ANNUAL INTEGRATED REPORT 2021
ANNUAL INTEGRATED REPORT 2021 | AXTEL
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The consolidated financial statements have been prepared on a
historical cost basis, except for certain financial instruments, which
are measured at fair value.
The preparation of the consolidated financial statements in
conformity with IFRS requires the use of certain critical accounting
estimates. Additionally, it requires management to exercise judgment
in the process of applying the Company's accounting policies. The
areas involving a higher degree of judgment or complexity, as well
as the areas where judgments and estimates are significant to the
consolidated financial statements, are disclosed in Note 5.
The Company included the consolidated financial statements as
of and for the year ended December 31, 2019 and its respective
footnotes to present a third comparative period.
b. Changes in accounting policies and disclosures
i. New standards and changes adopted by the Company.
In the current year, the Company has applied a number of new
and amended IFRS and interpretations issued by the International
Accounting Standards Board ("IASB") that are mandatorily effective
for an accounting period that begins on or after January 1, 2021.
The conclusions related to their adoption are described as follows:
Amendments to IFRS 16, Rent concessions related to Covid-19
after June 30, 2021
The amendments to IFRS 16 extend the amendment issued in May
2020 for an additional year, which introduces a practical expedient
that provides lessees the option not to assess whether a rent
concession that meets certain conditions is a lease modification.
The practical expedient is applicable to rent concessions occurring
as a direct consequence of the COVID-19 pandemic and only if all
of the following conditions are met:
•
The change in the lease payments results in revised consideration
for the lease that is substantially the same as, or less than, the
consideration for the lease immediately preceding the change;
Any reduction in lease payments affects only payments due on
or before June 30, 2022 (originally due on or before June 30,
2021); and
There is no substantive change to other terms and conditions
of the lease.
Additionally, the modifications include the following changes:
That the lessee applies such modifications for annual periods
beginning on or after April 1, 2021.
•
•
That the lessees who apply such modifications do so
retrospectively, recognizing the cumulative effect of having
applied the modifications initially as an adjustment to the initial
balance of retained earnings at the beginning of the annual
period in which the lessee applies these modifications.
The Company did not have any impacts on its consolidated financial
statements due to adopting the amendment, as it did not receive any
rent concessions related to COVID-19 during the year.
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