Cemex 2013 Annual Report Download - page 138

Notes to the financial statements
ThemaineffectsinCEMEX,S.A.B.deC.V.‘snancialstatementsbeginningonJanuary1,2013,associatedwiththechangeinfunctional
currency,ascomparedtoprioryearsare:a)alltransactions,revenuesandexpensesinanycurrencyarerecognizedinU.S.Dollarsatthe
exchange rates prevailingattheirexecutiondates; b)monetarybalancesof CEMEX, S.A.B. deC.V.denominatedin U.S.Dollars willnot
generateforeign currency uctuations, whilemonetarybalancesin Mexican Pesos andothernon-U.S. Dollar-denominatedbalanceswill
generateforeigncurrencyuctuationsthroughCEMEX,S.A.B.deC.V.’sstatementofoperations;c)non-monetarybalancesweretranslated
intoU.S.DollarsusingtheexchangerateatJanuary1,2013,resultingintheirnewhistoricalcost;andd)theconversionoptionembedded
inCEMEX,S.A.B.deC.V.’sMandatoryConvertibleNotesdenominatedinMexicanPesoswillnowbetreatedasastand-alonederivative
instrument,withchangesinfairvaluethroughthestatementofoperations(notes10Band10D),theoptionsembeddedintheconvertible
notesdenominatedindollarsceasedtobetreatedasstand-alonederivatives,recognizingitsfairvalueasanequitycomponent(notes10B
and10D).BasedonIFRS,priorperiodnancialstatementswerenotrestated.
TheseFinancialStatementsarepresentedinMexicanpesos(reportingcurrency),whichisthesameastherecordingcurrencybutdifferent
fromthefunctionalcurrency.Asaresult,amountsareremeasuredintothefunctionalcurrencyandaresubsequentlytranslatedtopesos
attheclosing exchangerateforbalancesheetaccountsand attheclosingexchangeratesof eachmonthwithinthe periodforincome
statementsaccounts.Thecorrespondingtranslationadjustmentisincludedwithin“Otherequityreserves”andispresentedinthestatement
ofothercomprehensiveincome(loss).
2E) Business concentration
CEMEX,S.A.B.deC.V.provides100%ofitsservicestothesubsidiariesinthecountriesinwhichthecompanyhasoperations.Accordingto
itsanalysis,CEMEX,S.A.B.deC.V.considersthereisnoriskrelativetotherecoveryofitsaccountsreceivable.
2F) Cash and cash equivalents (note 5)
The balance in this caption is comprised of available amounts of cash and cash equivalents, mainly represented by highly-liquid short-
terminvestments,whichareeasilyconvertibleintocash,andwhicharenotsubjecttosignicantrisksofchangesintheirvalues,including
overnightinvestments,whichyieldxedreturnsandhavematuritiesoflessthanthreemonthsfromtheinvestmentdate.Thesexed-income
investmentsarerecordedatcostplusaccruedinterest.Otherinvestmentswhichareeasilyconvertibleintocasharerecordedattheirfair
value.Gainsorlossesresultingfromchangesinmarketvaluesandaccruedinterestareincludedinthestatementsofoperationsaspartof
othernancial(expense)income,net.
Theamountofcashandcashequivalentsinthebalancesheetincludesrestrictedcashandinvestments,comprisedbydepositsinmargin
accountsthatguaranteeseveralofCEMEX,S.A.B.deC.V.’sobligations,totheextentthattherestrictionwillbeliftedinlessthanthree
monthsfromthebalancesheetdate.Whentherestrictionperiodisgreaterthanthreemonths,suchrestrictedcashandinvestmentsarenot
consideredcashequivalentsandareincludedwithinshort-termorlong-term“Otheraccountsreceivable,”asappropriate.Whencontracts
containprovisionsfornetsettlement,theserestrictedamountsofcashandcashequivalentsareoffsetagainsttheliabilitiesthatCEMEX,
S.A.B.deC.V.haswithitscounterparts.
2G) Other short-term accounts receivable (note 6)
According to IAS 39,
Financial instruments: recognition and measurement  (“IAS 39”), items under this caption classied as “loans and
receivables”,withnoexplicitcost,whicharerecordedattheiramortizedcost,whichisrepresentedbytheirnetpresentvalueasofthe
transactiondate.Duetotheirshort-termnature,CEMEXS.A.B.deC.V.initiallyrecognizesthesereceivablesandloansattheoriginalinvoiced
andborrowedamount,respectively.
2H) Investments in subsdiaries and associates (note 7A)
AccordingtoIAS27,
Consolidatedandparentseparatenancialstatements (“IAS27”),investmentsincontrolledentitiesandassociates,
whicharenotclassiedasheldforsale,aremeasuredusingthecostmethod.
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