Management Report 2020 slide image

Management Report 2020

- Management Report 2020 Right of use asset Liabilities leasing current Liabilities leasing - non current Consolidated Considerations Considerations without inflation¹ 828,496 162,258 772,026 with inflation² 1,004,628 165,421 939,717 1. Discounted cash flow without considering projected future inflation. 2. Discounted cash flow considering projected future inflation. Below is the gross contractual flow: Parent Company Consolidated Considera- Considera- Considera- Considera- tions without tions with in- inflation¹ flation² inflation¹ tions without tions with in- flation² Up to year 373,173 381,912 167,950 1 to 2 years 368,208 391,147 161,396 171,293 170,243 2 to 3 years 363,507 401,337 156,185 171,147 3 to 4 years 339,393 390,235 130,314 148,749 4 to 5 years 330,710 396,864 110,445 131,493 Over 5 years 2,743,187 4,082,762 626,965 876,695 4,518,178 6,044,255 1,353,255 1,669,621 1. Discounted cash flow without considering projected future inflation. 2. Discounted cash flow considering projected future inflation. SLC Agrícola CVM Resolution 859, of July 7, 2020, approved the document for revision of Technical Pronouncements no. 16, referring to Technical Pronouncement IFRS 16 / CPC 06 (R2) Leases, issued by the Accounting Pronouncements Committee CPC, bringing the practical procedures described below in its wording. A lessee may choose not to assess whether a lease concession related to COVID-19 is a lease modification. The lessee who makes this option must ac- count for any change in lease payments resulting from the lease concession related to COVID-19 in the same way that it would account for the change that applies IFRS 16 (CPC 06 (R2)) if the change were not a modification of the lease. The practical expedient applies only to rental concessions that occur as a di- rect consequence of COVID-19 and only if all of the following conditions are met: " The change in lease payments results in a revised consideration for the lease that is substantially the same or less than the consideration for the lease immediately prior to the change; Any reduction in rental payments affects only payments originally due on or before June 30, 2021 (a rental concession would meet this condition if it results in reduced rental payments on or before June 30, 2021 and in- creased rental payments that extend beyond June 30, 2021); and There are no substantial changes to other lease terms and conditions. During the period ended December 31, 2020, there was no change in the Com- pany's lease contracts related to COVID-19, which would result in remeasure- ment of the lease liability. 105
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