Cemex 2013 Annual Report Download - page 62
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Please find page 62 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
2T) Emission rights
In some of the countries where CEMEX operates, such as EU countries, governments have established mechanisms aimed at reducing
carbondioxideemissions(“CO2”)bymeansofwhichindustriesreleasingCO2mustsubmittotheenvironmentalauthoritiesattheendofa
complianceperiodemissionrightsforavolumeequivalenttothetonsofCO2released.Sincethemechanismforemissionsreductioninthe
EUhasbeeninoperation,acertainnumberofemissionrightsbasedonhistoricallevelshavebeengrantedbytherelevantenvironmental
authoritiestothedifferentindustriesfreeofcost.Therefore,companieshavetobuyadditionalemissionrightstomeetdecitsbetween
actualCO2emissionsduringthecomplianceperiodandemissionrightsactuallyheld,ortheycandisposeofanysurplusofemissionrights
inthemarket.Inaddition,theUnitedNationsFrameworkConventiononClimateChange(“UNFCCC”)grantsCertiedEmissionReductions
(“CERs”)toqualiedCO2emissionreductionprojects.CERsmaybeusedinspeciedproportionstosettleemissionrightsobligationsinthe
EU.CEMEXactivelyparticipatesinthedevelopmentofprojectsaimedtoreduceCO2emissions.Someoftheseprojectshavebeenawarded
withCERs.
IntheabsenceofanIFRSthatdenesanaccountingtreatmentfortheseschemes,CEMEXaccountsfortheeffectsassociatedwithCO2
emissionreductionmechanismsasfollows:
• Emissionrightsgrantedbygovernmentsarenotrecognizedinthebalancesheetconsideringthattheircostiszero.
• Revenuesfromthesaleofanysurplusofemissionrightsarerecognizedbydecreasingcostofsales;inthecaseofforwardsaletransactions,
revenuesarerecognizeduponphysicaldeliveryoftheemissioncerticates.
• Emission rights and/or CERs acquired to hedge current CO2 emissions are recognized as intangible assets at cost, and are further
amortizedtocostofsalesduringthecomplianceperiod.Inthecaseofforwardpurchases,assetsarerecognizeduponphysicalreception
oftheemissioncerticates.
• CEMEXaccruesaprovisionagainstcostofsaleswhentheestimatedannualemissionsofCO2areexpectedtoexceedthenumberof
emissionrights,netofanybenetobtainedthroughswaptransactionsofemissionrightsforCERs.
• CERsreceivedfromtheUNFCCCarerecognizedasintangibleassetsattheirdevelopmentcost,whichareattributablemainlytolegal
expensesincurredintheprocessofobtainingsuchCERs.
• CEMEXdoesnotmaintainemissionrights,CERsand/orforwardtransactionswithtradingpurposes.
ThecombinedeffectoftheuseofalternatefuelsthathelpreducetheemissionofCO2,andthedownturninproducedcementvolumesin
theEU,generatedasurplusofemissionrightsheldovertheestimatedCO2emissionsintherecentyears.Fromtheconsolidatedsurplusof
emissionrights,during2011,CEMEXsoldanaggregateamountofapproximately13.4millioncerticates,receivingrevenuesofapproximately
$1,518.During2013and2012,therewerenosalesofemissionrights.
2U) Concentration of credit
CEMEXsellsitsproductsprimarilytodistributorsintheconstructionindustry,withnospecicgeographicconcentrationwithinthecountries
inwhichCEMEXoperates.AsofandfortheyearsendedDecember31,2013,2012and2011,nosinglecustomerindividuallyaccountedfor
asignicantamountofthereportedamountsofsalesorinthebalancesoftradereceivables.Inaddition,thereisnosignicantconcentration
ofaspecicsupplierrelatingtothepurchaseofrawmaterials.
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