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MEXICO CITY, April 15, 2013 (GLOBE NEWSWIRE) --
Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), the largest infrastructure and construction company in Mexico, provided additional information on the effect on its financial statements of the adoption of IFRS 11 "Joint Arrangements" and related pronouncements of the International Accounting Standards Board.
IFRS 11 establishes the principles for the presentation of financial information for parties that have a participation in agreements where control is exercised in a joint manner. ICA adopted these standards effective January 1, 2013, and prior period results will be restated for comparability. The first quarter 2013 results will be the first interim results prepared under the new standards.
IFRS 11 eliminates the use of proportional consolidation. It requires the analysis of the rights and obligations of each joint arrangement, in order to classify it as a joint operation or a joint venture. Joint operations are arrangements in which the parties (joint operators) have rights to the assets and obligations for the liabilities of the arrangement. A joint operator accounts for the assets, liabilities, income and expenses related to its participation in the joint operation. Joint ventures are arrangements in which the parties (joint venturers) have rights over the net assets of the agreement. A participant in a joint venture recognizes its participation in the joint venture as an investment using the equity method.
ICA has determined that the following legal entities are joint ventures that were previously accounted using proportional consolidation and will now be accounted using the equity method:
Legal entities reclassified as joint ventures
Rodio Kronsa, S.A.
Actica Sistemas, S. de R.L. de C.V.
C7AI Servicios Industriales Especializados, S.A. de C.V.
ICA Fluor, S. de R.L. de C.V. (and subsidiaries)
Autovía Necaxa Tihuatlan, S.A. de C.V.
Nuevo Necaxa - Tihuatlan highway
Suministro de Agua de Queretaro, S.A. de C.V
Aquos El Realito, S.A. de C.V.
El Realito aqueduct
Constructora de Infraestructura de Aguas Potosí, S.A. de C.V.
Infraestructura y Saneamiento de Atotonilco, S.A. de C.V.
Administración y Servicios Atotonilco, S.A. de C.V
Corporate and Other
Los Portales, S.A.
The estimated effect of application of IFRS 11 on selected line items of ICA's 2012 consolidated results is shown in the following table:
Empresas ICA Summary 2012 Financial Statements
Audited Financial Statements
Restated for application of IFRS 11
Share in net income of affiliated companies
Consolidated net income
Statement of cash flows
Cash and equivalents at beg. of period
Cash and equivalents at end of period
Other: Construction Backlog
As a result of adoption of IFRS 11 and the merger of the affordable housing business with Javer, in 2013 ICA will report consolidated results in the following segments: Civil Construction, Concessions, Airports, and Corporate and Other. ICA expects to provide relevant information on the performance of the principal non-consolidated businesses in its earnings reports or as material developments occur.