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DEFERRED INCOME TAX (Tables)
 12 Months Ended
Dec. 31, 2018
Deferred income tax [Abstract]  
Schedule of changes in deferred income tax
Changes in deferred income tax are as follows:
 
As of December 31,
 
2018
 
2017
 
 
 
 
At the beginning of the year
(392,265
)
 
(523,209
)
 
 
 
 
Acquisition of business (Note 3)
—

 
13,686

Translation differences
(7,201
)
 
(1,052
)
Effect of changes in tax law (Note 11)
—

 
7,455

Effect of initial inflation adjustment
(182,773
)
 
—

Credits (Charges) directly to other comprehensive income
9,547

 
4,808

Deferred tax (charge) credit (Note 11)
232,485

 
106,047

 
 
 
 
At the end of the year
(340,207
)
 
(392,265
)
Changes in deferred tax assets and liabilities
The changes in deferred tax assets and liabilities (prior to offsetting the balances within the same tax jurisdiction) during the year are as follows:
Deferred tax liabilities
 
PP&E
 
Inventories
 
Intangible
assets
 
Other
 
Total at December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
At the beginning of the year
 
(539,839
)
 
(57,006
)
 
(18,692
)
 
(2,056
)
 
(617,593
)
 
 
 
 
 
 
 
 
 
 
 
Translation differences
 
9,726

 
527

 
497

 
(688
)
 
10,062

Effect of initial inflation adjustment
 
(161,044
)
 
(20,967
)
 
(762
)
 
—

 
(182,773
)
Income statement credit (charge)
 
168,702

 
36,130

 
3,031

 
1,656

 
209,519

 
 
 
 
 
 
 
 
 
 
 
At the end of the year
 
(522,455
)
 
(41,316
)
 
(15,926
)
 
(1,088
)
 
(580,785
)
Deferred tax assets
 
Provisions
 
Trade
receivables
 
Tax
losses (1)
 
Other
 
Total at December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
At the beginning of the year
 
61,101

 
8,200

 
43,355

 
112,672

 
225,328

 
 
 
 
 
 
 
 
 
 
 
Translation differences
 
(6,036
)
 
(1,089
)
 
—

 
(10,137
)
 
(17,263
)
Credits (Charges) directly to other comprehensive income
 
—

 
—

 
—

 
9,547

 
9,547

Effect of changes in tax law
 
—

 
—

 
—

 
—

 
—

Income statement credit (charge)
 
17,882

 
4,154

 
(9,973
)
 
10,903

 
22,966

 
 
 
 
 
 
 
 
 
 
 
At the end of the year
 
72,947

 
11,265

 
33,382

 
122,984

 
240,578

(1) As of December 31, 2018, the recognized deferred tax assets on tax losses amount to $33,383 and there are net unrecognized deferred tax assets of $0.7 billion and unrecognized tax losses amounting to $1.2 billion. These two last effects are connected to the acquisition of Ternium Brasil (see Note 3).
Deferred tax liabilities
 
PP&E
 
Inventories
 
Intangible
assets
 
Other
 
Total at December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
At the beginning of the year
 
(625,963
)
 
(48,637
)
 
(28,050
)
 
(3,050
)
 
(705,700
)
 
 
 
 
 
 
 
 
 
 
 
Translation differences
 
6,907

 
(215
)
 
67

 
(29
)
 
6,730

Charges directly to other comprehensive income
 
—

 
—

 
—

 
(108
)
 
(108
)
Effect of changes in tax law
 
17,293

 
185

 
352

 
11

 
17,841

Income statement credit (charge)
 
61,924

 
(8,339
)
 
8,939

 
1,120

 
63,644

 
 
 
 
 
 
 
 
 
 
 
At the end of the year
 
(539,839
)
 
(57,006
)
 
(18,692
)
 
(2,056
)
 
(617,593
)
Deferred tax assets
 
Provisions
 
Trade
receivables
 
Tax losses
(2)
 
Other
 
Total at December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
At the beginning of the year
 
53,188

 
7,488

 
56,297

 
65,518

 
182,491

 
 
 
 
 
 
 
 
 
 
 
Translation differences
 
(501
)
 
(273
)
 
—

 
(7,008
)
 
(7,782
)
Acquisition of business (Note 3)
 
—

 
—

 
—

 
13,686

 
13,686

Charges directly to other comprehensive income
 
—

 
—

 
—

 
4,916

 
4,916

Effect of changes in tax law
 
(2,692
)
 
(238
)
 
—

 
(7,456
)
 
(10,386
)
Income statement credit (charge)
 
11,106

 
1,223

 
(12,942
)
 
43,016

 
42,403

 
 
 
 
 
 
 
 
 
 
 
At the end of the year
 
61,101

 
8,200

 
43,355

 
112,672

 
225,328

(2) As of December 31, 2017, the recognized deferred tax assets on tax losses amount to $43,355 and there are no net unrecognized deferred tax assets of $0.9 billion and unrecognized tax losses amounting to $1.5 billion. These two last effects are connected to the acquisition of Ternium Brasil (see note 3).
Schedule of deferred tax assets and liabilities
The amounts shown in the statement of financial position (prior to offsetting the balances within the same tax jurisdiction) include the following:
 
As of December 31,
 
2018
 
2017
 
 
 
 
Deferred tax assets to be recovered after more than 12 months
153,681

 
155,350

Deferred tax assets to be recovered within 12 months
86,897

 
69,978

Deferred tax liabilities to be settled after more than 12 months
(538,854
)
 
(558,890
)
Deferred tax liabilities to be settled within 12 months
(41,931
)
 
(58,703
)
 
 
 
 
 
(340,207
)
 
(392,265
)