Cemex 2012 Annual Report Download - page 43

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1) Description of business
CEMEX, S.A.B. de C.V., a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican
States, or Mexico, is a 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, 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 terms “CEMEX, S.A.B. de C.V.” and/or the “Parent Company” used in these accompanying notes to the financial statements
refer 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 consolidated financial statements was authorized by the
management of CEMEX, S.A.B. de C.V. on January 31, 2013.
2) Signicant accounting policies
2A) Basis of presentation and disclosure
In November 2008, the CNBV issued regulations requiring registrants whose shares are listed on the MSE, 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 and to stop using Mexican Financial Reporting Standards
(“MFRS”). In connection with this requirement, CEMEX’s consolidated financial statements 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.
On January 26, 2012, CEMEX issued its last consolidated financial statements under MFRS, which were as of December 31, 2011
and 2010 and for the years ended December 31, 2011, 2010 and 2009. These financial statements were used to comply with
CEMEX’s financial information requirements before April 2012 issuance of its 2011 annual report with the Mexican National
Banking and Exchange Commission (“Comisión Nacional Bancaria y de Valores” or “CNBV”) and its 2011 annual report on Form
20-F with the U.S. Securities and Exchange Commission (“SEC”). In addition, for purposes of preparing its 2011 annual reports
with the CNBV and the SEC, on April 27, 2012, CEMEX 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 described the options it made in the migration to IFRS and the effects that such migration had on
(i) CEMEX’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 statements of operations, statements of comprehensive loss and
statements of cash flows for the years ended December 31, 2011 and 2010, in each case, as compared to CEMEX’s previously
reported amounts under MFRS.
Definition of terms
When reference is made to pesos or “$,” it means Mexican pesos. The amounts in the financial statements and the accompanying
notes are stated in millions, except when references are made to loss per share and/or prices per share. When reference is made
to “US$” or dollars, it means millions of dollars of the United States of America (“United States”). When reference is made to “£”
or pounds, it means millions of British pounds sterling. When reference is made to “€” or Euros, it means millions of the currency
in circulation in a significant number of European Union (“EU”) countries. When it is deemed relevant, certain amounts presented
in the notes to the financial statements include between parentheses a convenience translation into dollars, into 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. As of December
31, 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 2012, 2011 and 2010, respectively. When the
amounts between parentheses are the peso and the dollar, the amounts were determined by translating the foreign currency
amount into dollars using the closing exchange rates at year-end, and then translating the dollars into pesos as previously
described.
Notes to the
consolidated
financial
statements
CEMEX, S.A.B. de C.V. and subsidiaries
As of December 31, 2012, 2011 and 2010
(Millions of Mexican pesos)