ANNUAL INTEGRATED REPORT 2021
ANNUAL INTEGRATED REPORT 2021 | AXTEL
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50
150
=
Of the total depreciation expense, $2,596,292, $2,667,981 and
$2,879,263 were charged to cost of sales, $60,513, $71,670 and $122,709
to selling and administrative expenses, and $0, $0 and $162,780 in
discontinued operations for 2021, 2020 and 2019, respectively.
Projects in process mainly include telecommunications network
equipment to extend the Company's infrastructure and the
capitalization period is approximately twelve months.
For the years ended December 31, 2021, 2020 and 2019, the Company
capitalized $18,079, $12,776 and $15,434, respectively, of borrowing
costs related to qualifying assets of $422,817, $583,175 and $410,323,
respectively. These amounts were capitalized based on an interest
rate of 7.11%, 7.59% and 7.63%, respectively.
Net book value
Balances as of December 31, 2019
Balances as of December 31, 2020
Balances as of December 31, 2021
Accumulated depreciation 2019
Accumulated depreciation 2020
Accumulated depreciation 2021
Land &
buildings
Telecommu-
nications
equipment
and net-
works
Furniture
and office
equip-
ment
Computer
equipment
Vehicles
$ 440,826
Total
$ 366,510
$305,030
$ (238,408)
$ (218,706)
$ (165,857)
$187,192
$154,500
$126,144
$(30,256)
$(32,355)
$(28,334)
$ 642
$ 28,324
$ 4,263
$ 661,246
$ 549
$ 28,668
$ 42,644
$ 592,871
$ 470
$ 33,745
$ 33,133
$ 498,522
$ (79)
$ (79)
$ (79)
$ (22,768)
$ (2,599)
$ (27,248)
$ (9,586)
$(294,110)
$(287,974)
$ (26,116)
$ (14,242)
$(234,628)
ii. Additions to the net book value of the right of use asset as of
December 31, 2021, 2020 and 2019 amounted to $240,512, $239,952
and $7,103, respectively.
Expenses recognized in the consolidated statement of income for the
year ended December 31, 2021, 2020 and 2019, are as follows.
RIGHT OF USE ASSET
Rent expenses from short-term
leases
2021
2020
2019
$942,627
$ 893,842
$ 892,752
The Company leases a different set of fixed assets including, buildings,
machinery and equipment, vehicles, and computer equipment. The
average term of the lease contracts is from 3 to 6 years.
i. The right of use recognized in the consolidated statement of
financial position as of December 31, 2020 and 2019, is as follows:
The Company has not signed lease contracts, which at the date of the
consolidated financial statements have not started.
During the year, the Company did not realize significant extensions to
the term of its lease contracts.View entire presentation