DEFERRED INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2019

Deferred income tax [Abstract]

Schedule of changes in deferred income tax

Changes in deferred income tax are as follows:

	As of December 31,
	2019		2018
At the beginning of the year	(340,207	)	(392,265	)
Translation differences	25,166		(7,201	)
Effect of changes in tax law (Note 11)	16,979		—
Effect of initial inflation adjustment	—		(182,773	)
Credits (Charges) directly to other comprehensive income	19,537		9,547
Deferred tax (charge) credit (Note 11)	38,785		232,485
At the end of the year	(239,740	)	(340,207	)

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, 2019
At the beginning of the year	(522,455	)	(41,316	)	(15,926	)	(1,088	)	(580,785	)
Translation differences	27,077		2,604		316		—		29,997
Income statement credit (charge)	58,002		(24,748	)	(1,499	)	(101	)	31,654
At the end of the year	(437,376	)	(63,460	)	(17,109	)	(1,189	)	(519,134	)

Deferred tax assets	Provisions		Trade receivables		Tax losses (1)	Other		Total at December 31, 2019
At the beginning of the year	72,947		11,265		33,382	122,984		240,578
Translation differences	(572	)	(539	)	—	(3,720	)	(4,831	)
Credits (Charges) directly to other comprehensive income	—		—		—	19,537		19,537
Effect of changes in tax law	—		—		—	16,979		16,979
Income statement credit (charge)	(26,721	)	(526	)	9,384	24,994		7,131
At the end of the year	45,654		10,200		42,766	180,774		279,394

(1) As of December 31, 2019, the recognized deferred tax assets on tax losses amount to $42,766 and there are net unrecognized deferred tax assets of $0.4 billion and unrecognized tax losses amounting to $1.4 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, 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 (2)		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	)
Charges directly to other comprehensive income	—		—		—		9,547		9,547
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

(2) 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 $0.4 billion and unrecognized tax losses amounting to $1.3 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,
	2019		2018
Deferred tax assets to be recovered after more than 12 months	203,607		153,681
Deferred tax assets to be recovered within 12 months	75,787		86,897
Deferred tax liabilities to be settled after more than 12 months	(454,763	)	(538,854	)
Deferred tax liabilities to be settled within 12 months	(64,371	)	(41,931	)
	(239,740	)	(340,207	)