ended March 31, 2014 and March 31, 2013, filed by the Company with the Bolsa de Comercio de Buenos Aires and the Comisión Nacional de Valores:

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Financial Statements

as of March 31, 2014 and for the nine-month periods

ended March 31, 2014 and 2013

IRSA Inversiones y Representaciones Sociedad Anónima

Legal information

Denomination: IRSA Inversiones y Representaciones Sociedad Anónima.

Fiscal year N°: 71, beginning on July 1, 2013.

Legal address: 108 Bolívar St., 1st floor, Autonomous City of Buenos Aires, Argentina.

Company activity: Real estate investment and development.

Date of registration of the by-laws in the Public Registry of Commerce: June 23, 1943.

Date of registration of last amendment of the by-laws in the Public Registry of Commerce: March 15, 2013.

Expiration of the Company’s by-laws: April 5, 2043.

Registration number with the Superintendence: 213,036.

Capital: 578,676,460 shares.

Common Stock subscribed, issued and paid up (in thousands of Ps.): 578,676.

Parent Company: Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (Cresud S.A.C.I.F. y A.).

Legal Address: 877 Moreno St., 23rd. floor, Autonomous City of Buenos Aires, Argentina.

Main activity: Real estate, agricultural, commercial and financial activities.

Interest of the Parent Company on the capital stock: 378,753,404 common shares.

Percentage of votes of the Parent Company on the equity: 65.45%

Type of stock	CAPITAL STATUS
Type of stock	Authorized for Public Offer of Shares (*)	Subscribed, Issued and Paid up (in thousands of Pesos)
Common stock with a face value of Ps.1 per share and entitled to 1 vote each	578,676,460	578,676

(*) Company not included in the Optional Statutory System of Public Offer of Compulsory Acquisition.

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim consolidated statements of financial position

as of March 31, 2014 and June 30, 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

	Note	03.31.2014		06.30.2013
ASSETS
Non- Current Assets
Investment properties	10	4,362,072		3,992,530
Property, plant and equipment	11	202,165		212,673
Trading properties	12	204,064		178,425
Intangible assets	13	115,178		79,653
Investments in associates and joint ventures	8,9	1,612,956		1,423,936
Deferred income tax assets	25	372,080		85,236
Restricted assets	16	18,334		10,881
Income tax and minimum presumed income tax ("MPIT") credit		148,815		130,086
Trade and other receivables	17	98,709		85,126
Investments in financial assets	18	1,075,168		267,455
Derivative financial instruments	19	6,900		21,208
Total Non-Current Assets		8,216,441		6,487,209
Current Assets
Trading properties	12	12,030		11,689
Inventories	14	18,275		16,321
Restricted assets	16	2,074		1,022
Income tax and minimum presumed income tax ("MPIT") credit		1,039		-
Trade and other receivables	17	678,509		769,333
Investments in financial assets	18	284,185		244,053
Derivative financial instruments	19	8,133		-
Cash and cash equivalents	20	239,277		796,902
Total Current Assets		1,243,522		1,839,320
TOTAL ASSETS		9,459,963		8,326,529
SHAREHOLDERS' EQUITY
Capital and reserves attributable to equity holders of the parent
Share capital		574,188		578,676
Treasury stock		4,488		-
Inflation adjustment of share capital and treasury stock		123,329		123,329
Share premium		793,123		793,123
Cost of treasury stock		(32,998	)	-
Acquisition of additional interest in subsidiaries		(20,782	)	(20,782	)
Reserve for share-based compensation	33	20,375		8,258
Legal reserve		116,840		85,140
Special reserve		375,487		395,249
Reserve for new developments		469,831		492,441
Cumulative translation adjustment		156,905		50,776
Retained earnings		(91,280	)	239,328
Total capital and reserves attributable to equity holders of the parent…		2,489,506		2,745,538
Non-controlling interest		428,620		385,151
TOTAL SHAREHOLDERS' EQUITY		2,918,126		3,130,689
LIABILITIES
Non-Current Liabilities
Trade and other payables	21	225,096		211,118
Borrowings….…………	24	4,348,495		2,922,642
Deferred income tax liabilities	25	408,093		395,936
Salaries and social security liabilities	22	4,125		3,160
Provisions	23	181,727		57,737
Total Non-Current Liabilities		5,167,536		3,590,593
Current Liabilities
Trade and other payables	21	606,778		677,010
Income tax and minimum presumed income tax ("MPIT") liabilities		68,054		90,916
Salaries and social security liabilities	22	54,698		49,010
Derivative financial instruments	19	10,678		1,732
Borrowings	24	618,586		772,529
Provisions	23	15,507		14,050
Total Current Liabilities		1,374,301		1,605,247
TOTAL LIABILITIES		6,541,837		5,195,840
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		9,459,963		8,326,529

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Statements of Income

for the nine and three-month periods beginning on July 1st, 2013 and 2012

and January 1st, 2014 and 2013, respectively and ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

		Nine months					Three months
	Note		03.31.2014		03.31.2013			03.31.2014		03.31.2013
Revenues	27		2,047,841		1,594,094			673,881		514,058
Costs	28		(947,806	)	(791,233	)		(305,936	)	(256,521	)
Gross Profit			1,100,035		802,861			367,945		257,537
Gain from disposal of investment properties	10		115,362		64,019			107,881		8,060
General and administrative expenses	29		(193,902	)	(151,130	)		(64,523	)	(42,144	)
Selling expenses	29		(100,534	)	(73,244	)		(34,773	)	(24,712	)
Other operating results, net	31		(27,793	)	107,173			(10,449	)	(7,936	)
Profit from operations			893,168		749,679			366,081		190,805
Share of profit of associates and joint ventures	8,9		102,690		15,112			51,507		728
Profit before financial results and income tax			995,858		764,791			417,588		191,533
Finance income	32		89,444		103,479			29,189		45,514
Finance cost	32		(1,533,757	)	(553,530	)		(807,309	)	(195,101	)
Other financial results	32		257,315		151,755			202,778		104,381
Financial results, net	32		(1,186,998	)	(298,296	)		(575,342	)	(45,206	)
(Loss) / Profit before income tax			(191,140	)	466,495			(157,754	)	146,327
Income tax	25		112,298		(87,234	)		104,986		(12,945	)
(Loss) / Profit for the period			(78,842	)	379,261			(52,768	)	133,382

Attributable to:

Equity holders of the parent	(92,030	)	320,638	(70,352	)	96,856
Non-controlling interest	13,188		58,623	17,584		36,526

(Loss) / Profit per share attributable to equity holders of the parent during the period:
Basic	(0.160	)	0.554	(0.123	)	0.167
Diluted	(0.160	)	0.554	(0.123	)	0.167

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Consolidated Statements of Income

for the nine and three-month periods beginning on July 1st , 2013 and 2012 and January 1st, 2014 and 2013, respectively and ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

	Nine months				Three months
		03.31.2014		03.31.2013		03.31.2014		03.31.2013
(Loss) / Profit for the period		(78,842	)	379,261		(52,768	)	133,382
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment		149,786		40,306		78,010		16,573
Other comprehensive income for the period (i)		149,786		40,306		78,010		16,573
Total comprehensive income for the period		70,944		419,567		25,242		149,955

Attributable to:
Equity holders of the parent		14,099		357,551		(15,659	)	110,348
Non-controlling interest		56,845		62,016		40,901		39,607

(i)	Components of other comprehensive income have no impact on income tax.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim consolidated statements of changes in shareholders’ equity

for the nine-month periods ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

	Attributable to equity holders of the parent
	Share capital			Treasury stock		Inflation adjustment of share capital and treasury stock (2)		Share premium		Cost of treasury stock			Acquisition of additional interest in subsidiaries			Reserve for share-based compensation		Legal reserve		Special reserve (1)			Reserve for new development			Cumulative translation adjustment		Retained earnings			Subtotal			Non-controlling interest			Total shareholders' equity
Balance at July 1st, 2013		578,676			-		123,329		793,123		-			(20,782	)		8,258		85,140		395,249			492,441			50,776		239,328			2,745,538			385,151			3,130,689
Loss for the period		-			-		-		-		-			-			-		-		-			-			-		(92,030	)		(92,030	)		13,188			(78,842	)
Other comprehensive income for the period		-			-		-		-		-			-			-		-		-			-			106,129		-			106,129			43,657			149,786
Total comprehensive income for the period		-			-		-		-		-			-			-		-		-			-			106,129		(92,030	)		14,099			56,845			70,944
Distribution of retained earnings approved by Shareholders’ meeting held 10.31.13		-			-		-		-		-			-			-		31,700		(19,762	)		(22,610	)		-		10,672			-			-			-
Dividends distribution – approved by Shareholders’ meeting held 10.31.13		-			-		-		-		-			-			-		-		-			-			-		(250,000	)		(250,000	)		-			(250,000	)
Reserve for share-based compensation (Note 33)		-			-		-		-		-			-			12,117		-		-			-			-		-			12,117			424			12,541
Purchase of Treasury stock		(4,488	)		4,488		-		-		(32,998	)		-			-		-		-			-			-		-			(32,998	)		-			(32,998	)
Distribution of share capital of subsidiaries		-			-		-		-		-			-			-		-		-			-			-		-			-			(3,917	)		(3,917	)
Reimbursement of expired dividends		-			-		-		-		-			-			-		-		-			-			-		750			750			33			783
Dividends distributed by subsidiaries		-			-		-		-		-			-			-		-		-			-			-		-			-			(10,503	)		(10,503	)
Capital contribution of non-controlling interest		-			-		-		-		-			-			-		-		-			-			-		-			-			587			587
Balance at March 31, 2014		574,188			4,488		123,329		793,123		(32,998	)		(20,782	)		20,375		116,840		375,487			469,831			156,905		(91,280	)		2,489,506			428,620			2,918,126

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

(1)	Related to CNV General Resolution No. 609/12. See Note 26.

(2)	Includes Ps. 957 of Inflation adjustment treasury stock. See Note 26.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim consolidated statements of changes in shareholders’ equity

for the nine-month periods ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

	Attributable to equity holders of the parent
	Share capital		Inflation adjustment of share capital			Share premium		Acquisition of additional interest in subsidiaries			Reserve for share-based compensation		Legal reserve		Reserve for new developments		Cumulative translation adjustment			Retained earnings			Subtotal			Non-controlling interest			Total shareholders’ equity
Balance at July 1st, 2012		578,676		274,387			793,123		(15,714	)		2,595		71,136		419,783		14,502			510,853			2,649,341			390,428			3,039,769
Profit for the period		-		-			-		-			-		-		-		-			320,638			320,638			58,623			379,261
Other comprehensive income for the period		-		-			-		-			-		-		-		36,913			-			36,913			3,393			40,306
Total comprehensive income for the period		-		-			-		-			-		-		-		36,913			320,638			357,551			62,016			419,567
Appropriation of retained earnings approved by Shareholders’ meeting held 10.31.12		-		-			-		-			-		14,004		72,658		-			(86,662	)		-			-			-
Reclassification of the deferred tax liability – Approved by Shareholders’ meeting held 10.31.12		-		(151,058	)		-		-			-		-		-		-			151,058			-			-			-
Dividends distribution – approved by Shareholders’ meeting held 10.31.12		-		-			-		-			-		-		-		-			(180,000	)		(180,000	)		(15,690	)		(195,690	)
Acquisition of non-controlling interest by business combination		-		-			-		-			-		-		-		-			-			-			102,723			102,723
Cumulative translation adjustment for interest held before business combination		-		-			-		-			-		-		-		(12,915	)		-			(12,915	)		-			(12,915	)
Reserve for share-based compensation (Note 33)		-		-			-		-			5,726		-		-		-			-			5,726			209			5,935
Acquisition of additional interest in subsidiaries		-		-			-		(1,540	)		-		-		-		-			-			(1,540	)		(824	)		(2,364	)
Distribution of share capital of subsidiaries		-		-			-		-			-		-		-		-			-			-			(39,654	)		(39,654	)
Reimbursement of expired dividends		-		-			-		-			-		-		-		-			591			591			34			625
Conversion of notes		-		-			-		-			-		-		-		-			-			-			126			126
Capital contribution of non-controlling interest		-		-			-		-			-		-		-		-			-			-			6,092			6,092
Balance at March 31, 2013		578,676		123,329			793,123		(17,254	)		8,321		85,140		492,441		38,500			716,478			2,818,754			505,460			3,324,214

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim consolidated statements of cash flows

for the nine-month periods ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

	Note	03.31.2014		03.31.2013
Operating activities:
Cash generated by operations	20	914,162		753,425
Income tax and Minimum Presumed Income tax paid		(227,742	)	(212,669	)
Net cash generated by operating activities		686,420		540,756
Investing activities:
Capital contributions in associates and joint ventures	8	(1,580	)	(39,925	)
Purchases of associates and joint ventures	4,8,9	(13,045	)	(32,024	)
Purchases of investment properties	10	(178,630	)	(157,324	)
Proceeds from sale of investment properties		254,650		91,456
Purchases of property, plant and equipment	11	(10,804	)	(4,445	)
Purchases of intangible assets	13	(11,605	)	(614	)
Purchase of investments in financial assets		(1,757,417	)	(702,139	)
Proceeds from sale of investments in financial assets		1,109,381		685,831
Advanced payments		(28,999	)	(39,554	)
Proceeds from sale of joint ventures		15,536		-
Acquisition of subsidiaries, net of cash acquired		-		(117,874	)
Interest received		8,551		16,844
Loans granted to associates and joint ventures		-		(813	)
Dividends received		16,402		49,602
Net cash used in investing activities		(597,560	)	(250,979	)
Financing activities:
Proceeds from borrowings		142,002		456,535
Repayments of borrowings		(363,044	)	(187,483	)
Payment of non-convertible notes		(255,824	)	(51,046	)
Acquisition of derivative financial instruments		(903	)	-
Dividends paid		(106,391	)	(180,260	)
Acquisition of non-controlling interest in subsidiaries		-		(2,364	)
Capital contribution of non-controlling interest		587		6,092
Interest paid		(346,248	)	(221,152	)
Capital reduction of subsidiaries		(3,917	)	(39,654	)
Loans from associates and joint ventures, net		17,138		59,147
Payment for acquisition of non-controlling interest		-		(4,460	)
Repurchase of treasury stock		(32,998	)	-
Payment of seller financing of shares		(1,640	)	(6,420	)
Payment of seller financing		(1,215	)	(658	)
Issuance of non-convertible notes		218,262		-
Proceeds from derivative financial instruments		45,696		-
Net cash used in financing activities		(688,495	)	(171,723	)
Net (decrease) / increase in cash and cash equivalents		(599,635	)	118,054
Cash and cash equivalents at beginning of year	20	796,902		259,169
Foreign exchange gain on cash and cash equivalents		42,010		22,053
Cash and cash equivalents at end of period		239,277		399,276

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

1.	The Group’s business and general information

IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”, “the Company” / “Us” or “the Society”) was founded in 1943 and is engaged in a diversified range of real estate activities in Argentina since 1991.

IRSA and its subsidiaries are collectively referred to hereinafter as “the Group”.

As of March 31, 2014, the Group operates in six business segments. See Note 7 to the Condensed Consolidated Financial Statements as of June 30, 2013 for a description of such segments.

Group’s real estate business operations are conducted primarily through IRSA and IRSA’s principal subsidiary, Alto Palermo S.A. (“APSA”). Through APSA and IRSA, the Group owns, manages and develops shopping centers across Argentina, a portfolio of office and other rental properties in the Autonomous City of Buenos Aires, and it entered the United States of America (“USA”) real estate market in 2009, mainly through the acquisition of non-controlling interests in office buildings and hotels. Through IRSA or APSA, the Group also develops residential properties for sale. The Group, through IRSA, is also involved in the operation of branded hotels. The Group uses the term “real estate” indistinctively in these consolidated financial statements to denote investment, development and/or trading properties activities.

The activities of the Group’s segment “Financial operations and others” are carried out mainly through Banco Hipotecario S.A. (“BHSA”), where IRSA has a 29.77% interest (without considering treasury shares of our own). BHSA is a commercial bank offering a wide variety of banking activities and related financial services to individuals, small and medium-sized companies and large corporations, including the provision of mortgaged loans. BHSA’s shares are listed on the Buenos Aires Stock Exchange (“BASE”). Besides that, the Group has a 42.95% interest in Tarshop S.A (“Tarshop”), a company which main activities are credit card and loan origination transactions.

IRSA’s shares are listed and traded on both the BASE and the New York Stock Exchange (“NYSE”). APSA’s shares are listed and traded on both the BASE and the NASDAQ of USA.

Cresud S.A.C.I.F y A. is our ultimate parent company and is a corporation incorporated and domiciled in Argentina. The address of its registered office is Moreno 877, Floor 23, Autonomous City of Buenos Aires, Argentina.

These Unaudited Condensed Interim Consolidated Financial Statements have been approved for issuance by the Board of Directors on May 12, 2014.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Consolidated Financial Statements

2.1.	Basis of preparation

These Unaudited Condensed Interim Consolidated Financial Statements have been prepared in accordance with IAS 34 “Interim Financial Reporting”. Furthermore, some additional issues were included as required by the Business Companies Act and/or regulations of the CNV, including supplementary information provided in the last paragraph of section 1, Chapter III, Title IV of General Ruling 622/13 of the CNV. Such information is included in the Notes to the Unaudited Condensed Consolidated Interim Financial Statements.

These Unaudited Condensed Interim Consolidated Financial Statements should be read together with the Annual Consolidated Financial Statements of the Group as of June 30, 2013 prepared in accordance with IFRS in force. These Unaudited Condensed Interim Consolidated Financial Statements are presented in thousands of Argentine Pesos.

These Unaudited Condensed Interim Consolidated Financial Statements corresponding to the nine-month periods ended, March 31, 2014 and 2013 have not been audited. The management believes they include all necessary adjustments to fairly present the results of each period. The Company’s nine-month periods ended March 31, 2014 and 2013 results do not necessarily reflect the proportion of the Group’s full-year results.

2.2. Significant accounting policies

The principal accounting policies applied in the presentation of these Unaudited Condensed Interim Consolidated Financial Statements are consistent with those applied in the preparation of the information under IFRS as of June 30, 2013, which are described in Note 2 of the Annual Consolidated Financial Statements.

2.3.	Use of estimates

The preparation of financial statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual future results might differ from the estimates and evaluations made at the date of preparation of these financial statements.

In the preparation of these Unaudited Condensed Interim Consolidated Financial Statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same applied by the Group in the preparation of the Annual Consolidated Financial Statements for the year ended June 30, 2013, save for changes in accrued income tax, provision for legal claims, allowance for bad debts and accrued supplementary rental.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

2.4.	Comparative Information

Balance items as of March 31, 2013 and June 30, 2013 shown in these financial statements for comparative purposes arise from Unaudited Condensed Interim Consolidated Financial Statements then ended. Certain reclassifications have been made in order to present figures comparatively with those of this period.

During the period, the Argentine Peso devalued against the US$ and other currencies by around 32%, which has an impact in comparative information presented in these Financial Statements, due mainly to the currency exposure of our income from offices rental, and our net assets and liabilities in foreign currency as detailed in Note 39.

3. Seasonal effects on operations

The operations of the Group’s shopping centers are also subject to seasonal effects, which affect the level of sales recorded by lessees. During summer time (January and February), the lessees of shopping centers experience the lowest sales levels in comparison with the winter holidays (July) and year-end holidays (December) when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping mall sales. Sale discounts at the end of each season also affect the business. As a consequence, a higher level of revenues is generally expected in the second half of the year rather than the first in shopping center operations.

In November, 2012, the Group took control over Ribgy 183 LLC (“Rigby”), a company that owns a rental office building located in New York, US (see Note 4 to the annual consolidated financial statements). Therefore, balances as of March 31, 2013 include Rigby's operations from the mentioned date.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

4.	Acquisitions and disposals

For the nine-month period ended as of March 31, 2014

Subscription of shares of Avenida Inc. and Avenida Compras S.A.

On August 29, 2013, the Group, through Torodur S.A., subscribed 3,703,704 shares of Avenida Inc., a Company incorporated in Delaware, United States, and 23,077 shares of Avenida Compras S.A., a Company incorporated in Buenos Aires, Argentina, representing 26.09% and 2.10%, of its outstanding capital, respectively. Additionally, Avenida Inc. owns 90.91% of Avenida Compras S.A., thus being the Group’s indirect interest in Avenida Compras of 25.81%. The transaction price was Ps. 13.0 million, which has already been fully paid. The Group has a warrant to increase its interest in Avenida Inc. up to 37.04%.

Stock call Option agreement for Arcos del Gourmet S.A.

On September 16, 2013, APSA entered into an agreement with Messrs. Eduardo Giana, Pablo Bossi and Patricio Tobal (non-controlling shareholders of Arcos Gourmet S.A.), whereby the latter grant to APSA an exclusive and irrevocable option to purchase 10% of the equity interest in Arcos del Gourmet S.A.. The term to exercise the option runs from the execution of the agreement to December 31, 2018. The stock purchase price, in the event option is exercised, is US$ 8.0 million. Furthermore, in the mentioned agreement a payment of a fixed amount of Ps. 2.0 million was arranged, which was cancelled, and another variable amount payable monthly, which results from applying 4.5% on the amounts accrued in each previous calendar month for rental and right of admission, net of certain expenses, during 5 years counted from the opening of the shopping mall, in relation to the assignment of rights to earn dividends of Arcos during such period.

Condominios del Alto - Performance of Exchange Agreement

On November 14, 2013 Alto Palermo S.A. (“APSA”) and Condominios del Alto S.A. (Condominios) executed a conveyance deed whereby Condominios conveyed upon APSA freehold and full possession of the units agreed in exchange. Upon such execution, APSA stated that the mortgage on the property has been fully discharged.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

4.	Acquisition and disposals (Continued)

Subscription of shares of Dolphin Fund Ltd. (“Dolphin”)

During the nine-month period ended March 31, 2014, the Group has increased its stake in Dolphin Fund Ltd. (Dolphin) by US$109.5 million.

On January 5, 2014, the competent court in dealing with IDB Holding Corporation Ltd. (“IDBH”) debt restructuring has approved the offer made by Dolphin through Dolphin B.V. together with C.A.A. Extra Holdings Limited (“ETH”), a company incorporated under the laws of Israel, controlled by Mordechay Ben Moshé, in order to acquired approximately 53.3% of IDB Development Corporation (“IDBD”), controlled by IDBH, within the framework of the debt restructuring process mentioned, pursuant to Israel’s applicable laws. The transaction was closed on May 7, 2014 (See Note 41).

IDBD is one of the Israeli largest and most diversified investment groups, which is involved, through its subsidiaries, in several markets and industries, including real estate, retail, agribusiness, oil & gas production, insurance, telecommunications, etc.; controlling companies as Clal Insurance (Insurance Company), Cellcom (Mobile communications), Koor Industries (owner of 40% of Makhteshim Agan Industries-Agrochemicals), Super-Sol (supermarket), PBC (Real Estate), among others.

Significant sale of investment properties

On January 14, 2014, IRSA signed the transfer deed for the sale of the 11th floor and seven parking units of the Building Maipú 1300. The total price of the transaction was Ps. 9.6 million (US$ 1.4 million). Such transaction generated a gain before tax of approximately Ps. 7.9 million.

On January 24, 2014, IRSA signed the transfer deed for the sale of the 7th floor and 28 parking units of the Building Bouchard 551. The total price of the transaction was Ps. 124.6 million, equivalents to US$ 16.0 million. Such transaction generated a gain before tax of approximately Ps. 99.9 million.

On November 15, 2013, IRSA signed the transfer deed for the sale of the 12th floor and two parking units of the Building Maipú 1300 and two parking units of the building Libertador 498. The total price of the transaction was Ps. 9.0 million (US$ 1.5 million). Such transaction generated a gain before tax of approximately Ps. 7.5 million.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

5. Financial risk management and fair value estimates

5.1	Financial risk

The group´s diverse activities are exposed to a variety of financial risk: market risk (including foreign currency risk, interest rate risk and price risk) credit risk, liquidity risk and capital risk.

The Unaudited Condensed Interim Consolidated Financial Statements do not include all the information and disclosures on financial risk management; therefore they should be read along with the annual consolidated financial statements for the year ended June 30, 2013. There have been no changes in the risk management or risk management policies applied by the Group since year end.

5.2	Fair value estimates

Since June 30, 2013 to the date of these financial statements, there have been no significant changes in business on economic circumstances affecting the fair value of the Company's financial assets and liabilities (either measured at fair value or amortized cost), except for our investment in Supertel Hospitality Inc. ("Supertel"), which fair value was affected by the decrease in the market value of its common shares, because of the suspension of dividends’ payment. This had been decided in order to fortify its financial situation. Furthermore, there have been no transfers between the different hierarchies used to assess the fair value of the Company’s financial instrument.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

6.	Segment information

Below is a summarized analysis of the lines of business of the Group for the period ended March 31, 2014:

	March 31, 2014
	Shopping Center			Offices and other properties			Sales and developments			Hotels			International			Financial operations and others			Total
Revenues		1,477,167			242,973			46,451			253,971			64,322			457			2,085,341
Costs		(665,171	)		(79,757	)		(25,440	)		(158,915	)		(42,492	)		(241	)		(972,016	)
Gross Profit		811,996			163,216			21,011			95,056			21,830			216			1,113,325
Gain from disposal of investment properties		-			-			115,362			-			-			-			115,362
General and administrative expenses		(72,207	)		(31,349	)		(27,726	)		(44,609	)		(19,421	)		(55	)		(195,367	)
Selling expenses		(49,275	)		(13,962	)		(8,314	)		(31,604	)		-			250			(102,905	)
Other operating results, net		(23,088	)		(1,765	)		(2,414	)		(761	)		423			(2,001	)		(29,606	)
Profit / (loss) from operations		667,426			116,140			97,919			18,082			2,832			(1,590	)		900,809
Share of profit / (loss) of associates and joint ventures		-			(244	)		3,874			556			(80,848	)		160,159			83,497
Segment Profit / (Loss) before financial results and income tax		667,426			115,896			101,793			18,638			(78,016	)		158,569			984,306
Investment properties		2,296,390			772,176			367,573			-			1,085,925			-			4,522,064
Property, plant and equipment		18,224			19,645			3,806			160,331			263			-			202,269
Trading properties		-			-			219,529			-			2,904			-			222,433
Goodwill		1,667			9,392			-			-			75,843			-			86,902
Inventories		9,860			-			582			8,022			-			-			18,464
Investments in associates		-			23,850			35,795			21,895			1,637			1,245,266			1,328,443
Operating assets		2,326,141			825,063			627,285			190,248			1,166,572			1,245,266			6,380,575

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

6.	Segment information (Continued)

Below is a summarized analysis of the lines of business of the Group for the period ended March 31, 2013:

	March 31, 2013
	Shopping Center			Office and other properties			Sales and developments			Hotels			International			Financial operations and others			Total
Revenues		1,173,547			214,040			117,178			174,694			25,632			1,100			1,706,191
Costs		(556,053	)		(85,962	)		(89,066	)		(126,233	)		(20,361	)		(845	)		(878,520	)
Gross Profit		617,494			128,078			28,112			48,461			5,271			255			827,671
Gain from disposal of investment properties		-			-			64,019			-			-			-			64,019
General and administrative expenses		(47,693	)		(31,392	)		(28,113	)		(36,935	)		(9,105	)		(216	)		(153,454	)
Selling expenses		(39,023	)		(8,667	)		(12,609	)		(21,205	)		-			(187	)		(81,691	)
Other operating results, net		(17,590	)		(1,895	)		(8,230	)		456			134,487			(616	)		106,612
Profit / (Loss) from operations		513,188			86,124			43,179			(9,223	)		130,653			(764	)		763,157
Share of profit / (loss) of associates and joint ventures		-			-			1,478			(4	)		(58,446	)		62,924			5,952
Segment profit / (loss) before financial results and income tax		513,188			86,124			44,657			(9,227	)		72,207			62,160			769,109
Investment properties		2,215,383			845,322			382,383			-			710,525			-			4,153,613
Property, plant and equipment		13,372			23,589			3,795			171,002			199			-			211,957
Trading properties		-			-			144,150			-			81,691			-			225,841
Goodwill		1,667			9,392			-			-			48,547			-			59,606
Inventories		10,140			-			511			5,984			-			-			16,635
Investments in associates		-			32,024			26,873			21,252			691			1,082,112			1,162,952
Operating assets		2,240,562			910,327			557,712			198,238			841,653			1,082,112			5,830,604

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

6.	Segment information (Continued)

Operating results of the Cyrsa S.A., Nuevo Puerto Santa Fe S.A. ("NPSF"), Canteras Natal Crespo S.A. (for the comparative period), Puerto Retiro S.A., Baicom Networks S.A. and Quality Invest S.A. joint ventures have been presented under the method of proportionate consolidation. Under this method, the income/loss generated by joint businesses is reported in the income statements line-by-line, rather than in a single item as required by IFRS. Management believes that the proportional consolidation method provides more useful information to understand the business return, because the assets and income/loss generated by consolidated operations are similar to the assets and income/loss booked under the equity method. This is due to the fact that under the proportional consolidation method, revenues and expenses are reported separately, instead of offsetting and reporting them as a single item in the statement of income. Therefore, the proportional consolidation method is used by the Group’s Executive Committee to assess and understand the return and the results of operations of the business as a whole.

The following tables present a reconciliation between the total results of segment operations and the results of operations as per the statements of income. The adjustments relate to the presentation of the results of operations of joint ventures accounted for under the equity method under IFRS and the non-elimination of the inter-segment transactions.

	March 31, 2014
	Total segment information			Adjustment for share of profit / (loss) of joint ventures			Adjustment to income for elimination of inter-segment transactions			As per statements of income
Revenues		2,085,341			(37,282	)		(218	)		2,047,841
Costs		(972,016	)		24,210			-			(947,806	)
Gross profit		1,113,325			(13,072	)		(218	)		1,100,035
Gain from disposal of investment properties		115,362			-			-			115,362
General and administrative expenses		(195,367	)		636			829			(193,902	)
Selling expenses		(102,905	)		2,261			110			(100,534	)
Other operating results, net		(29,606	)		2,534			(721	)		(27,793	)
Profit from operations		900,809			(7,641	)		-			893,168
Share of profit of associates and joint ventures		83,497			19,193			-			102,690
Segment profit before financial results and income tax		984,306			11,552			-			995,858

	March 31, 2013
	Total segment information			Adjustment for share of profit / (loss) of joint ventures			Adjustment to income for elimination of inter-segment transactions			As per statements of income
Revenues		1,706,191			(111,141	)		(956	)		1,594,094
Costs		(878,520	)		87,287			-			(791,233	)
Gross profit		827,671			(23,854	)		(956	)		802,861
Gain from disposal of investment properties		64,019			-			-			64,019
General and administrative expenses		(153,454	)		1,035			1,289			(151,130	)
Selling expenses		(81,691	)		8,366			81			(73,244	)
Other operating results, net		106,612			975			(414	)		107,173
Profit from operations		763,157			(13,478	)		-			749,679
Share of profit of associates and		5,952			9,160			-			15,112
Segment profit before financial results and income tax		769,109			(4,318	)		-			764,791

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

6. Segment information (Continued)

Total segment assets are allocated based on the operations of the segment and the physical location of the asset. In line with the discussion above, segment assets include the proportionate share of the assets of joint ventures. The statements of financial position under IFRS show the net investment in these joint ventures as a single item.

	March 31, 2014			March 31, 2013
Total reportable assets as per segment information		6,380,575			5,830,604
Investment properties		(159,992	)		(168,843	)
Property, plant and equipment		(104	)		(122	)
Trading properties		(6,339	)		(33,750	)
Goodwill		(5,234	)		(5,235	)
Inventories		(189	)		(104	)
Investments in associates and joint ventures		284,513			267,736
Total assets as per the statements of financial position		6,493,230			5,890,286

7.	Information about main subsidiaries

The Group conducts its business through several operating and holding subsidiaries. The Group considers that the subsidiaries below are the ones with non-controlling interests material to the Group.

Summarized statements of financial position

	Panamerican Mall S.A. (“PAMSA”)				Rigby
	March 31, 2014		June 30, 2013		March 31, 2014		June 30, 2013
ASSETS
Total non-current assets		587,980		623,809		1,119,229		761,997
Total current assets		333,769		191,911		16,252		18,088
TOTAL ASSETS		921,749		815,720		1,135,481		780,085
LIABILITIES
Total non-current liabilities		20,683		23,239		653,004		439,432
Total current liabilities		72,388		58,681		6,902		5,961
TOTAL LIABILITIES		93,071		81,920		659,906		445,393
NET ASSETS		828,678		733,800		475,575		334,692

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

7.	Information about main subsidiaries (Continued)

Summarized statements of income and statements of comprehensive income

	PAMSA						Rigby
	March 31, 2014			March 31, 2013			March 31, 2014			March 31, 2013
Revenues		191,843			151,650			64,322			25,632
Profit before income tax		147,057			72,359			(1,831	)		(2,609	)
Income tax expense		(52,374	)		(26,351	)		-			-
Profit for the period		94,683			46,008			(1,831	)		(2,609	)
Total comprehensive income for the period		94,683			46,008			(1,831	)		(2,609	)
Profit attributable to non-controlling interest		18,937			9,202			(467	)		(559	)
Dividends paid to non-controlling interest		-			5,000			-			-

Summarized cash flows

	PAMSA						Rigby
	March 31, 2014			March 31, 2013			March 31, 2014			March 31, 2013
Net cash generated by operating activities		82,603			76,089			16,650			5,693
Net cash used in investing activities		(17,436	)		(59,802	)		(7,275	)		(1,522	)
Net cash used in financing activities		43			(25,137	)		(15,362	)		3,812
Net increase in cash and cash equivalents		65,210			(8,850	)		(5,987	)		7,983
Foreign exchange gain on cash and cash equivalents		2,675			1,644			1,661			587
Cash and cash equivalents at beginning of period		11,416			29,885			13,907			486
Cash and cash equivalents at end of period		79,301			22,679			9,581			9,056

The information above is the amount before inter-company eliminations.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

8.	Interests in joint ventures

As of March 31, 2014 and June 30, 2013, the joint ventures of the Group were Cyrsa S.A., Puerto Retiro S.A., Baicom Networks S.A., Quality Invest S.A., NPSF and Entertainment Holding S.A. ("EHSA"). The shares in these joint ventures are not publicly traded.

In November 29, 2012, the Group acquired shares of common stock, representing 50% of EHSA´s capital stock and votes, for an amount of Ps. 21.2 million. The fair value of the net assets acquired determined as of the purchase date amounted to Ps. 5.4 million. Therefore, the Group recognized a goodwill of Ps. 26.6 million.

On September 25, 2013, Sociedad Rural Argentina (SRA), La Rural de Palermo S.A. (LRPSA), Boulevard Norte S.A. (BNSA), Ogden Argentina S.A. (OASA), EHSA, ENUSA and La Rural S.A. (LRSA) executed a joint venture agreement and a shareholder’s agreement mostly amending certain provisions set forth in prior agreements. The Company is now in the process of assessing any potential effect on the preliminary allocation of the purchase price of said acquisition.

Changes in the Group’s investments in joint ventures for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	March 31, 2014			June 30, 2013
Beginning of period / year		287,846			228,970
Acquisition of joint ventures		(12	)		25,899
Capital contributions		1,561			29,828
Sale of joint ventures		-			(5,774	)
Cash dividends (ii)		-			(1,250	)
Share of profit, net		18,949			10,173
End of period / year	(i) 308,344				287,846

(i)	Includes a balance of Ps. (19) reflecting interests in companies with negative equity as of March 31, 2014 which are disclosed in “Provisions” (see Note 23).

(ii)	During the year ended June 30, 2013, the Group cashed dividends from Nuevo Puerto Santa Fe S.A. in the amount of Ps. 1.3 million.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

9.	Interests in associates

As of June 30, 2013, the associates of the Group were New Lipstick LLC, BHSA, Tarshop S.A., Manibil S.A., Lipstick Management LLC, Banco de Crédito y Securitización S.A. (“BACS”) and Bitania 26 S.A..

During the current period, the Group has acquired interests in associates Avenida Inc. and Avenida Compras S.A. (see Note 4). Consequently, as of March 31, 2014 the associates of the Group are New Lipstick LLC, BHSA, Tarshop S.A., Manibil S.A., Lipstick Management LLC, Banco de Crédito y Securitización S.A. (“BACS”), Bitania 26 S.A., Avenida Inc. and Avenida Compras S.A..

Changes in the Group’s investments in associates for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	March 31, 2014			June 30, 2013
Beginning of the period / year		1,096,999			1,216,845
Acquisition of associates		13,057			-
Capital contributions		19			37,610
Share of profit, net		83,741			(17,564	)
Currency translation adjustment		(38,814	)		(1,300	)
Cash dividends (ii)		(9,977	)		(35,277	)
Decrease for the taking over		-			(103,315	)
End of the period / year (i)		1,145,025			1,096,999

(i) Includes Ps. (159,568) and Ps. (39,091) reflecting interests in companies with negative equity as of March 31, 2014 and June 30, 2013, respectively, which are disclosed in “Provisions” (see Note 23).

(ii) During the period, the Group cashed dividends from BHSA and Manibil S.A. in the amount of Ps. 9.2 million and Ps. 0.8 million, respectively. During the year ended June 30, 2013, the Group cashed dividends from Manibil S.A. and BHSA in the amount of Ps. 4.8 million and Ps. 30.5 million, respectively.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

10.	Investment properties

Changes in the Group’s investment properties for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	Shopping Center			Office and other rental properties			Undeveloped parcel of lands		Properties under development		Total
At July 1st, 2012:
Costs		3,048,649			1,049,407			365,828		50,262		4,514,146
Accumulated depreciation		(1,097,669	)		(141,251	)		-		-		(1,238,920	)
Residual value		1,950,980			908,156			365,828		50,262		3,275,226
Year ended June 30, 2013
Opening residual value		1,950,980			908,156			365,828		50,262		3,275,226
Additions		51,231			13,275			1,763		144,187		210,456
Currency translation adjustment		-			77,769			-		-		77,769
Acquisition of subsidiaries		-			679,219			-		-		679,219
Transfers		(86	)		86			-		-		-
Disposals		(65	)		(62,792	)		-		-		(62,857	)
Depreciation charge (i)		(142,162	)		(45,121	)		-		-		(187,283	)
Residual value at year end		1,859,898			1,570,592			367,591		194,449		3,992,530
At June 30, 2013:
Costs		3,099,729			1,755,501			367,591		194,449		5,417,270
Accumulated depreciation		(1,239,831	)		(184,909	)		-		-		(1,424,740	)
Residual value		1,859,898			1,570,592			367,591		194,449		3,992,530
Period ended March 31, 2014:
Opening residual value		1,859,898			1,570,592			367,591		194,449		3,992,530
Additions		19,213			19,791			107		139,519		178,630
Currency translation adjustment		-			357,256			-		-		357,256
Disposals		-			(20,352	)		-		-		(20,352	)
Depreciation charge (i)		(98,771	)		(47,221	)		-		-		(145,992	)
Residual value at period end		1,780,340			1,880,066			367,698		333,968		4,362,072
At March 31, 2014:
Costs		3,118,942			2,112,196			367,698		333,968		5,932,804
Accumulated depreciation		(1,338,602	)		(232,130	)		-		-		(1,570,732	)
Residual value		1,780,340			1,880,066			367,698		333,968		4,362,072

(i) Depreciation charges of investment properties were included in “Costs” in the Statement of Income (Note 29).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

10. Investment properties (Continued)

The following amounts have been recognized in the statements of income:

	March 31, 2014			March 31, 2013
Rental and service income		1,767,480			1,398,125
Direct operating expenses		(778,261	)		(654,310	)
Gain from disposal of investment properties		115,362			64,019

Properties under development mainly comprise works in Shopping Neuquén S.A. and Arcos del Gourmet S.A.. As of March 31, 2014 and June 30, 2013 works in Shopping Neuquén S.A. amount to Ps. 83,233 and Ps. 43,138, respectively. Works in Arcos del Gourmet as of March 31, 2014 and June 30, 2013 amount to Ps. 235,737 and Ps. 136,313, respectively.

As of March 31, 2014 contractual obligations mainly correspond to constructions regarding to both projects. In Shopping Neuquén S.A. contractual obligations amount to Ps. 205 million and the Project is expected to be completed in September, 2014. In Arcos del Gourmet S.A. contractual obligations amount to Ps. 234. On December 10, 2013, the Judicial Branch confirmed an injunction order that suspends the opening of the shopping center on the grounds that it does not have certain governmental permits. Even though the construction has all regulatory permits in place, the Company is carrying out specific actions, has challenged the ruling, and has requested that the injunction be lifted and has reasonable expectations of a favorable result. On April 1, 2014, the government of the City of Buenos Aires granted a new environmental clearing certificate.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

11.	Property, plant and equipment

Changes in the Group’s property, plant and equipment for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	Hotels buildings and facilities			Buildings and facilities			Furniture and fixtures			Machinery and equipment			Vehicles			Total
At July 1st, 2012:
Costs		376,671			61,291			13,394			78,370			512			530,238
Accumulated depreciation		(194,849	)		(30,533	)		(9,513	)		(66,805	)		(505	)		(302,205	)
Residual value		181,822			30,758			3,881			11,565			7			228,033
Year ended June 30, 2013
Opening residual value		181,822			30,758			3,881			11,565			7			228,033
Additions		3,872			1,483			585			9,479			-			15,419
Currency translation adjustment		-			-			959			-			-			959
Disposals		-			-			(602	)		(3	)		-			(605	)
Depreciation charge (i)		(17,494	)		(6,720	)		(783	)		(6,129	)		(7	)		(31,133	)
Residual value at year end		168,200			25,521			4,040			14,912			-			212,673
At June 30, 2013:
Costs		380,543			62,773			14,336			87,846			512			546,010
Accumulated depreciation		(212,343	)		(37,252	)		(10,296	)		(72,934	)		(512	)		(333,337	)
Residual value		168,200			25,521			4,040			14,912			-			212,673
Period ended March 31, 2014
Opening residual value		168,200			25,521			4,040			14,912			-			212,673
Additions		2,777			1,596			723			6,247			-			11,343
Currency translation adjustment		-			-			88			-			-			88
Disposals		(24	)		-			-			(36	)		-			(60	)
Depreciation charge (i)		(10,624	)		(5,159	)		(646	)		(5,450	)		-			(21,879	)
Residual value at period end		160,329			21,958			4,205			15,673			-			202,165
At March 31, 2014:
Costs		383,296			64,369			15,147			94,057			512			557,381
Accumulated depreciation		(222,967	)		(42,411	)		(10,942	)		(78,384	)		(512	)		(355,216	)
Residual value		160,329			21,958			4,205			15,673			-			202,165

(i) Depreciation charges of property, plant and equipment were included in “Costs” and “General and administrative expenses” in the Statement of Income (Note 29).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

12.	Trading properties

Changes in the Group’s trading properties for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	Completed properties			Properties under development			Under developed sites			Total
At July 1st, 2012		13,726			82,958			80,139			176,823
Additions		19			1,463			-			1,482
Currency translation adjustment		-			17,757			-			17,757
Transfers		-			61,444			(61,444	)		-
Disposals		(5,948	)		-			-			(5,948	)
At June 30, 2013		7,797			163,622			18,695			190,114
Additions		1,400			2,413			-			3,813
Currency translation adjustment		-			26,953			-			26,953
Transfers		7,351			(7,351	)		-			-
Disposals		(4,786	)		-			-			(4,786	)
At March 31, 2014		11,762			185,637			18,695			216,094

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

13.

Intangible assets

Changes in the Group’s intangible assets for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	Goodwill		Computer Software			Rights of use (ii)		Others			Total
At July 1st, 2012:
Costs		5,824		16,961			20,873		898			44,556
Accumulated depreciation		-		(14,486	)		-		(681	)		(15,167	)
Residual value		5,824		2,475			20,873		217			29,389
Year ended June 30, 2013:
Opening residual value		5,824		2,475			20,873		217			29,389
Additions		-		791			-		9			800
Currency translation adjustment		5,346		-			-		-			5,346
Acquisition of subsidiaries		45,723		-			-		-			45,723
Amortization charges (i)		-		(1,512	)		-		(93	)		(1,605	)
Residual value at year end		56,893		1,754			20,873		133			79,653
At June 30, 2013:
Costs		56,893		17,752			20,873		907			96,425
Accumulated depreciation		-		(15,998	)		-		(774	)		(16,772	)
Residual value		56,893		1,754			20,873		133			79,653
Period ended March 31, 2014:
Opening residual value		56,893		1,754			20,873		133			79,653
Additions		-		652			-		10,953			11,605
Currency translation adjustment		24,775		-			-		-			24,775
Amortization charges (i)		-		(795	)		-		(60	)		(855	)
Residual value at period end		81,668		1,611			20,873		11,026			115,178
Period ended March 31, 2014:
Costs		81,668		18,404			20,873		11,860			132,805
Accumulated depreciation		-		(16,793	)		-		(834	)		(17,627	)
Residual value		81,668		1,611			20,873		11,026			115,178

(i)	Amortization charges of intangible assets are included in “General and administrative expenses” in the Statement of Income (Note 29). There are no impairment charges for any of the years / period presented.

(ii)	Correspond to the project Arcos del Gourmet, which has not been amortized yet because it is still in the development stage.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

14.	Inventories

Group’s inventories as of March 31, 2014 and June 30, 2013 were as follows:

	March 31, 2014		June 30, 2013
Current
Hotel supplies		8,022		5,962
Materials and others items of inventories		10,253		10,359
Current inventories		18,275		16,321
Total inventories		18,275		16,321

15.	Financial instruments by category

Determination of fair values

IFRS 9 defines the fair value of a financial instrument as the amount for which an asset could be exchanged, or a financial liability settled, between knowledgeable, willing parties in an arm’s length transaction. All financial instruments recognized at fair value are allocated to one of the valuation hierarchy levels of IFRS 7. This valuation hierarchy provides for three levels.

In the case of Level 1, valuation is based on unadjusted quoted prices in active markets for identical financial assets or liabilities that the Group can refer to at the date of ended. A market is deemed active if transactions take place with sufficient frequency and in sufficient quantity for price information to be available on an ongoing basis. Since a quoted price in an active market is the most reliable indicator of fair value, this should always be used if available. The financial instruments the Group has allocated to this level mainly comprise equity investments, mutual funds and mortgage bonds for which quoted prices in active markets are available. In the case of shares, the Group allocates them to this level when either a stock market price is available or prices are provided by a price quotation on the basis of actual market transactions.

In the case of Level 2, fair value is determined by using valuation methods based on inputs directly or indirectly observable in the market. If the financial instrument concerned has a fixed contract period, the inputs used for valuation must be observable for the whole of this period. The financial instruments the Group has allocated to this level mainly comprise interest rate swaps and foreign currency future contracts.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

15. Financial instruments by category (Continued)

In the case of Level 3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as no market data are available. The inputs used reflect the Group’s assumptions regarding the factors which market players would consider in their pricing. The Group uses the best available information for this, including internal company data. The Group has allocated to this level shares and warrants of Supertel and the Arcos del Gourmet S.A.´s stock option (with a fair value of zero at the end of the period).

The Group’s Finance Division has a team in place in charge of estimating valuation of financial assets required to be reported in the financial statements, including the fair value of Level-3 instruments. The team directly reports to the Chief Financial Officer “CFO”.

The CFO and the valuation team discuss the valuation methods and results upon the acquisition of an asset and, if necessary, on a quarterly basis, in line with the Group’s quarterly reports.

According to the Group’s policy, transfers among the several categories of valuation tiers are recognized when occurred, or when there are changes in the prevailing circumstances requiring the transfer.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

15. Financial instruments by category (Continued)

The following tables present the Group’s financial assets and financial liabilities that are measured at fair value as of March 31, 2014 and June 30, 2013 and their allocation to the fair value hierarchy:

	March 31, 2014
	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss:
- Investment in equity securities in TGLT		66,556		-		-		66,556
- Investment in equity securities in Hersha		46,069		-		-		46,069
- Investment in equity securities in Supertel		-		-		57,123		57,123
- Mutual funds		970,544		-		-		970,544
- Banco Macro bonds		1,339		-		-		1,339
- Public companies securities		50		-		-		50
- Don Mario S.G.R.		13,474		-		-		13,474
- Governments bonds		165,549		-		-		165,549
- Investment in Supertel convertible loan		-		15,747		-		15,747
Derivative financial instruments:
- Foreign currency future contracts		-		3,400		-		3,400
- Interest rate swaps		-		11,633		-		11,633
Cash and cash equivalents:
- Mutual funds		2,038		-		-		2,038
Total assets		1,265,619		30,780		57,123		1,353,522

	March 31, 2014
	Level 1		Level 2		Level 3		Total
Liabilities
Derivative financial instruments:
- Foreign-currency futures		-		10,678		-		10,678
Total liabilities		-		10,678		-		10,678

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

15. Financial instruments by category (Continued)

	June 30, 2013
	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss:
- Investment in equity securities in TGLT		56,859		-		-		56,859
- Investment in equity securities in Hersha		30,163		-		-		30,163
- Investment in equity securities in Supertel		-		-		139,120		139,120
- Mutual funds		74,957		-		-		74,957
- Mortgage bonds		540		-		-		540
- Non- Convertible Notes related parties (Note 34)		5,136		-		-		5,136
- Banco Macro bonds		781		-		-		781
- Don Mario S.G.R.		11,691		-		-		11,691
- Others		3		-		-		3
- Government Bonds		161,602		-		-		161,602
Derivative financial instruments:
- Interest rate swaps		-		4,259		-		4,259
- Warrants of Supertel		-		-		16,949		16,949
Cash and cash equivalents:
- Mutual funds		5,289		-		-		5,289
Total assets		347,021		4,259		156,069		507,349

	June 30, 2013
	Level 1		Level 2		Level 3		Total
Liabilities
Derivative financial instruments:
- Foreign currency-contracts		-		1,732		-		1,732
Total liabilities		-		1,732		-		1,732

The following table presents the changes in Level 3 instruments for the period ended March 31, 2014:

	Shares of Supertel			Warrants of Supertel			Total
Balance at June 30, 2013		139,120			16,949			156,069
Total losses for the period (i)		(81,997	)		(16,949	)		(98,946	)
Balance at March 31, 2014		57,123			-			57,123

(i) The loss is not realized as of March 31, 2014 and is accounted for under “Financial results, net” in the statement of income (Note 32).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

15. Financial instruments by category (Continued)

Upon initial recognition (January, 2012), the consideration paid for the Shares and Warrants of Supertel was assigned to both instruments based on the relative fair values of those instruments upon acquisition. The fair value of these instruments exceeded the transaction price and were determined using a valuation technique that uses inputs not observables in the market. As a result of the use of this technique, the Group has not recognized a gain at the time of initial recognition in the amount of US$ 7.9 million. As of March 31, 2014, the fair value of the Warrants of Supertel determined using the mentioned technique was minor than the gain not recognized at the time of initial recognition; remaining thus the Warrants remain valued at an amount of 0.

According to Group estimates, all things being constant, a 10% decline in the price of the underlying assets of Shares and Warrants of Supertel (data observed in the market) of Level 3 as of March 31, 2014, would reduce pre-tax income by Ps. 2.6 million.

According to Group estimates, all things being constant, a 10% increase in the credit spread (data which is not observable in the market) of the Shares and Warrants of Supertel used in the valuation model applied to Level 3 financial instruments as of March 31, 2014, would reduce pre-tax income by Ps. 7.5 million. The rate used as of March 31, 2014 was 14.25%.

When no quoted prices in an active market are available, fair values (particularly with derivatives) are based on recognized valuation methods. The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table:

Description	Pricing model	Pricing method	Parameters
Foreign currency-contracts	Present value method	Theoretical price	Money market Interest-Rate curve; Foreign exchange curve.
Interest rate swaps	Discounted cash flow	Theoretical price	Interest rate forward contract and flows of funds.
Shares of Supertel	Binomial tree	Theoretical price	Underlying asset price (Market price); share price volatility (historical) and money market interest-rate curve (Libor curve).
Warrants of Supertel	Black-Scholes	Theoretical price	Underlying asset price (Market price); share price volatility (historical) and money market interest-rate curve (Libor curve).
Call option of Arcos	Discounted cash flow	-	Projected income and discounted interest rate.
Investment in Supertel convertible loan	Discounted cash flow	-	Discount interest rate.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

16.	Restricted assets

Group’s restricted assets as of March 31, 2014 and June 30, 2013 were as follows:

	March 31, 2014		June 30, 2013
Non-current
Deposit in escrow		18,334		10,881
Total non-current restricted assets		18,334		10,881
Current
Deposit in escrow		2,074		1,022
Total current restricted assets		2,074		1,022
Total restricted assets		20,408		11,903

17. Trade and other receivables

Group’s trade and other receivables as of March 31, 2014 and June 30, 2013 are as follows:

	March 31, 2014			June 30, 2013
Non-current
Trade, leases and services receivables		66,082			58,783
Consumer financing receivables		-			214
Less: allowance for trade receivables		(2,208	)		(2,266	)
Total Non-current trade receivables		63,874			56,731
Trade receivables of joint venture		3,161			2,147
VAT receivables		19,357			19,345
Loans granted		1,116			-
Prepaid expenses		9,431			5,210
Others		667			686
Total Non-current other receivables		33,732			27,388
Related parties (Note 34)		1,103			1,007
Total non-current trade and other receivables		98,709			85,126

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

17. Trade and other receivables (Continued)

	March 31, 2014			June 30, 2013
Current
Consumer financing receivables		14,992			15,735
Sale, leases and services receivables		240,277			376,431
Receivables from hotel operations		44,566			26,201
Checks to be deposited		180,021			147,866
Trade and lease debtors under legal proceedings		55,889			50,145
Less: allowance for trade receivables		(78,620	)		(76,684	)
Total current trade receivables		457,125			539,694
Joint ventures receivables		7,270			20,555
VAT receivables		8,505			19,656
Other tax receivables		8,646			13,426
Loans granted		9,182			47,274
Prepaid expenses		64,519			49,271
Advance to vendors		71,245			40,710
Dividends received		7,882			2,828
Others		14,908			11,672
Less: allowance for other receivables		(198	)		(198	)
Total current other receivables		191,959			205,194
Related parties (Note 34)		29,425			24,445
Total current trade and other receivables		678,509			769,333
Total trade and other receivables		777,218			854,459

Movements on the Group’s allowance for trade and other receivables are as follows:

	March 31, 2014			June 30, 2013
Beginning of the period / year		79,148			68,107
Additions		11,121			18,792
Unused amounts reversed		(5,691	)		(5,967	)
Used during the period / year		(3,552	)		(1,549	)
Receivables written off		-			(235	)
End of the period / year		81,026			79,148

The creation and release of provision for impaired receivables have been included in “Selling expenses” in the statement of income (Note 29). Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

18. Investments in financial assets

Group’s investments in financial assets as of March 31, 2014 and June 30, 2013 are as follows:

	March 31, 2014		June 30, 2013
Non-current
Financial assets at fair value
Investment in equity securities in TGLT S.A.		66,556		56,859
Investment in equity securities in Hersha		46,069		30,163
Investment in equity securities in Supertel		57,123		139,120
Investment in Supertel convertible loan (Note 34) (i)		15,747		-
Don Mario S.G.R.		10,000		10,060
Mutual funds (Note 34) (ii)		872,673		17,249
Others		-		3
Financial assets at amortized cost
Non-Convertible Notes related parties (Note 34)		7,000		14,001
Total investments in non-current financial assets		1,075,168		267,455
Current
Financial assets at fair value
Mutual funds		97,871		57,708
Mortgage bonds (Note 34)		-		540
Banco Macro bonds		1,339		781
Don Mario S.G.R.		3,474		1,631
Non-Convertible Notes related parties (Note 34)		-		5,136
Public companies securities		50		-
Government bonds		165,549		161,602
Financial assets at amortized cost
Non-Convertible Notes related parties (Note 34)		15,902		16,655
Total investments in current financial assets		284,185		244,053
Total investments in financial assets		1,359,353		511,508

(i)

On January 9, 2014, Real Estate Strategies LP ("RES") entered into a loan agreement of up to US$ 2.0 million with Supertel Hospitality Inc. ("SPPR"). In the event that SPPR successfully completes rights offering not later than April 15, 2014, RES agrees convert the balance of the loan at such time for shares of common stock of SPPR. In the event that SPPR fails to make an initial public offering within the term agreed, RES is entitled to convert the loan until July 9, 2015 (subject to any ownership limitation that may apply). Since SPPR did not complete this rights offering on or before April 15, 2014, the interest rate increased to 12.5% per annum. Subject to the limitations indicated above, RES has the option, until July 9, 2015 to convert the loan it into shares of common stock. In such a case, the conversion price per share will be equal to the greater of (a) the average weighted price of common stock of company for the five trading days preceding the day RES exercises the Loan Conversions or (b) the greater of book or market value of the common stock at the time.

(ii)	During the period ended March 31, 2014, the Group has subscribed shares of Dolphin Fund Ltd. for an amount of US$ 109.5 million (see Note 41)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

19.	Derivative financial instruments

Group’s derivative financial instruments as of March 31, 2014 and June 30, 2013 are as follows:

	March 31, 2014		June 30, 2013
Assets
Non-current
Interest rate swaps		6,900		4,259
Warrants of Supertel		-		16,949
Total non-current derivative financial instruments		6,900		21,208

Current
Interest rate swaps	4,733		-
Foreign currency future contracts (Note 34)	3,400		-
Total current derivative financial instruments	8,133		-
Total assets	15,033		21,208

Liabilities
Current
Foreign currency-contracts (Note 34)	(10,678	)	(1,732	)
Total current derivative financial instruments	(10,678	)	(1,732	)
Total derivative financial instruments	4,355		19,476

20.	Cash flow information

The following table shows the amounts of cash and cash equivalents as of March 31, 2014 and June 30, 2013:

	March 31, 2014		June 30, 2013
Cash at bank and on hand		237,239		725,220
Time deposits in local currency		-		66,393
Mutual funds		2,038		5,289
Total cash and cash equivalents		239,277		796,902

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

20.	Cash flow information (Continued)

Following is a detailed description of cash flows generated by the Group’s operations for the nine-month periods ended March 31, 2014 and 2013:

	Note	March 31, 2014			March 31, 2013
(Loss) / Profit for the period			(78,842	)		379,261
Adjustments for:
Income tax expense	25		(112,298	)		87,234
Disposals of unused property, plant and equipment	11		60			365
Amortization and depreciation	29		168,726			162,743
Gain from disposal of investment properties	10		(115,362	)		(64,019	)
Dividends earned	32		(10,741	)		(20,470	)
Share-based payments	33		12,541			5,935
Profit / (loss) from purchase of subsidiaries and joint ventures	31		-			(137,062	)
(Gain) / loss on derivative financial instruments	32		(27,492	)		(5,390	)
Changes in fair value of investments in financial assets	32		(229,823	)		(147,527	)
Interest expense, net	32		316,905			211,462
Provisions and allowances			71,012			73,097
Share of profit of associates and joint ventures	8,9		(102,690	)		(15,112	)
Loss / (gain) on repurchase of Non-Convertible notes	32		12,874			-
Unrealized foreign exchange loss, net			1,108,603			205,343
Changes in operating assets and liabilities:
Increase in inventories			(1,954	)		(872	)
Decrease / (Increase) in trading properties			2,373			(1,659	)
Decrease / (Increase) in trade and other receivables			3,658			(19,902	)
Increase in restricted founds			-			(724	)
(Decrease) / Increase in trade and other payables			(108,363	)		39,502
Increase in salaries and social security liabilities			6,653			1,897
Decrease in provisions			(1,678	)		(677	)
Net cash generated by operating activities before income tax paid			914,162			753,425

The following table shows a detail of non-cash transactions occurred in the periods ended March 31, 2014 and 2013:

	March 31, 2014		March 31, 2013
Increase in investments in financial assets through an increase in borrowings		-		18,767
Reimbursement of expired dividends		784		625
Dividends payable		-		54,097
Conversion of notes		-		126
Increase in borrowings through a decrease in dividends payable		160,173		-
Increase in property, plant and equipment through an increase in borrowings		539		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

21.	Trade and other liabilities

Group’s trade and other payables as of March 31, 2014 and June 30, 2013 were as follows:

	March 31, 2014		June 30, 2013
Non-current
Admission rights		118,079		112,655
Sales, rent and services payments received in advance		52,490		53,301
Guarantee deposits		21,778		17,350
Non-current trade payables		192,347		183,306
Other tax liabilities		1,135		-
Tax payment facilities plan		13,631		15,640
Deferred income tax		8,039		8,637
Others		9,739		3,515
Non-current other payables		32,544		27,792
Related parties (Note 34)		205		20
Non-current trade and other payables		225,096		211,118
Current
Trade payables		84,520		59,637
Accrued invoices		81,717		76,339
Guarantee deposits		11,126		5,974
Admission rights		110,960		98,656
Sales, rent and services payments received in advance		200,113		191,478
Current trade payables		488,436		432,084
VAT payables		30,199		26,718
Deferred revenue		495		1,087
Other tax liabilities		24,097		30,889
Dividends payable to non-controlling shareholders		1,718		8,562
Others		8,482		6,399
Current other payables		64,991		73,655
Related parties (Note 34)		53,351		171,271
Current trade and other payables		606,778		677,010
Total trade and other payables		831,874		888,128

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

22.	Salaries and social security liabilities

Group’s Salaries and social security liabilities as of March 31, 2014 and June 30, 2013 were as follows:

	March 31, 2014		June 30, 2013
Non-Current
Social security payable		4,125		3,160
Total Non-Current salaries and social security liabilities		4,125		3,160

Current
Provision for vacation, bonuses and others	40,819	32,080
Social security payable	13,012	16,628
Others	867	302
Current salaries and social security liabilities	54,698	49,010
Total salaries and social security liabilities	58,823	52,170

23.	Provisions

The table below shows the movements in the Group's provisions for other liabilities categorized by type of provision:

	Labor, legal and other claims			Tax and social security			Investments in associates and joint ventures (*)		Total
At June 30, 2013		31,010			1,686			39,091		71,787
Additions		11,784			377			81,218		93,379
Recovery		(5,055	)		(477	)		-		(5,532	)
Used during the period		(1,678	)		-			-		(1,678	)
Currency translation adjustment		-			-			39,278		39,278
At March 31, 2014		36,061			1,586			159,587		197,234

(*)	Corresponds to equity interests with negative equity.

The breakdown of current and non-current provisions is as follows:

	March 31, 2014		June 30, 2013
Non-current		181,727		57,737
Current		15,507		14,050
		197,234		71,787

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

24.	Borrowings

The breakdown of the Group borrowings as of March 31, 2014 and June 30, 2013 was as follows:

							Book value
	Secured / unsecured	Currency	Rate	Effective interest rate %	Principal nominal value		March 31, 2014		June 30, 2013
Non-current
NCN IRSA due 2015	Unsecured	Ps.	Floating	Badlar + 395ps		209,400		208,387		-
NCN IRSA due 2017	Unsecured	US$	Fixed	8.5%		150,000		1,190,622		784,855
NCN IRSA due 2017	Unsecured	Ps.	Floating	Badlar + 450 ps		10,800		10,761		-
NCN APSA due 2017	Unsecured	US$	Fixed	7.875%		110,000		862,918		575,705
NCN IRSA due 2020	Unsecured	US$	Fixed	11.5%		150,000		1,114,011		789,655
Seller financing of plot of land (vi)	Secured	US$	Fixed	3.5%		4,500		18,737		14,900
Seller financing of Soleil Factory (i)	Secured	US$	Fixed	5%		12,610		77,441		49,327
Seller financing of Zetol S.A. (iii)	Secured	US$	Fixed	3.5%		2,618		21,860		14,144
Bank loans	Unsecured	Ps.	Fixed	15.25%		9,432		8,016		-
Syndicated loan (iv)	Unsecured	Ps.	Fixed	(iv)		202,780		100,097		175,604
Banco Provincia de Buenos Aires loan (v)	Unsecured	Ps.	Fixed	(v)		42,556		9,618		19,163
Banco M&T loan	Secured	US$	Floating	Libor + 2.55%		75,000		594,668		399,691
Related party (Note 34)	Unsecured	Ps.	Floating	Badlar		101,692		130,012		98,328
Finance lease obligations	Secured	US$	Fixed	7.5%		499		1,347		1,270
Total Non-current borrowings								4,348,495		2,922,642

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

24.	Borrowings (Continued)

							Book value
	Secured / unsecured	Currency	Rate	Effective interest rate %	Nominal Value of share capital		March 31, 2014		June 30, 2013
Current
NCN IRSA due 2015	Unsecured	Ps.	Floating	Badlar + 395ps		209,400		5,062		-
NCN IRSA due 2017	Unsecured	US$	Fixed	8.5%		150,000		15,735		26,675
NCN IRSA due 2017	Unsecured	Ps.	Floating	Badlar + 450ps		10,800		226		-
NCN APSA due 2017	Unsecured	US$	Fixed	7.875%		110,000		26,050		5,499
NCN IRSA due 2020	Unsecured	US$	Fixed	11.5%		150,000		25,105		40,604
NCN IRSA due 2013	Unsecured	Ps.	Floating	Badlar 2.49%		153,152		-		52,240
NCN IRSA due 2014	Unsecured	US$	Fixed	7.45%		8,458		-		137,750
Short-term loans	Unsecured	Ps.	Fixed	29%		31,432		27,350		-
Bank overdrafts	Unsecured	Ps.	Floating	-		-		143,375		418,730
Syndicated loan (iv)	Unsecured	Ps.	Fixed	(iv)		202,780		101,307		51,005
Banco Provincia de Buenos Aires loan (v)	Unsecured	Ps.	Fixed	(v)		42,556		33,333		9,625
Seller financing of plot of land (vi)	Secured	US$	Fixed	3.5%		4,500		2,294		12,809
Seller financing of Soleil Factory (i)	Secured	US$	Fixed	5%		12,610		3,787		3,397
Seller financing of Arcos del Gourmet S.A. (ii)	Unsecured	US$	Fixed	11.69%		-		-		11,408
Seller financing of Zetol S.A. (iii)	Secured	US$	Fixed	3.5%		2,618		20,329		1,544
Related parties (Note 34)	Unsecured	US$	Fixed	1.5%		26,441		212,778		-
Finance lease obligations	Secured	US$	Fixed	7.5%		499		1,855		1,243
Total Current borrowings								618,586		772,529
Borrowings								4,967,081		3,695,171

NCN: Non-convertible notes.

(i) Seller financing of Soleil Factory (investment properties): Mortgage financing of US$ 20.7 million with a fixed 5% interest rate due in June 2017.

(ii) Seller financing - Arcos del Gourmet S.A. (intangible assets).

(iii) Seller financing of Zetol S.A. (trading properties): Mortgage financing of US$ 7 million with a fixed 3.5% interest rate. The balance is payable, by choice of the seller, in money or with the delivery of units in buildings to be built representative of 12% of the total marketable square meters built.

(iv) On November 16, 2012, the Company subscribed a syndicated loan for Ps. 118,000. Principal will be payable in 9 quarterly consecutive installments and shall accrue interest at rate of 15.01%. On June 12, 2013 the Company subscribes a new syndicated loan for Ps. 111,000. Principal will be payable in 9 quarterly consecutive installments and shall accrue interest at rate of 15.25%. Both loans have been entered into with various banking institutions, one of which is Banco Hipotecario (Note 34).

(v) On December 12, 2012, the Group subscribed a loan with Banco Provincia de Buenos Aires for Ps. 29 million. Principal will be repaid in 9 quarterly consecutive installments beginning in December 2013. Additionally, on February 3, 2014 a new loan has been subscribed for Ps. 20 million. As of the date of these financial statements, the mentioned capital is fully canceled.

(vi) Seller financing of plot of land - Vista al Muelle S.A. in Canelones, Uruguay (Trading properties).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

24.

Borrowings (Continued)

During the period ended March 31, 2014, the Group through APSA, acquired nominal value 770,000 of IRSA´s Non-convertible Notes due 2020, for a total amount of Ps. 7.2 million and nominal value 1,000,000 of IRSA´s Non-convertible Notes due 2017, for a total amount of Ps. 8.5 million. In addition, during the same period, the Group through PAMSA, acquired nominal value 3,125,000 of IRSA´s Non-convertible Notes due 2020, for a total amount of Ps. 25.8 million. This acquisitions of own Non-convertible Notes generated a loss of Ps. 12.9 million included in “Financial results, net”.

Notes issued by IRSA

NCN Class V and VI

On February 26, 2014 Class V and VI Non-Convertible notes were issued for the amount of Ps. 220.2 million.

Class V Non-Convertible notes were issued for the amount of Ps. 209,397,900. The securities were issued at par value and priced at a floating interest rate equal to Badlar rate plus 395 basis points. The principal of Class V will be repaid through a single payment on the maturity date. Class V matures within 18 months from the date of issue. Interest will be payable quarterly on the 26th day of May of 2014, August 26, 2014, November 26, 2014, February 26, 2015, May 26, 2015 and August 26, 2015.

Class VI Non-Convertible notes were issued for the amount of Ps. 10,790,322. The securities were issued at par value and priced at a floating interest rate equal to Badlar rate plus 450 basis points. The principal of Class V will be repaid through a single payment on the maturity date. Class V matures within 36 months from the date of issue. Interest will be payable quarterly on the 26th day of May of 2014, August 26, 2014, November 26, 2014, February 26, 2015 May 26, 2015 and August 26, 2015, November 26, 2015, February 26, 2016, May 26, 2016, August 26, 2016, November 28, 2016 and February 27, 2017.

25.

Tax

The details of the provision for the Group’s income tax, were as follows:

	March 31, 2014			March 31, 2013
Current income tax		(185,112	)		(165,190	)
Deferred income tax		297,410			77,956
Income tax gain		112,298			(87,234	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

25.	Tax (Continued)

The gross movement on the deferred income tax account is as follows:

	March 31, 2014			June 30, 2013
Beginning of the period /year		(310,700	)		(376,977	)
Acquisition of subsidiary		-			(26,103	)
Currency translation adjustment		(22,723	)		(4,068	)
Income tax and deferred income tax		297,410			96,448
End of the period / year		(36,013	)		(310,700	)

The Group did not recognize deferred income tax assets of Ps. 28.7 million and Ps. 32.5 million as of March 31, 2014 and June 30, 2013, respectively. Although management believes that it will become profitable in the foreseeable future, as a result of the history of recent losses incurred during the development phase of the different Group’s business operations and the lack of verifiable and objective evidence due to the limited operating history of the Group itself, the Board of Directors has determined that there is sufficient uncertainty as to the generation of sufficient income to utilize the losses within a reasonable timeframe, therefore, no deferred tax asset is recognized in relation to these losses.

Below is a reconciliation between income tax recognized and that which would result applying the prevailing tax rate on Profit before income tax for the nine-month periods ended March 31, 2014 and 2013:

	March 31, 2014			March 31, 2013
Tax calculated at the tax rates applicable to profits in the respective countries		(62,138	)		178,361
Permanent differences:
Share of loss of associates and joint ventures		(35,942	)		(5,289	)
Unrecognized tax losses		(754	)		(23,800	)
Non-taxable income		(18,634	)		(59,817	)
Others		5,170			(2,221	)
Income tax gain		(112,298	)		87,234

26.	Shareholders’ equity

Special reserve

Pursuant to CNV General Ruling No. 609/12, the Company set up a special reserve reflecting the positive difference between the balance at the beginning of retained earnings disclosed in the first financial statements prepared according to IFRS and the balance at closing of retained earnings disclosed in the last financial statements prepared in accordance with previously effective accounting standards. This reserve may not be used to make distributions in kind or in cash, and may only be reversed to be capitalized, or otherwise to absorb potential negative balances in Retained Earnings.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

26.	Shareholders’ Equity (Continued)

Repurchase plan involving common shares and GDS issued by IRSA

On July 25, 2013, IRSA’s Board of Directors set forth the terms and conditions governing the purchase of the Company's own stock pursuant to Section 64 of Law No. 26,831 and the CNV’s regulations, for up to an aggregate amount of Ps. 200.0 million and up to 5% of the capital stock, in the form of shares or Global Depositary Shares (GDS) representing 10 shares each, and up to a daily limit of 25% of the average daily transaction volume experienced by the IRSA’s shares, along with the markets where they are listed, during the prior 90 business days, and at a price ranging from a minimum of Ps. 1 up to Ps. 8 per share. On September 18, 2013 the Board of Directors decided to increase the maximum price to Ps. 10,00 per common share and US$ 10.50 per GDS. On October 15, 2013, the Board of Directors approved a new increase to the maximum price, raising it to Ps. 11.00 per common share and US$ 11.50 per GDS. On October 22, 2013 the Board of Directors approved a new increase to the maximum price, raising it to Ps.14.50 per common share and US$ 15.00 per GDS. During the period ended March 31, 2014, the Company repurchased 347,661 common shares (nominal value Ps. 1 per share) for a total of Ps. 3.0 million and 395,860 GDS (representing 3,958,600 common shares) for a total amount of US$ 4.6 million.

Dividends

Dividends approved for distribution among shareholders for the year ended June 30, 2013 amounted to Ps. 250 million which were approved at the Annual General Shareholders’ Meeting on October 31, 2013.

During the period ended March 31, 2014 the Company has paid dividends for an amount of Ps. 106.4 million.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

27.

Revenues

	March 31, 2014		March 31, 2013
Base rent		779,963		600,070
Contingent rent		230,725		184,351
Admission rights		92,538		78,339
Averaging scheduled rent escalation		15,563		13,031
Parking fees		59,446		44,981
Letting fees		32,824		28,123
Service charges		533,128		422,078
Property management fee		19,821		25,229
Others		3,472		1,923
Total rental and service income		1,767,480		1,398,125
Sale of trading properties		25,933		20,175
Revenue from hotel operations		253,971		174,694
Consumer financing		457		1,100
Total other revenues		280,361		195,969
Total revenues		2,047,841		1,594,094

28.

Cost

	March 31, 2014		March 31, 2013
Costs of rental and services		778,261		654,310
Costs of sale and development		10,389		9,845
Costs from hotel operations		158,915		126,233
Costs from consumer financing		241		845
Total costs		947,806		791,233

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Expenses by nature

The Group disclosed expenses the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”.

The following tables provide the additional required disclosure of expenses by nature and their relationship to the function within the Group.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Expenses by nature (Continued)

For the period ended March 31, 2014:

	Group Costs
	Cost of sale and development		Cost of rental and services		Cost from consumer financing		Cost from hotel operations		General and administrative expenses		Selling expenses		Total
Salaries, social security costs and other personnel expenses		106		215,906		-		90,079		63,305		16,104		385,500
Maintenance, security, cleaning, repair and others		2,627		181,554		3		18,778		11,390		482		214,834
Depreciation and amortization		4		156,105		-		8,285		4,161		171		168,726
Advertising and other selling expenses		11		118,212		-		3,352		-		18,489		140,064
Taxes, rates and contributions		1,823		62,543		-		-		6,307		50,741		121,414
Directors’ fees		-		-		-		-		58,953		-		58,953
Fees and payments for services		34		20,464		236		1,726		30,333		3,977		56,770
Food, beverage and other lodging expenses		-		-		-		36,105		4,802		2,788		43,695
Leases and expenses		974		11,985		-		285		6,323		811		20,378
Allowance for trade and other receivables (charge and recovery)		-		-		-		-		38		5,392		5,430
Cost of sales of properties		4,786		-		-		-		-		-		4,786
Others		24		11,492		2		305		8,290		1,579		21,692
Total expenses by nature		10,389		778,261		241		158,915		193,902		100,534		1,242,242

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Expenses by nature (Continued)

For the period ended March 31, 2013:

	Group costs
	Cost of sale and development		Cost of rental and services		Cost from consumer financing		Cost from hotel operations		General and administrative expenses		Selling expenses		Total
Salaries, social security costs and other personnel expenses		475		169,149		3		71,364		42,558		12,773		296,322
Maintenance, security, cleaning, repairs and others		1,929		157,114		34		16,307		8,085		487		183,956
Depreciation and amortization		-		147,156		-		10,851		4,573		163		162,743
Advertising and other selling expenses		-		86,539		-		3,655		-		12,113		102,307
Taxes, rates and contributions		1,041		47,515		-		-		5,229		36,690		90,475
Directors’ fees		-		-		-		-		57,529		-		57,529
Fees and payments for services		103		22,466		802		969		22,679		2,632		49,651
Food, beverage and other lodging expenses		-		-		-		22,435		2,085		505		25,025
Leases and expenses		1,285		15,909		-		134		1,414		647		19,389
Allowance for trade and other receivables (charge and recovery)		-		-		-		-		-		5,648		5,648
Cost of sales of properties		4,984		-		-		-		-		-		4,984
Others		28		8,462		6		518		6,978		1,586		17,578
Total expenses by nature		9,845		654,310		845		126,233		151,130		73,244		1,015,607

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30.	Employee costs

	March 31, 2014		March 31, 2013
Salaries, bonuses and social security expenses		372,339		290,387
Equity incentive plan cost		12,541		5,935
Defined contribution plan cost		620		-
Total employee costs		385,500		296,322

31.	Other operating results, net

	March 31, 2014			March 31, 2013
Gain from purchase of subsidiaries		-			137,062
Tax on shareholders´ personal assets		(3,691	)		(4,681	)
Donations		(15,966	)		(7,606	)
Judgments and other contingencies (1)		(8,350	)		(12,443	)
Others		214			(5,159	)
Total other operating results, net		(27,793	)		107,173

(1)	Includes legal expenses.

32.	Financial result, net

	March 31, 2014			March 31, 2013
Finance income:
- Interest income		42,590			22,816
- Foreign exchange		36,113			58,136
- Dividends income		10,741			20,470
- Gain from repurchase of non-convertible Notes		-			2,057
Total finance income		89,444			103,479
Finance costs:
- Interest expense		(359,495	)		(234,278	)
- Foreign exchange		(1,138,470	)		(291,627	)
- Less from repurchase of non-convertible Notes		(12,874	)		-
- Other finance costs		(40,124	)		(33,674	)
Subtotal finance costs		(1,550,963	)		(559,579	)
Less: Finance costs capitalized		17,206			6,049
Total finance costs		(1,533,757	)		(553,530	)
Other finance costs:
- Fair value gain of financial assets at fair value through profit or loss, net		229,823			147,527
- Gain / (Loss) on derivative financial instruments, net		27,492			4,228
Total other finance costs		257,315			151,755
Total financial results, net		(1,186,998	)		(298,296	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

33.	Share-based payments

Equity incentive plan

The Group incurred a charge of Ps. 12,541 million and Ps. 5,935 million for the nine-month periods ended March 31, 2014 and 2013, respectively, related to the awards granted under the Equity Incentive Plan and were granted 1,739,147 shares over the period.

34.	Related party transactions

During the normal course of business, the Group conducts transactions with different entities or parties related to it. An individual or legal entity is considered a related party where:

-	An entity, individual or close relative of such individual exercises control, or joint control, or significant influence over the reporting entity, or is a member of the Board of Directors or the Senior Management of the entity or its controlling company.

-	An entity is a subsidiary, associate or joint venture of the entity or its controlling or controlled company.

The main transactions conducted with related parties are described in the annual Financial Statements for the fiscal year ended June 30, 2013.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

The following is a summary of the balances with related parties as of March 31, 2014:

Related party	Description of transaction	Investments in financial assets		Investments in financial assets		Trade and other receivables		Trade and other receivables		Trade and other payables			Trade and other payables			Borrowings			Borrowings			Derivative financial instruments
		non-current		current		non-current		current		non-current			current			non-current			current			current
Parent Company
Cresud S.A.C.I.F. y A.	Reimbursement of expenses		-		-		-		4,316		-			(27	)		-			-			-
	Corporate services		-		-		-		-		-			(32,043	)		-			-			-
	Sale of goods and services		-		-		-		701		-			-			-			-			-
	Borrowings		-		-		-		-		-			-			-			(212,713	)		-
	Non-Convertible Notes		7		15,902		-		-		-			-			(56,054	)		(1,443	)		-
	Shared based payments		-		-		-		624		-			-			-			-			-
Total Parent Company			7		15,902		-		5,641		-			(32,070	)		(56,054	)		(214,156	)		-
Associates
Banco Hipotecario S.A.	Reimbursement of expenses		-		-		-		66		-			(1,094	)		-			-			-
	Borrowings		-		-		-		-		-			-			(27,780	)		(18,855	)		-
	Derivatives		-		-		-		-		-			-			-			-			(1,553	)
	Leases and/or rights of use		-		-		-		2,730		-			-			-			-			-
Lipstick Management LLC	Reimbursement of expenses		-		-		-		752		-			-			-			-			-
New Lipstick LLC	Reimbursement of expenses		-		-		-		2,261		-			-			-			-			-
Banco de crédito y securitización	Reimbursement of expenses		-		-		-		35		-			-			-			-			-
	Leases and/or rights of use		-		-		-		988		-			-			-			-			-
Tarshop S.A.	Leases and/or rights of use		-		-		-		19		(185	)		(234	)		-			-			-
	Reimbursement of expenses		-		-		-		620		-			-			-			-			-
	Customers advances		-		-		-		-		-			(271	)		-			-			-
Total Associates			-		-		-		7,471		(185	)		(1,599	)		(27,780	)		(18,855	)		(1,553	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

Related party	Description of transaction	Investments in financial assets		Investments in financial assets		Trade and other receivables		Trade and other receivables		Trade and other payables		Trade and other payables			Borrowings			Borrowings			Derivative financial instruments
		non-current		current		non-current		current		non-current		current			non-current			current			current
Joint ventures
	Contributions to be paid in		-		-		-		10		-		-			-			-			-
Baicom Networks S.A.	Management fees		-		-		-		12		-		-			-			-			-
	Borrowings		-		-		1,103				-		-			-			-			-
	Reimbursement of expenses		-		-		-		16		-		-			-			-			-
Entertaiment Holding S.A.	Reimbursement of expenses		-		-		-		138		-		-			-			-			-
Boulevard Norte S.A.	Reimbursement of expenses		-		-		-		564		-		-			-			-
Cyrsa S.A.	Borrowings		-		-		-				-		(6	)		(125,012	)		-			-
	Reimbursement of expenses		-		-		-		60		-		-						-			-
Nuevo Puerto Santa Fe S.A.	Reimbursement of expenses		-		-		-		1,418		-		-			-			-			-
	Proceeds from leasing		-		-		-		12		-		(13	)		-			-			-
	Leases and/or rights of use		-		-		-				-		(94	)		-			-			-
	Management fees		-		-		-		36		-		-			-			-			-
	Borrowings		-		-		-				-		-			-			(65	)		-
Puerto Retiro S.A.	Contributions to be paid in		-		-		-		261		-		-			-			-			-
	Borrowings		-		-		-		4,706		-		-			-			-			-
	Reimbursement of expenses		-		-		-		200		-		-			-			-			-
Quality Invest S.A.	Management fees		-		-		-		1		-		(45	)		-			-			-
	Reimbursement of expenses		-		-		-		59		-		-			-			-			-
Total Joint Ventures			-		-		1,103		7,493		-		(158	)		(125,012	)		(65	)		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

Related party	Description of transaction	Investments in financial assets non-current		Investments in financial assets current		Trade and other receivables non-current		Trade and other receivables current		Trade and other payables non-current		Trade and other payables current			Borrowings non-current		Borrowings current		Derivative financial instruments current
Subsidiaries of the parent company
Cactus Argentina S.A.	Reimbursement of expenses		-		-		-		2		-		(8	)		-		-		-
Alafox S.A.	Reimbursement of expenses		-		-		-		5		-		-			-		-		-
Doneldon S.A.	Reimbursement of expenses		-		-		-		5		-		-			-		-		-
Exportaciones Agroindustriales	Reimbursement of expenses		-		-		-				-		(5	)		-		-		-
Exportaciones Agroindustriales	Advanced payments		-		-		-		2,000		-		-			-		-		-
Futuros y Opciones.com S.A.	Reimbursement of expenses		-		-		-		136		-		(30	)		-		-		-
Sedelor S.A.	Reimbursement of expenses		-		-		-		5		-		-			-		-		-
Codalis S.A.	Reimbursement of expenses		-		-		-		5		-		-			-		-		-
FyO Trading S.A.	Reimbursement of expenses		-		-		-		1		-		-			-		-		-
Total Subsidiaries of the parent company			-		-		-		2,159		-		(43	)		-		-		-
Other related parties					-		-
Consultores Asset Management S.A.	Reimbursement of expenses		-		-		-		2,824		-		(147	)		-		-		-
Estudio Zang, Bergel y Viñes	Advances		-		-		-		17		-		-			-		-		-
Estudio Zang, Bergel y Viñes	Legal services		-		-		-		-		-		(526	)		-		-		-
Dolphin Fund Ltd.	Subscription		872,673		-		-		2,143		-		-			-		-		-
Dolphin Fund Ltd.	Reimbursement of expenses		-		-		-		-		-		-			-		-		-
Austral Gold	Reimbursement of expenses		-		-		-		8		-		-			-		-		-
Entretenimiento Universal S.A.	Reimbursement of expenses		-		-		-		76		-		-			-		-		-
Ogden Argentina S.A.	Reimbursement of expenses		-		-		-		169		-		-			-		-		-
Elsztain Managing Partners	Management fees		-		-		-		-		-		(30	)		-		-		-
Fundación IRSA	Reimbursement of expenses		-		-		-		69		-		(1	)		-		-		-
IRSA Real Estate Strategies LP	Capital contributions		-		-		-		-		-		(8	)		-		-		-
Inversiones Financieras del Sur S.A.	Borrowings		-		-		-		283		-		(5	)		-		-		-
Supertel	Borrowings		15,747		-		-		-		-		-			-		-		-
IRSA Developments LP	Capital contributions		-		-		-		-		-		(5	)		-		-		-
Museo de los niños	Reimbursement of expenses		-		-		-		771		-		(50	)		-		-		-
Museo de los niños	Leases and/or rights of use		-		-		-		-		-		(3	)		-		-		-
Total Other related parties			888,420		-		-		6,360		-		(775	)		-		-		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

Related party	Description of transaction	Investments in financial assets		Investments in financial assets		Trade and other receivables		Trade and other receivables		Trade and other payables		Trade and other payables		Borrowings		Borrowings		Derivative financial instruments
		non-current		current		non-current		current		non-current				non-current		current		current
Directors and Senior Management
Directors	Fees		-		-		-		-		-		-18,696		-		-		-
	Reimbursement of expenses		-		-		-		301		-		-10		-		-		-
	Guarantee deposits		-		-		-		-		-20		-		-		-		-
Total Directors and Senior Management			-		-				301		-20		-18,706		-		-		-
Total			895,42		15,902		1,103		29,425		-205		-53,351		-208,846		-233,076		-1,553

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

The following is a summary of the balances with related parties as of June 30, 2013:

Related party	Description of transaction	Investments in financial assets		Investments in financial assets		Trade and other receivables		Trade and other receivables		Trade and other payables		Trade and other payables		Borrowings		Borrowings
		non-current		current		non-current		current		non-current		current		non-current		current
Parent company
Cresud S.A.C.I.F. y A.	Reimbursement of expenses		-		-		-		480		-		-10,565		-		-
	Corporate services		-		-		-		-		-		-33,927		-		-
	Sale of real estate property		-		-		-		701		-		-		-		-
	Non-Convertible Notes		14,001		16,655		-		-		-		-		-		-
	Shared based payments		-		-		-		1,331		-		-		-		-
Total Parent company			14,001		16,655		-		2,512		-		-44,492		-		-
Associates
Banco Hipotecario S.A.	Reimbursement of expenses		-		-		-		298		-		-372		-		-
	Borrowings		-		-		-		-		-		-		-35,557		-9,738
	Non-Convertible Notes		-		5,136		-		-		-		-		-		-
	Mortgage bonds		-		540		-		-		-		-		-		-
	Leases and/or rights of use		-		-		-		11		-		-		-		-
Lipstick Management LLC	Reimbursement of expenses		-		-		-		507		-		-		-		-
Manibil S.A.	Reimbursement of expenses		-		-		-		-		-		-781		-		-
New Lipstick LLC	Reimbursement of expenses		-		-		-		1,525		-		-		-		-
Tarshop S.A.	Reimbursement of expenses		-		-		-		1,759		-		-1		-		-
Total Associates			-		5,676		-		4,1		-		-1,154		-35,557		-9,738

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

Related party	Description of transaction	Investments in financial assets		Investments in financial assets		Trade and other receivables non-current		Trade and other receivables current		Trade and other payables		Trade and other payables current			Borrowings			Borrowings current
		non-current		current		non-current		current		non-current		current			non-current			current
Joint Ventures
Baicom Networks S.A.	Management fees		-		-		1,007		1		-		-			-			-
	Reimbursement of expenses		-		-		-		18		-		(2	)		-			-
Boulevard Norte S.A.	Reimbursement of expenses		-		-		-		29		-		-			-			-
Cyrsa S.A.	Borrowings		-		-		-		-		-		-			(98,328	)		-
	Reimbursement of expenses		-		-		-		84		-		(254	)		-			-
Nuevo Puerto Santa Fe S.A.	Reimbursement of expenses		-		-		-		275		-		(141	)		-			-
	Proceeds from leasing		-		-		-		11		-		(13	)		-			-
	Leases and/or rights of use		-		-		-		-		-		(248	)		-			-
	Management fees		-		-		-		629		-		-			-			-
Puerto Retiro S.A.	Contributions to be paid in		-		-		-		101		-		-			-			-
	Borrowings		-		-		-		3,916		-		-			-			-
	Reimbursement of expenses		-		-		-		180		-		-			-			-
Quality Invest S.A.	Management fees		-		-		-		46		-		(45	)		-			-
	Reimbursement of expenses		-		-		-		77		-		-			-			-
	Borrowings		-		-		-		500		-		-			-			-
Total Joint Ventures			-		-		1,007		5,867		-		(703	)		(98,328	)		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

Related party	Description of transaction	Investments in financial assets		Investments in financial assets		Trade and other receivables		Trade and other receivables		Trade and other payables		Trade and other payables		Borrowings		Borrowings
		non-current		current		non-current		current		non-current		current		non-current		current

Subsidiaries of the parent company
Helmir S.A.	Reimbursement of expenses		-		-		-		1		-		-		-		-
Alafox S.A.	Reimbursement of expenses		-		-		-		49		-		-		-		-
Doneldon S.A.	Reimbursement of expenses		-		-		-		39		-		-		-		-
Futuros y Opciones.com S.A.	Reimbursement of expenses		-		-		-		40		-		-8		-		-
Sedelor S.A.	Reimbursement of expenses		-		-		-		38		-		-		-		-
Codalis S.A.	Reimbursement of expenses		-		-		-		47		-		-		-		-
FyO Trading S.A.	Reimbursement of expenses		-		-		-		9		-		-		-		-
Total Subsidiaries of the parent company			-		-		-		223		-		-8		-		-
Other related parties
Consultores Asset Management S.A. (CAMSA)	Reimbursement of expenses		-		-		-		2,57		-		-41		-		-
Estudio Zang, Bergel y Viñes	Advances		-		-		-		14		-		-		-		-
	Legal services		-		-		-		22		-		-979		-		-
Dolphin Fund Ltd.	Subscription		17,249		-		-				-		-		-		-
	Reimbursement of expenses		-		-		-		133		-		-		-		-
Elsztain Realty Partners	Reimbursement of capital		-		-		-				-		-105,325		-		-
Decater	Reimbursement of capital		-		-		-				-		-6,661		-		-
Elsztain Managing Partners	Reimbursement of expenses		-		-		-				-		-61		-		-
Fundación IRSA	Reimbursement of expenses		-		-		-		51		-		-2		-		-
Inversiones Financieras del Sur S.A.	Reimbursement of expenses		-		-		-		261		-		-3		-		-
IRSA Developments LP	Reimbursement of expenses		-		-		-		32		-		-5		-		-
Museo de los niños	Reimbursement of expenses		-		-		-		133		-		-11		-		-
	Leases and/or rights of use		-		-		-		928		-		-3		-		-
Total Other related parties			17,249		-		-		4,144		-		-113,091		-		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

Related party	Description of transaction	Investments in financial assets		Investments in financial assets		Trade and other receivables		Trade and other receivables		Trade and other payables			Trade and other payables current			Borrowings			Borrowings
		non-current		current		non-current		current		non-current			current			non-current			current
Directors and Senior Management
Directors	Management fees		-		-		-		7,599		-			(11,754	)		-			-
	Reimbursement of expenses		-		-		-		-		-			(69	)		-			-
	Guarantee deposits		-		-		-		-		(20	)		-			-			-
Total Directors and Senior Management			-		-		-		7,599		(20	)		(11,823	)		-			-
Total			31,25		22,331		1,007		24,445		(20	)		(171,271	)		(133,885	)		(9,738	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

The following is a summary of the transactions with related parties for the nine-month period ended March 31, 2014:

Related party	Leases and/or rights of use			Management fees			Corporate services			Legal services			Financial operations			Donations			Fees and salaries
Parent company
Cresud S.A.C.I.F. y A.		1,303			-			(75,285	)		-			(3,123	)		-			-
Total Parent company		1,303			-			(75,285	)		-			(3,123	)		-			-
Associates
Banco Hipotecario S.A.		344			-			-			-			43,614			-			-
Banco de Crédito y Securitización		530			-			-			-			-			-			-
Tarshop S.A.		4,399			(239	)		-						-			-			-
Total Associates		5,273			(239	)		-			-			43,614			-			-
Joint Ventures
Baicom Networks S.A.		-			9			-			-			96			-			-
Cyrsa S.A.		-			-			-			-			(14,596	)		-			-
Nuevo Puerto Santa Fe S.A.		(426	)		1,090			-			-			-			-			-
Puerto Retiro S.A.		-			-			-			-			790			-			-
Quality Invest S.A.		-			162			-			-			-			-			-
Total Joint Ventures		(426	)		1,261			-			-			(13,710	)		-			-
Other related parties
Estudio Zang, Bergel & Viñes		-			-			-			(2,220	)		-			-			-
Fundación IRSA		-			-			-			-			-			(2,250	)		-
Isaac Elsztain e hijos S.C.A.		(358	)		-			-			-			-			-			-
Hamonet S.A.		(191	)		-			-			-			-			-			-
Inversiones Financieras del Sur S.A.		-			-			-			-			232			-			-
Total Other related parties		(549	)		-			-			(2,220	)		232			(2,250	)		-
Directors and Senior Management
Senior Management		-			-			-			-			-			-			(5,971	)
Directors		-			-			-			-			-			-			(58,953	)
Total Directors and Senior Management		-			-			-			-			-			-			(64,924	)
Total		5,601			1,022			(75,285	)		(2,220	)		27,013			(2,250	)		(64,924	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Related party transactions (Continued)

The following is a summary of the transactions with related parties for the nine-month period ended March 31, 2013:

Related party	Leases and/or rights of use			Management fees			Corporate services			Legal services			Financial operations			Donations			Fees and salaries
Parent company
Cresud S.A.C.I.F. y A.		1,258			(12,267	)		(49,022	)		-			4,426			-			-
Total Parent company		1,258			(12,267	)		(49,022	)		-			4,426			-			-
Associates
Banco Hipotecario S.A.		-			-			-			-			56			-			-
Tarshop S.A.		4,271			-			234			-			-			-			-
Total Associates		4,271			-			234			-			56			-			-
Joint Ventures
Baicom Networks S.A.		-			9			-			-			71			-			-
Canteras Natal Crespo S.A.		-			72			-			-			8			-			-
Cyrsa S.A.		-			-			-			-			(5,397	)		-			-
Nuevo Puerto Santa Fe S.A.		(27	)		794			-			-						-			-
Puerto Retiro S.A.		-			-			-			-			343			-			-
Quality Invest S.A.		-			162			-			-			10			-			-
Total Joint Ventures		(27	)		1,037			-			-			(4,965	)		-			-
Other related parties
Estudio Zang, Bergel & Viñes		-			-			-			(1,667	)		-			-			-
Fundación IRSA		-			-			(2	)		-			-			(1,420	)		-
Isaac Elsztain e hijos S.C.A.		136			-			-			-			-			-			-
Consultores Assets Management S.A.		140			-			-			-			-			-			-
Hamonet S.A.		72			-			-			-			-			-			-
Inversiones Financieras del Sur S.A.		-			-			-			-			155			-			-
Total Other related parties		348			-			(2	)		(1,667	)		155			(1,420	)		-
Directors and Senior Management
Directors		-			-			-			-			-			-			(57,529	)
Total Directors and Senior Management		-			-			-			-			-			-			(57,529	)
Total		5,850			(11,230	)		(48,790	)		(1,667	)		(328	)		(1,420	)		(57,529	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

35.	Negative working capital

As of the period-end, the Group has recorded negative working capital which is currently under consideration of the Board of Directors and Management.

36.	CNV General Resolution No. 622

As required by Section 1°, Chapter III, Title IV of CNV General Resolution No. 622, below there is a detail of the notes to the Unaudited Condensed Interim Consolidated Financial Statements that disclosure the information required by the Resolution in Exhibits.

Exhibit A - Property, plant and equipment	Note 10 Investment properties and Note 11 Property, plant and equipment
Exhibit B - Intangible assets	Note 13 Intangible assets
Exhibit C - Equity investments	Note 37 Equity investments
Exhibit D - Other investments	Note 12 Financial instruments by category
Exhibit E – Provisions	Note 17 Trading and other receivables and Note 23 Provisions
Exhibit F - Cost of sales and services provided	Note 38 Cost of sales and services provided
Exhibit G - Foreign currency assets and liabilities	Note 39 Foreign currency assets and liabilities

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

37.	Equity investments

									Issuer's information
											Last financial statements issued
Issuer and type of securities	Class / Items	Amount		Value recorded as of 03.31.14		Value recorded as of 06.30.13		Market value as of 03.31.14	Main activity	Registered office	Date		Common stock (nominal value)		Profit (loss) for the period			Shareholders' Equity		Interest in common stock
Joint Ventures
Baicom Networks S.A.	Common shares 1 vote		4,701,455		3,083		3,035	Not publicly traded	Real estate	Argentina		03.31.14		9,403		(683	)		6,847		50.00	%
	Irrevocable contributions				340		390
	Higher value				276		276

Cyrsa S.A.	Common shares 1 vote		119,608,531		147,125		129,627	Not publicly traded	Real estate	Argentina		03.31.14		239,217		34,996			294,249		50.00	%

Entertainment Holdings S.A.	Common shares 1 vote		22,395,574		19,694		12,709	Not publicly traded	Investment	Argentina		03.31.14		44,791		-393			40,83		50.00	%
	Irrevocable contributions				721		-
	Lower / Higher value				-23,192		24
	Goodwill				26,647		10,652

Entretenimiento Universal S.A.	Common shares 1 vote		300		-19		-	Not publicly traded	Event organization and others	Argentina		03.31.14		12	'(2)' 543				756		50.00	%

Nuevo Puerto Santa Fe S.A.	Common shares 1 vote		138,75		20,541		16,504	Not publicly traded	Commercial real estate	Argentina		03.31.14		27,75		8,074			41,082		50.00	%
	Higher value				4,024		4,155
	Goodwill				1,323		1,323

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

37.	Equity investments (Continued)

											Issuer's information
													Last financial statements issued
Issuer and type of securities	Class / Items	Amount		Value recorded as of 03.31.14			Value recorded as of 06.30.13			Market value as of 03.31.14	Main activities	Registered office	Date		Common stock (nominal value)		Profit (loss) for the period			Shareholders' Equity		Interest in common stock
Puerto Retiro S.A.	Common shares 1 vote		23,067,250		14,29			15,696		Not publicly traded	Real estate	Argentina		03.31.14		46,135		(2,812	)		28,581		50.00	%
	Higher value				29,209			29,209

Quality Invest S.A.	Common shares 1 vote		70,314,342		62,752			63,21		Not publicly traded	Real estate	Argentina		03.31.14		140,629		(916	)		126,504		50.00	%
	Irrevocable contributions				500			-
	Goodwill				3,911			3,911
	Higher value				(2,881	)		(2,875	)
Total Joint Ventures					308,344			287,846
Associates
Avenida Compras S.A.	Common shares 1 vote		23,077		(60	)		-		Not publicly traded	E-commerce	Argentina		03.31.14		1,1		(2,882	)		10,258		2.10	%
	Goodwill				18			-

Avenida Inc. S.A.	Common shares 1 vote		3,703,704		8,756			-		Not publicly traded	Investment	U.S.A.		03.31.14	(3) 2,001		(3) 211			(3) 1,596			24.79	%
	Goodwill				4,595			-

Banco de Crédito & Securitización S.A.	Common shares 1 vote		3,984,375		13,43			9,901		Not publicly traded	Financial	Argentina		03.31.14		62,5	(1) (2) 28,106				212,536		6.38	%

Banco Hipotecario S.A.	Common shares 1 vote		446,515,208		1,193,003			1,036,669		1.78	Financial	Argentina		03.31.14		1,500,000	(1) (2) 202,422				4,049,357		29.77	%
	Higher value				(1,267	)		(371	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

37.	Equity investments (Continued)

											Issuer's information
													Last financial statements issued
Issuer and type of securities	Class / Items	Amount		Value recorded as of 03.31.14			Value recorded as of 06.30.13			Market value as of 03.31.14	Main activities	Registered office	Date		Common stock (nominal value)		Profit (loss) for the period		Shareholders' Equity		Interest in common stock
Bitania 26 S.A.	Common shares 1 vote		4,724,203		11,962			11,069		Not publicly traded	Real estate	Argentina		03.31.14		20		1,823		24,413		49.00	%
	Goodwill				1,736			1,736
	Higher value				8,197			8,535

Lipstick Management LLC	Common shares 1 vote		N/A		1,618			799		Not publicly traded	Management company	U.S.A.		03.31.14		-		(3) 112	(3) 410			49.00	%
	Irrevocable contributions				19			-

Manibil S.A.	Common shares 1 vote		30,397,880		35,785			26,25		Not publicly traded	Real estate	Argentina		03.31.14		62,037		7,907		73,031		49.00	%
	Irrevocable contributions				-			6,5
	Goodwill				10			10

New Lipstick LLC	Common shares 1 vote		N/A		(159,568	)		(39,091	)	Not publicly traded	Real State	U.S.A.		03.31.14		-	(3) (25,425)		(3) (69,127)			49.87	%

Tarshop S.A.	Common shares 1 vote		26,759,288		31,864			39,140		Not publicly traded	Consumer financing	Argentina		03.31.14		133,796		(44,270		159,318		20.00	%
	Higher value				(5,073	)		(4,148	)
Total Associates					1,145,025			1,096,999
Total investments in associates and joint ventures					1,453,369			1,384,845

(1) The balances correspond to the financial statements of Banco Hipotecario S.A. and Banco de Crédito & Securitización S.A. prepared in accordance with the Central Bank of the Argentine Republic (“BCRA”) standards. For the purpose of the valuation of the investment in the Company, adjustments necessary to adequate the financial statements to the professional accounting standards have been considered.

(2) Correspond to the result of the period beginning January 1, 2014 and ended March 31, 2014.

(3) Amounts stated in US dollars (US$).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

38.	Cost of sales and services provided

	03.31.14								03.31.13
Item	Service and other operating costs	Sale of trading properties		Hotels		Others	Total		Total
Inventories at the beginning of the year	-	190,114		5,963		-	196,077		181,615
Currency translation adjustment	-	26,953		-		-	26,953		13,609
Additions	-	3,813		2,059		-	5,872		7,835
Sales	-	(4,786	)	-		-	(4,786	)	(4,984	)
Expenses incurred (Note 29)	778,261	10,389		158,915		241	947,806		791,233
Inventories at the end of the period	-	(216,094	)	(8,022	)	-	(224,116	)	(198,075	)
Costs at 03.31.14	778,261	10,389		158,915		241	947,806		-
Costs at 03.31.13	654,310	9,845		126,233		845	-		791,233

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

39.	Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Items (3)	Amount of foreign currency (1)		Exchange rate prevailing (2)		Total as of 03.31.14		Amount of foreign currency (1)		Exchange rate prevailing (2)		Total as of 06.30.13
Assets
Trade and other receivables
US Dollar		9,901		7.902		78,243		42,502		5.348		227,302
Euros		3		10.871		36		2		6.949		17
Swiss francs		-		8.932		-		77		5.660		437
Uruguayan Pesos		13,033		0.363		4,727		214		0.262		56
Total Trade and other receivables, net						83,006						227,812
Investments in financial assets
US Dollar		130,807		7.902		1,033,636		39,209		5.348		209,692
Uruguayan Pesos		502		0.363		182
Total investments in financial assets						1,033,818						209,692
Derivative financial instruments
US Dollar		-		-		-		3,169		5.348		16,949
Total derivative financial instruments		-				-						16,949
Cash and cash equivalents
US Dollar		22,387		7.902		176,900		107,602		5.348		575,453
Euros		109		10.871		1,184		102		6.949		712
Brazilian Reais		4		3.290		13		2		2.370		5
Swiss francs		-		8.932		1		-		5.660		-
Uruguayan Pesos		85		0.363		31		305		0.262		80
Pounds		2		13.173		31		2		8.080		20
Total Cash and cash equivalents						178,160						576,270
Total assets as of 03.31.14						1,294,984						-
Total assets as of 06.30.13												1,030,723

Liabilities
Trade and other liabilities
US Dollar		7,091		8.002		56,743		31,947		5.388		172,131
Euros		-		11.028		3		16		7.015		112
Uruguayan Pesos		401		0.381		153		-		0.262		-
Total Trade and other payables						56,899						172,243
Borrowings
US Dollar		452,001		8.002		3,616,909		458,572		5.388		2,470,785
Uruguayan Pesos		170		0.381		65		-		-		-
Total Borrowings						3,616,974						2,470,785
Derivative financial instruments
US Dollar		-		-		-		321		5.388		1,732
Total derivative financial instruments						-						1,732
Provisions
US Dollar		200		8.002		1,600		-				-
Total provisions						1,600						-
Total liabilities as of 03.31.14						3,675,473						-
Total liabilities as of 06.30.13												2,644,760

(1) Considering foreign currencies those that differ from Company’s functional currency at each period/year-end.

(2) Exchange rate as of March 31, 2014 and June 30, 2013 according to Banco Nación Argentina records.

(3) The Company uses derivative instruments as complement in order to reduce its exposure to exchange rate movements (See Note 15).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

40. Incident

On February 5, 2014 there was a widely known fire in Iron Mountain’s warehouse. Such company is a supplier of the Group and Group’s documentation was being kept in the mentioned warehouse. To the date of these financial statements, the Group is waiting for the company that experienced the fire to report whether the documentation submitted has been actually affected by the fire and its condition after the accident. Nevertheless, based on the internal review carried out by the Group, duly reported to the Argentine Securities Exchange Commission on February 12, 2014, the information kept at the Iron Mountain premises that were on fire do not appear to be sensitive or capable of affecting normal operations.

41.	Subsequent events

· On May 7, 2014, the transaction by which, Dolphin through Dolphin B.V. and ETH, acquired approximately 53.3% of IDBD was closed. Such percentage may be increased subject to the sale of certain assets by IDBD over the year.

In the above mentioned transaction, Dolphin B.V., together with other investors, have a 50% interest while ETH holds the remaining 50% of a total investment amount of US$ 272 million (NIS 950 million). On the other hand, Dolphin B.V. has appointed Mr. Eduardo Sergio Elsztain, Saúl Zang and Alejandro Gustavo Elsztain to sit in the Board of IDBD.

Additionally, the Group signed a commitment to subscribe shares in the amount of US$ 43.2 million of Dolphin B.V., a company incorporated under the laws of Netherlands and indirectly wholly controlled by Dolphin, for purposes of materializing the interest in the offering of new shares that IDBD intends to make.

· On April 24, 2014, the Regular Shareholders’ Meeting of Banco Hipotecario S.A. approved the distribution of cash dividends on common shares in an amount of Ps. 42.0 million, for the fiscal year ended December 31, 2013. Out of this amount, Ps. 12.8 million, before income tax, pertain to the Group, based on its interest.

As of the date of issuance of these unaudited condensed interim consolidated financial statements, the availability of this dividend is liable to Banco Central de la República Argentina approval in accordance with the regulation disclosed by Communication “A” 5072, its amendments and complementary regulations. The BCRA has not yet issued its approval.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

41.	Subsequent events (Continued)

· On April 1, 2014, IRSA signed the transfer deed for the sale of the 5th and 6th floors and complementary units of the Building Costeros Dique IV. The total price of the transaction was Ps. 12.4 million (US$ 1.5 million). Such transaction generated a gain before tax of approximately Ps. 10.5 million.

· On April 7, 2014, IRSA signed the transfer deed for the sale of the 21th and 22th floors, two parking units of the Building Maipú 1300 and four parking units of the building Libertador 498. The total price of the transaction was Ps. 24.1 million (US$ 3.0 million). Such transaction generated a gain before tax of approximately Ps. 20.2 million.

· On April 10, 2014, IRSA signed the transfer deed for the sale of the 2nd floor of the Building Avenida de Mayo 589 and ten parking units of the building Rivadavia 565. The total price of the transaction was Ps. 24.2 million (US$ 3.0 million). Such transaction generated a gain before tax of approximately Ps. 20.3 million.

· On May 6, 2014, IRSA signed the transfer deed for the sale of the Building Constitución 1159. The total price of the transaction was Ps. 23.3 million (US$ 2.9 million). Such transaction generated a gain before tax of approximately Ps. 13.4 million.

· During April, in relation to the common share repurchase plan and GDS, the Company acquired 39,135 common shares in various transactions (N.V. Ps.1 per share) for a total amount of Ps. 0.45 million.

· On April 11, 2014, Shopping Neuquén S.A. sold Continental Urbana Sociedad Anónima Inversora of the plot of land denominated Ho, with an area of 3,007 m2 of the land located in the city of Neuquén, in an amount of US$ 0.09 million for purposes of building, developing and operating a hotel in accordance with the characteristics established in the conveyance deed of title and, as established in the agreement entered into with the Province of Neuquén, the Municipality of Neuquén and Shopping Neuquén S.A. in relation to the urban complex under development. The hotel is expected to open within a maximum term of 54 calendar months as from the date of the transaction. Upon failure to comply, the purchaser shall pay the seller a fine in the sum of US$ 1.0 million.

Additionally, on April 11, 2014, the Shopping Neuquén S.A. and Continental Urbana Sociedad Anónima Inversora (Continental) entered into an agreement in relation to the urban complex under development whereby Continental paid Shopping Neuquén S.A. the sum of US$ 1.6 million to participate in the commercial and residential project, and US$ 0.1 million for reimbursement of road infrastructure expenses related to the plot of land on which the hotel is to be built. Both sums of money were fully paid up upon execution of this agreement.

Free translation from the original prepared in Spanish for publication in Argentina

Limited Review Report

To the Shareholders, President and Board of Directors of

IRSA Inversiones y Representaciones Sociedad Anónima

C.U.I.T.: 30-52532274-9

Legal address: Bolívar 108 - 1° floor - Autonomous City of Buenos Aires

We have reviewed the accompanying unaudited condensed interim consolidated statement of financial position of IRSA Inversiones y Representaciones Sociedad Anónima and its subsidiaries as of March 31, 2014, and the related unaudited condensed interim consolidated statements of income and comprehensive income for the nine and three-month periods ended March 31, 2014, and the unaudited condensed interim consolidated statements of changes of shareholders’ equity and unaudited condensed interim consolidated statements of cash flows for the nine-month period ended March 31, 2014 and selected explanatory notes. The balances and other information corresponding to the fiscal year ended June 30, 2013 and the interim periods within that fiscal year are an integral part of these financial statements and, therefore, they should be considered in relation to these financial statements.

The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with International Financial Reporting Standards. The IFRS as issued by the International Accounting Standard Board were adopted as accounting standards by the Argentine Federation of Professional Councils in Economic Sciences and incorporated by the National Securities Commission to its regulations. Therefore, the Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with International Accounting Standard 34 "Interim Financial Reporting" (IAS 34). Our responsibility is to express a conclusion based on the review that we have performed with the scope detailed in paragraph 3.

We conducted our review in accordance with Technical Resolution No. 7 issued by the FACPCE for a review of interim financial statements. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit, the objective of which is to express an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Limited Review Report (Continued)

4.	Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim consolidated financial statements have not been prepared in all material respects in accordance with IAS 34.

5.	In accordance with current regulations, we hereby inform that :

the unaudited condensed interim consolidated financial statements of IRSA Inversiones y Representaciones Sociedad Anónima are recorded in the "Inventory and Balance Sheet Book" and carried in all formal respects in conformity with legal requirements, and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and the corresponding resolutions of the National Securities Commission;

b)	the unaudited condensed interim separate financial statements of IRSA Inversiones y Representaciones Sociedad Anónima arise from accounting records carried in all formal respects in accordance with applicable legal provisions;

c)	we have read the Business Summary (“Reseña Informativa”) on which, as regards these matters that are within our competence, we have no observations to make;

d)	at March 31, 2014, the debt of IRSA Inversiones y Representaciones Sociedad Anónima owed in favor of the Argentine Integrated Pension System which arises from accounting records and submissions amounted to Ps. 344,381, which was not callable at that date.

Autonomous City of Buenos Aires, May 12, 2014.

PRICE WATERHOUSE & Co. S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 17

Eduardo A. Loiácono

Public Accountant (U.B.A.)

C.P.C.E.C.A.B.A. Tº 326 Fº 94

ABELOVICH, POLANO & ASOCIADOS S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 30

Marcelo Héctor Fuxman

Public Accountant (U.B.A.)

C.P.C.E.C.A.B.A. Tº 134 Fº 85

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited Condensed Interim Separate Financial Statements as of March 31, 2014 and for the nine-month periods ended March 31, 2014 and 2013

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim separate statements of financial position

as of March 31, 2014 and June 30, 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	03.31.2014		06.30.2013
ASSETS
Non-current Assets
Investment properties	6	767,435		804,788
Property, plant and equipment	7	8,310		8,681
Trading properties	8	61,955		62,762
Intangible assets	9	5,770		5,938
Investments in subsidiaries, associates and joint ventures	5	4,048,678		3,570,642
Deferred income tax assets	20	335,083		47,144
Income tax and minimum presumed income tax credit		122,169		102,375
Trade and other receivables	12	320,427		85,862
Investments in financial assets	13	96		87
Total Non-current Assets		5,669,923		4,688,279
Current Assets
Trading properties	8	3,406		3,901
Inventories	10	582		463
Trade and other receivables	12	149,403		251,678
Investments in financial assets	13	26,810		72,713
Derivative financial instruments	14	4,480		-
Cash and cash equivalents	15	45,248		62,788
Total Current Assets		229,929		391,543
TOTAL ASSETS		5,899,852		5,079,822
SHAREHOLDERS’ EQUITY
Shared capital		574,188		578,676
Treasury stock		4,488		-
Inflation adjustment of share capital		123,329		123,329
Share premium		793,123		793,123
Cost of treasury stock		(32,998	)	-
Acquisition of additional interest in subsidiaries		(20,782	)	(20,782	)
Reserve for share-based payments		20,375		8,258
Legal reserve		116,840		85,140
Special reserve		375,487		395,249
Reserve for new developments		469,831		492,441
Cumulative translation adjustment		156,905		50,776
Retained earnings		(91,280	)	239,328
TOTAL SHAREHOLDERS’ EQUITY		2,489,506		2,745,538
LIABILITIES
Non-Current Liabilities
Trade and other payables	16	7,121		7,054
Borrowings	19	2,831,787		1,796,521
Provisions	18	3,801		6,877
Total Non-Current Liabilities		2,842,709		1,810,452
Current Liabilities
Trade and other payables	16	72,956		77,706
Minimum presumed income tax		9,483		10,536
Salaries and social security liabilities	17	3,036		5,490
Borrowings	19	471,604		423,835
Provisions	18	10,558		6,265
Total Current Liabilities		567,637		523,832
TOTAL LIABILITIES		3,410,346		2,334,284
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES		5,899,852		5,079,822

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim separate statements of income

for the nine and three-month periods beginning on July 1st, 2013 and 2012

and January 1st, 2014 and 2013 and ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina.

		Nine months					Three months
	Note		03.31.2014		03.31.2013			03.31.2014		03.31.2013
Revenues	22		220,633		207,196			81,747		69,735
Costs	23		(70,505	)	(80,683	)		(23,744	)	(26,578	)
Gross profit			150,128		126,513			58,003		43,157
Gain from disposal of investment properties	6		115,362		63,783			107,881		7,824
General and administrative expenses	24		(58,444	)	(56,828	)		(19,314	)	(17,910	)
Selling expenses	24		(18,233	)	(12,415	)		(5,156	)	(5,110	)
Other operating results, net	26		(5,603	)	(11,080	)		(918	)	(1,795	)
Profit from operations			183,210		109,973			140,496		26,166
Share of profit of subsidiaries, associates, and joint ventures	5		447,229		439,099			189,449		151,428
Profit from operations before financial results and income tax			630,439		549,072			329,945		177,594
Finance income	27		123,177		64,577			64,956		21,821
Finance cost	27		(1,127,645	)	(391,225	)		(600,778	)	(130,732	)
Other financial results	27		(5,940	)	26,440			(4,029	)	-
Financial results, net	27		(1,010,408	)	(300,208	)		(539,851	)	(108,911	)
(Loss) / Profit before income tax			(379,969	)	248,864			(209,906	)	68,683
Income tax	20		287,939		71,774			139,554		28,173
(Loss) / Profit for the period			(92,030	)	320,638			(70,352	)	96,856


(Loss) / Profit per share for the period:
Basic			(0.160	)	0.554			(0.123	)	0.167
Diluted			(0.160	)	0.554			(0.123	)	0.167

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim separate statements of comprehensive income

for the nine and three-month periods beginning on July 1st, 2013 and 2012

and January 1st, 2014 and 2013 and ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina.

	Nine months				Three months
		03.31.2014		03.31.2013		03.31.2014		03.31.2013
(Loss) / Profit for the period		(92,030	)	320,638		(70,352	)	96,856
Other Comprehensive Income:
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment of subsidiaries, associates, and joint ventures		106,129		36,913		54,693		13,492
Other comprehensive income for the period (i)		106,129		36,913		54,693		13,492
Total comprehensive income for the period		14,099		357,551		(15,659	)	110,348

(i)	Components of other comprehensive income have no impact on income tax.

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim separate statements of changes in shareholders’ equity

for the nine-month periods ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina.

	Share capital			Treasury Stock		Inflation adjustment of Share Capital and Treasury Stock (2)		Share premium		Cost of treasury stock			Acquisition of additional interest in subsidiaries			Cumulative translation adjustment		Reserve for share-based compensation		Legal reserve		Reserve for new developments			Special reserve (1)			Retained earnings			Total Shareholders’ equity
Balance at June 30, 2013		578,676			-		123,329		793,123		-			(20,782	)		50,776		8,258		85,140		492,441			395,249			239,328			2,745,538
Loss for the period		-			-		-		-		-			-			-		-		-		-			-			(92,030	)		(92,030	)
Other comprehensive income for the period		-			-		-		-		-			-			106,129		-		-		-			-			-			106,129
Total comprehensive income for the period		-			-		-		-		-			-			106,129		-		-		-			-			(92,030	)		14,099
Appropriation of retained earnings approved by Shareholders’ meeting held 10.31.13		-			-		-		-		-			-			-		-		31,700		(22,610	)		(19,762	)		10,672			-
Distribution of dividends approved by Shareholders’ meeting held 10.31.13		-			-		-		-		-			-			-		-		-		-			-			(250,000	)		(250,000	)
Reserve for share-based compensation		-			-		-		-		-			-			-		12,117		-		-			-			-			12,117
Purchase of Treasury stock		(4,488	)		4,488		-		-		(32,998	)		-			-		-		-		-			-			-			(32,998	)
Reimbursement of expired dividends		-			-		-		-		-			-			-		-		-		-			-			750			750
Balance at March 31, 2014		574,188			4,488		123,329		793,123		(32,998	)		(20,782	)		156,905		20,375		116,840		469,831			375,487			(91,280	)		2,489,506

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements

(1)	Related to CNV General Resolution No. 609/12. See Note 21.

(2)	Includes Ps. 957 of inflation adjustment of Treasury Stock. See Note 21.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim separate statements of changes in shareholders’ equity

for the nine-month periods ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina.

	Share capital		Inflation adjustment of share capital			Share premium		Acquisition of additional interest in subsidiaries			Reserve for share-based compensation		Legal reserve		Reserve for new developments		Cumulative translation adjustment			Retained earnings			Total Shareholders’ equity
Balance at July 1st, 2012		578,676		274,387			793,123		(15,714	)		2,595		71,136		419,783		14,502			510,853			2,649,341
Profit for the period		-		-			-		-			-		-		-		-			320,638			320,638
Other comprehensive income for the period		-		-			-		-			-		-		-		36,913			-			36,913
Total comprehensive income for the period		-		-			-		-			-		-		-		36,913			320,638			357,551
Appropriation of retained earnings approved by Shareholders’ meeting held 10.31.12		-		-			-		-			-		14,004		72,658		-			(86,662	)		-
Reclassification of the deferred tax liability – Approved by Shareholders’ meeting held 10.31.12		-		(151,058	)		-		-			-		-		-		-			151,058			-
Distribution of dividends approved by Shareholders’ meeting held 10.31.12		-		-			-		-			-		-		-		-			(180,000	)		(180,000	)
Reserve for share-based compensation		-		-			-		-			5,726		-		-		-			-			5,726
Cumulative translation adjustment for interest held before business combination		-		-			-		-			-		-		-		(12,915	)		-			(12,915	)
Acquisition of additional interest in subsidiaries		-		-			-		(1,540	)		-		-		-		-			-			(1,540	)
Reimbursement of expired dividends		-		-			-		-			-		-		-		-			591			591
Balance at March 31, 2013		578,676		123,329			793,123		(17,254	)		8,321		85,140		492,441		38,500			716,478			2,818,754

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Unaudited condensed interim separate statements of cash flows

for the nine-month periods ended March 31, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina.

	Note	03.31.2014		03.31.2013
Operating activities:
Cash generated from the operations	15	84,664		94,540
Income tax paid		(20,847	)	(16,445	)
Net cash generated by operating activities		63,817		78,095
Investing activities:
Capital contributions to subsidiaries, associates and joint ventures	5	(36,917	)	(88,717	)
Additions of investment properties	6	(2,964	)	(2,242	)
Proceeds from sale of investment properties	6	254,650		91,123
Proceeds from sale of joint ventures		15,536		-
Additions of property, plant and equipment	7	(555	)	(1,023	)
Additions of intangible assets	9	-		(156	)
Additions of investments in financial assets		(147,274	)	(1,724	)
Proceeds from sale of investments in financial assets		159,443		247,553
Interest received from subsidiaries, associates and joint ventures		1,986		15,121
Loans granted to subsidiaries, associates and joint ventures		(150,608	)	(24,555	)
Loans repayments received from subsidiaries, associates and joint ventures		7,267		17,882
Dividends received		162,498		142,410
Net cash generated by operating activities		263,062		395,672
Financing activities:
Bank overdrafts, net		(63,010	)	(52,491	)
Repayments of borrowings		-		(81,028	)
Payment of non-convertible notes		(214,593	)	(51,046	)
Dividends paid	21	(89,827	)	(163,216	)
Interest paid		(230,197	)	(190,110	)
Proceeds from borrowings		25,000		-
Repurchase of treasury stock		(32,998	)	-
Acquisition of derivative financial instruments		(903	)	-
Payment of borrowings from subsidiaries, associates and joint ventures		-		(2,715	)
Acquisition of non-controlling interest in subsidiaries		-		(648	)
Proceeds from borrowings from subsidiaries, associates and joint ventures		35,663		107,071
Issuance of non-convertible notes		218,262		-
Net cash used in financing activities		(352,603	)	(434,183	)
Net increase in cash and cash equivalents		(25,724	)	39,584
Cash and cash equivalents at the beginning of the year	15	62,788		76,872
Foreign exchange gain on cash and cash equivalents		8,184		5,882
Cash and cash equivalents at end of period		45,248		122,338

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

	IRSA Inversiones y Representaciones S.A.

	By:	/s/ Fernando A. Elsztain
		Fernando A. Elsztain
		Director Acting as President

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

1.	General information and company’s business

IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA” or the “Company”) was founded in 1943, primarily engaged in managing real estate holdings in Argentina since 1991.

IRSA is a corporation incorporated and domiciled in Argentina. The registered office is Bolívar 108, 1st Floor, Buenos Aires, Argentina.

The Company owns, manages and develops a portfolio of office and other rental properties in Buenos Aires. In addition, IRSA through its subsidiaries, associates and joint ventures manages and develops shopping centers and branded hotels across Argentina, and also office properties in the United States of America.

These Unaudited Condensed Interim Separate Financial Statements have been approved for issue by the Board of Directors on May 12, 2014.

2.	Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements

2.1.	Basis of preparation

The Unaudited Condensed Interim Financial Statements have been prepared in accordance with the Technical Resolution No. 26 of the Argentine Federation of Professional Councils of Economic Science (“FACPCE”, as per its Spanish acronym) and with IAS 34 “Interim Financial Reporting”. Furthermore, some additional issues were included as required by the Business Companies Act and/or regulations of the CNV, including supplementary information provided in the last paragraph of section 1, Chapter III, Title IV of General Ruling 622/13 of the CNV. Such information is included in the Notes to these Unaudited Condensed Interim Separate Financial Statements according to IFRS.

These Financial Statements should be read together with the annual separate financial statements of the Company as of June 30, 2013 prepared in accordance with the Technical Resolution No. 26. These Unaudited Condensed Interim Separate Financial Statements are presented in Argentine Pesos.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)

These Condensed Interim Separate Financial Statements corresponding to the nine and three-month periods ended March 31, 2014 and 2013 have not been audited. The Company’s Management believes they include all necessary adjustments to fairly present the results of each period. The Company’s nine and three-month periods ended March 31, 2014 and 2013 results do not necessarily reflect the proportion of the Company’s full-year results.

2.2. Significant accounting policies

The principal accounting policies adopted for the preparation of these Unaudited Condensed Interim Financial Statements are consistent with those applied in the preparation of the information under RT 26 as of June 30, 2013, and are based on those IFRS in force as of June 30, 2013 (except for the accounting of investments in subsidiaries, associates and joint ventures, which are accounted for under the equity method as required in RT 26). In addition, the most significant accounting policies are described in the Annual Separate Financial Statements.

2.3. Use of estimates

The preparation of financial statements at a certain date requires the Management to make estimates and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements.

In the preparation of these Unaudited Condensed Interim Separate Financial Statements, the main significant judgments made by Management in applying the Company’s accounting policies and the major sources of uncertainty were the same that the Company used in the preparation of financial statements as of and for the fiscal year ended June 30, 2013, save for changes in accrued income tax, provision for legal claims, allowance for bad debts and accrued supplementary rental.

2.4.	Comparative Information

Balance items as of March 31, 2013 and June 30, 2013 shown in these financial statements for comparative purposes arise from financial statements then ended. Certain reclassifications have been made in order to present figures comparatively with those of this period.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)

During the period, the Argentine Peso devalued against the US$ and other currencies by around 32%, which has an impact in comparative information presented in these Financial Statements, mainly due to the currency exposure of our income from offices rental, and our net assets and liabilities in foreign currency as detailed in Note 34.

3. Acquisitions and disposals

See acquisitions and disposals made by the Company for the nine-month period ended March 31, 2014 in Note 4 to the Unaudited Condensed Interim Consolidated Financial Statements.

4. Financial risk management

4.1 Financial risks

The Company’s activities are exposed to a variety of financial risks: market risk (including foreign currency risk, interest rate risk and price risk), credit risk, liquidity risk and capital risk.

The Unaudited Condensed Interim Financial Statements do not include all the information and disclosures of the risk management, so they should be read together with the annual separate financial statements as of June 30, 2013. There have been no changes in the risk management or risk management policies applied by the Company since the end of the annual fiscal year.

4.2 Fair value estimates

Since June 30, 2013, there have been no significant changes in business or economic circumstances affecting the fair value of the Company's financial assets or liabilities (either measured at fair value or amortized cost) (see Note 5 to the Unaudited Condensed Interim Consolidated Financial Statements) nor any transfers between the different hierarchies used to assess the fair value of the Company's financial instruments.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

5.	Information about principal subsidiaries, associates and joint ventures

The Company conducts its business through several operating and holding subsidiaries, associates and joint ventures.

Set out below is the summarized financial information for investments in subsidiaries, associates and joint ventures for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013:

Subsidiaries, Associates and Joint ventures

	March 31, 2014			June 30, 2013
Beginning of period /year		3,570,642			3,357,430
Capital contribution		98,711			143,634
Disposal of subsidiaries		-			(5,436	)
Share of profit, net		447,229			346,772
Translation adjustment		106,129			36,274
Cash dividends (i)		(184,194	)		(308,479	)
Reimbursement of expired dividends		750			591
Acquisition of non-controlling interest		-			(4,420	)
Reserve for share-based payments		9,411			4,276
End of the period /year		4,048,678			3,570,642

(i) During the period ended March 31, 2014, BHSA, Palermo Invest S.A., Inversora Bolivar S.A., APSA, E-Commerce Latina S.A., Manibil S.A., distributed dividends for an amount of Ps. 1.5 million, Ps. 6.3 million, Ps. 7.7 million, Ps. 160.2 million, Ps. 7.7 million and Ps. 0.8 million. During the year ended June 30, 2013, APSA, Nuevas Fronteras S.A., BHSA and Manibil S.A. distributed dividends for an amount of Ps. 292.9 million, Ps. 5.6 million, Ps. 5.1 million and Ps. 4.8 million, respectively.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

6. Investment properties

Changes in Company’s investment properties for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	Offices and other rental properties portfolio			Undeveloped parcel of lands		Total
At July 1st, 2012:
Costs		908,650			117,556		1,026,206
Accumulated depreciation		(135,773	)		-		(135,773	)
Residual value		772,877			117,556		890,433
Year ended June 30, 2013:
Additions		4,793			-		4,793
Disposals		(62,700	)		-		(62,700	)
Depreciation charge (i)		(27,738	)		-		(27,738	)
Residual value at year end		687,232			117,556		804,788
At June 30, 2013:
Costs		849,280			117,556		966,836
Accumulated depreciation		(162,048	)		-		(162,048	)
Residual value		687,232			117,556		804,788
Period ended March 31, 2014:
Additions		2,964			-		2,964
Disposals		(20,352	)		-		(20,352	)
Depreciation charge (i)		(19,965	)		-		(19,965	)
Residual value at period end		649,879			117,556		767,435
At March 31, 2014:
Costs		831,892			117,556		949,448
Accumulated depreciation		(182,013	)		-		(182,013	)
Residual value		649,879			117,556		767,435

(i) Depreciation charges of investment properties were included in “Costs” in the Statement of Income (Note 24).

The following amounts have been recognized in the statement of income:

	March 31, 2014			March 31, 2013
Rental and service income		213,760			191,282
Direct operating expenses		(67,317	)		(75,114	)
Gain from disposal of investment properties		115,362			63,783

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

7. Property, plant and equipment

Changes in Company’s property, plant and equipment for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	Buildings and facilities			Furniture and fixtures			Machinery and equipment			Vehicles			Total
At July 1st, 2012:
Costs		18,189			3,650			11,131			221			33,191
Accumulated depreciation		(11,326	)		(2,610	)		(10,269	)		(221	)		(24,426	)
Residual value		6,863			1,040			862			-			8,765
Year ended June 30, 2013:
Additions		1,067			62			578			-			1,707
Disposals		-			(602	)		-			-			(602	)
Depreciation charge (i)		(687	)		(58	)		(444	)		-			(1,189	)
Residual value at year end		7,243			442			996			-			8,681
At June 30, 2013:
Costs		19,256			3,110			11,709			221			34,296
Accumulated depreciation		(12,013	)		(2,668	)		(10,713	)		(221	)		(25,615	)
Residual value		7,243			442			996			-			8,681
Period ended March 31, 2014:
Additions		108			2			445			-			555
Depreciation charge (i)		(487	)		(47	)		(392	)		-			(926	)
Residual value at period end		6,864			397			1,049			-			8,310
At March 31, 2014:
Costs		19,364			3,112			12,154			221			34,851
Accumulated depreciation		(12,500	)		(2,715	)		(11,105	)		(221	)		(26,541	)
Residual value		6,864			397			1,049			-			8,310

(i) Depreciation charges of property, plant and equipment were included in “Costs” and “General and administrative expenses” in Statement of Income (Note 24).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

8. Trading properties

Changes in Company’s trading properties for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	Completed properties			Properties under development		Under developed sites		Total
At July 1st, 2012		9,160			52,205		9,750		71,115
Disposals (i)		(4,452	)		-		-		(4,452	)
At June 30, 2013		4,708			52,205		9,750		66,663
Disposals (i)		(1,302	)		-		-		(1,302	)
At March 31, 2014		3,406			52,205		9,750		65,361

(i) Corresponds to the carrying amount of properties transferred included in "Cost" in the statement of income (Note 24).

9. Intangible assets

Changes in Company’s intangible assets for the nine-month period ended March 31, 2014 and for the year ended June 30, 2013 were as follows:

	Goodwill		Computer Software			Total
At July 1st, 2012:
Costs		5,481		1,601			7,082
Accumulated depreciation		-		(1,095	)		(1,095	)
Residual value		5,481		506			5,987
Year ended June 30, 2013:
Additions		-		224			224
Amortization charge (i)		-		(273	)		(273	)
Residual value at year end		5,481		457			5,938
At June 30, 2013:
Costs		5,481		1,825			7,306
Accumulated depreciation		-		(1,368	)		(1,368	)
Residual value		5,481		457			5,938
Period ended March 31, 2014:
Amortization charge (i)		-		(168	)		(168	)
Residual value at period end		5,481		289			5,770
At March 31, 2014:
Costs		5,481		1,825			7,306
Accumulated depreciation		-		(1,536	)		(1,536	)
Residual value		5,481		289			5,770

(i) Amortization charges of intangible assets are included in “General and administrative expenses” in the statement of income (Note 24).

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

10. Inventories

Company’s inventories as of March 31, 2014 and June 30, 2013 were as follows:

	March 31, 2014		June 30, 2013
Current
Materials and other inventories (i)		582		463
Total inventories		582		463

(i)	The cost of inventories is recorded in “Costs” in the statement of income (Note 24).

11.	Financial instruments by category

Determination of fair values

See determination of fair value in Note 14 to the Unaudited Condensed Interim Consolidated Financial Statements.

The following tables show the financial assets and financial liabilities of the Company that are measured at fair value as of March 31, 2014 and June 30, 2013 and their allocation to the fair value hierarchy:

	March 31, 2014
	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss:
- Investment in equity securities of TGLT		96		-		-		96
- Mutual funds		4,212		-		-		4,212
- Government Bonds		22,598		-		-		22,598
Derivative financial instruments:
- Interest rate swaps		-		4,480		-		4,480
Cash and cash equivalents:
- Mutual funds		98		-		-		98
Total assets		27,004		4,480		-		31,484

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

11.	Financial instruments by category (Continued)

	June 30, 2013
	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss:
- Investment in equity securities of TGLT		84		-		-		84
- Mutual funds		2,851		-		-		2,851
- Government Bonds		69,865		-		-		69,865
Cash and cash equivalents:
- Mutual funds		67		-		-		67
Total assets		72,867		-		-		72,867

The derivative financial instruments are classified as Level 2 since their fair value is calculated under the discounted cash flow method. The main parameter used in that model is interest rate futures (see Note 14).

As of March 31, 2014 and June 30, 2013 the Company does not have liabilities measured at fair value.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

12.	Trade and other receivables

Company’s trade and other receivables as of March 31, 2014 and June 30, 2013 are as follows:

	March 31, 2014			June 30, 2013
Non-current
Sale, leases and services receivable		1,097			1,702
Total non-current trade receivables		1,097			1,702
Trade receivables of joint ventures		3,161			2,147
Others		623			527
Total non-current other receivables		3,784			2,674
Related parties (Note 29)		315,546			81,486
Total non-current trade and other receivables		320,427			85,862
Current
Sale, leases and services receivable		36,956			143,831
Checks to be deposited		305			85
Debtors under legal proceedings		9,092			6,010
Less: allowance for trade receivables		(8,862	)		(5,359	)
Total trade receivables		37,491			144,567
Trade receivables of joint ventures		7,270			20,555
Gross sales tax credit		32			1,165
Other tax receivables		1,869			2,182
Prepaid expenses		2,563			3,070
Expenses and services to recover		2,909			2,077
Advance payments		3,726			2,973
Others		1,214			668
Less: allowance for other receivables		(23	)		(23	)
Total current other receivables		19,560			32,667
Related parties (Note 29)		92,352			74,444
Total current trade and other receivables		149,403			251,678
Total trade and other receivables		469,830			337,540

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

12.	Trade and other receivables (Continued)

Movements on the Company’s allowance for trade and other receivables are as follows:

	March 31, 2014			June 30, 2013
Beginning of period / year		5,382			4,783
Additions of the period / year		5,011			1,491
Unused amounts reversed		(1,508	)		(892	)
End of period / year		8,885			5,382

The creation and release of provision for impaired receivables have been included in “Selling expenses” in the statement of income (Note 24). Amounts charged to the allowance account are generally written off, when there is no expectation of recovering additional cash.

13. Investments in financial assets

Company’s investments in financial assets as of March 31, 2014 and June 30, 2013 are as follows:

	March 31, 2014		June 30, 2013
Non-current
Financial assets at fair value
Investment in equity securities in TGLT		96		84
Government bonds		-		3
Total non-current investments in financial assets		96		87
Current
Financial assets at fair value
Mutual funds		4,212		2,851
Government bonds		22,598		69,862
Total current investments in financial assets		26,810		72,713
Total investments in financial assets		26,906		72,800

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

14.	Derivative financial instruments

Company’s derivative financial instruments as of March 31, 2014 and June 30, 2013 are as follows:

	March 31, 2014		June 30, 2013
Assets
Current
Interest rate swaps (i)		4,480		-
Total derivative financial instruments		4,480		-

(i) During this nine-month period, the Company entered into interest rate swaps with diverse financial institutions. The total amount of underlying assets for these agreements amounts to Ps. 180 million and are due in September, October and December 2014.

15.	Cash flow information

The following table shows the amounts of cash and cash equivalents as of March 31, 2014 and June 30, 2013:

	March 31, 2014		June 30, 2013
Cash at bank and on hand		45,150		62,721
Mutual funds		98		67
Total cash and cash equivalents		45,248		62,788

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

15.	Cash flow information (Continued)

Following is a detailed description of cash flows generated by the Company’s operations for the nine-month periods ended March 31, 2014 and 2013:

	Note	March 31, 2014			March 31, 2013
(Loss) / Profit for the period			(92,030	)		320,638
Adjustments for:
Income tax expense	20		(287,939	)		(71,774	)
Amortization and depreciation	24		21,059			21,994
Gain from disposal of investment properties	6		(115,362	)		(63,783	)
Disposals of unused property, plant and equipment	7		-			357
Gain from disposal of financial assets			-			(10,299	)
Share-based payments	25, 28		2,706			1,102
Changes in fair value of investments in financial assets	27		9,517			(26,440	)
Loss on derivative financial instruments			(3,577	)		-
Interest expense, net			223,501			157,190
Provisions			24,923			38,472
Share of profit of subsidiaries, associates and joint ventures			(447,229	)		(439,099	)
Unrealized foreign exchange loss, net			816,095			175,547
Changes in operating assets and liabilities:
Increase in inventories			(119	)		(37	)
Decrease in trading properties			1,302			3,867
(Increase) / Decrease in trade and other receivables			(40,447	)		19,967
Decrease in trade and other payables			(23,678	)		(28,944	)
Decrease in salaries and social security liabilities			(2,454	)		(4,218	)
Decrease in provisions			(1,604	)		-
Net cash generated by operating activities			84,664			94,540


Additional information
		March 31, 2014			March 31, 2013
Increase in investments in financial assets through an increase in borrowings			-			18,767
Dividends receivable			-			5,615
Increase in investments in subsidiaries through a decrease in trade and other receivables			-			25,678
Acquisition of non-controlling interest			-			1,540
Reimbursement of expired dividends	5		750			591
Dividends payable			-			52,487
Reserve for share-based payments	5		9,411			4,624
Cumulative translation adjustment			106,129			23,998
Decrease in borrowings through a decrease in equity investments in subsidiaries, associates and joint ventures			21,696			-
Decrease in trade and other receivables through an increase in investments in subsidiaries			61,794			-
Increase in borrowings through a decrease in dividends payable			160,173			-
Increase in trade and other receivables through a decrease in investments in financial assets			36,091			-
Increase in trade and other receivables through a decrease in borrowings			15,599			-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

16. Trade and other payables

Company’s trade and other payables as of March 31, 2014 and June 30, 2013 are as follows:

	March 31, 2014		June 30, 2013
Non-current
Sales, rent and services payments received in advance		555		2,027
Guarantee deposits		5,067		4,768
Total non-current trade payables		5,622		6,795
Others		368		242
Tax on Shareholders´ personal assets payable		1,109		-
Total non-current other payables		1,477		242
Related parties (Note 29)		22		17
Total non-current trade and other payables		7,121		7,054

Current
Trade payables		8,042		8,401
Invoices to be received		10,174		13,220
Sales, rent and services payments received in advance		17,039		22,707
Guarantee deposits		7,552		3,779
Total current trade payables		42,807		48,107
VAT payables		3,418		7,974
Other tax payables		4,360		3,250
Others		2,667		6,352
Total current other payables		10,445		17,576
Related parties (Note 29)		19,704		12,023
Total current trade and other payables		72,956		77,706
Total trade and other payables		80,077		84,760

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

17. Salaries and social security liabilities

Company’s Salaries and social security liabilities as of March 31, 2014 and June 30, 2013 are as follows:

	March 31, 2014		June 30, 2013
Current
Provision for vacation and bonus		2,508		4,505
Social security payable		509		967
Salaries payable		19		18
Total salaries and social security liabilities		3,036		5,490

18. Provisions

The table below shows the movements in Company's provisions:

	Labor, legal and other claims
At June 30, 2013		13,142
Additions, net		2,821
Used during the period		(1,604	)
At March 31, 2014		14,359

The breakdown of total current and non-current provisions is as follows:

	March 31, 2014		June 30, 2013
Non-current		3,801		6,877
Current		10,558		6,265
		14,359		13,142

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

19. Borrowings

Company’s borrowings as of March 31, 2014 and June 30, 2013 were as follows:

							Book value
	Secured/ unsecured	Currency	Fixed/ floating	Effective interest rate %	Principal nominal value		March 31, 2014		June 30, 2013
Non-current
IRSA NCN due 2017 (Note 29)	Unsecured	US$	Fixed	8.50%		150,000		1,198,624		805,868
IRSA NCN due 2020	Unsecured	US$	Fixed	11.50%		150,000		1,176,387		789,655
IRSA NCN due 2017	Unsecured	Ps.	Floating	Badlar + 450ps		10,800		10,761		-
IRSA NCN due 2015	Unsecured	Ps.	Floating	Badlar + 395ps		209,400		208,387		-
Related parties (Note 29)	Unsecured	Ps.	Floating	Badlar		148,018		173,343		139,383
Related parties (Note 29)	Unsecured	US$	Floating	Libor 3m+200		8,012		64,112		43,169
Related parties (Note 29)	Unsecured	US$	Fixed	7.50%		255		-		18,428
Finance lease obligations	Secured	US$	Fixed	7.50%		126		173		18
Total non-current borrowings								2,831,787		1,796,521
Current
IRSA NCN due 2013	Unsecured	Ps.	Floating	Badlar +2.49%		153,152		-		52,240
IRSA NCN due 2014	Unsecured	US$	Fixed	7.45%		8,458		-		137,750
IRSA NCN due 2017 (Note 29)	Unsecured	US$	Fixed	8.5%		150,000		15,846		27,749
IRSA NCN due 2020	Unsecured	US$	Fixed	11.5%		150,000		26,516		40,604
IRSA NCN due 2017	Unsecured	Ps.	Floating	Badlar + 450ps		10,800		226		-
IRSA NCN due 2015	Unsecured	Ps.	Floating	Badlar + 395ps		209,400		5,062		-
Bank overdrafts	Unsecured	Ps.	Floating	-		-		37,750		100,214
Finance lease obligations	Secured	US$	Fixed	7.50%		126		240		105
Short-term loans	Unsecured	Ps.	Fixed	29.00%		25,000		25,556		-
Related parties (Note 29)	Unsecured	Ps.	Floating	Badlar		67,369		-		8
Related parties (Note 29)	Unsecured	US$	Fixed	3.60%		17,089		141,971		64,533
Related parties (Note 29)	Unsecured	US$	Floating	Libor 3m+200ps		8,012		1,336		170
Related parties (Note 29)	Unsecured	US$	Fixed	1.5%		26,441		212,711		-
Related parties (Note 29)	Unsecured	Ps.	Floating	Badlar		25,585		4,390		462
Total Current borrowings								471,604		423,835
Total borrowings								3,303,391		2,220,356

NCN: Non-convertible Notes

See Note 24 to the Unaudited Condensed Interim Consolidated Financial Statements, new issuance of non-convertible notes.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

20. Current and deferred income tax

The details of the provision for the Company’s income tax are as follows:

	March 31, 2014		March 31, 2013
Deferred income tax		287,939		71,774
Income tax		287,939		71,774

The gross movement on the deferred income tax account is as follows:

	March 31, 2014		June 30, 2013
Beginning of period / year		47,144		(19,179	)
Income tax gain		287,939		66,323
End of period / year		335,083		47,144

Below is a reconciliation between income tax expense and the amount that would arise using the income tax rate applicable to Profit Before Income Tax for the nine-month periods ended March 31, 2014 and 2013:

	March 31, 2014			March 31, 2013
Net income at tax rate		(132,989	)		87,102
Permanent differences:
Share of loss from subsidiaries, associates and joint ventures		(156,530	)		(153,685	)
Non-deductible items		1,401			1,116
Others		179			(6,307	)
Income tax expense		(287,939	)		(71,774	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

21. Shareholders' Equity

Dividends approved for distribution among shareholders for the year ended June 30, 2013 amounted to Ps. 250 million, which were approved at the Annual General Shareholders’ Meeting on October 31, 2013.

Dividends paid during the period ended March 31, 2014, amounted to Ps. 89.8 million.

See Note 26 to the Unaudited Condensed Interim Consolidated Financial Statements.

22. Revenues

	March 31, 2014		March 31, 2013
Rental and scheduled rent increases		166,785		139,289
Expenses		43,367		49,123
Property management fee		3,245		2,701
Others		363		169
Total rental and service income		213,760		191,282
Sale of trading properties		6,873		15,914
Total other revenue		6,873		15,914
Total revenues		220,633		207,196

23.

Costs

	March 31, 2014		March 31, 2013
Leases and services costs		67,317		75,114
Cost of sales and development		3,188		5,569
Total cost of property operations		70,505		80,683
Total costs		70,505		80,683

24.	Expenses by nature

The Company disclosed expenses in the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”.

The following tables provide the additional required disclosure of expenses by nature and their relationship to the function within the Company.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

24. Expenses by nature (Continued)

For the period ended March 31, 2014:

	Costs
	Cost of rental and services		Cost of sale and development		General and administrative expenses		Selling expenses		Total
Leases and service charges		2,595		334		586		53		3,568
Depreciation and amortization		20,279		3		693		84		21,059
Allowances for trade and other receivables		-		-		-		3,503		3,503
Salaries, social security costs and other personnel expenses		9,933		106		25,375		6,215		41,629
Directors’ fees		-		-		18,599		-		18,599
Fees and payments for services		2,115		32		7,644		686		10,477
Maintenance, security, cleaning, repairs and others		25,092		147		1,987		152		27,378
Taxes, rates and contributions		6,508		1,231		95		5,436		13,270
Advertising and other selling expenses		-		-		-		1,836		1,836
Cost of sale of trading properties		-		1,302		-		-		1,302
Others		795		33		3,465		268		4,561
Total expenses by nature		67,317		3,188		58,444		18,233		147,182

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

24. Expenses by nature (Continued)

For the period ended March 31, 2013:

	Costs
	Cost of rental and services		Cost of sale and development		General and administrative expenses		Selling expenses		Total
Leases and service charges		3,070		787		558		-		4,415
Depreciation and amortization		21,321		-		640		33		21,994
Allowances for trade and other receivables		-		-		-		761		761
Salaries, social security costs and other personnel expenses		7,905		86		19,837		4,319		32,147
Directors’ fees		-		-		26,645		-		26,645
Fees and payments for services		2,836		40		4,051		985		7,912
Maintenance, security, cleaning, repairs and others		30,032		44		1,636		124		31,836
Taxes, rates and contributions		9,638		728		275		4,424		15,065
Advertising and other selling expenses		-		-		-		1,549		1,549
Cost of sale of trading properties		-		3,867		-		-		3,867
Others		312		17		3,186		220		3,735
Total expenses by nature		75,114		5,569		56,828		12,415		149,926

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

25.	Employee costs

	March 31, 2014		March 31, 2013
Salaries and social security costs		35,239		29,546
Share-based compensation		2,706		1,102
Pension costs – defined contribution plan		620		74
Other expenses and benefits		3,064		1,425
Total employee costs		41,629		32,147

26. Other operating results, net

	March 31, 2014			March 31, 2013
Personal assets tax		(2,827	)		(2,968	)
Donations		(512	)		(221	)
Lawsuits and other contingencies (1)		(3,277	)		(6,019	)
Others		1,013			(1,872	)
Total other operating results, net		(5,603	)		(11,080	)

(1)	Includes judicial costs and expenses

27. Financial results, net

	March 31, 2014			March 31, 2013
Finance income:
- Interest income		21,053			11,775
- Foreign exchange gains		102,124			42,503
- Gain from sale of financial assets		-			10,299
Total finance income		123,177			64,577

Finance costs:
- Interest expense		(244,554	)		(168,965	)
- Foreign exchange losses		(871,896	)		(213,601	)
- Other finance costs		(11,195	)		(8,659	)
Total finance costs		(1,127,645	)		(391,225	)
Other financial results:
- Fair value (loss) / gain of investments in financial assets		(9,517	)		26,440
- Gain on derivative financial instruments		3,577			-
Total other financial results		(5,940	)		26,440
Total financial results, net		(1,010,408	)		(300,208	)

28. Share-based payments

For more details on share-based payments, see Note 33 to the Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29. Related party transactions

The following is a summary of the balances with related parties as of March 31, 2014:

		Trade and other receivables current		Trade and other receivables		Trade and other payables current			Trade and other payables		Borrowings current			Borrowings non-current
Related party	Description of Transaction			non-current					non-current
Parent Company
CRESUD S.A.C.I.F. y A.	Sale of good and/or services		701		-		-			-		-			-
	Borrowings		-		-		-			-		(212,713	)		-
	Corporate services		-		-		(9,353	)		-		-			-
	Reimbursement of expenses		304		-		-			-		-			-
	Non-Convertible Notes		-		-		-			-		(780	)		(34,409	)
Total Parent Company			1,005		-		(9,353	)		-		(213,493	)		(34,409	)
Subsidiaries
E. Commerce Latina S.A.	Reimbursement of expenses		4		-		-			-		-			-
	Management fees		2		-		-			-		-			-
	Borrowings		-		-		-			-		-			(8,811	)
Alto Palermo S.A.	Reimbursement of expenses		439		-		-			-		-			-
	Non-Convertible Notes		-		-		-			-		(251	)		(14,164	)
	Share-based payments		-		-		(131	)		-		-			-
	Borrowings		-		-		-			-		(141,969	)		-
Solares de Santa Maria S.A.	Reimbursement of expenses		4,786		-		-			-		-			-
	Borrowings		-		6		-			-		-			-
Palermo Invest S.A.	Reimbursement of expenses		46		-		-			-		-			-
	Borrowings		-		-		-			-		-			(1,524	)
Unicity S.A.	Reimbursement of expenses		14		-		-			-		-			-
Ritelco S.A.	Borrowings		-		-		-			-		(1,336	)		(68,531	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29. Related party transactions (Continued)

Related party	Description of transaction	Trade and other receivables current		Trade and other receivables		Trade and other payables current			Trade and other payables			Borrowings current			Borrowings
				non-current					non-current						non-current
Subsidiaries
Inversora Bolivar S.A.	Reimbursement of expenses		54		-		-			-			-			-
	Borrowings		-		-		-			-			-			(7,992	)
Hoteles Argentinos S.A.	Hotel services		55		-		(1,605	)		-			-			-
Tyrus S.A.	Borrowings		-		315,54		-			-			-			-
	Reimbursement of expenses		2,18		-		-			-			-			-
Llao Llao Resorts S.A.	Hotel services		3,281		-		-			-			-			-
	Guarantee deposits		-		-		-			(14	)		-			-
Nuevas Fronteras S.A.	Reimbursement of expenses		583		-		-			-			-			-
	Management fees		2		-		(7	)		-			-			-
	Borrowings		-		-		-			-			(4,390	)		(25,585	)
Efanur S.A.	Borrowings		67,565		-		-			-			-			-
Total Subsidiaries			79,011		315,546		(1,743	)		(14	)		(147,946	)		(126,607	)
Subsidiaries CRESUD
Futuros y Opciones.com S.A.	Reimbursement of expenses		-		-		(29	)		-			-			-
Sociedad Anónima Carnes Pampeanas S.A.	Reimbursement of expenses		-		-		(1	)		-			-			-
Cactus S.A.	Reimbursement of expenses		-		-		(8	)		-			-			-
Total Subsidiaries CRESUD			-		-		(38	)		-			-			-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29. Related party transactions (Continued)

Related party	Description of transaction	Trade and other receivables current		Trade and other receivables non-current		Trade and other payables current			Trade and other payables non-current		Borrowings current			Borrowings non-current
Subsidiaries APSA
Arcos del Gourmet S.A.	Reimbursement of expenses		37		-		-			-		-			-
Emprendimientos Recoleta S.A.	Reimbursement of expenses		-		-		(8	)		-		-			-
Emprendimientos Recoleta S.A.	Non-Convertible Notes		-		-		-			-		(258	)		(11,547	)
Fibesa S.A.	Reimbursement of expenses		30		-		-			-		-			-
Panamerican Mall S.A.	Reimbursement of expenses		108		-		-			-		-			-
Panamerican Mall S.A.	Non-Convertible Notes		-		-		-			-		(1,013	)		(44,667	)
Conil S.A.	Reimbursement of expenses		170		-		-			-		-			-
Shopping Neuquén S.A.	Reimbursement of expenses		4		-		-			-		-			-
Total Subsidiaries APSA			349		-		(8	)		-		(1,271	)		(56,214	)
Subsidiaries TYRUS												-			-
Irsa International LLC	Reimbursement of expenses		1,482		-		(1,069	)		-		-
Real Estate Investment Group LP	Reimbursement of expenses		57		-		(41	)		-		-			-
Real Estate Investment Group V LP	Reimbursement of expenses		18		-		-			-		-			-
Real Estate Strategies LP	Reimbursement of expenses		2,098		-		-			-		-			-
New Lipstick LLC	Reimbursement of expenses		1,927		-		-			-		-			-
Imadison LLC	Reimbursement of expenses		1,350		-		-			-		-			-
Total Subsidiaries TYRUS			6,932		-		(1,110	)		-		-			-
Associates
Banco de Crédito y Securitización S.A.	Reimbursement of expenses		35		-		-			-		-			-
Banco de Crédito y Securitización S.A.	Leases and/or rights of use		988		-		-			-		-			-
Banco Hipotecario S.A.	Reimbursement of expenses		66		-		(9	)		-		-			-
Banco Hipotecario S.A.	Leases and/or rights of use		626		-		-			-		-			-
Total Associates			1,715		-		(9	)		-		-			-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29. Related party transactions (Continued)

Related party	Description of transaction	Trade and other receivables current		Trade and other receivables		Trade and other payables			Trade and other payables			Borrowings			Borrowings
				non-current		current			non-current			current			non-current
Joint Ventures
Cyrsa S.A.	Reimbursement of expenses		-		-		(6	)		-			-			-
	Borrowings		-		-		-			-			-			(125,012	)
Baicom Networks S.A.	Reimbursement of expenses		14		-		-			-			-			-
Puerto Retiro S.A.	Reimbursement of expenses		198		-		-			-			-			-
Total Joint Ventures			212		-		(6	)		-			-			(125,012	)
Joint Ventures APSA
Nuevo Puerto Santa Fé S.A.	Reimbursement of expenses		3		-		-			-			-			-
Quality Invest S.A.	Reimbursement of expenses		53		-		-			-			-			-
	Customers advances		-		-		(45	)		-			-			-
Total Joint Ventures APSA			56		-		(45	)		-			-			-
Other related parties
Consultores Asset Management S.A.	Reimbursement of expenses		2,715		-		(142	)		-			-			-
Austral Gold S.A.	Reimbursement of expenses		1		-		-			-			-			-
Estudio Zang, Bergel & Viñes	Advances		7		-		-			-			-			-
	Legal services		-		-		(176	)		-			-			-
Museo de los Niños	Leases and/or rights of use		-		-		(3	)		-			-			-
Fundación IRSA	Reimbursement of expenses		48		-		(1	)		-			-			-
Total Other related parties			2,771		-		(322	)		-			-			-
Directors and Senior Management
Directors	Reimbursement of expenses		301		-		-			-			-			-
	Fees		-		-		(7,070	)		-			-			-
	Guarantee deposits		-		-		-			(8	)		-			-
Total Directors and Senior Management			301		-		(7,070	)		(8	)		-			-
Total			92,352		315,546		(19,704	)		(22	)		(362,710	)		(342,242	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29. Related party transactions (Continued)

The following is a summary of the balances with related parties as of June 30, 2013:

Related party	Description of transaction	Trade and other receivables		Trade and other receivables		Trade and other payables		Trade and other payables			Borrowings			Borrowings
		non-current		current		non-current		current			non-current			current
Parent Company
CRESUD S.A.C.I.F. y A.	Sale of real estate property		-		701		-		-			-			-
	Corporate services		-		-		-		(8,503	)		-			-
	Reimbursement of expenses		-		471		-		-			-			-
	Share-based payments		-		559		-		-			-			-
Total Parent Company			-		1,731		-		(8,503	)		-			-
Subsidiaries
E. Commerce Latina S.A.	Reimbursement of expenses		-		17		-		-			-			-
	Management fees		-		1		-		-			-			-
	Borrowings		-		-		-		-			(11,371	)		-
Alto Palermo S.A.	Reimbursement of expenses		-		2,183		-		-			-			-
	Leases and/or rights of use		-		-		-		(311	)		-			-
	Corporate services		-		2,257		-		-			-			-
	Share-based payments		-		-		-		(72	)		-			-
	Borrowings		-		-		-		-			-			(64,533	)
Solares de Santa Maria S.A.	Reimbursement of expenses		-		3,925		-		-			-			-
	Borrowings		5		-		-		-			-			-
Palermo Invest S.A.	Reimbursement of expenses		-		19		-		-			-			-
	Borrowings		-		86		-		-			(5,431	)		(8	)
Unicity S.A.	Reimbursement of expenses		-		7		-		-			-			-
Ritelco S.A.	Reimbursement of expenses		-		10		-		(15	)		-			-
	Borrowings		-		-		-		-			(47,036	)		(170	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Related party transactions (Continued)

Related party	Description of transaction	Trade and other receivables		Trade and other receivables		Trade and other payables			Trade and other payables			Borrowings			Borrowings current
		non-current		current		non-current			current			non-current
Subsidiaries
Inversora Bolivar S.A.	Reimbursement of expenses		-		27		-			-			-			-
	Borrowings		-		1,420		-			-			(13,228	)		-
Hoteles Argentinos S.A.	Hotel services		-		53		-			(1,081	)		-			-
Tyrus S.A.	Reimbursement of expenses		-		120		-			-			-			-
	Borrowings		81,481		-		-			-			-			-
Llao Llao Resorts S.A.	Hotel services		-		1,472		-			-			-			-
	Management fees		-		553		-			-			-			-
	Guarantee deposits		-		-		(9	)		-			-			-
Nuevas Fronteras S.A.	Reimbursement of expenses		-		1		-			-			-			-
	Management fees		-		159		-			(8	)		-			-
	Borrowings		-		-		-			-			(25,585	)		(462	)
Efanur S.A.	Reimbursement of expenses		-		75		-			-			-			-
	Borrowings		-		44,430		-			-			-			-
Total Subsidiaries			81,486		56,815		(9	)		-1,487			(102,651	)		(65,173	)
)Subsidiaries CRESUD
Futuros y Opciones.com S.A.	Reimbursement of expenses		-		-		-			(2	)		-			-
Alafox S.A.	Reimbursement of expenses		-		46		-			-			-			-
Codalis S.A.	Reimbursement of expenses		-		44		-			-			-			-
Helmir S.A.	Reimbursement of expenses		-		1		-			-			-			-
Doneldon S.A.	Reimbursement of expenses		-		36		-			-			-			-
Sedelor S.A.	Reimbursement of expenses		-		35		-			-			-			-
Total Subsidiaries CRESUD			-		162		-			(2	)		-			-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Related party transactions (Continued)

Related party	Description of transaction	Trade and other receivables non-current		Trade and other receivables current		Trade and other payables non-current		Trade and other payables current			Borrowings non-current			Borrowings current
Subsidiaries APSA
Arcos del Gourmet S.A.	Reimbursement of expenses		-		13		-		-			-			-
Emprendimientos Recoleta S.A.	Reimbursement of expenses		-		-		-		(1	)		-			-
Emprendimientos Recoleta S.A.	Non-Convertible Notes		-		-		-		-			(7,077	)		(446	)
Fibesa S.A.	Reimbursement of expenses		-		128		-		-			-			-
Fibesa S.A.	Share-based payments		-		63		-		-			-			-
Panamerican Mall S.A.	Reimbursement of expenses		-		78		-		-			-			-
Panamerican Mall S.A.	Non-Convertible Notes		-		-		-		-			(12,050	)		(764	)
Shopping Neuquén S.A.	Reimbursement of expenses		-		1		-		-			-			-
Torodur S.A.	Reimbursement of expenses		-		162		-		-			-			-
Total Subsidiaries APSA			-		445		-		(1	)		(19,127	)		(1,210	)
Subsidiaries TYRUS							-
Irsa International LLC	Reimbursement of expenses		-		995		-		(720	)		-			-
Real Estate Investment Group LP	Reimbursement of expenses		-		38		-		(28	)		-			-
Real Estate Investment Group. V LP	Reimbursement of expenses		-		12		-		-			-			-
Irsa Development LP	Reimbursement of expenses		-		2		-		-			-			-
Real Estate Strategies LP	Reimbursement of expenses		-		1,350		-		-			-			-
New Lipstick LLC	Reimbursement of expenses		-		1,301		-		-			-			-
Imadison LLC	Reimbursement of expenses		-		909		-		-			-			-
Jiwin S.A.	Reimbursement of expenses		-		3		-		-			-			-
Zetol S.A.	Reimbursement of expenses		-		149		-		-			-			-
Total Subsidiaries TYRUS			-		4,759		-		(748	)		-			-
Associates
Manibil S.A.	Other liabilities		-		-		-		(781	)		-			-
Banco Hipotecario S.A.	Reimbursement of expenses		-		-		-		(90	)		-			-
Total Associates			-		-		-		(871	)		-			-
Associates APSA
Tarshop S.A.	Reimbursement of expenses		-		8		-		-			-			-
Total Associates APSA			-		8		-		-			-			-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Related party transactions (Continued)

Related party	Description of transaction	Trade and other receivables non-current		Trade and other receivables current		Trade and other payables non-current			Trade and other payables current			Borrowings non-current			Borrowings current
Joint Ventures
Cyrsa S.A.	Reimbursement of expenses		-		-		-			(10	)		-			-
Cyrsa S.A.	Borrowings		-		-		-			-			(98,328	)		-
Baicom Networks S.A.	Reimbursement of expenses		-		16		-			(2	)		-			-
Puerto Retiro S.A.	Reimbursement of expenses		-		178		-			-			-			-
Total Joint Ventures			-		194		-			(12	)		(98,328	)		-
Joint Ventures APSA
Nuevo Puerto Santa Fé S.A.	Reimbursement of expenses		-		3		-			-			-			-
Quality Invest S.A.	Reimbursement of expenses		-		26		-			-			-			-
Quality Invest S.A.	Management fees		-		-		-			(45	)		-			-
Total Joint Ventures APSA			-		29		-			(45	)		-			-
Other related parties
Consultores Asset Management S.A.	Reimbursement of expenses		-		2,482		-			(36	)		-			-
Dolphin Fund PLC	Reimbursement of expenses		-		133		-			-			-			-
Estudio Zang, Bergel & Viñes	Advances		-		11		-			-			-			-
Estudio Zang, Bergel & Viñes	Legal services		-		12		-			(314	)		-			-
Museo de los Niños	Leases and/or rights of use		-		26		-			(3	)		-			-
Fundación IRSA	Reimbursement of expenses		-		38		-			(1	)		-			-
Total Other related parties			-		2,702		-			(354	)		-			-
Directors and Senior Management
Directors	Fees		-		7,599		-			-			-			-
Directors	Guarantee deposits		-		-		(8	)		-			-			-
Total Directors and Senior Management			-		7,599		(8	)		-			-			-
Total			81,486		74,444		(17	)		(12,023	)		(220,106	)		(66,383	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29. Related party transactions (Continued)

The following is a summary of the transactions with related parties for the nine-month period ended March 31, 2014:

Related party	Leases and/or rights of use		Management fees		Corporate services			Legal services		Financial operations			Fees and Salaries
Parent Company
Cresud S.A.C.I.F. y A		1,303		-		(22,016	)		-		(2,861	)		-
Total Parent Company		1,303		-		(22,016	)		-		(2,861	)		-
Subsidiaries
Alto Palermo S.A.		3,621		-		-			-		(6,562	)		-
E-Commerce Latina S.A.		-		4		-			-		(1,757	)		-
Inversora Bolivar S.A.		-		-		-			-		(2,144	)		-
Llao Llao Resorts S.A.		110		-		-			-		-			-
Ritelco S.A.		-		-		-			-		(22,645	)		-
Nuevas Fronteras S.A.		-		720		-			-		(3,928	)		-
Hoteles Argentinos S.A.
Efanur S.A.		-		-		-			-		23,135			-
Tyrus S.A.		-		-		-			-		101,582			-
Palermo Invest S.A.		-		-		-			-		(565	)		-
Total Subsidiaries		3,731		724		-			-		87,116			-
Subsidiaries APSA
Fibesa S.A.		906		-		-			-		-			-
Panamerican Mall S.A.		-		-		-			-		(3,043	)		-
Emprendimientos Recoleta S.A.		-		-		-			-		(850	)		-
Total Subsidiaries APSA		906		-		-			-		(3,893	)		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Related party transactions (Continued)

Related party	Leases and/or rights of use			Management fees		Corporate services			Legal services			Financial operations			Fees and Salaries
Associates
Banco de Crédito y Securitización S.A.		530			-		-			-			-			-
Banco Hipotecario S.A.		458			-		-			-			-			-
Total Associates		988			-		-			-			-			-
Associates APSA
Tarshop S.A.		2,679			-		-			-			-			-
Total Associates APSA		2,679			-		-			-			-			-
Joint Ventures
Canteras Natal Crespo S.A.		-			-		-			-			-			-
Cyrsa S.A.		-			-		-			-			(14,596	)
Total Joint Ventures		-			-		-			-			(14,596	)
Other related parties
Estudio Zang, Bergel & Viñes		-			-		-			(750	)		-			-
Isaac Elsztain e Hijos S.C.A.		(179	)		-		-			-			-			-
Hamonet S.A.		(97	)		-		-			-			-			-
Total Other related parties		(276	)		-		-			(750	)		-			-
Directors and Senior Management
Senior Management		-			-		-			-			-			(1,984	)
Directors		-			-		-			-			-			(18,599	)
Total Directors and Senior Management		-			-		-			-			-			(20,583	)
Total		9,331			724		(22,016	)		(750	)		65,766			(20,583	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Related party transactions (Continued)

The following is a summary of the transactions with related parties for the nine-month period ended March 31, 2013:

Related party	Leases and/or rights of use		Management fees			Corporate services			Legal services		Financial operations			Fees and Salaries
Parent Company
Cresud S.A.C.I.F. y A		1,258		(12,267	)		(6,339	)		-		-			-
Total Parent Company		1,258		(12,267	)		(6,339	)		-		-			-
Subsidiaries
Alto Palermo S.A.		3,257		-			-			-		29,378			-
E-Commerce Latina S.A.		-		4			-			-		(1,251	)		-
Inversora Bolivar S.A.		-		-			-			-		(1,455	)		-
Ritelco S.A.		-		-			-			-		(868	)
Llao Llao Resorts S.A.		91		-			-			-		83			-
Nuevas Fronteras S.A.		-		410			-			-		(1,064	)		-
Efanur S.A.		-		-			-			-		978			-
Tyrus S.A.		-		-			-			-		138			-
Palermo Invest S.A.		-		-			-			-		(335	)		-
Total Subsidiaries		3,348		414			-			-		25,604			-
Subsidiaries APSA
Fibesa S.A.		719		-			-			-		-			-
Panamerican Mall S.A.		-		-			-			-		(1,771	)		-
Emprendimientos Recoleta S.A.		-		-			-			-		(1,040	)		-
Total Subsidiaries APSA		719		-			-			-		(2,811	)		-

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

29.	Related party transactions (Continued)

Related party	Leases and/or rights of use		Management fees			Corporate services			Legal services			Financial operations			Fees and Salaries
Associates APSA
Tarshop S.A.		2,703		-			-			-			-			-
Total Associates APSA		2,703		-			-			-			-			-
Joint Ventures
Canteras Natal Crespo S.A.		-		72			-			-			8			-
Cyrsa S.A.		-		-			-			-			(5,397	)		-
Total Joint Ventures		-		72			-			-			(5,389	)		-
Other related parties
Estudio Zang, Bergel & Viñes		-		-			-			(576	)		-			-
Consultores Assets Management S.A.		140		-			-			-			-			-
Isaac Elsztain e Hijos S.C.A.		136		-			-			-			-			-
Hamonet S.A.		72		-			-			-			-			-
Total Other related parties		348		-			-			(576	)		-			-
Directors and Senior Management
Directors		-		-			-			-			-			(26,245	)
Total Directors and Senior Management		-		-			-			-			-			(26,245	)
Total		8,376		(11,781	)		(6,339	)		(576	)		17,404			(26,245	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

30. Negative working capital

At the end of the period, the Company had negative working capital. This situation is presently being considered by the Board of Directors and by Management.

31. Special reserve

32.	CNV General Resolution No. 622

As required by Section 1°, Chapter III, Title IV of CNV General Resolution No. 622, below there is a detail of the notes to the Unaudited Condensed Interim Separate Financial Statements that disclosure the information required by the Resolution in Exhibits.

Exhibit A - Property, plant and equipment	Note 6 Investment properties and Note 7 Property, plant and equipment
Exhibit B - Intangible assets	Note 9 Intangible assets
Exhibit C - Equity investments	Note 33 Equity investments
Exhibit D - Other investments	Note 11 Financial instruments by category
Exhibit E - Provisions	Note 12 Trade and other receivables and Note 18 Provisions
Exhibit F - Cost of sales	Note 8 Trading properties and Note 24 Expenses by nature
Exhibit G - Foreign currency assets and liabilities	Note 34 Foreign currency assets and liabilities

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

33.	Equity investments

										Issuer's information
													Last financial statements issued
Issuer and type of securities	Class / Items	Amount		Value recorded as of 03.31.14			Value recorded as of 06.30.13			Market value as of 03.31.14	Main activity	Registered office	Date		Common stock (nominal value)		Profit (loss) for the period		Shareholders' Equity		Interest in common stock
Alto Palermo S.A.	Common shares 1 vote		120,448,003		938,115			811,428		41.00	Real estate	Argentina		03.31.14		126,014		289,444		981,466		95.58	%
	Higher value				436,913			445,930
	Intergroup transactions				(38,512	)		(26,469	)

Banco Hipotecario S.A. (1)	Common shares 1 vote		75,000,000		200,346			174,127		1.67	Financing	Argentina		03.31.14		1,500,000		202,422		4,049,357		5.13	%
	Higher value				1			4

Banco de Crédito & Securitización S.A. (1)	Common shares 1 vote		3,984,375		13,430			9,901		Not publicly traded	Financing	Argentina		03.31.14		62,500		28,106		212,536		6.38	%

Cyrsa S.A.	Common shares 1 vote		119,608,531		147,125			129,627		Not publicly traded	Real estate	Argentina		03.31.14		239,217		34,996		294,249		50.00	%

E-Commerce Latina S.A.	Common shares 1 vote		82,903,821		236,335			214,962		Not publicly traded	Investment	Argentina		03.31.14		82,904		28,491		237,08		100.00	%
	Irrevocable contributions				745			600
	Goodwill				(1,511	)		(1,511	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

33.	Equity investments (Continued)

											Issuer's information
													Last financial statements issued
Issuer and type of securities	Class / Items	Amount		Value recorded as of 03.31.14			Value recorded as of 06.30.13			Market value as of 03.31.14	Main activity	Registered office	Date		Common stock (nominal value)		Profit (loss) for the period			Shareholders' Equity			Interest in common stock
Efanur S.A.	Common shares 1 vote		900,000		(19,121	)		63,262		Not publicly traded	Investment	Uruguay		03.31.14		205		(82,383	)		(18,900	)		100.00	%
	Irrevocable contributions				221			-

Hoteles Argentinos S.A.	Common shares 1 vote		15,366,840		9,021			11,877		Not publicly traded	Hotel	Argentina		03.31.14		19,209		(3,570	)		11,276			80.00	%
	Higher value				819			920

Inversora Bolivar S.A.	Common shares 1 vote		78,909,867		258,182			239,039		Not publicly traded	Investment	Argentina		03.31.14		82,949		27,993			272,926			95.13	%
	Irrevocable contributions				1,455			209
	Higher value				6,428			6,428

Llao Llao Resort S.A.	Common shares 1 vote		73,580,206		35,585			31,205		Not publicly traded	Hotel	Argentina		03.31.14		147,160		7,356			71,167			50.00	%
	Irrevocable contributions				-			700
	Higher value				104			113

Manibil S.A.	Common shares 1 vote		30,397,880		35,785			26,250		Not publicly traded	Real estate	Argentina		03.31.14		62,037		7,907			73,031			49.00	%
	Irrevocable contributions				-			6,500
	Goodwill				10			10

Nuevas Fronteras S.A.	Common shares 1 vote		57,256,512		48,244			45,591		Not publicly traded	Hotel	Argentina		03.31.14		75,004		3,475			63,198			76.34	%
	Lower value				(16,348	)		(17,083	)

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

33.	Equity investments (Continued)

											Issuer's information
													Last financial statements issued
Issuer and type of securities	Class / Items	Amount		Value recorded as of 03.31.14			Value recorded as of 06.30.13			Market value as of 03.31.14	Main activity	Registered office	Date		Common stock (nominal value)		Profit (loss) for the period		Shareholders' Equity		Interest in common stock
Palermo Invest S.A.	Common shares 1 vote		152,884,248		212,673			191,257		Not publicly traded	Investment	Argentina		03.31.14		152,884		27,675		213,048		100.00	%
	Irrevocable contributions				375			10
	Higher value				323			325
	Intergroup transactions				(29,987	)		(29,987	)

Ritelco S.A.	Common shares 1 vote		181,016,717		362,830			272,783		Not publicly traded	Investment	Uruguay		03.31.14		67,029		90,023		362,864		100.00	%
	Irrevocable contributions				34			25
	Intergroup transactions				(190	)		(190	)

Solares Santa María S.A.	Common shares 1 vote		306,706,975		302,343			294,731		Not publicly traded	Real estate	Argentina		03.31.14		338,693		793		334,804		90.57	%
	Intergroup transactions				(166,521	)		(166,521	)
	Irrevocable contributions				872			6,894

Tyrus S.A.	Common shares 1 vote		3,196,347,364		949,642			672,079		Not publicly traded	Investment	Uruguay		03.31.14		928,926		43,777		1,044,464		100.00	%
	Irrevocable contributions				94,822			127,662

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

33.	Equity investments (Continued)

Issuer's information

Last financial statements issued

Issuer and type of securities

Class / Items

Amount

Value recorded as of 03.31.14

Value recorded as of 06.30.13

Market value as of 03.31.14

Main activity

Registered office

Date

Common stock (nominal value)

Profit (loss) for the period

Shareholders' Equity

Interest in common stock

Unicity S.A.

Common shares 1 vote

36,850,012

27,909

27,653

Not publicly traded

Investment

Argentina

03.31.14

41,588

(50

)

31,697

88.62

Irrevocable contributions

181

301

Total investments in subsidiaries, associates and joint ventures as of 03.31.14

4,048,678

Total investments in subsidiaries, associates and joint ventures as of 06.30.13

3,570,642

(1) The amounts correspond to financial statements of Banco Hipotecario S.A. and Banco de Crédito & Securitización S.A. prepared in accordance with the Central Bank of the Argentine Republic (“BCRA”) standards. For the purpose of the valuation of the investment in the Company, adjustments necessary to adequate the financial statements to the professional accounting standards have been considered.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

34.	Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Items	Amount of foreign currency (1)		Prevailing exchange rate (2)		Total as of 03.31.14		Amount of foreign currency (1)		Prevailing exchange rate (2)		Total as of 06.30.13
Assets
Trade and other receivables
US Dollar		55,326		7.902		437,189		55,210		5.348		295,265
Swiss Francs		-		8.932		-		69		5.660		390
Euros		1		10.871		7		2		6.949		15
Total trade and other receivables, net						437,196						295,670
Investments in financial assets
US Dollar		3,393		7.902		26,810		6,118		5.348		32,718
Total investments in financial assets						26,810						32,718
Cash and cash equivalents
US Dollar		4,709		7.902		37,208		10,736		5.348		57,415
Euros		85		10.871		926		85		6.949		590
Brazilian Reais		1		3.290		2		-		-		-
Swiss Francs		-		8.932		1		-		-		-
Pounds		1		13.173		11		1		8.080		8
Total cash and cash equivalents						38,148						58,013
Total assets as of 03.31.14						502,154
Total assets as of 06.30.13												386,401
Liabilities
Trade and other liabilities
US Dollar		3,490		8.002		27,926		5,050		5.388		27,207
Euros		-		11.028		3		-		-		-
Total trade and other payables						27,929						27,207
Borrowings
US Dollar		355,519		8.002		2,844,866		345,950		5.388		1,863,978
Total borrowings						2,844,866						1,863,978
Total liabilities as of 03.31.14						2,872,795
Total liabilities as of 06.30.13												1,891,185

(1) Considering foreign currencies those that differ from Company’s functional currency at each period/year-end.

(2) Exchange rate as of March 31, 2014 and June 30, 2013 according to Banco Nación Argentina records.

IRSA Inversiones y Representaciones Sociedad Anónima

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

35.

Incident

On February 5, 2014 there was a widely known fire in Iron Mountain’s warehouse. Such company is a supplier of the Group and Group’s documentation was being kept in the mentioned warehouse. As of the date of issuance of these financial statements the Group is waiting for the company that experienced the fire to report whether the documentation submitted has been actually affected by the fire and its condition after the accident. Nevertheless, based on the internal review carried out by the Group, duly reported to the Argentine Securities Exchange Commission on February 12, 2014, the information kept at the Iron Mountain premises that were on fire do not appear to be sensitive or capable of affecting normal operations.

36.	Subsequent Events

See subsequent events in Note 41 to Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

Unaudited Statement of Financial Position as of March 31, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

1. Specific and significant systems that imply contingent lapsing or rebirth of benefits envisaged by such provisions.

None.

2. Significant changes in the Company´s activities or other similar circumstances that occurred during the fiscal years included in the financial statements, which affect their comparison with financial statements filed in previous fiscal years, or that could affect those to be filed in future fiscal years.

See Note 2.1.

3. Breakdown of accounts receivables and liabilities by maturity date.

		Falling due (Point 3.a.)		Without term (Point 3.b)	Without term (Point 3.b)	To be due (Point 3.c.)
Items		03.31.14		Current	Non-current	Up to 3 months		From 3 to 6 months	From 6 to 9 months	From 9 to 12 months	From 1 to 2 years	From 2 to 3 years	From 3 to 4 years		From 4 years on	Total
Accounts receivable	Trade and other receivables	195,563		639	3,481	(46,808	)	-	9	-	1,401	-	(1	)	315,546	469,830
	Total	195,563		639	3,481	(46,808	)	-	9	-	1,401	-	(1	)	315,546	469,830
Liabilities	Trade and other payables	54,634		-	278	7,624		8,023	1,726	949	6,085	626	-		132	80,077
	Borrowings	-		-	-	292,019		16,386	152,627	10,572	419,800	34,717	1,198,665		1,178,605	3,303,391
	Salaries and social security liabilities	49		-	-	479		391	540	1,577	-	-	-		-	3,036
	Provisions	(1	)	10,559	3,801	-		-	-	-	-	-	-		-	14,359
	Total	54,682		10,559	4,079	300,122		24,800	154,893	13,098	425,885	35,343	1,198,665		1,178,737	3,400,863

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

Unaudited Statement of Financial Position as of March 31, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

4.a. Breakdown of accounts receivable and liabilities by currency and maturity.

		Current						Non-current						Totals
Items		Local currency		Foreign currency		Total		Local currency		Foreign currency		Total		Local currency		Foreign currency		Total
Accounts receivable	Trade and other receivables		31,922		117,481		149,403		712		319,715		320,427		32,634		437,196		469,830
	Total		31,922		117,481		149,403		712		319,715		320,427		32,634		437,196		469,830
Liabilities	Trade and other payables		49,822		23,134		72,956		2,326		4,795		7,121		52,148		27,929		80,077
	Borrowings		71,408		400,196		471,604		387,117		2,444,670		2,831,787		458,525		2,844,866		3,303,391
	Salaries and social security liabilities		3,036		-		3,036		-		-		-		3,036		-		3,036
	Provisions		10,558		-		10,558		3,801		-		3,801		14,359		-		14,359
	Total		134,824		423,330		558,154		393,244		2,449,465		2,842,709		528,068		2,872,795		3,400,863

4.b.	Breakdown of accounts receivable and liabilities by adjustment clause.

As of March 31, 2014 there are not receivable and liabilities subject to adjustment clause.

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

Unaudited Statement of Financial Position as of March 31, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

4.c. Breakdown of accounts receivable and liabilities by interest clause

		Current								Non-current
		Accruing interest								Accruing interest								Accruing interest
Items		Fixed rate		Floating rate		Non-accruing interest		Total		Fixed rate		Floating rate		Non-accruing interest		Total		Fixed rate		Floating rate		Non- accruing interest		Total
Accounts receivable	Trade and other receivables		68,003		-		81,400		149,403		315,546		5		4,876		320,427		383,549		5		86,276		469,830
	Total		68,003		-		81,400		149,403		315,546		5		4,876		320,427		383,549		5		86,276		469,830
Liabilities	Trade and other payables		-		-		72,956		72,956		-		-		7,121		7,121		-		-		80,077		80,077
	Borrowings		403,669		40,421		27,514		471,604		2,443,020		180,026		208,741		2,831,787		2,846,689		220,447		236,255		3,303,391
	Salaries and social security liabilities		-		-		3,036		3,036		-		-		-		-		-		-		3,036		3,036
	Provisions		-		-		10,558		10,558		-		-		3,801		3,801		-		-		14,359		14,359
	Total		403,669		40,421		114,064		558,154		2,443,020		180,026		219,663		2,842,709		2,846,689		220,447		333,727		3,400,863

IRSA Inversiones y Representaciones Sociedad Anónima

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

Unaudited Statement of Financial Position as of March 31, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

5. Related parties.

a.	Interest in related parties.


Name of the entity	% of ownership interest held by the Company
Direct Controlling interest of IRSA:
APSA		95.68	%
E-Commerce Latina S.A.		100.00	%
Efanur S.A.		100.00	%
Hoteles Argentinos S.A.		80.00	%
Inversora Bolívar S.A.		100.00	%
Llao Llao Resorts S.A.		50.00	%
Nuevas Fronteras S.A.		76.34	%
Palermo Invest S.A.		100.00	%
Ritelco S.A.		100.00	%
Solares de Santa María S.A.		100.00	%
Tyrus S.A.		100.00	%
Unicity S.A.		100.00	%

b.	Related parties debit/credit balances. See Note 29 to the Unaudited Condensed Interim Separate Financial Statements.

6.	Loans to directors.

See Note 29 to the Unaudited Condensed Interim Separate Financial Statements.

7.	Inventories.

In view of the nature of the inventories, no physical inventories are performed and there are no slow turnover assets.

8.	Current values.

See Note 2 to the Consolidated Financial Statements as of June 30, 2013.

9.	Appraisal revaluation of property, plant and equipment.

None.

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

Unaudited Statement of Financial Position as of March 31, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

10.	Obsolete unused property, plant and equipment.

None.

11.	Equity interest in other companies in excess of that permitted by section 31 of law N° 19,550.

None.

12.	Recovery values

See Note 2 to the Consolidated Financial Statements as of June 30, 2013.

13.	Insurances

Insured Assets

Real Estate	Insured amounts (1)		Accounting values		Risk covered
EDIFICIO REPÚBLICA		96,361		202,363	All operational risk with additional coverage and minor risks
BOUCHARD 551		63,303		71,000	All operational risk with additional coverage and minor risks
MORENO 877		49,508		49,209	All operational risk with additional coverage and minor risks
BOUCHARD 710		39,587		61,545	All operational risk with additional coverage and minor risks
MAIPU 1300		25,787		28,068	All operational risk with additional coverage and minor risks
SUIPACHA 652		17,041		8,611	All operational risk with additional coverage and minor risks
AVDA. DE MAYO 595		5,148		3,076	All operational risk with additional coverage and minor risks
LIBERTADOR 498		3,423		3,376	All operational risk with additional coverage and minor risks
DIQUE IV		3,056		55,903	All operational risk with additional coverage and minor risks
RIVADAVIA 2768		369		120	All operational risk with additional coverage and minor risks
MADERO 1020		216		139	All operational risk with additional coverage and minor risks
CONSTITUCIÓN 1159		191		8,762	All operational risk with additional coverage and minor risks
CASONA ABRIL		11,753		2,357	All operational risk with additional coverage and minor risks
CATALINAS NORTE PLOT OF LAND		2,000		109,493	All operational risk with additional coverage and minor risks
SUBTOTAL		317,743		604,022
SINGLE POLICY		15,000		-	Third party liability

(1)	The insured amounts are in thousands of U.S.dollars.

In our opinion, the above-described insurance policies cover current risks adequately.

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

Unaudited Statement of Financial Position as of March 31, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

14.	Allowances and provisions that, taken individually or as a whole, exceed 2% of the shareholder´s equity.

None.

15.	Contingent situations at the date of the financial statements which probabilities are not remote and the effects on the Company´s financial position have not been recognized.

Not applicable.

16.	Status of the proceedings leading to the capitalization of irrevocable contributions towards future subscriptions.

Not applicable.

17.	Unpaid accumulated dividends on preferred shares.

None.

18.	Restrictions on distributions of profits.

According to the Argentine laws, 5% of the profit of the year is separated to constitute legal reserves until they reach legal capped amounts (20% of total capital). These legal reserves are not available for dividend distribution.

In addition, according to CNV General Resolution No. 609/12, a special reserve was constituted which could not be released to make distributions in cash or in kind. See Note 26 to the Unaudited Condensed Interim Consolidated Financial Statements.

IRSA NCN due 2017 and IRSA NCN due 2020 both contain certain customary covenants and restrictions, including amount others, limitations for the incurrence of additional indebtedness, restricted payments, disposal of assets, and entering into certain transactions with related companies. Restricted Payments include restrictions on the payment of dividends.

Autonomous City of Buenos Aires, May 12, 2014.

Free translation from the original prepared in Spanish for publication in Argentina

Limited Review Report

To the Shareholders, President and Board of Directors of

IRSA Inversiones y Representaciones Sociedad Anónima

Legal address: Bolívar 108 - 1° floor

Autonomous City of Buenos Aires

C.U.I.T.: 30-52532274-9

We have reviewed the accompanying unaudited condensed interim separate statement of financial position of IRSA Inversiones y Representaciones Sociedad Anónima as of March 31, 2014, and the related unaudited condensed interim separate statements of income and comprehensive income for the nine and three-month periods ended March 31, 2014, and the unaudited condensed interim separate statements of changes of shareholders’ equity and cash flows for the nine-month period then ended and selected explanatory notes. The balances and other information corresponding to the fiscal year ended June 30, 2013 and the interim periods within that fiscal year are an integral part of these financial statements and, therefore, they should be considered in relation to these financial statements.

The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim separate financial statements in accordance with professional accounting standards of Technical Resolution No. 26 of the Argentine Federation of Professional Councils in Economic Sciences added by the National Securities Commission to its regulations. Those standards differ from the International Financial Reporting Standards and, especially, from the International Accounting Standard No 34 "Interim Financial Reporting" (IAS 34) approved by the International Accounting Standard Board and used for the preparation of the unaudited condensed interim consolidated financial statements of IRSA Inversiones y Representaciones Sociedad Anónima. Our responsibility is to express a conclusion based on the review that we have performed with the scope detailed in paragraph 3.

We conducted our review in accordance with Technical Resolution No. 7 issued by the Argentine Federation of Professional Councils in Economic Sciences for a review of interim financial statements. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit, the objective of which is to express an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Free translation from the original prepared in Spanish for publication in Argentina

Limited Review Report (Continued)

Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim separate financial statements have not been prepared in all material respects in accordance with Technical Resolution No. 26 of the Argentine Federation of Professional Councils in Economic Sciences for separate financial statements of a parent company.

5.	In accordance with current regulations, we hereby inform that:

the unaudited condensed interim separate financial statements of IRSA Inversiones y Representaciones Sociedad Anónima are recorded in the "Inventory and Balance Sheet Book" and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and the corresponding resolutions of the National Securities Commission;

b)	the unaudited condensed interim separate financial statements of IRSA Inversiones y Representaciones Sociedad Anónima arise from accounting records carried in all formal respects in accordance with applicable legal requirements;

we have read the additional information to the unaudited condensed interim separate financial statements required by Article 68 of the Buenos Aires Stock Exchange Regulations and article 12, Chapter III, Title IV of the National Securities Commission, on which, as regards those matters that are within our competence, we have no observations to make;

d)	at March 31, 2014, the debt of IRSA Inversiones y Representaciones Sociedad Anónima owed in favor of the Argentine Integrated Pension System which arises from accounting records and submissions amounted to Ps. 344,381 which was not callable at that date.

Autonomous City of Buenos Aires, May 12, 2014.

PRICE WATERHOUSE & Co. S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 17

Eduardo A. Loiácono

Public Accountant (U.B.A.)

C.P.C.E.C.A.B.A. Tº 326 Fº 94

ABELOVICH, POLANO & ASOCIADOS S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 30

Marcelo Héctor Fuxman

Public Accountant (U.B.A.)

C.P.C.E.C.A.B.A. Tº 134 Fº 85

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

I. Brief comment on the Company’s activities during the period, including references to significant events occurred after the end of the period.

Buenos Aires, May 12, 2014 - IRSA Inversiones y Representaciones Sociedad Anónima (NYSE: IRS) (BASE: IRSA), Argentina’s leading real estate company, announces today the results of its operations for the nine-month period ended March 31, 2014.

Consolidated Income

(In millions of ARS, excluding joint businesses)

	IIIQ 14			IIIQ 13		YoY var			9M 14		9M 13	YoY var
Revenues		673.9			514.0		31.1	%	2,047.8		1,594.1		28.5	%
Operating Income		366.1			190.8		91.9	%	893.2		749.7		19.1	%
Depreciation and Amortization		55.5			55.6		-0.3	%	168.7		162.7		3.7	%
EBITDA		421.6			246.5		71.0	%	1,061.9		912.4		16.4	%
Net (loss)/ Income for the period		(52.8	)		133.4		-		(78.8	)	379.3		-
Attributable to the shareholders of the controlling group		(70.4	)		96.9		-		(92.0	)	320.6		-
Attributable to non-controlling interest		17.6			36.5		-		13.2		58.6		-

„	Revenues grew by 31.1% in the third quarter of 2014 compared to the same quarter of 2013, and recorded a cumulative growth of 28.5% for the nine-month period, mainly explained by the performance of the Shopping Center, Offices and other and the Hotel segments.

„

Operating income grew 91.9% during the third quarter of 2014 and 19.1% for the cumulative nine-month period, mainly explained by the partial sale of “La Nación” building at the beginning of this quarter. EBITDA as of March 31, 2014 reached ARS 1,061.9 million (16.4% higher than in the same period of 2013).

„	A net cumulative loss of ARS 78.8 million was recorded for the period. This is explained by higher exchange rate differences, which resulted in a net financial loss of ARS 1,187.0 million.

„

The fluctuations in the Argentine Peso / U.S. Dollar exchange rate had an impact on our Financial Results. The accounting policies applied in the preparation of our Financial Statements record the revaluation of liabilities denominated in foreign currency, whereas most of our assets remain valued at historical cost.

II. Shopping Centers (through our subsidiary Alto Palermo S.A.)

Our tenants’ sales grew 29.0% compared to the same period of the previous fiscal year, and 29.9% if we compare the third quarter of 2014 to the same quarter of 2013, reflecting the solid performance of our portfolio’s shopping centers. Occupancy remained stable, at 98.8%.

In this way, Revenues and EBITDA from this segment recorded increases of 25.5% and 21.0%, respectively, during the third quarter of 2014 and of 25.9% and 23.5% in the cumulative nine-month period. The EBITDA/revenue margin, excluding revenues from common expense and commercial advertising funds, reached 78.6%.

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

Financial indicators of the Shopping Centers segment

(In millions of ARS)

	IIIQ 14		IIIQ 13		YoY var			9M 14	9M 13	YoY var
Revenues		465.2		370.6		25.5	%	1,477.2	1,173.5		25.9	%
Operating Income		208.1		161.9		28.5	%	667.4	513.2		30.1	%
Depreciation and Amortization		34.4		38.4		-10.5	%	108.2	114.7		-5.6	%
EBITDA		242.4		200.3		21.0	%	775.6	627.9		23.5	%

Operating indicators of the Shopping Centers segment

	IIIQ 14			IIQ 14			IQ 14			IVQ 13			IIIQ 13
Gross Leaseable Area (sqm)		310,257			310,304			307,721			308,793			308,793
Tenants’ Sales (12 month cumulative, ARS million)		15,081.7			14,277.7			13,277.8			12,482.0			11,751.4
Occupancy [1]		98.8	%		98.8	%		98.6	%		99.1	%		98.7	%

[1]

Percentage over gross leaseable area as of period end.

Operating data of our Shopping Centers

Shopping Center	Date of Acquisition	Gross Leaseable Area (sqm)[1]		Stores		APSA’s Interest			Occupancy [2]			Book Value (ARS thousand) [3]
Alto Palermo	Nov-97		19,394		145		100.0	%		100.0	%		227,027
Abasto Shopping [4]	Jul-94		38,129		141		100.0	%		100.0	%		289,668
Alto Avellaneda	Nov-97		36,565		106		100.0	%		98.8	%		135,790
Paseo Alcorta	Jun-97		14,146		62		100.0	%		99.8	%		119,747
Patio Bullrich	Oct-98		11,736		84		100.0	%		99.6	%		118,049
Buenos Aires Design	Nov-97		14,550		171		53.7	%		93.0	%		32,108
Dot Baires Shopping	May-09		46,753		154		80.0	%		99.6	%		16,003
Soleil	Jul-10		15,190		78		100.0	%		99.0	%		121,902
Alto Noa Shopping	Mar-95		19,158		89		100.0	%		99.7	%		108,292
Alto Rosario Shopping [5]	Nov-04		29,501		145		100.0	%		97.7	%		450,585
Mendoza Plaza Shopping	Dec-94		41,108		146		100.0	%		98.1	%		66,264
Córdoba Shopping	Dec-06		15,741		105		100.0	%		99.5	%		90,290
La Ribera Shopping	Aug-11		8,285		51		50.0	%		96.5	%		15,608
Total			310,257		1,477					98.8	%		1,791,333

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

Cumulative tenants’ sales as of March 31

(By Shopping Center, for the quarter and for the first nine months of each fiscal year, in millions of ARS)

Shopping Center	IIIQ 14		IIIQ 13		YoY var			9M 14	9M 13	YoY var
Alto Palermo		446.5		339.0		31.7	%	1,504.3	1,152.5		30.5	%
Abasto Shopping		518.2		403.7		28.4	%	1,772.1	1,393.5		27.2	%
Alto Avellaneda		489.6		401.9		21.8	%	1,678.7	1,354.9		23.9	%
Paseo Alcorta		237.7		166.1		43.1	%	804.6	586.1		37.3	%
Patio Bullrich		147.7		110.0		34.3	%	500.5	393.0		27.4	%
Buenos Aires Design		64.2		55.7		15.3	%	200.4	175.6		14.1	%
Dot Baires Shopping		433.3		340.0		27.4	%	1,451.9	1,138.0		27.6	%
Soleil		141.2		76.4		84.8	%	460.4	234.9		96.0	%
Alto Noa Shopping		184.2		144.7		27.3	%	547.7	451.1		21.4	%
Alto Rosario Shopping		303.3		225.4		34.6	%	981.0	761.1		28.9	%
Mendoza Plaza Shopping		336.0		278.4		20.7	%	1,077.1	865.8		24.4	%
Córdoba Shopping		117.6		93.5		25.8	%	392.6	314.7		24.8	%
La Ribera Shopping		69.6		50.3		38.4	%	201.0	151.4		32.8	%
Total		3,489.1		2,685.1		29.9	%	11,572.3	8,972.6		29.0	%

Cumulative revenues from leases as of March 31

(Detailed revenues, for the quarter and for the first nine months of each fiscal year, in millions of ARS)

Detailed Revenues	IIIQ 14		IIIQ 13		YoY var			9M 14	9M 13	YoY var
Base Rent		176.5		136.6		29.2	%	539.4	423.9		27.2	%
Percentage Rent		52.9		42.0		25.9	%	234.1	186.7		25.4	%
Total Rent		229.4		178.6		28.4	%	773.4	610.6		26.7	%
Admission rights		32.5		26.9		20.8	%	92.6	78.3		18.4	%
Fees		16.6		15.1		10.1	%	33.4	28.1		18.8	%
Parking		19.4		14.2		36.6	%	59.4	45.0		32.0	%
Management fees		5.7		4.5		25.6	%	16.6	13.1		26.6	%
Other		9.2		13.7		-33.3	%	11.1	15.3		-27.3	%
Total Revenue before Common Expense and Common Promotional Fund		312.7		253.0		23.6	%	986.6	790.4		24.8	%
Common Expense and Common Promotional Fund		152.5		117.6		29.7	%	490.6	383.2		28.0	%
Total Revenue		465.2		370.6		25.5	%	1,477.2	1,173.5		25.9	%

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

III. Offices and others

Our office rental segment has shown a slight decrease in gross leaseable area in the quarter under analysis, due to the partial sale of “La Nación” building. Occupancy levels have remained at 98.7%, similar to the figure recorded in the previous quarter, and Rent in USD/sqm has been stable, at USD/sqm 24.6.

	IIIQ 14			IIQ 14			IQ14			IVQ13			IIIQ13
Gross Leaseable Area		127,239			131,014			131,115			131,085			141,287
Occupancy		98.7	%		98.7	%		97.3	%		97.1	%		97.3	%
Rent ARS/sqm		196.5			157.7			142.0			138.7			128.8
Rent USD/sqm		24.6			24.2			25.6			25.7			25.1

in ARS MM	IIIQ 14		IIIQ 13		YoY var			9M 14	9M 13	YoY var
Revenues		93.5		72.9		28.3	%	243.0	214.0		13.6	%
Operating Income		51.7		29.7		73.7	%	116.1	86.1		34.8	%
Depreciation and Amortization		8.5		8.8		-3.2	%	25.6	27.1		-5.5	%
EBITDA		60.2		38.6		56.1	%	141.7	113.2		25.2	%

„

Revenues from the Offices segment increased by 28.3% in the quarter under review compared to the same period of the previous fiscal year and 13.6% compared to the first nine months of the previous fiscal year. This growth is explained by the evolution of the exchange rate during the quarter under analysis, which favors the segment, offset by a 14,000 sqm decrease in gross leaseable area, due to the sales of investment properties made during the year.

„	Operating income and EBITDA grew by 34.8% and 25.2%, respectively, for the first nine months and the EBITDA/Revenue margin, excluding revenues from common maintenance expenses, stood at 67.0%, higher than the 65.0% recorded in the same period of 2013.

Below is information on our offices and other rental properties segment as of March 31, 2014.

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

Operating Data of the Offices segment

(In thousands of ARS, except as indicated)

	Date of Acquisition		GLA sqm (1)		Occupancy (2)			Interest			Book Value(3)
Offices
Edificio República	Apr-08			19,884		97.2	%		100	%		202,363
Torre Bankboston	Aug-07			14,873		100.0	%		100	%		143,100
Bouchard 551	Mar-07			9,157		100.0	%		100	%		71,000
Intercontinental Plaza	Nov-97			22,535		100.0	%		100	%		60,831
Bouchard 710	Jun-05			15,044		100.0	%		100	%		61,545
Dique IV, Juana Manso 295	Dec-97			11,298		94.4	%		100	%		60,160
Maipú 1300	Sep-95			8,548		97.0	%		100	%		28,068
Libertador 498	Dec-95			620		100.0	%		100	%		3,376
Suipacha 652/64	Nov-91			11,453		100.0	%		100	%		8,611
Dot Building (7)	May-09			11,242		100.0	%		96	%		99,083
Other(4)		N/A		2,585		89.4	%		-			13,355
Subtotal Offices				127,239		98.7	%		-			751,492
Other Properties
Commercial Properties(5)		N/A		311		-			-			736
Santa María del Plata S.A.	Jul-97			60,100		100.0	%		100	%		12,511
Nobleza Piccardo (7)	May-11			49,410		100.0	%		50	%		10,297
Other Properties(6)		N/A		19,520		100.0	%		-			8,762
Subtotal Other Properties				129,341		99.8	%					32,306
TOTAL OFFICES AND OTHER				256,580		99.2	%		-			783,798

Notes:

(1) Total leaseable area for each property as of March 31, 2014. Excludes common areas and parking.

(2) Calculated dividing occupied square meters by leaseable area as of March 31, 2014.

(3) Cost of acquisition, plus improvements, less accumulated depreciation, plus adjustment for inflation, less allowance for impairment.

(4) Includes the following properties: Av. de Mayo 595, Rivadavia 2774, Abasto and Costeros Dique IV.

(5) Includes the following properties: Constitución 1111 and Casona de Abril.

(6) Includes Constitución 1159.

(7) Through Alto Palermo S.A.

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

IV. Sales and Developments

The Sales and Developments segment shows residual operations from projects developed in previous quarters. Revenues have fallen on a year-on-year basis due to higher results from the sale of units of “Horizons” and “Torres Rosario” in the same quarter of the previous year.

However, operating income and EBITDA have grown strongly during the third quarter, explained by the recent partial sale of “La Nación” building.

Sales and Developments in ARS MM	IIIQ 14		IIIQ 13		YoY var			9M 14	9M 13	YoY var
Revenues		5.5		31.4		-82.6	%	46.5	117.2		-60.3	%
Operating Income		96.9		2.1		4,514.3	%	97.9	43.2		126.6	%
Depreciation and Amortization		-		-				-	-
EBITDA		96.9		2.1		4,514.3	%	97.9	43.2		126.6	%

Sales and Developments Table

(In thousands of ARS, except as indicated)

DEVELOPMENT	9M 14	9M 13	YoY var
Residential Apartments
Caballito Nuevo	177	6,983		-97.5	%
Torres de Rosario (5)	19,059	4,260		347.4	%
Libertador 1703 & 1755 (Horizons) (8)	20,519	96,963		-78.8	%
Other Residential Apartments(6)	44	811		-94.6	%
Subtotal Residential Apartments	39,799	109,017		-63.5	%
Residential Communities
Abril/Baldovinos (7)	1,750	1,113		57.2	%
El Encuentro (11)	4,902	7,008		-30.1	%
Subtotal Residential Communities	6,652	8,121		-18.1	%
Land Reserves
Terreno Rosario(5)	-	-		-
Canteras Natal Crespo	-	40
Subtotal Land Reserves	-	40		-
TOTAL	46,451	117,178		-60.4	%

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

DEVELOPMENT	Acquisition	Area intended for sale (sqm) (1)		Lots (2)		IRSA’s Interest			Percentage Built			Percentage Sold (3)			Book Value (4)
Residential Apartments
Caballito Nuevo	Nov-97		7,323		118		100.00	%		100.00	%		97.35	%		308
Torres de Rosario(5)	Apr-99		6,166		57		95.68	%		100.00	%		47.13	%		6,952
Libertador 1703 & 1755 (Horizons) (9)	Jan-07		60,232		467		50.00	%		100.00	%		97.63	%		6,339
Other residential apartments (6)			5,579		62											77,589
Subtotal Residential Apartments			79,300		704											91,188
Residential Communities
Abril/Baldovinos (7)	Jan-95		5,137		4		100.00	%		100.00	%		99.50	%		2,357
El Encuentro	Nov-97		127,795		110		100.00	%		100.00	%		99.72	%		366
Subtotal Residential Communities			132,932		114											2,723
Land Reserves
Puerto Retiro	May-97		82,051		0		50.00	%		0.00	%		0.00	%		51,337
Santa María del Plata	Jul-97		715,951		0		100.00	%		0.00	%		10.00	%		158,951
Pereiraola	Apr-10		39,634		52		100.00	%		0.00	%		0.00	%		8,200
Terreno Baicom	Dec-09		34,500		1		50.00	%		0.00	%		0.00	%		4,459
UOM Lujan	May-08		1,176,000				95.68	%		0.00	%		0.00	%		33,905
Terreno Catalinas Norte	Dec-09		42,625				100.00	%		0.00	%		0.00	%		109,493
Pilar	May-97		740,237		0		100.00	%		0.00	%		0.00	%		1,550
Coto air space(5)	Sep-97		16,167		284		95.68	%		0.00	%		0.00	%		8,946
Other land reserves (8)	-		13,673,696		0											116,350
Subtotal Land Reserves			16,520,861		337											493,191
TOTAL			16,733,093		1,155											587,102

Notes:

(1) Total property area intended for sale upon completion of the development or acquisition and before sale of any of the units (including parking and storage spaces, but excluding common areas). In the case of Land Reserves, the land area was considered.

(2) Represents the total units or plots upon completion of the development or acquisition (excludes parking and storage spaces).

(3) The percentage sold is calculated dividing the square meters sold by the total saleable square meters.

(4) Corresponds to total consolidated sales.

(5) Through Alto Palermo S.A.

(6) Includes the following properties: Torres de Abasto through APSA (fully sold), units to be received in Beruti through APSA, Torres Jardín, Edificios Cruceros (fully sold), San Martin de Tours, Rivadavia 2768, Alto Palermo Park (fully sold), Minetti D (fully sold), Dorrego 1916 (fully sold), Padilla 902 (fully sold), Terreno Caballito and Pereiraola plots through IRSA.

(7) Includes sales of shares in Abril.

(8) Includes the following land reserves: Terreno Pontevedra, Isla Sirgadero, Terreno San Luis, Mariano Acosta, Merlo and Intercontinental Plaza II through IRSA, Zetol and Vista al Muelle through Liveck and C.Gardel 3134 (fully sold), C.Gardel 3128 (fully sold), Aguero 596 (fully sold), República Arabe Siria (fully sold), Terreno Mendoza (fully sold), Zelaya 3102, Conil, Soleil air space and Others APSA (through APSA).-

(9) Owned by CYRSA S.A.

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

Hotels

The hotel segment has also benefited from the evolution of the exchange rate in the last quarter. Our hotels in the City of Buenos Aires as well as Llao Llao Resort in the City of Bariloche have recovered their historical occupancy and rent levels after two years of reduced activity.

Hotels (in ARS MM)	IIIQ 14		IIIQ 13		YoY var			9M 14	9M 13	YoY var
Revenues		93.4		57.9		61.3	%	254.0	174.7		45.4	%
Operating Income		11.7		-1.9		-		18.1	-9.2		-
Depreciation and Amortization		3.7		4.4		-15.9	%	10.9	14.3		-23.8	%
EBITDA		15.3		2.5		512.0	%	29.0	5.1		468.6	%

	IIIQ 14			IIQ 14			IQ 14			IVQ 13			IIIQ 13
Average Occupancy		71.4	%		72.0	%		68.4	%		65.8	%		67.2	%
Average Rate per Room (ARS/night)		1,166			1,077			1,061			876			892
Average Rate per Room (USD/night)		146			165			197			163			174

►	Cumulative revenues from the segment grew 45.4% and EBITDA reached ARS 29.0 million, ARS 23.9 million higher than in 2013.

The following is information on our hotels as of March 31, 2014:

	Date of Acquisition	IRSA’s Interest			Number of Rooms		Average Occupancy (1)			Average Rate per Room (ARS)(2)		Book Value (in thousands of ARS)
Intercontinental (3)	Nov-97		76.3	%		309		70.5	%		928		45,880
Sheraton Libertador(4)	Mar-98		80.0	%		200		79.3	%		863		31,278
Llao Llao(5)	Jun-97		50.0	%		201		65.1	%		1,915		83,173
Total			76.3	%		710		71.4	%		1,166		160,331

Notes:
1) Cumulative average for the 9-month period.
2) Cumulative average for the 9-month period.
3) Through Nuevas Fronteras S.A. (IRSA’s subsidiary).
4) Through Hoteles Argentinos S.A. (IRSA’s subsidiary).
5) Through Llao Llao Resorts S.A. (IRSA’s subsidiary).

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

VI.	International

	IIIQ 14		IIIQ 13		YoY var			9M 14	9M 13	YoY var
Revenues		24.9		13.5		84.4	%	64.3	25.6		151.2	%
Operating Income / (Loss)		-0.4		1.4		-		2.8	130.7		-97.9	%
Depreciation and amortization		9.7		5.1		90.2	%	26.4	11.1		137.8	%
EBITDA		9.3		6.5		43.1	%	29.2	141.8		-79.4	%

The International segment exhibited a rise in revenues for the first nine months of fiscal year 2014 due to an increase rent levels and occupancy rates of our major buildings in New York City. Cumulative operating income fell by 97.9% on a year on year basis, as during the second quarter of fiscal year 2013 we had recorded income of ARS 137 million generated by the consolidation of our investment in the building located at 183 Madison Avenue.

Interest in Metropolitan 885 Third Ave. LLC (“Metropolitan”) through New Lipstick LLC (“New Lipstick”)

IRSA indirectly holds a 49.8% interest in New Lipstick LLC, a holding company that is owner of Metropolitan, a company whose main asset is an office building known as the “Lipstick Building”.

The Lipstick Building is a landmark building in the City of New York, located in Midtown Manhattan. The building has a gross leasable area of more than 57,500 sqm. As of March 31, 2014, the building had reached an occupancy rate of 87.2% of its total area, generating an average rental price of 60.4 USD/sqm.

Lipstick	Mar-14			Mar-13			YoY var
Gross Leaseable Area (sqm)		58,019			58,019			-
Occupancy		87.2	%		87.2	%		-
Rental price (USD/sqm)		60.4			62.6			-3.5	%

Investment in Building located at 183 Madison Ave, New York, NY

Through our subsidiaries IRSA International LLC and Imadison LLC, we own 74.5% of the building located at 183 Madison Avenue, Manhattan. The property has 19 floors and a net leaseable area larger than 23,200 sqm. As of March 31, 2014, 93.0% of the building was occupied, for an average rental price of approximately 39.9 USD/sqm.

Madison 183	Mar-14			Mar-13			YoY var
Gross Leaseable Area (sqm)		23,564			23,489			0.3	%
Occupancy		93.0	%		96.1	%		-3.3	%
Rental price (USD/sqm)		39.9			36.7			8.6	%

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

Investment in Supertel Hospitality Inc.

As of March 31, 2014, we, together with other shareholders, held 34% of the voting power at the shareholders’ meetings of Supertel Hospitality Inc., a REIT listed in NASDAQ under the symbol “SPPR”. This REIT has a portfolio of 68 middle-class and long-stay hotels with 6,009 rooms in 21 states in the United States of America, which are managed by various operators and franchises such as Comfort Inn, Days Inn, Hampton Inn, Holiday Inn, Sleep Inn and Super 8, among others.

VII. Financial Transactions and Others

Interest in Banco Hipotecario S.A. (“BHSA”)

BHSA is a leading bank in the mortgage lending segment, in which IRSA held a 29.77% interest as of March 31, 2014 (excluding portfolio shares). For further information please refer to http://www.cnv.gob.ar or http://www.hipotecario.com.ar. For the first nine months of fiscal year 2014, BHSA’s contribution to IRSA’s income amounted to ARS 164.0 million, ARS 103.7 million higher than the one recorded in 2013.

VIII. EBITDA by Segment

	Shopping Centers			Offices			Sales and Developments			Hotels			International			Financial Operations and Other			Total			Var
		9M 14	9M13		9M 14	9M13		9M 14	9M13		9M 14	9M13		9M 14	9M13		9M 14	9M13		9M 14	9M13
Operating income		667.4	513.2		116.1	86.1		97.0	43.2		18.1	-9.2		2.8	130.7		-1.6	-0.8		900.8	763.2		18.0	%
Depreciation and amortization		108.2	114.7		25.6	27.1		-	-		10.9	14.3		26.4	11.1		-	-		171.1	167.3		2.3	%
EBITDA		775.6	627.9		141.7	113.2		97.0	43.2		29.0	5.1		29.2	141.8		-1.6	-0.8		1,071.9	930.4		15.2	%

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

IX. Reconciliation with Income Statement as of March 31*

Below is an explanation of the reconciliation of the company’s income by segment with its consolidated income statement. The difference lies in the presence of joint businesses included in the segment but not in the income statement.

	Total Segment Information			Interest in Joint Businesses			Income Statement			YoY var
		9M 14	9M 13		9M 14	9M 13		9M 14	9M 13
Revenues		2,085.3	1,706.2		-37.5	-112.1		2,047.8	1,594.0		28.5	%
Costs		-972.0	-878.5		24.2	87.3		-947.8	-791.2		19.8	%
Gross Profit /(Loss)		1,113.3	827.6		-13.3	-24.8		1,100.0	802.9		37.0	%
Income / (loss) from sale of investment properties		115.4	64.0		-	-		115.4	64.0		80.2	%
General and administrative expenses		-195.4	-153.5		1.5	2.3		-193.9	-151.1		28.3	%
Selling expenses		-102.9	-81.6		2.4	8.4		-100.5	-73.2		37.3	%
Other operating income, net		-29.6	106.6		1.8	0.6		-27.8	107.2		-
Operating Income / (Loss) before income / (loss) from interests in equity investees and joint businesses		900.8	763.2		-7.6	-13.5		893.2	749.7		19.1	%
Income / (loss) from interests in equity investees and joint businesses		83.5	6.0		19.2	9.2		102.7	15.1		579.5	%
Operating Income / (Loss) before financial income / (loss) and income tax		984.3	769.1		11.6	-4.3		995.9	764.8		30.2	%

*Does not include Puerto Retiro, Baicom, CYRSA, Canteras Natal Crespo, Nuevo Puerto Santa Fe or Quality (San Martín Plot).

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

X. Financial Debt and Other Indebtedness

Consolidated Financial Debt as of March 31, 2014

Description

Currency

Amount (USD MM) (1)

Interest Rate

Maturity

Bank Overdraft

ARS

13.6

Float

< 180 days

IRSA’s Tranche I Series I Notes

USD

150.0

8.50%

Feb-17

IRSA’s Tranche II Series II Notes(2)

USD

150.0

11.50%

Jul-20

IRSA’s Tranche III Series V Notes

ARS

26.2

Float

Aug-15

IRSA’s Tranche III Series VI Notes

USD

1.3

Float

Feb-17

Belmont Madison Building mortgage

USD

75.0

4.22%

Aug-17

Other Debt

ARS

1.1

15.25%

Dec-16

IRSA’s Total Debt

417.3

Short Term Debt

ARS

9.4

Float

< 30 days

APSA’s Tranche I Series I Notes(3)

USD

120.0

7.875%

May-17

Other Debt

44.0

APSA’s Total Debt

173.4

Total Consolidated Debt

590.7

Consolidated Cash

30.3

Repurchase of Debt

26.2

Net Consolidated Debt

534.2

(1) Principal face value in USD at an exchange rate of 8.002 ARS = 1 USD, without considering accrued interest or elimination of balances with subsidiaries.

(2) As of June 30, 2012 IRSA and its subsidiaries had repurchased USD 10.0 million in principal amount.

(3) As of June 30, 2012 IRSA and its subsidiaries had repurchased USD 3.9 million in principal amount.

Evolution of Exchange Rate

During the last months, the depreciation of the Argentine Peso to the U.S. Dollar accelerated as compared to the previous months. In the third quarter of fiscal year 2014 the Argentine currency depreciated 22.7%, whereas in the period between December 2012 and March 2013, it had depreciated 4.1%. Accumulating a depreciation of 48.5% in the nine-month period while in the same period last year accumulated depreciation had been 13.1%. During the past month of January the Argentine peso/U.S. dollar exchange rate suffered a reduction of 22.8% compared to the last figure recorded in December 2013. Given that a significant portion of our debt is denominated in USD, this process had an adverse impact on our Financial Results. Most of our assets are favorably positioned vis-à-vis the dollar; however, in our financial statements they are valued at historical cost plus investments, and are not affected by any kind of revaluation due to the fluctuation of market prices.

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

Below is the evolution of the exchange rate as published by Banco de la Nación Argentina.

Significant Events occurred during the quarter and after its closing

On January 24, IRSA executed the deed of conveyance for the sale of 2,863 sqm in the seventh floor and 28 parking spaces of the Bouchard 551 building. The transaction price was fixed in the sum of ARS 124.6 million, equivalent to USD 16.0 million. The transaction resulted in a gain before taxes of approximately ARS 104.5 million.

After the closing of this quarter, IRSA closed a transaction whereby Dolphin Fund, acting through subsidiaries and jointly with C.A.A. Extra Holdings Limited, (“ETH”), purchased approximately 53.3% of IDB Development Corporation Ltd. (“IDBD”). This percentage may be increased, subject to the sale of certain assets by IDBD during the current year. The transaction amount is approximately USD 272 million. The Company made investments in Dolphin for approximately USD 109.5 million. In addition, the company executed an undertaking to subscribe for USD 43.2 million in Dolphin Netherlands B.V., a company organized under the laws of Holland, which is indirectly wholly controlled by Dolphin ("Dolphin B.V."), for the purpose of consummating the participation of Dolphin Netherlands B.V. in the offering of new shares intended to be made by IDBD. The Board of Directors approved an undertaking to subscribe in Dolphin Fund the additional amount of USD 43.2 million in order to consummate Dolphin’s participation in the offering of new shares intended to be made by IDB Development Ltd. The undertaking will remain in effect until December 31, 2014.

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

XI. Summary Comparative Consolidated Balance Sheet

	03.31.14	03.31.13	03.31.12
Current Assets	1,243,522	1,242,841	857,101
Non-current assets	8,216,441	6,868,010	5,984,408
Total	9,459,963	8,110,851	6,841,509
Current liabilities	1,374,301	1,527,731	1,019,790
Non-current liabilities	5,167,536	3,258,906	2,710,884
Subtotal	6,541,837	4,786,637	3,730,674
Minority interest	428,620	505,460	391,679
Shareholders’ Equity	2,489,506	2,818,754	2,719,156
Total	9,459,963	8,110,851	6,841,509

XII. Summary Comparative Consolidated Results

	03.31.14	03.31.13	03.31.12
Operating income	893,168	749,679	540,693
Results from interests in equity investees and joint businesses	102,690	15,112	15,922
Income before financial results and income tax	995,858	764,791	556,615
Financial income	89,444	103,479	73,206
Financial costs	-1,533,757	-553,530	-362,934
Other financial results	257,315	151,755	19,880
Financial results, net	-1,186,998	-298,296	-269,848
Income / (loss) before income tax	-191,140	466,495	286,767
Income tax	112,298	-87,234	-91,296
Net income / (loss)	-78,842	379,261	195,471
Attributable to:
Controlling company’s shareholders	-92,030	320,638	176,622
Non-controlling interest	13,188	58,623	18,849

XIII. Summary Comparative Consolidated Cash Flow

	03.31.14	03.31.13	03.31.12
Net cash generated by operating activities	686,420	540,756	515,215
Net cash used in investment activities	-597,560	-250,979	-247,592
Net cash (used in) generated by financing activities	-688,495	-171,723	-326,264
Net (decrease) / increase in cash and cash equivalents	-599,635	118,054	-58,641
Cash and cash equivalents at the beginning of the fiscal year	796,902	259,169	301,559
Gain from exchange rate differences of cash and cash equivalents	42,010	22,053	11,840
Cash and cash equivalents at the closing of the period	239,277	399,276	254,758

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

XIV. Comparative Ratios

	03.31.2014		03.31.2013		03.31.2012
Liquidity
Current Assets	1,243,522	0.90	1,242,841	0.81	857,101	0.84
Current Liabilities	1,374,301		1,527,731		1,019,790
Indebtedness
Total Liabilities	6,541,837	2.24	4,786,637	1.44	3,730,674	1.20
Shareholders’ Equity	2,918,126		3,324,214		3,110,835
Solvency
Shareholders’ Equity	2,918,126	0.45	3,324,214	0.69	3,110,835	0.83
Total Liabilities	6,541,837		4,786,637		3,730,674
Capital Assets
Non-current Assets	8,216,441	0.87	6,868,010	0.85	5,984,408	0.87
Total Assets	9,459,963		8,110,851		6,841,509

IRSA Inversiones y Representaciones Sociedad Anónima

Summary as of March 31, 2014

XI. Brief comment on prospects for the next period

Our shopping centers have maintained their growth rate and have continued to exhibit sound invoicing figures and occupancy rates close to 100%. During the fourth quarter of this fiscal year we expect to maintain the sales, visitors’ traffic and occupancy levels recorded in the first nine months, so as to continue consolidating our position as the leading shopping center company in Argentina.

Moreover, we expect to open our “Arcos District” shopping center located in the neighborhood of Palermo, in the City of Buenos Aires. This project consists in an urban model, offering a variety of premium brands in an open-air environment, with approximately 16,000 sqm of gross leaseable area and 65 stores. While it was expected to be opened in December 2013, on December 10, 2013 the judicial branch confirmed an injunction order that suspended the opening of the shopping center on the grounds that it failed to have certain governmental permits. Although the construction works have obtained all the governmental permits required, the Company is taking various steps, including the filing of an appeal against the resolution and a request to have the injunction released, with favorable expectations. On April 1, 2014, the Government of the City of Buenos Aires issued a new favorable environmental certificate. We trust that we will soon be able to open the fourteenth shopping center in our portfolio.

On the other hand, during the coming quarter and the first semester of fiscal year 2015 we will continue working on the development of our next shopping center in the City of Neuquén. Shopping Neuquén, the gross leaseable area of which is about 10,000 sqm, will be our sixth development located in the inner regions of our country, and in view of the progress shown by the city in the last years, we expect that this project will achieve the same success as other developments of this nature in the provinces where we operate. It is scheduled to open in the spring of this year. In addition, we continue evaluating the best timing to launch other projects on the large extent of lands reserved by the company for future business developments.

In addition, we will continue making efforts to provide better services in our shopping centers, aimed at maintaining our successful occupancy rates and number of visitors. We hope to keep on adding new top brands among our tenants and devising new ways to continue offering the best commercial proposals to our public.

Regarding the Offices and Hotels business, we have recorded better results during the last quarter due to the evolution of the exchange rate in Argentina. During the next quarter we expect to continue our sales of non-strategic portfolio assets for attractive prices as we have actively done during the past year. In addition, we will strive to achieve maximum occupancy in our buildings and the best possible lease agreements, trying to attract new firms wishing to relocate in the spaces we offer. Moreover, we are deciding on the most suitable timing for launching our “Catalinas Norte” project, which is strategically located and will add approximately 35,000 sqm of gross leaseable area to our portfolio.

Regarding the Sales and Developments segment, we expect to continue selling non-strategic assets and small land reserves and to make progress in the execution of title deeds for the last available units in the residential projects “Caballito Nuevo”, “Torres Rosario” and “El Encuentro”.

As concerns our investments outside Argentina, we will continue to work towards optimizing occupancy and income levels in our Lipstick and Madison buildings. Moreover, we expect to complete the announced transaction to acquire, through our investment in Dolphin and together with other investors, about 53.3% in the Israeli company IDBD, one of the largest and most diversified investment groups in Israel, which is engaged through its subsidiaries in various markets and businesses such as real estate, retail, agricultural business, oil and gas production, insurance, telecommunications, etc.

Given the quality of the real estate assets in our portfolio, the Company’s financial position and low indebtedness level, its experience in taking advantage of market opportunities and its credentials in the capital markets, we are confident that that we will remain on the growth track, consolidating the best real estate portfolio of Argentina and taking advantage of opportunities that may arise abroad.