2012 Annual Report - Italcementi Group

2012 Annual Report
Presentation 4
General information 14
Annual Report Consolidated Annual Report Directors’ report 30
Sustainability disclosure Italcementi S.p.A. Annual Report Consolidated financial statements 63
Extraordinary session 351
1.2. Accounting policies and basis of presentation
The consolidated 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 consolidated 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 Group 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 Group intends to realize, sell or consume during its normal business cycle; current liabilities are
liabilities that the Group 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;
with regard to comprehensive income, the Group presents two statements: the first statement reflects
traditional income statement components and the profit (loss) for the period, while the second statement,
beginning with the profit (loss) for the period, presents other comprehensive income, previously reflected only
in the statement of changes in consolidated equity: fair value gains/losses on available-for-sale financial assets
and derivatives, currency translation differences;
on the statement of cash flows, the indirect method is used.
Use of estimates
The preparation of the consolidated financial statements and the notes in conformity with the international
financial reporting standards requires management to make discretional assessments and 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 non-current assets, which
depends on forecasts of future results and cash flows, measurement of contingent liabilities, 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.
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.
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