Report 2010 - Italcementi Group

2010 Annual Report
Presentazione 6
Consolidated Annual Report Directors’ report 27
Corporate Governance Consolidated financial statements Financial statements 68
Italcementi S.p.A. financial statements Notes 73
Annexes 142
Report of the Independent Auditors 151
Since January 1, 2010, business combinations have been accounted for with the acquisition method in IFRS3
revised.
Cost of business combinations
Under IFRS 3 revised, acquisition cost is the sum of the acquisition-date fair value of the contingent
consideration and the amount of any minority interests in the acquired entity. For each business combination,
any minority interests in the acquired entity must be measured at fair value or in proportion to their interest in
the identifiable net assets of the acquired entity.
IFRS 3 revised provides that costs relating to the acquisition be expensed in the periods in which they are
incurred and the services are received. Any costs incurred in 2009 relating to business combinations in 2010
were expensed in 2009.
Apportionment of the cost of business combinations
Goodwill is measured as the positive difference between:
- the aggregate of the consideration transferred, the amount of any minority interests in the
acquired entity, the acquisition-date fair value of the acquirer’s previously held equity interest in
the acquired entity, with respect to
- the net value of acquisition-date amounts of identifiable assets acquired and liabilities
assumed.
If the difference is negative, it is recognized in the income statement.
If on initial recognition the acquisition cost of a business combination can only be determined provisionally, the
apportioned amounts are adjusted within twelve months of the acquisition date (measurement period).
Business combinations achieved in stages
When a business combination is achieved in stages, through a series of share purchases, for each transaction
the fair value of the previously held interest is re-determined and any gain or loss is taken to the income
statement.
Changes in equity interests in subsidiaries
Acquisitions of additional shares after acquisition of control do not require re-determination of identifiable asset
and liability values. The difference between the cost and the acquired equity interest is recognized as Group
shareholders' equity. Transactions that reduce the percentage interest held without loss of control are treated
as sales to minorities and the difference between the interest sold and the price paid is recognized in Group
shareholders' equity.
This accounting policy has been adopted by the Group since financial year 2009.
Purchase commitments on interests held by minorities
A put option granted to minority shareholders of a company controlled by the Group is initially recognized by
recording the purchase value as a liability, since the value in question is the present value of the put option
exercise price.
The complementary purchase of interests held by minorities to whom put options have been granted is
anticipated in the financial statements:
the minority interests are reclassified under liabilities and the difference between the fair value of the
purchase commitment liabilities and the net carrying amount of the minority interests is recognized under
Group shareholders' equity;
subsequent changes in liability values are recognized under Group shareholders' equity with the exception
of adjustments to the present value, which are taken to the income statement.
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