2012 Annual Report - Italcementi Group

The main effect arising from application of the above standards and amendments concerns identification of the
type of joint arrangement, jointly controlled operation or joint venture, in order to establish the appropriate
accounting treatment.
Standards and interpretations published by the IASB and the IFRIC at December 31, 2012, but not
endorsed by the European Union at that date
IFRS 9 “Financial instruments” and amendments thereto and to IFRS 7.
“Government loans” (amendments to IFRS 1).
Amendments to a number of IFRS issued in 2009-2011.
“Transition guidance” (amendments to IFRS 10, 11 and 12).
Investees (amendments to IFRS 10, 12 and IAS).
1.2. Accounting policies and basis of presentation
The company accounts adopt the cost principle, with the exception of derivatives and financial assets held for
trading or for sale, which are stated at fair value. The carrying amounts of hedged assets and liabilities are
adjusted to reflect changes in fair value on the basis of the hedged risks. The financial statements are
presented in euro. All amounts in the accounting schedules and in the notes are rounded to thousands of euro,
unless otherwise specified.
The basis of presentation of the financial statements is as follows:
current and non-current assets and current and non-current liabilities are presented as separate classifications
on the face of the statement of financial position. Current assets, which include cash and cash equivalents, are
assets that the company intends to realize, sell or consume during its normal business cycle; current liabilities
are liabilities that the company expects to settle during the normal business cycle or in the twelve months after
the end of the reporting period;
on the income statement, costs are analyzed by the nature of the expense;
on the statement of cash flow, the indirect method is used.
Given that the Italcementi Group applies IAS 34 “Interim financial reporting” to its half-year reports, with
consequent identification of a six-month interim period, any reductions in value are recorded at closure of the
half year.
1.3. Use of estimates
The preparation of the separate financial statements and the notes in conformity with the international financial
reporting standards requires management to make estimates that affect the values of assets, liabilities, income
and expense, such as amortization, depreciation and provisions, and the disclosures on contingent assets and
liabilities in the notes. Since these estimates are determined on a going-concern basis, using the information
available at the time, they could diverge from the actual future results. This is particularly evident in the present
financial and economic crisis which could generate situations diverging from those estimated today and require
currently unforeseeable adjustments, including adjustments of a material nature, to the carrying amounts of the
items in question. Assumptions and estimates are particularly sensitive with regard to measurement of noncurrent
assets, which depend on forecasts of future results and cash flows, provisions for disputes and
restructurings and commitments in respect of pension plans and other long-term benefits. Management
conducts regular reviews of assumptions and estimates, and immediately recognizes any adjustments in the
financial statements.
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