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
1.12. Financial assets
All financial assets are recognized initially at cost at the trade date. Cost corresponds to fair value plus
additional costs attributable to the purchase.
Subsequent to initial recognition, assets held for trading are classified as current financial assets and carried at
fair value; any gains or losses are taken to the income statement.
Held-to-maturity investments are classified as current financial assets, if they mature within one year;
otherwise they are classified as non-current assets and subsequently carried at amortized cost. Amortized cost
is determined using the effective interest rate method, taking account of any acquisition discounts or
premiums, which are apportioned over the entire period until maturity, less any impairment losses.
Other financial assets are classified as available for sale and measured at fair value. Any gains or losses are
shown in a separate equity item until the assets are sold, recovered or discontinued, or until they are found to
be impaired, in which case the cumulative gains or losses in equity are taken to the income statement. Equity
instruments that are not listed on an active market and whose fair value cannot be measured reliably are
carried at cost.
1.13. Inventories
Inventories are measured at the lower of purchase/production cost (using the weighted average cost method)
and net realizable value.
Purchase cost includes costs incurred to bring assets to their present location, less allowances for obsolete
and slow-moving items.
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. Finance 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.
1.14. Trade receivables and other receivables
Trade receivables and other receivables are stated at fair value plus transaction costs, less allowances for the
impairment, which are provided as doubtful debts are identified.
The allowance is determined in accordance with Group procedures. When computing the allowance, account
is taken of bank guarantees and collateral provided. At account closing, the Group companies conduct a
customer-by-customer analysis of doubtful overdue receivables; based on the analysis, the carrying amount of
doubtful overdue receivables is appropriately adjusted.
Derecognition of financial assets:
The Group derecognizes all or part of the financial assets when:
the contractual rights on the assets in question have expired;
it transfers the near totality of the risks and rewards incidental to ownership of the asset or does not transfer
and does not even substantially maintain all the risks and rewards but transfers control of the assets.
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