Investor Presentaiton
123
ANNUAL INTEGRATED REPORT 2021 | AXTEL
=
e. Cash and cash equivalents
Cash and cash equivalents include cash on hand, bank deposits
available for operations and other short-term investments of high
credit-quality and liquidity with original maturities of three months
or less, all of which are subject to insignificant risk of changes in
value.
f. Restricted cash
Cash whose restrictions cause them not to comply with the
definition of cash and cash equivalents given above, are presented
in a separate line in the consolidated statement of financial position
and are excluded from cash and cash equivalents in the consolidated
statement of cash flows.
g. Financial instruments
Financial assets
The Company classifies and measures its financial assets based
on the Company's business model to manage financial assets, and
on the characteristics of the contractual cash flows of such assets.
This way financial assets can be classified at amortized cost, at fair
value through other comprehensive (loss) income, and at fair value
through profit or loss. Management determines the classification
of its financial assets upon initial recognition. Purchases and sales
of financial assets are recognized at settlement date.
Financial assets are entirely written off when the right to receive
the related cash flows expires or is transferred, and the Company
has also substantially transferred all the risks and rewards of its
ownership, as well as the control of the financial asset.
Classes of financial assets
i. Financial assets at amortized cost
Financial assets at amortized cost are financial assets that i) are
held within a business model whose objective is to hold said assets
in order to collect contractual cash flows and ii) the contractual
terms of the financial asset give rise, on specified dates, to cash
flows that are solely payments of principal and interest on the
amount of outstanding principal.
ii. Financial assets at fair value through other comprehensive (loss)
income
Financial assets at fair value through other comprehensive (loss)
income are those whose business model is based in obtaining
contractual cash flows and sell the financial assets; and the
contractual terms of the financial asset give rise, on specified dates,
to cash flows that are solely payments of principal and interest
on the amount of outstanding principal. As of December 31, 2021,
2020 and 2019, the Company does not have financial assets to be
measured at fair value through other comprehensive (loss) income.
iii. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss, in addition to
those described in point / in this section, are financial assets that
do not meet the characteristics to be measured at amortized costView entire presentation