Management Report 2020
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Management Report 2020
Impacts on income for the period
With the implementation of IFRS 16 / CPC 06 (R2), all leases were accounted
for under a single model, similar to the accounting of financial leases, bringing
a new financial component, which reduced the cost of production, due to the
effect of recording the adjustment to present value in the financial result. The
amount recorded in the financial result for the period represents R$ 154,759
in the parent company and R$ 61,106 in the consolidated.
The expense for the period related to variable lease payments not included in
the measurement of lease liabilities was R$ 6,553 in the parent company and
R$ 11,936 in the consolidated.
The Company has land lease agreements with its subsidiaries, as described in
note 14. The adoption of said rule caused differences between the results of
the parent company and the consolidated, which were adjusted in the calcula-
tion of equity of the parent company, so that the results of the parent compa-
ny's period and the consolidated result attributed to the controlling sharehold-
ers were equal, based on ICPC 09 (R2) - Individual Financial Statements, Sep-
arate Statements, Consolidated Statements and Application of the Equity
Method. The calculation of the equity method is shown in note 11.
Sub-lease of right of use asset
On December 27, 2019, a rural lease agreement was signed between SLC
Agrícola S.A with SLC Landco Empreendimentos Agrícolas S.A, for a minimum
period of 7 years. Concomitant with the signing of this rural lease, SLC Agrícola
S.A entered into a sublease agreement with Fazenda Perdizes Empreendimen-
tos Agrícolas S.A., for the same lease period.
The Parent Company's revenue in the period, resulting from the subleasing of
rights-of-use assets, was R$ 4,814.
Additional information
The Company, in full compliance with IFRS 16 / CPC 06 (R2), in measuring and
remeasuring its lease liabilities and the right to use, proceeded to use the
discounted cash flow technique without considering the projected future
SLC
Agrícola
inflation in the flows to be discounted, according to the prohibition imposed
by IFRS 16 / CPC 06 (R2).
As of December 31, 2020, the gross contractual flow of lease contracts entitled
to PIS / COFINS credit is R$ 4,448,983 in the parent company and R$
1,300,043 in the consolidated (R$ 2,489,415 in the parent company and R$
839,494 in the consolidated, in December 31, 2019). The potential PIS and
COFINS credit on the gross contractual flow, brought to present value, is R$
283,066 in the parent company and R$ 864,245 in the consolidated (R$
156,092 in the parent company and R$ 55,326 in the consolidated, as of De-
cember 31, 2019).
In compliance with the guidance of CVM's technical areas, as required in cir-
cular letter CVM / SNC/SEP/ nº 02/2019 in order to provide additional in-
formation to users, the comparative balances of the lease liability, the asset
are presented below rights of use, adjustment to present value and amortiza-
tion of the right of use considering the projection of future inflation in the
flows to be discounted.
When remeasuring lease liabilities, the Company projected cash flow with future
inflation, incorporating the inflation obtained through the quotation of future
contracts available at B3 SA - Brasil, Bolsa and Balcão, discounted at the same
rate identified in the initial measurement, presenting the impacts as below:
Right of use asset
Liabilities leasing - current
Liabilities leasing - non current
Parent Company
Considerations
without inflation¹
2,463,254
355,413
2,259,969
1. Discounted cash flow without considering projected future inflation.
2. Discounted cash flow considering projected future inflation.
Considerations
with inflation²
2,941,746
363,647
2,911,925
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