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 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
uncollectible amounts, which are provided as doubtful debts are identified.
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.
1.15. Cash and cash equivalents
Cash and cash equivalents consists of cash on hand, bank demand deposits and other treasury 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.
1.16. Income taxes
Current income taxes are provided in accordance with local tax laws in the countries where the Group
operates. 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) the Group is able 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 reporting
date.
Taxes relating to items recognized directly in equity are recognized in equity, not in the income statement.
79
www.italcementigroup.com