It is not technically a lie. If they paid the debt based in US of at the current exchange rate the hit would be real. That being said, no one would do such a thing. If the debt were coming due they would merely refinance(issue new debt) is US dollars and if not at some point the real will rebound and the transaction would be adjsuted favorably. In essence it is a GAAP required lie to reflect a scenario of liquitdation which should only be adjusted financially when there is an issue on a business the is a going concern and otherwise this adjustment should not be recorded or even need be mentioned.
I'm completely confused as to whether the earnings report was bad or good myself. I guess everyone is desperate for a decent company that is not completely overbought. Honestly, that's why I own Vale right now.