CONSOLIDATED STATEMENTS OF FINANCIAL POSITION slide image

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

OPERADORA DE SITES MEXICANOS, S.A.B. DE C.V. AND SUBSIDIARIES An analysis of the Company's equity investment in its subsidiaries as at 31 December 2022 and 2021 is as follows: Company name Irrevocable Trust No. 4594, Banco Actinver, Institución de Banca Múltiple Telesites Costa Rica, S.A. (TLC) Telesites Colombia, S.A.S. (TCO) c) Revenue recognition Rental and alteration service income % equity interest as at 31 December 2022 2021 Country Date of first consolidation Type of transaction 72.5% 100% -% 72.5% 100% 100% Mexico Costa Rica Colombia July 2020 August 2021 Infrastructure Infrastructure August 2021 Infrastructure The Company is primarily engaged in leasing passive infrastructure, which consists of non-electronic components used in telecommunications networks, such as towers, masts and other structures designed to support antennas for telecommunications and broadcasting. Alteration services to telephone carriers refer to the modifications that the Company makes to the passive infrastructure. Revenue from contracts with customers is recognized when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements under IFRS 15 Revenue from Contracts with Customers. Rents are reviewed and increased based on the National Consumer Price Index (NCPI) and the amount of rent is generally determined based on the specific characteristics of the sites where the leased passive infrastructure is. d) Use of estimates The preparation of financial statements in accordance with IFRS requires the use of estimates and assumptions in certain areas. Actual results could differ from these estimates. The Company based its estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the estimates and their effects are shown in the financial statements when they occur. These assumptions mostly refer to: • Useful life estimates of items of property and equipment • Allowance for expected credit losses Impairment in the value of long-lived assets • Fair value of financial instruments • Employee benefits • Asset retirement obligation 31
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