Investor Presentaiton
In this scenario, the Company and its subsidiaries have been monitoring the
effects on the main critical accounting estimates and judgments, as well as
other balances with the potential to generate uncertainties and impacts on
the financial information disclosed.
2. Presentation of the condensed
consolidated interim financial
statements
Since the consolidated financial statements for the year ended December
31, 2021, we have not identified any additional impact to those disclosed in
the annual financial statements, concerning to the following topics:
(i) Reduction in the recoverable value of non-financial assets;
(ii) Recoverability of deferred tax assets;
(iii) Compliance with obligations contained in debt contracts;
(iv) Compliance with obligations assumed with customers and suppliers;
(v) Risk matrix for calculating the allowance for loan losses;
(vi) Inventory loss estimate due to low turnover and change in realizable
value.
Additionally, the Company has a solid liquidity position. In addition, the
subsidiaries VCSA and CBA have revolving credit facilities available in the
amount of USD 413 million (R$ 2,245) and USD 100 million (R$ 544), res-
pectively, on December 31, 2021. This position provides the Company with
conditions to mitigate the impacts of this adverse scenario, even if these
impacts are not fully known.
Considering the analysis of the information and data mentioned above, until
the time of the issuance of these interim consolidated financial statements,
the Company and its subsidiaries have not identified other relevant impacts
to be disclosed and do not have visibility of impacts or accounting eviden-
ce arising from the pandemic caused by COVID- 19 that imply changes in
accounting policies, in the main estimates established and in the critical
accounting judgments mentioned above.
2.1. Basis of preparation
(a) Condensed consolidated interim financial statements
The consolidated financial statements have been prepared and are being
presented in accordance with the accounting practices adopted in Brazil,
in effect on December 31, 2021, which includes the pronouncements
issued by the Accounting Pronouncements Committee (CPCs) and in accor-
dance with the International Financial Reporting Standards (International
Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board (IASB)) and interpretation of (IFRIC) and evidence all re-
levant information specific to the financial statements and are consistent
with those used by Management in its management.
The Company voluntarily discloses its consolidated statement of value
added, according to the accounting practices adopted in Brazil, applicable
to public companies and presented as an integral part of these financial
statements. In accordance with international practice, this statement is pre-
sented as additional information, without prejudice to the set of financial
statements.
The financial statements require the use of certain critical accounting esti-
mates. It also requires management to exercise judgment in the process of
applying the Company's accounting practices. The areas involving a higher
degree of judgment or complexity or areas where assumptions and estima-
tes are significant to the consolidated financial statements are disclosed in
Note 4.
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