Cemex 2013 Annual Report Download - page 59
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Please find page 59 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
2N) Pensions and postretirement employee benets (note 18)
Dened contribution pension plans
Thecostsofdenedcontributionpensionplansarerecognizedintheoperatingresultsastheyareincurred.Liabilitiesarisingfromsuchplans
aresettledthroughcashtransferstotheemployees’retirementaccounts,withoutgeneratingfutureobligations.
Dened benet pension plans, other postretirement benets and termination benets
BasedonIAS19,
Employeebenets
(“IAS19”),CEMEXrecognizesthe costsassociatedwith employees’benetsfor:a)dened benet
pension plans; and b) other postretirement benets, basically comprised of health care benets, life insurance and seniority premiums,
grantedbyCEMEXand/orpursuanttoapplicablelaw.Thesecostsarerecognizedasservicesarerendered,basedonactuarialestimations
ofthebenets’presentvaluewiththeadviceofexternalactuaries.Theactuarialassumptionsconsidertheuseofnominalrates.Forcertain
pensionplans,irrevocabletrustfundshavebeencreatedtocoverfuturebenetpayments(“planassets”).Theseplanassetsarevaluedat
theirestimatedfairvalueatthebalancesheetdate.OnJanuary1,2013,asaresultofamendmentstoIAS19:a)asinglerateisusedfor
thedeterminationoftheexpectedreturnonplanassetsandthediscountofthebenetsobligationtopresentvalue;b)anetinterestis
recognizedonthenetdenedbenetliability(liabilityminusplanassets),insteadofaninterestcostontheliabilityandaseparatereturnon
planassets,asitwasdetermineduntilDecember31,2012;andc)allactuarialgainsandlossesfortheperiodarerecognizedaspartofother
comprehensiveincomeorloss,thereby,eliminatingtheoptiontodefertherecognitionofgainsandlosses,knownasthe“corridormethod”,
whichwasnotappliedbyCEMEX.UntilDecember31,2012,theexpectedratesofreturnonplanassetsweredeterminedbasedonmarket
pricesprevailingonthecalculationdate,applicabletotheperiodoverwhichtheobligationwereexpectedtobesettled.Asaresultofthe
adoptionoftheamendmentstoIAS19onJanuary1,2013,CEMEXrestateditsconsolidatedbalancesheetasofDecember31,2012and
itsconsolidatedstatementsofoperationsfortheyearsendedDecember31,2012and2011.Theeffectswerenotsignicant.
Terminationbenets,notassociatedwitharestructuringevent,whichmainlyrepresentseverancepaymentsbylaw,arerecognizedinthe
operatingresultsfortheperiodinwhichtheyareincurred.
Theservicecost,correspondingtotheincreaseintheobligationforadditionalbenetsearnedbyemployeesduringtheperiod,isrecognized
withinoperatingcostsandexpenses.Thenetinterestisrecognizedwithin“Othernancialexpenses,net.”
Theeffectsfrommodicationstothepensionplansthataffectthecostofpastservicesarerecognizedwithinoperatingcostsandexpenses
duringtheperiodsinwhichsuchmodicationsbecomeeffectivewithrespecttotheemployees,orwithoutdelayifchangesareeffective
immediately.Likewise,theeffectsfromcurtailmentsand/orsettlementsofobligationsoccurringduringtheperiod,associatedwithevents
thatsignicantlyreducethecostoffutureservicesand/orreducesignicantlythepopulationsubjecttopensionbenets,respectively,are
recognizedwithinoperatingcostsandexpenses.
Asmentionedabove,theactuarialgainsandlosses,relatedtodifferencesbetweentheprojectedandrealactuarialassumptionsattheend
oftheperiod,aswellasthedifferencebetweentheexpectedandrealreturnonplanassets,arerecognizedintheperiodinwhichtheyare
incurredaspartofothercomprehensiveincomeorlossfortheperiodwithinstockholders’equity.
2O) Income taxes (note 19)
BasedonIAS12,
Incometaxes
(“IAS12”),theeffectsreectedinthestatementsofoperationsforincometaxesincludetheamountsincurred
duringtheperiodandtheamountsofdeferredincometaxes,determinedaccordingtotheincometaxlawapplicabletoeachsubsidiary.
Consolidateddeferredincometaxesrepresenttheadditionoftheamountsdeterminedineachsubsidiarybyapplyingtheenactedstatutory
incometaxratetothetotaltemporarydifferencesresultingfromcomparingthebookandtaxablevaluesofassetsandliabilities,considering
taxlosscarryforwardsaswellasotherrecoverabletaxesandtaxcredits,totheextentthatitisprobablethatfuturetaxableprotswill
beavailableagainstwhichtheycanbeutilized.Themeasurementofdeferredincometaxesreectsthetaxconsequencesthatfollowthe
mannerinwhichCEMEXexpects,attheendofthereportingperiod,torecoverorsettlethecarryingamountofitsassetsandliabilities.
Deferredincometaxesfortheperiodrepresentthedifferencebetweenbalancesofdeferredincomeatthebeginningandtheendofthe
period.Deferredincometaxassetsandliabilitiesrelatingtodifferenttaxjurisdictionsarenotoffset.AccordingtoIFRS,allitemschargedor
crediteddirectlyinstockholders’equityoraspartofothercomprehensiveincomeorlossfortheperiodarerecognizednetoftheircurrent
anddeferredincometaxeffects.Theeffectofachangeinenactedstatutorytaxratesisrecognizedintheperiodinwhichthechangeis
ofciallyenacted.
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