Investor Presentaiton
1. Intangible assets
Intangible assets are valued at the lower of either acquisition cost or their fair value
at the acquisition date and are classified based on their useful lives, which may be
definite or indefinite. Indefinite-lived assets are not amortized; however, they are tested
annually for impairment, in conformity with IAS 36, Impairment of Assets. Definite-lived
assets are amortized using the straight-line method.
m. Assets and liabilities held for sale and discontinued operations
In conformity with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations,
non-current assets and disposal groups are classified as held for sale if their carrying
amount will be recovered principally through a sale transaction rather than through
continuing use. These assets are not subject to depreciation and are measured at the
lower of their previous carrying amount and fair value less costs to sell.
Assets and liabilities that meet the criteria to be classified as held for sale are presented
separately in the statement of financial position from the rest of the assets and liabilities.
Income, expenses and costs related to this transaction are separately disclosed and
recognized as part of the discontinued operations line in the consolidated statement of
comprehensive income.
n. Liabilities and provisions
In conformity with IAS 37, Provisions, Contingent Liabilities and Contingent Assets, accrued
liabilities are recognized whenever the Company has current obligations (legal or assumed)
resulting from past events, that can be reasonably estimated and that will most likely give
rise to a future cash disbursement for their settlement. Reimbursements are recognized
net of the related obligation when it is certain that the reimbursement will be obtained.
Provision expenses are presented in the consolidated statement of comprehensive income
net of any corresponding reimbursements.
Liabilities for traditional deposits of the Walmart Bank are comprised of demand deposits in
debit card accounts and compulsory term deposits. These liabilities are recorded at deposit
or placement cost, plus accrued interest.
o. Contingent liabilities
The contingent liability related to the acquisition of Walmart Central America is valued
at present value at the date of the financial statements.
The acquisition will require additional payments in shares and in cash provided Walmart
Central America reaches a certain profitability level during a period of no longer than
ten years after the agreement signing date.
p. Taxes on profits
Deferred taxes on profits are recognized using the asset and liability method, in
conformity with IAS 12, Income Taxes. Under this method, deferred taxes are recognized
on all temporary differences between the financial reporting and tax values of assets
and liabilities, applying the enacted income tax rate, effective as of the date of the
consolidated statement of financial position, or the enacted rate that will be in effect
when the deferred tax assets and liabilities are expected to be recovered or settled.
The Company periodically evaluates the possibility of recovering deferred tax assets.
Current year taxes on profits are presented as a short-term liability or current asset, net
of prepayments made during the year.
q. Employee benefits
In conformity with the laws of each country in which the Company operates, the termination
benefits for retirement or death to which the Company's employees are entitled, are as follows:
Mexico:
Seniority premiums accruing to employees under the Mexican Labor Law are recognized
as a cost of the years in which services are rendered, based on actuarial computations
made by an independent expert, using the projected unit credit method, in conformity
with IAS 19, Employee Benefits.
Actuarial gains and losses are recognized as they accrue directly in the consolidated
statement of comprehensive income, in conformity with IAS 19.
Employee profit sharing is presented in operating results as part of the general expenses
line and represents a liability due and payable in less than one year.
All other payments accruing to employees or their beneficiaries in the event of
involuntary retirement or death, in terms of the Mexican Labor Law, are expensed as
incurred.
Central America:
Termination retirement benefits to which employees of the Walmart Central America
companies are entitled under the labor laws of each country and are recorded as
liabilities based on actuarial valuations carried out by independent experts.
In Guatemala, employees are entitled to termination benefits after three years of service
in the Company, except in the case of justified dismissals.
In El Salvador and Honduras, employees are entitled to termination benefits after one
year of service in the Company, except in the case of justified dismissals.
2013 Financial and
Social Responsibility Report
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