Download - Ferrovial - Annual Report 2012

Consolidated financial statements at 31 December 2011
Ferrovial S.A. and Subsidiaries
3.3.21.2 Toll road business
The arrangements included in this line of business are
accounted for in accordance with IFRIC 12, used as a basis for
classifying the assets used in such arrangements on the basis
of the intangible asset model and the financial asset model
(bifurcated arrangements can also exist).
It should be noted in this connection that in the case of IFRIC
12 financial assets the income from the concessions that apply
this model is classified as "Other Operating Income”, in
accordance with IAS 18.7, Revenue. Under IAS 18, revenue is
the gross inflow of economic benefits during the period arising
in the course of the ordinary activities of an entity when those
inflows result in increases in equity. In this regard, it can be
considered that the income from concessions of this type
should be classified as revenue, since it forms part of the
ordinary concession activity and is earned on a regular and
periodic basis.
At 31 December 2011 and 2010, the consideration recognised
as revenue amounted to EUR 155 million and EUR 119 million,
respectively. Also, the borrowing costs associated with the
financing of the concessions to which the financial asset model
is applied amounted to EUR 75 million and EUR 73 million,
respectively.
3.3.21.3 Service businesses
In general, revenue from services of this nature is recognised
in the income statement on a straight-line basis over the term
of the contract. In the case of contracts for a number of
different services and prices, revenue and costs are recognised
with reference to the stage of completion, applying the same
methods and conditions as those described for the
Construction business. Where this is not possible, the
percentage of completion method is used based on the costs
incurred as a percentage of total estimated costs.
Lastly, it should be noted that in the case of certain contracts
performed by Amey in the United Kingdom which fall within
the scope of IFRIC 12, revenue is recognised using the
financial asset model provided for in that IFRIC.
3.3.21.4 Profit from operations
3.4 Accounting estimates and judgements
In the consolidated financial statements for 2011 estimates
were made to measure certain assets, liabilities, income,
expenses and obligations. These estimates relate basically
to the following:
The assessment of possible impairment losses on certain
assets.
Estimates relating to the fair value of assets acquired in
business combinations and goodwill, or of investments
remeasured at fair value in the case of sales that have
given rise to a loss of control.
Business performance projections that affect the
estimates of the recoverability of tax assets.
The assumptions used in the actuarial calculation of
pension and other obligations to employees.
The useful life of the property, plant and equipment and
intangible assets.
The measurement of stock options.
The budget-related estimates taken into consideration
when recognising the results of contracts with a
reference to the stage of completion in the Construction
and Services segments.
The assessment of possible legal and tax contingencies.
Estimates relating to the valuation of derivatives and the
related expected flows in cash flow hedges.
Estimates taking into account the future vehicle numbers
on toll roads for the purposes of the preparation of
financial information for the toll roads pursuant to
IFRIC 12.
Although, these estimates were made using the best
information available at 31 December 2011 and 2010 on the
events analysed, events that take place in the future might
make it necessary to change these estimates. Changes in
accounting estimates would be applied in accordance with
IAS 8.
“Profit from Operations” in the consolidated income statement
includes the profits and losses from the Group companies'
ordinary operations, excluding the financial loss (see Note 29)
and the share of results of companies accounted for using the
equity method. The related section of the consolidated income
statement includes a specific line item to reflect the result of
impairment and disposals of non-current assets.
This line item reflects the gains and losses on disposals of
investments classified as continuing operations and on the
remeasurement of investments when control was lost and
impairment of goodwill or other significant assets.
Ferrovial, S.A. Consolidated financial statements at 31 December 2011 18