Cemex And Marietta Materials

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Goodwill and Intangible Assets

The intangible assets in CEMEX are recognized and identified at their fair value. Any portion of the purchase price, which is still unallocated, is recorded as goodwill; the goodwill is not amortized in CEMEX and is dependent on the impairment tests, which are held on a periodical basis. If applicative, the goodwill is attuned for any changes in the initial appraisal that was given to the assets that were purchased and/or the liabilities, which were assumed, within period of one year after their purchase. The CEMEX takes advantage of the intangible assets they have purchased, as well as the costs that are incurred in the evolution of these assets, when future economic benefits associated with the assets are identified and there is evidence of control over such benefits. (www.cemex.com)

Corporate Governance

The board of directors of CEMEX consists of highly capable qualified people, who have the requisite qualities. The members of the audit committee has a few requirements to gratify the applicative law, and one of the members of the committee of audit in the CEMEX, has to fulfill the essentials of a expert of financial matters, as required by the Sarbanes-Oxley Act of 2002. (www.cemex.com)

CEMEX has configured and positioned a number of things for the purpose of corporate governance

1)A internal control procedure, a formal process, to assist the authentication by the executive vice president of finance and planning and the CEO, relating to the information that CEMEX are usually presenting in their intermittent reports for the Securities and Exchange Commission of America.

2) An arrangement to make sure that the senior management acquires all the pertinent information well within time.

3) An organism for transmitting to the committee of audit concerns and the complaints regarding the audit and the accounting issues of the CEMEX.

4) A proper course of action for submitting the complaints regarding the misuse of assets and unethical conduct, while making sure that the confidentially and anonymity is there.

5) Designed a special team to abide by the best corporate-governance practices and the legal requirements pertaining to the company, and, whenever suitable, suggest additional improvements in the process. The code of ethics of CEMEX is a complete reflection of the requirements of Sarbanes Oxley Act. (www.cemex.com)


Goodwill and Intangible Assets

The goodwill of the company represents the surplus amount paid for the businesses against the predictable fair value of the assets and liabilities of the Marietta Materials. The Marietta Materials reviews the bearing value of the goodwill on an annual basis, i.e. on the 1st of October, for any possible changes. An temporary review is performed in between the duration of annual tests if the conditions or the facts show a possible change in the goodwill. If a mutilation review shows that the bearing value of the goodwill is changed, then a charge is recorded in the record books. The reporting units of Marietta Materials, is representing the level at which the ...
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