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<br />in conformity with Bulletin D-4, the cumulative effect of deferred taxes at the beginning of 2000 was applied to stockholders' <br />equity, without restructuring the financial statements of prior years. <br />Income tax for the year ended December 31, 2001, should be charged to results of operations and represents a liability due <br />and payable in a period of less than one year. <br />The Company evaluates periodically the possibility of recovering defeied tax assets and if necessary, adjusts the related <br />reserve. <br />In conformity with Bulletin D-4, deferred employee profit sharing is recognized only on temporary differences determined <br />in the reconciliation of current year net income for financial and tax reporting purposes, provided there is no indication that <br />the related liability or asset will not be realized in the future. <br />Employee profit sharing should be charged to results of operations and represents a liability due and payable in a period of <br />less than one year. <br />Bulletin D-4 requires that asset tax be considered a tax prepayment and offset against deferred income tax. <br />1. Recognition of revenue <br />Revenues from sales of cement are recognized at the time the product is shipped and billed to the customer. Revenues from <br />sales of concrete are recognized when the product is delivered at the construction site. <br />m. Earnings per share <br />Earnings per share of common stock are computed based on the average weighted number of shares of common stock <br />outstanding. <br />n. Comprehensive income <br />Requirements of Mexican accounting Bulletin B-4, Comprehensive Income, went into effect on )anuary 1, 2001. Bulletin B-4 <br />establishes the rules with respect to reporting and presenting comprehensive income and the component elements of such <br />income. Comprehensive income consists of the net income or loss for the year plus, if applicable, those items that are <br />reflected directly in shareholders' equity and that do not constitute capital contributions, reductions or distributions. As a <br />result of the adoption of the requirements of Bulletin B-4, the financial statements for the year ended December 31, 2000 as <br />originally issued have been restructured to reflect the new rules. <br />o. Consolidated statements of changes in financial position <br />Bulletin 8-12 regulates the presentation of the statements of changes in financial position in constant Mexican pesos, in <br />conjunction with Bulletin B-1o, identifying the source and application of resources representing differences between <br />balances expressed in constant Mexican pesos at the beginning and the end of the year. Also, according to Bulletin B-i2 the <br />monetary position result and the exchange gain or loss are not treated in their entirety as part of resources provided by or <br />used in operating activities. <br />2 Pdabeel Plarties <br />in the years ended December 31, 2001 and 2000, the Company had the following transactions with related parties: <br />2001 2000 <br />Financing cost (income), net Ps. 2,349 Ps. (1,356) <br />other expenses, net Ps. 16,943 Ps. 10,180 <br />(Tho-ads of Mexican pesos with purchasing power at December 31. 2001 and thousands of <br />US. dollars, except for per share values and exchange rates)