Cemex 2013 Annual Report Download - page 60
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Please find page 60 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
Deferredtaxassetsarereviewedateachreportingdateandarereducedtotheextentthatitisnotconsideredprobablethattherelatedtax
benetwillberealized.Inconductingsuchassessment,CEMEXanalyzestheaggregateamountofself-determinedtaxlosscarryforwards
includedinitsincometaxreturnsineachcountrywhereCEMEXbelieves,basedonavailableevidence,thatthetaxauthoritieswouldnot
rejectsuchtaxlosscarryforwards;andthelikelihoodoftherecoverabilityofsuchtaxlosscarryforwardspriortotheirexpirationthrough
ananalysisofestimatedfuturetaxableincome.IfCEMEXbelievesthatitisprobablethatthetaxauthoritieswouldrejectaself-determined
deferredtaxasset,itwoulddecreasesuchasset.Likewise,ifCEMEXbelievesthatitwouldnotbeabletouseataxlosscarryforwardbefore
itsexpirationoranyotherdeferredtaxasset,CEMEXwouldnotrecognizesuchdeferredtaxasset.Bothsituationswouldresultinadditional
incometaxexpensefortheperiodinwhichsuchdeterminationismade.Inordertodeterminewhetheritisprobablethatdeferredtaxassets
willultimatelyberealized,CEMEXtakesintoconsiderationall availablepositiveandnegative evidence,including factorssuchasmarket
conditions,industryanalysis,expansionplans,projectedtaxableincome,carryforwardperiods,currenttaxstructure,potentialchangesor
adjustmentsintaxstructure,taxplanningstrategies,futurereversalsofexistingtemporarydifferences,etc.Likewise,everyreportingperiod,
CEMEXanalyzesitsactualresultsversustheCompany’sestimates,andadjusts,asnecessary,itstaxassetvaluations.Ifactualresultsvary
fromCEMEX’sestimates,thedeferredtaxassetand/orvaluationsmaybeaffectedandnecessaryadjustmentswillbemadebasedonrelevant
information.AnyadjustmentsrecordedwillaffectCEMEX’sstatementsofoperationsinsuchperiod.
Theincometaxeffectsfromanuncertaintaxpositionarerecognizedwhenitismore-likely-than-notthatthepositionwillbesustainedbased
onitstechnicalmeritsandassumingthatthetaxauthoritieswillexamineeachpositionandhavefullknowledgeofallrelevantinformation,
andtheyaremeasuredusingacumulativeprobabilitymodel.Eachpositionhasbeenconsideredonitsown,regardlessofitsrelationtoany
otherbroadertaxsettlement.Themore-likely-than-notthresholdrepresentsapositiveassertionbymanagementthatCEMEXisentitledto
theeconomicbenetsofataxposition.Ifataxpositionisnotconsideredmore-likely-than-nottobesustained,nobenetsoftheposition
arerecognized.CEMEX’spolicyistorecognizeinterestandpenaltiesrelatedtounrecognizedtaxbenetsaspartoftheincometaxinthe
consolidatedstatementsofoperations.
2P) Stockholders’ equity
Common stock and additional paid-in capital (note 20A)
Theseitemsrepresentthevalueofstockholders’contributions,andincludeincreasesrelatedtothecapitalizationofretainedearningsandthe
recognitionofexecutivecompensationprogramsinCEMEX’sCPOsaswellasdecreasesassociatedwiththerestitutionofretainedearnings.
Other equity reserves (note 20B)
Thiscaptiongroupsthecumulativeeffectsofitemsandtransactionsthatare,temporarilyorpermanently,recognizeddirectlytostockholders’
equity,andincludestheelementspresentedinthestatementsofcomprehensiveincome(loss).Comprehensiveincome(loss)fortheperiod
includes,inadditiontonetincome(loss),certainchangesinstockholders’equityduringaperiodthatdonotresultfrominvestmentsby
ownersanddistributionstoowners.Themostsignicantitemswithin“Otherequityreserves”duringthereportedperiodsareasfollows:
Items of “Other equity reserves” included within other comprehensive loss:
• Currencytranslationeffectsfromthetranslationofforeignsubsidiaries’nancialstatements,netof:a)exchangeresultsfromforeign
currencydebtdirectlyrelatedtotheacquisitionofforeignsubsidiaries;andb)exchangeresultsfromforeigncurrencyrelatedparties
balancesthatareofalong-terminvestmentnature(note2D);
• Theeffectiveportionofthevaluationandliquidationeffectsfromderivativeinstrumentsundercashowhedgingrelationships,whichare
recordedtemporarilyinstockholders’equity(note2L);
• Changesinfairvalueduringthetenureofavailable-for-saleinvestmentsuntiltheirdisposal(note2H);and
• Currentanddeferredincometaxesduringtheperiodarisingfromitemswhoseeffectsaredirectlyrecognizedinstockholders’equity.
Items of “Other equity reserves” not included in comprehensive loss:
• Effectsrelatedtocontrollingstockholders’equityforchangesortransactionsaffectingnon-controllingintereststockholdersinCEMEX’s
consolidatedsubsidiaries;
• Effects attributable to controlling stockholders’ equity for nancial instruments issued by consolidated subsidiaries that qualify for
accountingpurposesasequityinstruments,suchastheinterestexpensepaidonperpetualdebentures;
• Theequitycomponentdetermineduponissuanceofconvertible securitiesorupon classication,whicharemandatorilyoroptionally
convertibleintosharesoftheParentCompany(note16B)andthatqualifyunderIFRSasinstrumentshavingcomponentsofliabilityand
equity(note2L).Uponconversion,thisamountwillbereclassiedtocommonstockandadditionalpaid-incapital;and
• ThecancellationoftheParentCompany’ssharesheldbyconsolidatedentities.
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