Property, Plant and Equipment Accounting Policy
Property, plant and equipment are recorded at acquisition cost, net of accumulated depreciation. Depreciation is computed on the deemed cost of the assets using the straight line method, based on the estimated useful lives of the related assets, beginning the month after they become available for use.
America Movil periodically assesses the residual values, useful lives and depreciation methods associated with its property, plant and equipment. If necessary, the effects of any changes in accounting estimates is recognized prospectively, at the closing of each period, in accordance with IAS 8, "Accounting Policies, Changes in Accounting Estimates and Errors".
Borrowing costs that are incurred for general financing for construction in progress for periods exceeding 6 months are capitalized as part of the cost of the asset.
During 2010 and 2011 the borrowing costs that were capitalized amounted to Ps.2,540,837 and Ps.3,845,609, respectively.
Inventories for the operation of telephone plant are valued using the average cost method, without exceeding their net realizable value.
The valuation of inventories for the operation of the telephone plant considered obsolete, defective or slow-moving, are reduced to their estimated net realizable value. The estimate of the recovery value of inventories is based on their age and turnover.
In addition to the purchase price and costs directly attributable to preparing an asset in terms of its physical location and condition for use as intended by management, the cost also includes the estimated costs for the dismantlement and removal of the asset, and for restoration the site where it is located. For property, plant and equipment made up of several components with different useful lives, the major individual components are depreciated over their individual useful lives. Maintenance costs and repairs are expensed as incurred.
The net book value of property, plant and equipment items is removed from the balance sheet at the time the asset is sold or when no future economic benefits are expected from its use or sale. Any gains or losses on the sale of property, plant and equipment represent the difference between net proceeds of the sale, if any, and the net book value of the item at the time of sale. These gains or losses are recognized as either other operating income or operating expenses upon sale.
Annual depreciation rates are as follows:
| Telephone plant |
3.3% to 33% |
| Performance monitoring equipment in the telephone plant |
33% |
| Buildings |
3% |
| Other assets |
10% to 33% |
The carrying value of property, plant and equipment is reviewed whenever there are indicators of impairment in such assets. Whenever an asset's recovery value, which is the greater of the asset's selling price and its value in use (the present value of future cash flows), is less than the asset's net carrying value, the difference is recognized as an impairment loss.
For the years ended December 31, 2009 2010 and 2011, no impairment losses were recognized.
Source: America Movil S.A.B. de C.V., Annual Report
Property, Plant and Equipment Disclosure
You have visited 10 password protected pages for free. Others contain data covered by 
.
Sign Up Now to get full access to whole website and cut out all advertisements.
America Movil S.A.B. de C.V., Statement of Financial Position, Property, Plant and Equipment
USD $ in thousands, translated from MXN $
Source: Based on data from America Movil S.A.B. de C.V. Annual Reports
| Item |
Description |
The company |
| Telephone plant and equipment |
Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services. |
America Movil S.A.B. de C.V.'s telephone plant and equipment declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
| Construction in process and advances to equipment suppliers |
Carrying amount at the balance sheet date of long-lived asset under construction that include construction costs to date on capital projects that have not been completed and assets being constructed that are not ready to be placed into service. |
America Movil S.A.B. de C.V.'s construction in process and advances to equipment suppliers increased from 2009 to 2010 and from 2010 to 2011.
|
| Property, plant and equipment, cost |
Carrying amount at the balance sheet date for long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, physical structures, machinery, vehicles, furniture, computer equipment, construction in progress, and similar items. Amount does not include depreciation. |
America Movil S.A.B. de C.V.'s property, plant and equipment, cost increased from 2009 to 2010 and from 2010 to 2011.
|
| Property, plant and equipment, net |
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. |
America Movil S.A.B. de C.V.'s property, plant and equipment, net increased from 2009 to 2010 and from 2010 to 2011.
|
Property, Plant and Equipment Ratios (Summary)
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
America Movil S.A.B. de C.V., Property, Plant and Equipment Ratios
| Ratio |
Description |
The company |
| Average age |
As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. |
America Movil S.A.B. de C.V.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
|
| Estimated total useful life |
Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. |
America Movil S.A.B. de C.V.'s estimated total useful life of depreciable property, plant and equipment declined from 2009 to 2010 but then slightly increased from 2010 to 2011.
|
| Estimated time elapsed since purchase |
The approximate age in years of a company's fixed assets. Useful for comparison purposes. |
America Movil S.A.B. de C.V.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
|
| Estimated remaining life |
|
America Movil S.A.B. de C.V.'s estimated remaining life of depreciable property, plant and equipment declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
Average Age
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Average age |
As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. |
America Movil S.A.B. de C.V.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
|
Estimated Total Useful Life
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Estimated total useful life |
Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. |
America Movil S.A.B. de C.V.'s estimated total useful life of depreciable property, plant and equipment declined from 2009 to 2010 but then slightly increased from 2010 to 2011.
|
Estimated Age, Time Elapsed Since Purchase
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Estimated time elapsed since purchase |
The approximate age in years of a company's fixed assets. Useful for comparison purposes. |
America Movil S.A.B. de C.V.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
|
Estimated Remaining Life
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Estimated remaining life |
|
America Movil S.A.B. de C.V.'s estimated remaining life of depreciable property, plant and equipment declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
|
