Cemex 2013 Annual Report Download - page 49

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currently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Certicates(“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nancial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nancialstatementswasauthorizedbythemanagementofCEMEX,
S.A.B.deC.V.onJanuary31,2014.
2) Signicant accounting policies
2A) Basis of presentation and disclosure
InNovember2008,theMexicanNationalBankingandExchangeCommission(
ComisiónNacionalBancariaydeValores or“CNBV”)issued
regulations requiring registrants whose shares are listed on the MSE, to begin preparing their consolidated nancial statements using
InternationalFinancialReportingStandards(“IFRS”),asissuedbytheInternationalAccountingStandardsBoard(“IASB”),beginningnolater
thanJanuary1,2012andtostopusingMexicanFinancialReportingStandards(“MFRS”).Inconnectionwiththisrequirement,CEMEX’s
consolidatednancialstatementsasofDecember31,2013and2012andfortheyearsendedDecember31,2013,2012and2011,were
preparedinaccordancewithIFRSasissuedbytheIASB.
OnJanuary26,2012,CEMEXissueditslastconsolidatednancialstatementsunderMFRS,whichwereasofDecember31,2011and2010
andfortheyearsendedDecember31,2011,2010and2009.ThesenancialstatementswereusedtocomplywithCEMEX’snancial
informationrequirementsbeforetheissuanceonApril8,2012ofits2011annualreportwiththe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rstnancial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owsfortheyearsendedDecember31,2011and
2010,ineachcase,ascomparedtoCEMEX’spreviouslyreportedamountsunderMFRS.
Denition of terms
Whenreferenceismadetopesosor“$”itmeansMexicanpesos.Theamountsinthenancialstatementsandtheaccompanyingnotesare
statedinmillions,exceptwhenreferencesaremadetolosspershareand/orpricespershare.Whenreferenceismadeto“US$”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signicantnumber
ofEuropeanUnion(“EU”)countries.Whenitisdeemedrelevant,certainamountspresentedinthenotestothenancial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,2013and2012,translationsofpesosintodollarsanddollarsintopesos,
weredeterminedforbalancesheetamountsusingtheclosingexchangeratesof$13.05and$12.85pesosperdollar,respectively,andfor
statementsofoperationsamounts,usingtheaverageexchangeratesof$12.85,$13.15and$12.48pesosperdollarfor2013,2012and
2011,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, 2013, 2012 and 2011
(Millions of Mexican pesos)
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