Cemex 2013 Annual Report Download - page 141
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Please find page 141 of the 2013 Cemex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to the financial statements
Theconceptofexitvalueispremisedontheexistenceofamarketandmarketparticipantsforthespecicassetorliability.Whenthereisno
marketand/ormarketparticipantswillingtomakeamarket,IFRS13establishesafairvaluehierarchythatprioritizestheinputstovaluation
techniquesusedtomeasurefairvalue.Thehierarchygivesthehighestprioritytounadjustedquotedpricesinactivemarketsforidentical
assetsor liabilities (Level1 measurements) andthelowestpriority tomeasurements involving signicantunobservable inputs(Level 3
measurements).Thethreelevelsofthefairvaluehierarchyareasfollows:
• Level1inputsarequotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthatCEMEX,S.A.B.deC.V.hasthe
abilitytoaccessatthemeasurementdate.Aquotepriceinanactivemarketprovidesthemostreliableevidenceoffairvalueandisused
withoutadjustmenttomeasurefairvaluewheneveravailable.
• Level2inputsareinputsotherthanquotedpricesinactivemarketsthatareobservablefortheassetorliability,eitherdirectlyor
indirectly,andareusedmainlytodeterminethefairvalueofsecurities,investmentsorloansthatarenotactivelytraded.Level2inputs
includedequityprices,certaininterestratesandyieldcurves,impliedvolatility,creditspreadsandothermarketcorroboratedinputs,
includinginputsextrapolatedfromotherobservableinputs.IntheabsenceofLevel1inputsCEMEX,S.A.B.deC.V.determinedfairvalues
byiterationoftheapplicableLevel2inputs,thenumberofsecuritiesand/ortheotherrelevanttermsofthecontract,asapplicable.
• Level3inputsareunobservable inputsforthe assetorliability.CEMEX, S.A.B.deC.V. usedunobservableinputs todeterminefair
values,totheextenttherearenoLevel1orLevel2inputs,invaluationmodelssuchasBlack-Scholes,binomial,discountedcashows
ormultiplesofOperativeEBITDA,includingriskassumptionsconsistentwithwhatmarketparticipantswouldusetoarriveatfairvalue.
2M) Provisions
CEMEX,S.A.B.deC.V.recognizesprovisionswhenithasalegalorconstructiveobligationresultingfrompastevents,whoseresolutionwould
implycashoutowsorthedeliveryofotherresources.
Contingencies and commitments (note 14)
Obligations or losses related to contingencies are recognized as liabilities in the balance sheet when present obligations exist resulting
frompasteventsthatareexpectedtoresultinanoutowofresourcesandtheamountcanbemeasuredreliably.Otherwise,aqualitative
disclosureisincludedinthenotestothenancialstatements.Theeffectsoflong-termcommitmentsestablishedwiththirdparties,such
assupplycontractswithsuppliersorcustomers,arerecognizedinthenancialstatementsonanincurredoraccruedbasis,aftertaking
intoconsiderationthesubstanceoftheagreements.Relevantcommitmentsaredisclosedinthenote14.CEMEX,S.A.B.deC.V.doesnot
recognizecontingentrevenues,incomeorassets,unlesstherealizationisvirtuallycertain.
2N) Income taxes (note 12)
BasedonIAS12,
Incometaxes
(“IAS12”),theeffectsreectedin thestatementsof operationsforincometaxesinclude theamounts
incurredduringtheperiodandtheamountsofdeferredincometaxes,determinedaccordingtotheincometaxlaw.Thedeferredincometaxes
ofCEMEX,S.A.BdeC.V.representtheadditionoftheamountsdeterminedbyapplyingtheenactedstatutoryincometaxratetothetotal
temporarydifferencesresultingfromcomparingthebookandtaxablevaluesofassetsandliabilities,consideringtaxlosscarryforwardsaswell
asotherrecoverabletaxesandtaxcredits,subjecttoarecoverabilityanalysis.Deferredincometaxesfortheperiodrepresentthedifference
betweenbalancesofdeferredincomeatthebeginningandtheendoftheperiod.AccordingtoIFRS,allitemschargedorcrediteddirectlyin
stockholders’equityoraspartofothercomprehensiveincomeorlossfortheperiodarerecognizednetoftheircurrentanddeferredincome
taxeffects.Theeffectofachangeinenactedstatutorytaxratesisrecognizedintheperiodinwhichthechangeisofciallyenacted.
Deferredtaxassetsareanalyzedateachreportingdate,andreduced,totheextentthatitisdeemednotpossibletorealizedtherelated
benets.Intheseanalyses,CEMEX,S.A.B.deC.V.analyzestotaltaxlossesincludedintheincometaxreturnswhereCEMEX,S.A.B.deC.V.
believes,basedonavailableevidence,that thetaxauthoritieswouldnotreject;and thelikelihoodoftherecoverabilityofsuchtaxloss
carryforwardspriortotheirexpirationthroughananalysisofestimatedfuturetaxableincome.IfCEMEX,S.A.B.deC.V.believesthatitis
more-likely-than-notthatthetaxauthoritieswouldrejectaself-determineddeferredtaxasset,itwoulddecreasesuchasset.Likewise,if
CEMEX,S.A.B.deC.V.believesthatitwouldnotbeabletouseadeferredtaxassetbeforeitsexpiration,CEMEX,S.A.B.deC.V.doesnot
recognizethisasset.Bothsituationswouldresultinadditionalincometaxexpensefortheperiodinwhichsuchdeterminationismade.
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