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Balance sheet
“Tough times call for tough actions. We are intensely focusing our efforts on the variables we
can control”.
recorded at market value. Gains or losses resulting from changes in market values, accrued interest and the
effects of inflation arising from these investments are included in the income statements as part of the
Comprehensive Financing Result.
27% Trade receivables less allowance for doubtful accounts, which are established according to the credit
history and risk profile of each customer. During 2008 was taken in count the allowances for doubtful accounts
at the beginning of the period of 2007.
15% Other accounts receivable. Non-trade accounts receivable are mainly attributable to the sale of assets.
33% Inventories, net. Index of inventory in 2008 is 1.14 times higher than in 2007 which is good as inventory is
a very important part of the balance sheet of the company. Until 2007, inventories were valued using the lower
between their replacement cost and market value. Production cost may correspond to the latest purchase
price, the average price of the last purchases or the last production cost CEMEX analyzes its inventory balances
to determine if, as a result of internal events, such as physical damage, or external events, such as
technological changes or market conditions, certain portions of such balances have become obsolete or
impaired When an impairment situation arises, the inventory balance is adjusted to its net realizable value,
whereas, if an obsolescence situation occurs, the inventory obsolescence reserve is increased. In both cases,
these adjustments are recognized against the results of the period.
5% Other current assets. Assets held for sale are stated at their estimated realizable value.
Non-current assets (Long term assets) are 89% of the total assets, and are presented as follows:
3% Investments in associates ; correspond to book value at acquisition date and interest of changes of
stockholder’s equity, which over the period 2007-2008 showed the increase.
4% Other investments and non-current accounts receivable. Over the period other investments and non-
current accounts receivable have increased by 2.17 times. Include CEMEX’s collection rights with maturities of
more than twelve months as of the balance sheet date. Non-current assets resulting from the valuation of
derivative financial instruments, as well as investments in private funds and other investments are recognized
at their estimated fair value as of the balance sheet date, and their changes in valuation are included in the
income.
51% Property, machinery and equipment, net. Consist of land and mineral reserves, buildings, machinery and
equipment, construction in progress, accumulated depreciation and depletion.
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