CULIACAN, Mexico, April 26 /PRNewswire-FirstCall/ -- Desarrolladora Homex, S.A.B. de C.V. ("Homex" or "the Company") ( HXM, BMV: HOMEX) today announced financial results for the First Quarter ended on March 31, 2010(1).
As previously stated, effective January 1, 2010, and in accordance with the INIF 14 rule, Homex recognizes its revenues, costs and expenses when the Company has transferred the control to the homebuyer. Homes under construction are now considered as inventory until they are titled.
We have presented 1Q09 figures on the same basis as 1Q10, since INIF 14 requires that all periods be presented on a consistent basis, giving effect to the new accounting standard.
As a result of the application of INIF-14, the inventory line item related to the capitalization of Comprehensive Financing Cost (CFC) on the Company's balance sheet at December 31, 2009 has been adjusted to Ps. 806 million from Ps. 244 million previously reported under the percentage of completion method. The adjustment results from the cancellation of previously recognized interest into Cost of Goods Sold (COGS), in line with the cancellation of revenues related to homes under construction and not titled during 2009.
Therefore, the capitalization of Comprehensive Financing Cost registered into COGS as of March 31, 2010 has been adjusted accordingly, and during 1Q10, the Company's capitalized interest applied to cost of sales has an excess of Ps. 189 million of capitalized interest above the accrued interest for the first quarter of 2010.
|SOURCE Desarrolladora Homex, S.A.B. de C.V.|
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