Cemex 2012 Annual Report Download - page 126

126
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1) Description of business
CEMEX, S.A.B. de C.V. is a Mexican holding company (parent) of entities whose main activities are oriented to the construction
industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction
materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican
States, or Mexico.
CEMEX, S.A.B. de C.V. was founded in 1906 and was registered with the Mercantile Section of the Public Register of Property and
Commerce in Monterrey, N.L., Mexico in 1920 for a period of 99 years. In 2002, this period was extended to the year 2100. The
shares of CEMEX, S.A.B. de C.V. are listed on the Mexican Stock Exchange (“MSE”) as Ordinary Participation Certificates (“CPOs”).
Each CPO represents two series “A” shares and one series “B” share of common stock of CEMEX, S.A.B. de C.V. In addition, CEMEX,
S.A.B. de C.V.’s shares are listed on the New York Stock Exchange (“NYSE”) as American Depositary Shares (“ADSs”) under the
symbol “CX.” Each ADS represents ten CPOs.
The term “CEMEX, S.A.B. de C.V.” used in these accompanying notes to the parent company-only financial statements refers to
CEMEX, S.A.B. de C.V. without its consolidated subsidiaries. The terms the “Company” or “CEMEX” refer to CEMEX, S.A.B. de C.V.
together with its consolidated subsidiaries. The issuance of these parent company-only financial statements was authorized by
the management of CEMEX, S.A.B. de C.V. on January 31, 2013. On this date, the consolidated financial statements of CEMEX
were also issued.
2) Signicant accounting policies
2A) Basis of presentation and disclosure
In November 2008, the CNBV issued regulation requiring registrants whose shares are listed on the MSE, to stop preparing their
consolidated financial statements using Mexican Financial Reporting Standards (“MFRS”) and to begin preparing their consolidated
financial statements using International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board (“IASB”) no later than January 1, 2012. In connection with this requirement, these parent company-only financial statements
of CEMEX, S.A.B. de C.V. as of December 31, 2012 and 2011 and for the years ended December 31, 2012, 2011 and 2010, were
prepared in accordance with IFRS as issued by the IASB. CEMEX, S.A.B. de C.V. also issued its first financial statements under IFRS,
which were as of December 31, 2011 and 2010 and as of January 1, 2010, and for the years ended December 31, 2011 and 2010
(not included in this report), in which CEMEX, S.A.B. de C.V. described the options it made in the migration to IFRS and the effects
that such migration had on (i) CEMEX, S.A.B. de C.V.’s opening balance sheet as of January 1, 2010, according to IFRS 1, First time
adoption (“IFRS 1”), (ii) CEMEX’s balance sheets as of December 31, 2011 and 2010, and (iii) CEMEX’s S.A.B. de C.V. statements of
operations, statements of comprehensive income (loss) and statements of cash flows for the years ended December 31, 2011 and
2010, in each case, as compared to CEMEX’s S.A.B. de C.V. previously reported amounts under MFRS.
Definition of terms
When reference is made to pesos or “$,” it means Mexican pesos. Except when specific references are made to “prices per share,”
the amounts in the financial statements and the accompanying notes are stated in millions of pesos. When reference is made to
“US$” or dollars, it means millions of dollars of the United States of America (“United States”).
When it is deemed relevant, certain amounts presented in the notes to the parent company-only financial statements include in
parentheses a convenience translation into dollars, pesos, or both, as applicable. These translations should not be construed as
representations that the amounts in pesos or dollars, as applicable, actually represent those peso or dollar amounts or could be
converted into pesos or dollars at the rate indicated. In 2012 and 2011, translations of pesos into dollars and dollars into pesos,
were determined for balance sheet amounts using the closing exchange rates of $12.85 and $13.96 pesos per dollar, respectively,
and for statements of operations amounts, using the average exchange rates of $13.15, $12.48 and $12.67 pesos per dollar for
the years ended December 31, 2012, 2011 and 2010, respectively.
Statements of operations
In CEMEX, S.A.B. de C.V.’s statements of operations for the years ended December 31, 2012, 2011 and 2010, the line item
currently titled “Operating earnings before other expenses, net” was previously titled “Operating income (loss)” and the line item
currently titled “Operating earnings” was previously titled “Operating income (loss) after other expenses, net.” CEMEX, S.A.B. de
C.V. made these changes to comply with industry practice when filing financial statements under IFRS with the SEC based on the
guidance set forth in paragraph 56 of the Basis for Conclusions of IAS 1, Presentation of Financial Statements (“IAS 1”). However,
such changes in line-item titles do not represent any change in the CEMEX, S.A.B. de C.V.’s accounting practices, policies or
methodologies under IFRS as compared to prior years. Consequently, the line item “Operating earnings before other expenses, net”
is directly comparable with the line item “Operating income (loss)” presented in prior years and the line item “Operating earnings
(loss)” is directly comparable with the line item “Operating income (loss) after other expenses, net” presented in prior years.
Notes
to the financial
statements
CEMEX, S.A.B. DE C.V.
(Parent company-only)
As of December 31, 2012, 2011 and 2010
(Millions of Mexican pesos)