Investor Presentaiton
(b) Goodwill on acquisitions
Accounting policy
The Company and its subsidiaries use the acquisition method to account
for transactions classified as a business combination. The consideration
transferred for the acquisition of a subsidiary is the fair value of the assets
transferred, liabilities incurred and equity instruments. The consideration
transferred includes the fair value of any asset or liability resulting from a
contingent consideration agreement when applicable. Acquisition-related
costs are recorded in the income statement for the year as incurred.
Identifiable assets acquired and liabilities assumed in a business combination
are initially measured at fair values on the acquisition date. The Company
and its subsidiaries recognize the non-controlling interest in the acquiree,
both at fair value and at the proportional portion of the non-controlling
interest in the fair value of the acquiree's net assets. The non-controlling
interest to be recognized is determined on each acquisition.
Long steels
Latin America
Acergroup S.A.
Acerholding S.A.
Acerbrag S.A.
CBA
Brazil
Campos Novos Energia S.A.
Metalex Ltda.
Rio Verdinho Energia S.A.
2021
2020
149
149
5
5
1
1
155
155
31
31
49
49
29
29
Machadinho Energética S.A.
15
15
BAESA Energética Barra Grande S.A.
7
7
131
131
Votorantim Cimentos
North America
Europe, Asia and Africa
Latin America
Brazil
Cimento Vencemos do Amazonas Ltda.
Engemix S.A.
Nexa Resources
Latin America
Holding and other
2021
2020
Latin America
Votorantim Andina S.A.
2,494
2,163
1,953
1,831
13
13
16
16
Fazenda Bodoquena Ltda.
1
1
Jaguatirica Empreendimento Imobiliário SPE S.A.
5
17
22
7,181
6,579
64
64
76
76
4,600
4,147
(c) Impairment test for goodwill
Nexa Resources Perú S.A.A.
1,735
1,616
Nexa Resources Cajamarquilla S.A.
516
481
Brazil
Campos Novos Energia S.A.
Pollarix S.A.
26
26
1
2,278
2,124
158
Assets that have an indefinite useful life, for example goodwill, are not sub-
ject to amortization and are tested annually for impairment.
The Company and its subsidiaries evaluate at least annually the recoverabi-
lity of the carrying value of the operating segment of each CGU. The pro-
cess of estimating these values involves the use of assumptions, judgments
and estimates of future cash flows that represent the best estimate of the
Company and its subsidiaries.
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