2012 Annual Report - Italcementi Group

2012 Annual Report
Presentation 4
General information 14
Annual Report Consolidated Annual Report Directors’ report 146
Sustainability disclosure Italcementi S.p.A. Annual Report Separate financial statements 241
Extraordinary session 351
Production cost of finished goods and semi-finished goods includes the cost of raw materials, direct labor and
a portion of general production costs, determined on the basis of normal plant operations. Financial costs are
not included.
The net realizable value of raw materials, consumables and supplies is their replacement cost.
The net realizable value of finished goods and semi-finished goods is the estimated selling price in the ordinary
course of business, less estimated cost of completion and estimated costs to sell.
1.15. Trade receivables and other receivables
Trade receivables and other receivables are stated at their nominal value, less allowances for impairment,
which are provided as doubtful debts are identified.
1.16. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, bank demand deposits and other cash investments with
original maturity of not more than three months
Current account overdrafts are treated as financing and not as a component of cash and cash equivalents.
The definition of cash and cash equivalents in the statement of cash flows is identical to that in the statement
of financial position.
1.17. Income taxes
Current income taxes are provided in accordance with local tax laws. Deferred tax is recognized using the
liability criterion, based on temporary differences between the tax base of assets and liabilities and their
carrying amount in the statement of financial position.
Deferred tax liabilities are recognized on all taxable temporary differences. Deferred tax assets are recognized
for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is
probable that future taxable income will be available against which such differences, losses or credits may be
reversed.
Taxable or deductible temporary differences do not generate recognition of deferred tax liabilities or assets
only in the following cases:
taxable temporary differences arising from the initial recognition of goodwill, unless goodwill is taxdeductible;
taxable or deductible temporary differences arising from initial recognition of an asset or a liability in
transactions that are not business combinations and affect neither accounting profit nor taxable profit at the
transaction date;
equity investments in subsidiaries, associates and joint ventures when:
a) it is possible to control the timing of the reversal of the taxable temporary differences and it is probable
that such differences will not reverse in the foreseeable future;
b) it is not probable that the deductible temporary differences will reverse in the foreseeable future and that
taxable income will be available against which the temporary difference can be used;
deferred tax assets are reviewed at the end of every reporting period and reduced to the extent that
sufficient taxable income is no longer likely to be available in the future against which the assets can be
used in full or in part.
Deferred tax assets and liabilities are determined at tax rates expected to apply when the deferred tax asset
(liability) is realized (settled), based on rates that have been enacted or substantially enacted at the end of the
reporting period.
Taxes relating to items recognized directly in equity are recognized in equity, not in the income statement.
Deferred tax assets and deferred tax liabilities are not discounted to present value.
255
www.italcementigroup.com