ANNUAL INTEGRATED REPORT 2021
ANNUAL INTEGRATED REPORT 2021 | AXTEL
=
133
133
estimated future cash outflows using discount rates in conformity
with IAS 19, Employee Benefits, that are denominated in the
currency in which the benefits will be paid, and have maturities
that approximate the terms of the pension liability.
Actuarial remeasurements arising from adjustments and changes
in actuarial assumptions are recognized directly in other items of
the comprehensive (loss) income in the year as they occur, and
there will be no reclassified to profit or loss of the period.
The Company determines the net finance expense (income) by
applying the discount rate to the liability (asset) from net defined
benefits.
Past-service costs are recognized immediately in the consolidated
statement of income.
ii. Post-employment medical benefits
The Company provides medical benefits to retired employees after
termination of employment. Elegibility for these benefits usually
depends on the employee having worked up to the retirement age
and having completed a minimum number of years of service. The
expected costs of these benefits are accrued over the period of
employment using the same criteria as those described for defined
benefit pension plans.
iii. Termination benefits
Termination benefits are payable when the Company terminates
the employment contract before the normal retirement date or
when the employee accepts voluntary severance in exchange for
these benefits. The Company recognizes benefits on the following
dates, whichever occurs first: (a) when the Company can no longer
withdraw the offer of these benefits, and (b) when the Company
recognizes the costs from restructuring within the scope of the IAS
37 and it involves the payment of termination benefits. If there is an
offer that promotes the termination of the employment relationship
voluntarily by employees, termination benefits are valued based on
the number of employees expected to accept the offer. Benefits
that will be paid in the long term are discounted at their present
value.
As of December 31, 2021, 2020 and 2019, the Company recognized
a termination expense in the consolidated statement of income for
$39,407, $171,893 and $ 92,989, respectively.
iv. Short-term benefits
The Company provides benefits to employees in the short term,
which may include wages, salaries, annual compensation and
bonuses payable within 12 months. The Company recognizes an
undiscounted provision when it is contractually obligated or when
past practice has created an obligation.
v. Statutory employee profit sharing (PTU in Spanish) and bonuses
The Company recognizes a liability and an expense for bonuses and
statutory employee profit sharing when it has a legal or assumed
obligation to pay these benefits and determines the amount to
be recognized based on the tax profit for the year after certain
adjustments.View entire presentation