2020 Annual Report
2020 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
MEGACABLE.
Shareholding
Subsidiary
2020
2019
Corporate Purpose
Servicios de Administración y
Operación
99.00
99.00
Administrative staff services.
Tele Asesores
99.00
99.00
Administrative staff services.
Entretenimiento Satelital
95.00
95.00
Operation of the "video rola" channel.
Servicios Especiales Turandot
97.66
97.66
Werther Administración
Integral
99.83
99.83
Corporativo de Comunicación
y Redes de GDL
51.00
51.00
Servicio y Equipo en Telefonía,
Internet y Televisión
51.00
51.00
Leasing of equipment and infrastructure for the provision of
telephone services.
Leasing of equipment and infrastructure for the provision of
telephone services.
Leasing of equipment and infrastructure for the provision of
cable, internet, and telephone services.
Holder of the subscriber rights for the Michoacán and
Zacatecas systems, among others.
b) Changes in ownership interest in subsidiaries without loss of control
The Group recognizes transactions with non-controlling shareholders as transactions between Group shareholders. When
acquiring non-controlling interest, the difference between the consideration paid and the interest acquired in the subsidiary
measured at its book value is recorded in equity. Profits or losses on the disposal of an interest in a subsidiary that does not
imply loss of control by the Group, are also recognized in equity.
c) Disposal of subsidiaries
When the Group loses control of an entity, any interest retained in said entity is measured at its fair value and the effect is
recognized in profit or loss. Subsequently, said fair value is considered the initial book value for purposes of recognizing
the retained interest in an associate, joint venture, or financial asset, as applicable. In like manner, the amounts previously
recognized in other comprehensive income in relation to that entity are canceled as if the Group had directly disposed of
the respective assets or liabilities. This means that the amounts previously recognized in other comprehensive income are
reclassified to income for the year.
d) Joint venture
The Group applies IFRS 11 to all of its joint arrangements. Under IFRS 11, investments in joint arrangements are classified as
joint operations or joint ventures depending on each investor's contractual rights and obligations. The Group has analyzed the
nature of its joint arrangements and determined that they are joint ventures. Interest in joint ventures are recognized using the
equity method.
Under the equity method, interest in joint ventures is initially recognized at cost and subsequently adjusted to recognize the
Group's share of post-acquisition profits and losses, as well as movements in other comprehensive income. When the Group's
interest in the loss of a joint venture equals or exceeds its interest in the joint venture (including any long-term interest that
is substantially part of the Group's net investment in the joint venture), the Group does not recognize any additional losses,
unless it has incurred obligations or made payments on behalf of the joint venture.
Unrealized gains on transactions between Group companies and their joint ventures are eliminated to the extent of the
Group's interest in the joint venture. Unrealized losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies have been changed, where necessary, so as to ensure consistency
with the policies adopted by the Group.
The Group, as well as investors Televisa and Telefónica jointly invested in Grupo de Telecomunicaciones de Alta Capacidad,
S.A.P.I. de C. V. (GTAC).
(c)
Disclosure of changes in accounting policies-
The Group adopted the following standards for the first time beginning on January 1, 2020:
The Group has initially adopted Definition of a Business (Amendments to IFRS 3) and Interest Rate Benchmark Reform
(Amendments to IFRS 9, IAS 39 and IFRS 7) from 1 January 2020. A number of other new standards are also effective from 1
January 2020 but they do not have a material effect on the Group's financial statements.
(d)
Financial information by segments-
The financial information by operating segments is presented in a way that is consistent with the information included in the
internal reports provided to the Group's highest operational decision-making authority. This highest authority is responsible
for allocating resources and assessing the performance of the Group's operating segments and is exercised by the Board of
Directors made up of the management team at the C-Suite level (based at the Guadalajara facilities).
These segments are managed independently (massive and business) since the services provided and the markets they serve
are different. The Group performs its activities through various subsidiary companies. See Note 28.
(e)
Foreign currency transactions and balances-
Foreign currency transactions are translated into functional currency using the exchange rates in force on the date
the transaction was carried out or the exchange rate in effect on the valuation date when the line items are revalued.
Profits and losses from exchange rate fluctuations that result either from the liquidation of such transactions or from
the conversion of monetary assets and liabilities denominated in foreign currency at the exchange rates at year-end, are
recognized in the statement of comprehensive income. Profits and losses from exchange rate fluctuations are recognized
in finance income/expenses.
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