Investor Presentaiton
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b.
Basis of measurement
The Trust's consolidated financial statements have been prepared on the basis of historical cost. Historical
cost is generally based on the fair value of the cosideration given in exchange for assets.
C₁
Basis for financial statement consolidation
The consolidated financial statements include those of Fibra INN and those of its subsidiary, Administradora
de Activos Fibra INN, S.C., of which it holds a 99.9% of capital stock and where it holds control. Control is
achieved when Fibra INN:
.
•
Has power over the investee;
Is exposed, or has rights, to variable returns from its involvement with an investee; and
•
Has the ability to affect those returns through its power over the investee.
Significant intercompany balances and transactions have been eliminated.
d. Local, functional and reporting currency
The functional currency of the Trust is the Mexican peso, which is the same to its local and reporting
currencies.
e.
Income statement
Costs and expenses presented in the consolidated income statement were classified according to their
nature.
Fibra INN shows line items of gross margin and operating income since they are considered important
performance indicators for the users of financial information. Income and expenses with operating nature
are presented within this line item.
f.
Statement of cash flows
Fibra INN presents its statement of cash flows using the indirect method.
3.
Summary of significant accounting policies-
The Trust's significant accounting policies are as follows:
a.
Financial instruments-
Financial assets and financial liabilities are recognized when the Trust is subject to the underlying instrument's
contractual terms.
Financial assets and liabilities are initially recognized at fair value. Transaction costs directly attributable
to the acquisition or issuance of a financial asset or liability (other than the financial assets and liabilities
recognized at fair value through profit or loss) are added or deducted from the fair value of financial
assets or liabilities, if any, upon initial recognition. Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at fair value with changes in profit or loss are immediately
recognized in results. Financial assets and liabilities are offset and the net amount is presented in the
statement of financial situation when and solely when, the Company has the legal right to offset the
amounts and intends to either settle on a net basis, or realize the asset and settle the liability simultaneously.
The subsequent valuation of the financial instruments depends on the category in which they are classified.
The accounting treatment for each category of financial instruments is described as follows:
As of the date of these consolidated financial statements, the Trust only maintains financial instruments
classified as loans and receivables, as well as, short-term held-to-maturity assets as part of cash
equivalents.
Financial assets
Financial assets are classified according to the following specific categories: financial assets at fair value
through profit or loss, investments, and loans and receivables. Classification depends on the nature and
the purpose of the financial assets and is determined at the time of initial recognition.
Cash and cash equivalents
Cash and cash equivalents consist mainly of bank deposits in checking accounts and short-term
investments. Cash is stated at nominal value and cash equivalents are valued at fair value. The Trust
considers as cash equivalents all highly liquid debt instruments purchased with an original maturity of
three months or less. Cash equivalents are represented mainly by money market funds in which the
securities are paid at maturity.
Trade accounts receivable and accounts receivable from related parties
Trade accounts receivable and other accounts receivable whose payments are fixed or can be determined,
and which are not traded on an active market are classified as loans and receivables. Loans and receivables
are recognized at amortized cost using the effective interest method, and are subject to impairment tests.
Impairment of financial assets
Financial assets other than the financial assets valued at fair value through profit or loss are subject to
impairment tests at the end of each reporting period. Financial assets are deemed impaired when there
is objective evidence that, as a consequence of one or more events occurring after the initial recognition
of the financial asset, the estimated future cash flows of the financial asset have been affected. For financial
assets recorded at amortized cost, the amount of impairment loss recognized is the difference between
the carrying amount of the asset and the present value of future collections, discounted at the original
effective interest rate of the financial asset.
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