ANNUAL INTEGRATED REPORT 2021
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ANNUAL INTEGRATED REPORT 2021 | AXTEL
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enacted or substantially enacted at the statement of financial
position date, wherever the Company operates, and generates
taxable income on the total temporary differences resulting from
comparing the accounting and tax bases of assets and liabilities,
and that are expected to be applied when the deferred tax asset
is realized or the deferred tax liability is expected to be settled,
considering, when applicable, any tax-loss carryforwards, prior to
the recovery analysis. The effect of a change in current tax rates is
recognized in profit or loss of the period in which the rate change
is determined.
Management periodically evaluates positions taken in tax returns
with respect to situations in which the applicable law is subject to
interpretation. Provisions are recognized when appropriate based
on the amounts expected to be paid to the tax authorities.
Deferred tax assets are recognized only when it is probable that
future taxable profits will exist against which the deductions for
temporary differences can be taken.
Deferred income tax on temporary differences arising from
investments in subsidiaries, associates and joint agreements is
recognized, unless the period of reversal of temporary differences
is controlled by Axtel and it is probable that the temporary
differences will not revert in the foreseeable future.
Deferred tax assets and liabilities are offset when a legal right exists
and when taxes are levied by the same tax authority.
q. Employee benefits
i. Pension plans
Defined contribution plans:
A defined contribution plan is a pension plan under which the
Company pays fixed contributions to a separate entity. The
Company has no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay all
employees the benefits relating to their service in the current and
past periods. The contributions are recognized as employee benefit
expense on the date that the contribution is required.
Defined benefit plans:
A defined benefit plan is a plan, which specifies the amount
of the pension an employee will receive on retirement, usually
dependent on one or more factors such as age, years of service
and compensation.
The liability recognized in the consolidated statement of financial
position in respect of defined benefit plans is the present value
of the defined benefit obligation at the consolidated statement of
financial position date less the fair value of plan assets. The defined
benefit obligation is calculated annually by independent third
parties using the projected unit credit method. The present value
of the defined benefit obligation is determined by discounting theView entire presentation