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
1.23. Revenues, other revenues, interest income and dividends
Sale of goods and services
Revenues are recognized to the extent that it is probable that the economic benefits associated with the sale of
goods or rendering of services are collected by the Group and the amount in question can be reliably
determined. Revenues are recognized at the fair value of the consideration received or due, taking account of
any trade discounts given and volume discounts.
Revenues from the sale of goods are recognized when the company transfers the material risks and rewards
incident to ownership of the goods to the purchaser.
Rental income
Rental income is recognized as other revenues, as received.
Interest income
Interest income is classified as finance income on an accrual basis using the effective interest rate method.
Dividends
Dividends are recognized as finance income as shareholders’ right to receive payment arises, in accordance
with local laws.
1.24. Government grants
Government grants are recognized when there is a reasonable certainty that they will be received and all the
requirements on which receipt depends have been fulfilled.
Grants related to the purchase or production of fixed assets (grants related to assets) are recognized as
deferred income and taken to the income statement over the useful life of the underlying assets.
1.25. Management of capital
The Group monitors its capital using the gearing ratio: net financial position/equity. The net financial position
reflects financial debt less cash and cash equivalents and other financial assets (as described in note 21).
Equity consists of all the components of equity presented in the balance sheet.
Group strategy aims to keep the gearing ratio at a level such as to ensure the smooth running of business
operations, funding of investments and creation of maximum value for shareholders.
To maintain or modify its capital structure, the Group may decide to vary the amount of dividends paid to
shareholders, redeem capital, issue new shares, raise or reduce its shareholding in subsidiaries, purchase or
sell interests.
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