Cemex 2013 Annual Report Download - page 54
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Please find page 54 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 consolidated financial statements
AsofDecember31,2013,themaximumaverageusefullivesbycategoryofxedassetswereasfollows:
Ye ar s
Administrativebuildings 35
Industrialbuildings 33
Machineryandequipmentinplant 18
Ready-mixtrucksandmotorvehicles 8
Ofceequipmentandotherassets 6
CEMEXcapitalizes,aspartoftherelatedcostofxedassets,interestexpensefromexistingdebtduringtheconstructionorinstallation
periodofsignicantxedassets,consideringCEMEX’scorporateaverageinterestrateandtheaveragebalanceofinvestmentsinprocessfor
theperiod.
BasedonIFRIC20,
Strippingcostsintheproductionphaseofasurfacemine
(“IFRIC20”),beginningJanuary1,2013,allwasteremovalcosts
orstrippingcostsincurredintheoperativephaseofasurfaceminethatresultinimprovedaccesstomineralreservesarerecognizedaspart
ofthecarryingamountoftherelatedquarries.Thecapitalizedamountsarefurtheramortizedovertheexpectedusefullifeofexposedore
bodybasedontheunitsofproductionmethod.UntilDecember31,2012,onlyinitialstrippingcostswerecapitalized,whileongoingstripping
costsinthesamequarrywereexpensedasincurred.Asmandatory,IFRIC20wasadoptedretroactivelyasofJanuary1,2011,consequently,
theconsolidatedbalancesheetasofDecember31,2012andtheconsolidatedstatementsofoperationsfortheyearsendedDecember31,
2012and2011includedaspartoftheseconsolidatednancialstatementswererestatedasaresultoftheadoptionofIFRIC20.Theeffects
werenotsignicant.AsofDecember31,2011,themaineffectsintherelevantlineitemsofCEMEX’sconsolidatedbalancesheetwereas
follows:
As originally
(Millions of pesos) reported As restated Adjustment
Othercurrentassets $ 3,953 3,951 (2)
Otherinvestmentsandnon-currentaccountsreceivable 10,595 10,385 (210)
Plant,machineryandequipment,net 233,709 234,342 633
Goodwillandintangibleassets,net 189,062 188,644 (418)
Totalcontrollinginterest 155,101 155,104 (3)
Costsincurredinrespectofoperatingxedassetsthatresultinfutureeconomicbenets,suchasanextensionintheirusefullives,anincrease
intheirproductioncapacityorinsafety,aswellasthosecostsincurredtomitigateorpreventenvironmentaldamage,arecapitalizedas
partofthecarryingamountoftherelatedassets.Thecapitalizedcostsaredepreciatedovertheremainingusefullivesofsuchxedassets.
Periodicmaintenanceonxedassetsisexpensedasincurred.Advancestosuppliersofxedassetsarepresentedaspartofotherlong-term
accountsreceivable.
2J) Business combinations, goodwill, other intangible assets and deferred charges (note 15)
Businesscombinationsarerecognizedusingthepurchasemethod,byallocatingtheconsiderationtransferredtoassumecontroloftheentity
toallassetsacquiredandliabilitiesassumed,basedontheirestimatedfairvaluesasoftheacquisitiondate.Intangibleassetsacquiredare
identiedandrecognizedatfairvalue.Anyunallocatedportionofthepurchasepricerepresentsgoodwill,whichisnotamortizedandissubject
toperiodicimpairmenttests(note2K),canbeadjustedforanycorrectiontothepreliminaryassessmentgiventotheassetsacquiredand/
orliabilitiesassumedwithinthetwelve-monthperiodafterpurchase.Costsassociatedwiththeacquisitionareexpensedinthestatements
ofoperationsasincurred.
CEMEXcapitalizesintangibleassetsacquired,aswellascostsincurredinthedevelopmentofintangibleassets,whenfutureeconomicbenets
associatedwiththeassetsareidentiedandthereisevidenceofcontroloversuchbenets.Intangibleassetsarepresentedattheiracquisition
ordevelopmentcost.Suchassetsareclassiedashavingadeniteorindenitelife;thelatterarenotamortizedsincetheperiodcannotbe
accuratelyestablishedinwhichthebenetsassociatedwithsuchintangibleswillterminate.Amortizationofintangibleassetsofdenitelifeis
calculatedunderthestraight-linemethodandrecognizedaspartofcostsandoperatingexpenses(note5).
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