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
Interest income
Interest income is classified as finance income on an accrual basis using the effective interest method.
Dividends
Dividends are recognized as finance income as shareholders’ right to receive payment arises, in accordance
with local laws.
1.24. Government grants
Government grants are recognized when there is a reasonable certainty that they will be received and all the
requirements on which receipt depends have been fulfilled.
Grants related to the purchase or production of non-current assets (grants related to assets) are recognized as
deferred income and taken to the income statement over the useful life of the underlying assets.
1.25. Management of capital
The Group monitors its capital using the gearing ratio: net financial position/equity. The net financial position
reflects financial liabilities less cash and cash equivalents and other financial assets (as described in note 22).
Equity consists of all the items presented in the statement of financial position.
Group strategy aims to keep the gearing ratio at a level such as to ensure the smooth running of business
operations, funding of investments and creation of maximum value for shareholders.
To maintain or modify its capital structure, the Group may decide to vary the amount of dividends paid to
shareholders, redeem capital, issue new shares, raise or reduce its investment in subsidiaries, purchase or sell
investments.
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