CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
OPERADORA DE SITES MEXICANOS, S.A.B. DE C.V. AND SUBSIDIARIES
1) Provisions, contingencies and commitments
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provision amounts are determined as the present value of the expected outflow of resources to settle the obligation. The
provisions are discounted using a pre-tax rate that reflects the current market conditions at the date of the statement of financial position and, when appropriate, the risks specific
to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as an interest expense.
Contingent liabilities are recognized only when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Also, contingencies
are recognized only when they generate a loss.
m) Asset retirement obligation
The Company records a reserve for the decommissioning costs associated with the sites where its passive infrastructure is located. Decommissioning costs are measured at the
present value of the costs expected to be incurred to settle the Company's obligation to decommission the assets. These costs are determined on the basis of the estimated cash
flows and the asset retirement costs are capitalized as part of the carrying amounts of the related assets. For purposes of this calculation, cash flows are discounted at a pre-tax rate
that reflects the risks associated with the asset retirement obligation. Reversals of previous discount rates are recognized in profit or loss as a financing cost as incurred.
Estimated future decommissioning costs are reviewed annually and are revised where needed. Changes in future cost estimates or discount rates are recognized as an increase or
a decrease in the carrying amount of the asset.
n) Employee benefits
The Company annually recognizes the liability for seniority premiums based on independent actuarial calculations applying the projected unit credit method, using financial
assumptions net of inflation. The latest actuarial calculation was prepared on 31 December 2022.
The Company creates a provision for the costs of compensated absences, such as paid annual leave, which is recognized using the accrual method.
o) Employee profit sharing
On September 1st 2021, as a result of the labor outsourcing reform, the Company hired the employees of Demonsa, S.A. de C.V. (the Transferor), and assumed all labor obligations
related to past services. Accordingly, the Company recognized a defined benefit obligation and any other assumed labor obligations through profit or loss for the year.
The Company is only required to pay employee profit sharing based on its own profits.
As a result of the labor outsourcing reform, in 2021 the method used to calculate employee profit sharing was modified. New requirements were established, whereby the employee
profit sharing payable to each employee is capped at three times their current monthly wage or the average employee profit sharing received by the employee in the three prior years
(assigned employee profit sharing), whichever is higher.
If the amount of employee profit sharing determined by applying the 10% rate to taxable profit is higher than the sum of the employee profit sharing allocated to each employee, the
latter must be considered as the amount of employee profit sharing payable for the period. In accordance with the Mexican Labor Law, the difference between these two amounts
does not generate a payment obligation either in the current or future periods.
If current employee profit sharing calculated using a 10% rate of an entity's taxable profit is equal to or less than the amount of the employee profit sharing assigned to each
employee, the former shall be considered as the current employee profit sharing for the period.
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