2011 Annual Report - Italcementi Group

2011 Annual Report
Presentation 4
General information 15
Annual Report Consolidated Annual Report Directors’ report 28
Extraordinary session Italcementi S.p.A. Annual Report Consolidated financial statements 63
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 components of 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 policies requires management to make discretional assessments and estimates that affect
the carrying amounts 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
depend 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 amounts are recorded at closure of
the half year.
1.3. Basis of consolidation
The consolidated financial statements are based on the statements of the parent Italcementi S.p.A. and the
consolidated companies as at and for the year ended December 31 2011. Where necessary, the financial
statements are adjusted to ensure alignment with the Group’s classification criteria and accounting policies.
Subsidiaries
Subsidiaries are companies in which the Group has the power to determine, directly or indirectly,
administrative and management decisions and to obtain the benefits thereof. Generally speaking, control is
assumed to exist when the Group holds, directly or indirectly, more than one half of voting rights, including
potential voting rights deriving from convertible securities.
Subsidiaries are consolidated on a line-by-line basis as from the date at which control is obtained and until
control is transferred out of the Group.
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