Bolsas y Mercados Argentinos S.A.
Condensed Interim Consolidated Financial Statements
For the period commenced January 1, 2024, and ended March 31, 2024, presented in comparative format and stated in constant currency.
Bolsas y Mercados Argentinos S.A.
Condensed Interim Consolidated Financial Statements
For the period commenced January 1, 2024, and ended March 31, 2024, presented in comparative format and stated in constant currency.
Table of Contents
Condensed Interim Consolidated Statement of Comprehensive Income Condensed Interim Consolidated Statement of Financial Position Condensed Interim Consolidated Statement of Changes in Equity Condensed Interim Consolidated Statement of Cash Flows
Notes to the Condensed Interim Consolidated Financial Statements Report of the Statutory Audit Committee
Review Report on the Condensed Interim Consolidated Financial Statements
1
Bolsas y Mercados Argentinos S.A.
Fiscal year No. 8
Condensed Interim Consolidated Financial Statements
For the period commenced January 1, 2024, and ended March 31, 2024, presented in comparative
format and stated in constant currency.
Legal address: | 25 de mayo 359, 9th floor - City of Buenos |
Aires | |
Main business activity: | Market |
Tax Registration Number: | 30-71547195-3 |
Date of registration with the Public Registry of Commerce:
Of the By-laws or Articles of Incorporation:
Registration number with the Legal Entities Regulator:
Expiration date of By-Laws or Articles of Incorporation:
December 23, 2016 (registration with the Legal Entities Regulator)
25,379
December 23, 2115
CAPITAL STRUCTURE (Note 25 to the Condensed Interim Separate Financial Statements)
Shares
Outstanding shares | Total | Type | Number of votes per | Subscribed | Paid-in | ||||||
capital stock | share | In thousands of $ | In thousands of $ | ||||||||
762,500,000 | 762,500,000 | A | 1 vote | 762,500 | 762,500 | ||||||
EQUITY INTEREST | |||||||||||
Shareholders | Interest | ||||||||||
Bolsa de Comercio de Buenos Aires | 30.9% | ||||||||||
Remaining shareholders | 69.1% | ||||||||||
See our report dated | ||||
May 9, 2024 | ||||
PRICE WATERHOUSE & CO. S.R.L. | For the Statutory Audit Committee | |||
(Partner) | ||||
Ernesto Allaria | Fernando Díaz | |||
C.P.C.E.C.A.B.A. V. 1 F. 17 | President |
2
Bolsas y Mercados Argentinos S.A.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIOD ENDED
MARCH 31, 2024, PRESENTED IN COMPARATIVE FORMAT WITH THE SAME PERIOD
OF THE PREVIOUS YEAR
(Amounts stated in thousands of pesos and in constant currency - see Note 2.3)
NOTE | 03/31/2024 | 03/31/2023 | |
Service revenues | 9 | 7,577,306 | 6,275,924 |
Income from rights on transactions and commissions | 10 | 15,284,267 | 9,905,538 |
Cost of services | 11 | (6,767,315) | (5,867,207) |
GROSS INCOME/(LOSS) | 16,094,258 | 10,314,255 | |
Net operating financial results | 12 | 12,731,926 | 7,644,811 |
Administrative expenses | 11 | (1,621,136) | (2,029,446) |
Selling expenses | 11 | (1,383,191) | (1,201,858) |
OPERATING INCOME/(LOSS) | 25,821,857 | 14,727,762 | |
Non-operating financial results, net, generated by assets | 13 | 37,554,480 | 39,389,672 |
Non-operating financial results, net, generated by liabilities | 14 | (56,468) | (20,088) |
Income/(loss) on monetary position | (127,612,721) | (40,797,067) | |
FINANCIAL AND HOLDING RESULTS | (90,114,709) | (1,427,483) | |
Other income, net | 15 | 57,752 | 42,120 |
Income/(loss) from interests in associates | - | 357,109 | |
PRE-TAX PROFIT/(LOSS) | (64,235,100) | 13,699,508 | |
Income tax | 16 | (5,494,717) | (7,027,421) |
NET INCOME/(LOSS) FOR THE PERIOD | (69,729,817) | 6,672,087 | |
Net income/(loss) for the period attributable to the parent company's | (69,700,721) | 6,671,253 | |
owners | |||
Net income/(loss) for the period attributable to non-controlling interest | (29,096) | 834 | |
EARNINGS PER SHARE (Note 6) | |||
Numerator: | |||
Net income (loss) for the period attributable to the Company's | (69,700,721) | 6,671,253 | |
shareholders | |||
Denominator: | |||
Weighted average of common shares for the period | 762,500 | 762,500 | |
Basic earnings per share | (91.41) | 8.75 | |
Diluted earnings per share | (91.41) | 8.75 | |
The accompanying notes form an integral part of these Condensed Interim Consolidated Financial Statements.
See our report dated | ||||
May 9, 2024 | ||||
PRICE WATERHOUSE & CO. S.R.L. | For the Statutory Audit Committee | |||
(Partner) | ||||
Ernesto Allaria | Fernando Díaz | |||
C.P.C.E.C.A.B.A. V. 1 F. 17 | President | |||
Sebastián Morazzo | ||||
Public Accountant (U.M.) | ||||
C.P.C.E.C.A.B.A. V. 347 - F. 159 |
3
Bolsas y Mercados Argentinos S.A.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT March 31, 2024 AND December 31, 2023
(Amounts stated in thousands of pesos and in constant currency - see Note 2.3)
NOTE | 03/31/2024 | 12/31/2023 | NOTE | 03/31/2024 | 12/31/2023 | ||
ASSETS | LIABILITIES | ||||||
CURRENT ASSETS | CURRENT LIABILITIES | ||||||
Cash and cash equivalents | 17 | 409,306,423 | 505,757,180 | Creditors for transactions | 26 | 471,888,911 | 544,032,301 |
Other financial assets | 18 and | 291,370,702 | 398,341,893 | Payables for forward transactions to be settled | 27 | 203,873,690 | 208,381,547 |
37 | |||||||
Receivables for forward transactions to be | 19 | 203,873,690 | 208,381,547 | Stock brokers' balances in settlement accounts | 28 | 65,944,898 | 122,418,703 |
settled | |||||||
Trade receivables | 20 | 4,002,124 | 4,755,664 | Cash guarantees from stock brokers | 29 | 75,424,149 | 89,513,870 |
Other receivables | 21 | 4,481,837 | 5,171,877 | Customer claims guarantee fund | 30 | 334,305 | 477,504 |
Total current assets | 913,034,776 | 1,122,408,161 | Accounts payable | 31 | 2,139,105 | 3,582,761 | |
Payroll and social security contributions payable | 32 | 841,558 | 1,307,480 | ||||
Taxes payable | 33 | 27,027,718 | 28,149,315 | ||||
Other liabilities | 34 | 151,721 | 38,438,061 | ||||
NON-CURRENT ASSETS | Total current liabilities | 847,626,055 | 1,036,301,542 | ||||
Other financial assets | 18 and | 215,868,820 | 267,428,685 | NON-CURRENT LIABILITIES | |||
37 | |||||||
Investments in associates | 22 | 7,431,015 | 7,431,015 | Deferred tax liabilities | 16 | 9,338,230 | 12,731,951 |
Property, plant and equipment | 23 | 13,268,128 | 13,679,014 | Provision for contingencies | 35 | 5,768 | 8,745 |
Intangible Assets | 24 | 64,676,973 | 65,087,645 | Total Non-current Liabilities | 9,343,998 | 12,740,696 | |
Investment properties | 25 | 2,722,957 | 2,737,540 | TOTAL LIABILITIES | 856,970,053 | 1,049,042,238 | |
Other receivables | 21 | 27,828 | 60,439 | ||||
Total non-current assets | 303,995,721 | 356,424,338 | EQUITY (as per respective statement) | ||||
Outstanding shares | 7,013,013 | 7,013,013 | |||||
Treasury shares | (13,865) | (13,865) | |||||
Premium for trading of treasury shares | (1,413,392) | (1,413,392) | |||||
Income appropriated to reserves | 117,227,982 | 117,227,982 | |||||
Unappropriated retained earnings | 89,740,013 | 159,440,734 | |||||
Other equity items | 147,410,672 | 147,410,672 | |||||
Non-controlling interest | 96,021 | 125,117 | |||||
TOTAL EQUITY | 360,060,444 | 429,790,261 | |||||
Attributable to the controlling interest | 359,964,423 | 429,665,144 | |||||
Attributable to the non-controlling interest | 96,021 | 125,117 | |||||
TOTAL ASSETS | 1,217,030,497 | 1,478,832,499 | TOTAL LIABILITIES AND EQUITY | 1,217,030,497 | 1,478,832,499 | ||
The accompanying notes form an integral part of these Condensed Interim Consolidated Financial Statements.
See our report dated | ||||
May 9, 2024 | ||||
PRICE WATERHOUSE & CO. S.R.L. | For the Statutory Audit Committee | |||
(Partner) | ||||
Ernesto Allaria | Fernando Díaz | |||
C.P.C.E.C.A.B.A. V. 1 F. 17 | President | |||
Sebastián Morazzo | ||||
Public Accountant (U.M.) | ||||
C.P.C.E.C.A.B.A. V. 347 - F. 159 |
4
Bolsas y Mercados Argentinos S.A.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE THREE-MONTH PERIODS ENDED March 31, 2024 AND 2023
(Amounts stated in thousands of pesos and in constant currency - see Note 2.3)
Guarantee | Unappropriated | ||||||||||||
Adjustment | Premium for | Fund reserve | |||||||||||
Cost of | Other Equity | Legal | Optional | earnings/ | Non- | ||||||||
Outstanding | Capital | to the cost | trading of | as per Section | |||||||||
treasury | Components | reserve | reserve | (accumulated | Total | controlling | Total | ||||||
ITEMS | shares | adjustment | of treasury | treasury | 45 of Law No. | ||||||||
shares | (1) | losses) | interest | ||||||||||
shares | shares | 26831 | |||||||||||
Balances at December | 762,500 | 6,250,513 | (275) | (13,590) | (1,413,392) | 147,410,672 | 912,585 | 27,536,625 | 88,778,772 | 159,440,734 | 429,665,1 | 125,117 | 429,790,261 |
31, 2023 | 44 | ||||||||||||
Income/(loss) for the | - | - | - | - | - | - | - | - | - | (69,700,721) | (69,700,72 | (29,096) | (69,729,817) |
period | 1) | ||||||||||||
Balances at March 31, | 762,500 | 6,250,513 | (275) | (13,590) | (1,413,392) | 147,410,672 | 912,585 | 27,536,625 | 88,778,772 | 89,740,013 | 359,964,4 | 96,021 | 360,060,444 |
2024 | 23 | ||||||||||||
Guarantee | Unappropriated | ||||||||||||
Adjustment | Premium for | Fund reserve | |||||||||||
Cost of | Other Equity | Legal | Optional | earnings/- | Non- | ||||||||
Outstanding | Capital | to the cost | trading of | as per Section | |||||||||
treasury | Components | reserve | reserve | (accumulated | Total | controlling | Total | ||||||
ITEMS | shares | adjustment | of treasury | treasury | 45 of Law No. | ||||||||
shares | (1) | losses) | interest | ||||||||||
shares | shares | 26831 | |||||||||||
Balances at December | 762,500 | 6,250,513 | (275) | (13,590) | (1,413,392) | 147,410,672 | 769,622 | 22,149,255 | 111,944,8 | 2,859,272 | 290,719,4 | 79,342 | 290,798,761 |
31, 2022 | 42 | 19 | |||||||||||
Income/(loss) for the | - | - | - | - | - | - | - | - | - | 6,671,253 | 6,671,253 | 834 | 6,672,087 |
period | |||||||||||||
Balances at March 31, | 762,500 | 6,250,513 | (275) | (13,590) | (1,413,392) | 147,410,672 | 769,622 | 22,149,255 | 111,944,8 | 9,530,525 | 297,390,6 | 80,176 | 297,470,848 |
2023 | 42 | 72 | |||||||||||
- It includes the effects from the spin-off of Mercado de Valores de Buenos Aires S.A. and contributions from Bolsa de Comercio de Buenos Aires. (See Note 1). The accompanying notes form an integral part of these Condensed Interim Consolidated Financial Statements.
See our report dated | ||||
May 9, 2024 | ||||
PRICE WATERHOUSE & CO. S.R.L. | For the Statutory Audit Committee | |||
(Partner) | ||||
Ernesto Allaria | Fernando Díaz | |||
C.P.C.E.C.A.B.A. V. 1 F. 17 | President | |||
Sebastián Morazzo | ||||
Public Accountant (U.M.) | ||||
C.P.C.E.C.A.B.A. V. 347 - F. 159 |
5
Bolsas y Mercados Argentinos S.A.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE-
MONTH PERIODS ENDED
March 31, 2024 AND 2023
(Amounts stated in thousands of pesos and in constant currency - see Note 2.3)
Cash and cash equivalents at the beginning of period
Increase due to exchange difference attributable to cash and cash equivalents Cash and cash equivalents at the end of the period
Net decrease in cash and cash equivalents
CASH FLOWS FROM OPERATING ACTIVITIES Income/(loss) for the period
Adjustments to arrive at net cash flows used in operating activities: Income Tax
Depreciation of property, plant and equipment
Amortization of intangible assets
Depreciation of investment properties
Allowance for bad debts
Income/(loss) from interests in associates
Net exchange difference
Changes in operating assets and liabilities:
Net decrease/(increase) in accounts receivable Net decrease/(increase) in other receivables (Decrease) / increase in creditors for transactions, net
Net (decrease)/increase in stock brokers' balances in settlement accounts Net decrease in guarantees received from stock brokers
Net decrease in customer claims guarantee fund Net (decrease)/increase in accounts payable
Net decrease in payroll and social security contributions payable Net decrease in taxes payable
Net decrease in other liabilities Net decrease in allowances
Net cash flows used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES Net decrease in other financial assets
Net decrease in interest in subsidiaries and associates
Net payments for the acquisition of property, plant and equipment Payments for development of intangible assets
Net cash flows provided by investment activities
Net decrease in cash and cash equivalents
03/31/2024 | 03/31/2023 |
505,757,180 | 286,876,872 |
1,453,597 | 19,908,402 |
409,306,423 | 274,971,980 |
(97,904,354) | (31,813,294) |
(69,729,817) | 6,672,087 |
5,494,717 | 7,027,421 |
542,812 | 257,737 |
886,106 | 475,500 |
14,583 | 14,583 |
- 140,022
-
(357,109)
(1,236,320) (22,519,427)
753,540 | (271,179) |
557,265 | (125,810) |
(72,143,390) | 13,242,038 |
(56,473,804) | 1,253,367 |
(14,089,721) | (32,303,175) |
(143,199) | (10,324) |
(1,495,546) | 991,729 |
(465,922) | (198,644) |
(10,010,034) | (1,581,998) |
(38,286,340) | (22,876,070) |
(2,977) | (4,862) |
(255,828,047) | (50,174,114) |
158,531,053 | 19,059,437 |
- (73,346)
(131,926)(68,709)
(475,434) (556,562)
157,923,693 | 18,360,820 |
(97,904,354) | (31,813,294) |
The accompanying notes form an integral part of these Condensed Interim Consolidated Financial Statements.
See our report dated | ||||
May 9, 2024 | ||||
PRICE WATERHOUSE & CO. S.R.L. | For the Statutory Audit Committee | |||
(Partner) | ||||
Ernesto Allaria | Fernando Díaz | |||
C.P.C.E.C.A.B.A. V. 1 F. 17 | President | |||
Sebastián Morazzo | ||||
Public Accountant (U.M.) | ||||
C.P.C.E.C.A.B.A. V. 347 - F. 159 |
6
Bolsas y Mercados Argentinos S.A.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIOD ENDED March 31, 2024
(Amounts stated in thousands of pesos and in constant currency - see Note 2.3)
NOTA 1 - INCORPORATION OF THE COMPANY
On December 27, 2012, Capital Market Law No. 26831 was enacted. This law, effective as from January 28, 2013, provides for a comprehensive reform of the prior public offering regime. The new law reforms capital market regulatory and operative aspects, and it also broadens the regulatory powers of the National Securities Commission (CNV) in the field of public offerings.
In order to channel the needs of the new capital markets contemplated in the above-mentioned legislation, the Shareholders of Mercado de Valores de Buenos Aires S.A. (Merval) and of Bolsa de Comercio de Buenos Aires (BCBA) signed, on March 1, 2013, a framework agreement for the incorporation of a company named Bolsas y Mercados Argentinos S.A. (BYMA). This Company would be subject to public offering and listing of its shares and its capital stock would be subscribed fifty percent by the Shareholders of Mercado de Valores de Buenos Aires S.A. and the other fifty percent by BCBA, in accordance with the provisions of the above-mentioned framework agreement. Such agreement was confirmed by the Board of Directors of Merval at the meeting held on March 1, 2013, and approved by its Extraordinary Shareholders' Meeting held on April 9, 2013.
On July 23, 2013, the Extraordinary Shareholders' Meeting of Merval approved the spin-off of certain assets relating to its business activity as a market, the reduction of that Company's capital stock, and the incorporation of the new spun-off business, BYMA, and its by-laws.
The assets of Mercado de Valores de Buenos Aires S.A. to be spun-off, in accordance with the special spin-off Statement of Financial Position at March 31, 2013, approved by the above-mentioned Shareholders' Meeting, were as follows: (a) 509,791,920 for all shares held by Caja de Valores S.A., measured at their fair value as of the spin-off effective date; (b) 40,000,000 in cash; and (c) 160,000,000 for all elements inherent in the securities market business, measured at their fair value as of such date (pursuant to the above-stated framework agreement). On December 5, 2013, the CNV, by Resolution No. 17242, decided to consent to the partial spin-off of Merval's Equity and the amendment to Article 7 of the Corporate By-laws.
Subsequently, the shareholders of Merval and BCBA subscribed two Addenda to the framework agreement for the incorporation of BYMA: a) Addendum dated April 4, 2014: it was agreed to reformulate the capital increase approved at BYMA for BCBA to hold a twenty percent (20%) interest in BYMA's capital. This Addendum was approved by the Extraordinary Shareholders' Meeting dated June 5, 2014; b) Addendum dated July 7, 2016: it was agreed that BCBA would transfer to BYMA all its equity interest held in Caja de Valores S.A. This decision was approved by the Annual and Extraordinary Shareholders' Meeting held on September 14, 2016. The CNV's Issuers Division consented to the amendments made to the framework agreement.
On December 21, 2016, particular Resolution No. 2202 of the Legal Entities Regulator, ordered the registration of BYMA with the Public Registry kept by such entity.
On December 29, 2016, the CNV, through Resolution No. 18424, registered BYMA as market under registration No. 639.
Then, on January 5, 2017, an application was submitted to the CNV for BYMA's admission to public offering regime, which was authorized by the regulatory entity on March 16, 2017 by Resolution No. 18559.
At March 31, 2017, Merval transferred 100% of its equity interest in Caja de Valores S.A., consisting of 116,452,536 book-entry shares with a nominal value of $1 per share, and 100% of its equity interest in Mercado Argentino de Valores S.A., consisting of 1,600,000 registered shares with a nominal value of $1 per share. In addition, the BCBA transferred its equity interests in Caja de Valores S.A. and Tecnología de Valores S.A., consisting of 116,452,536 shares with a nominal value of $1 and 25,000 shares with a nominal value of $1, respectively.
See our report dated | ||||
May 9, 2024 | ||||
PRICE WATERHOUSE & CO. S.R.L. | For the Statutory Audit Committee | |||
(Partner) | ||||
Ernesto Allaria | Fernando Díaz | |||
C.P.C.E.C.A.B.A. V. 1 F. 17 | President |
7
Bolsas y Mercados Argentinos S.A.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIOD ENDED March 31, 2024
(Amounts stated in thousands of pesos and in constant currency - see Note 2.3)
During April 2017, the Entity completed the operating migration processes in relation to the activity of market and clearing house. Consequently, as from April 17, 2017, the transfer and automatic registration of the Member Brokers, Issuers and all issues listed in Merval to BYMA was made, with no additional requirements or cost whatsoever.
Consideration of technological risk
The nature of the main operations conducted by Bolsas y Mercados Argentinos S.A. (whether directly or through its subsidiaries and associates) and their interrelation with the generation of financial accounting information require a high level of reliance on technology and information security.
For this purpose, Bolsas y Mercados Argentinos S.A. and its subsidiaries (the "Group") have in place policies and procedures aimed at ensuring an adequate control environment on these aspects, within the framework of what is important to guarantee adequate processing of information.
In addition, current regulations of the CNV define minimum requirements as performance of tasks, security and service continuity, among other aspects, that the IT systems used by Bolsas y Mercados Argentinos S.A. (owing to its activity as a market and clearing house) and Caja de Valores S.A. (owing to its activity as Central Depositary Agent of Marketable Securities and Registrar and Payment Agent) must fulfill; these entities are subject to a yearly external systems audit under the terms of Titles VI and VIII, respectively, of CNV regulations, their 2013 restated text and amendments.
NOTA 2 - BASIS FOR PREPARATION
2.1 Accounting policies
These Condensed Interim Consolidated Financial Statements (the "Financial Statements") for the three- month period ended March 31, 2024 were prepared in accordance with IAS 34 Interim Financial Reporting. These Financial Statements must be read jointly with the Company's annual consolidated Financial Statements for the year ended on December 31, 2023, prepared in accordance with the International Financing Reporting Standards (IFRS), as approved by the International Accounting Standards Board (IASB).
The accounting policies adopted for the Group are consistent with those used for the preparation of the annual consolidated Financial Statements for the year ended on December 31, 2023.
2.2 Comparative information
The condensed interim consolidated Statement of Financial Position for the current period is presented in comparative format with that for the fiscal year ended on December 31, 2023, taking into account what is mentioned in Note 2.3., while the condensed interim consolidated Statement of Comprehensive Income is presented in comparative format with that for the three-month period commenced on January 1, 2023, and ended on March 31, 2023, taking into account what is mentioned in Note 2.3.
Additionally, the Condensed Interim Consolidated Statements of Changes in Equity and of Cash Flows are presented in comparative format with those for the three-month period ended March 31, 2023, taking into account what is mentioned in Note 2.3.
Certain reclassifications have been included in the condensed interim consolidated financial statement figures presented for comparative purposes to conform them to the current year presentation.
See our report dated | ||||
May 9, 2024 | ||||
PRICE WATERHOUSE & CO. S.R.L. | For the Statutory Audit Committee | |||
(Partner) | ||||
Ernesto Allaria | Fernando Díaz | |||
C.P.C.E.C.A.B.A. V. 1 F. 17 | President |
8
Bolsas y Mercados Argentinos S.A.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIOD ENDED March 31, 2024
(Amounts stated in thousands of pesos and in constant currency - see Note 2.3)
2.3 Measuring unit
International Accounting Standard No. 29 Financial reporting in hyperinflationary economies (IAS 29) requires that the financial statements of an entity that reports in the currency of a hyperinflationary economy, whether they are based on a historical cost approach or a current cost approach, be stated in terms of the measuring unit current at the end of the reporting year. To this end, in general terms, the inflation rate should be computed in the non-monetaryitems as from the acquisition date or the revaluation date, as applicable. These requirements also comprise the comparative information contained in the financial statements.
To determine the existence of a hyperinflationary economy under the terms of IAS 29, the standard details a series of factors to consider, including a cumulative inflation rate over three years that approximates or exceeds 100%. For this reason, as set forth by IAS 29, the Argentine economy should be considered highly inflationary as from July 1, 2018.
In turn, Law No. 27468 (Official Gazette published on December 4, 2018) amended Section 10 of Law No. 23928, as amended, and provided that the repeal of the all regulations that establish or authorize index-adjustment, monetary restatement, cost variation or any other way of restatement of debts, taxes, prices or tariffs of goods, works or services/utilities, does not apply to the Financial Statements, and the provisions of Section 62 in fine of General Companies Law No. 19550 (1984 restated text), as amended, will continue to apply. That law also repealed Decree No. 1269/2002 dated July 16, 2002, as amended, and delegated to the National Executive Branch, through its control authorities, the power to set the effective date of the rules governing Financial Statements to be filed. Therefore, under General Resolution No. 777/2018 (Official Gazette 12/28/2018), the National Securities Commission (CNV) established that the issuing entities under its control shall apply to Financial Statements for annual, interim and special periods ending on or after December 31, 2018 the method of restatement to constant currency, pursuant to IAS 29. Therefore, these Financial Statements at March 31, 2024 have been restated.
Pursuant to IAS 29, the financial statements of entities reporting in the currency of a hyperinflationary economy shall be stated in terms of the measuring unit current at the date of the financial statements. Statement of financial position amounts not already expressed in terms of the measuring unit current at the date of the Financial Statements shall be restated by applying a general price index. All items in the statement of income shall be expressed in terms of the measuring unit current at the date of the financial statements by applying the change in the general price index from the dates when the items of income and expenses were initially recorded in the Financial Statements.
Restatement of opening balances is calculated as from the indexes established by the FACPCE based on price indexes published by the National Institute of Statistics and Census (INDEC).
Below are the main procedures to be applied for the adjustment for inflation mentioned above:
- Monetary assets and liabilities recorded at the monetary unit current at year end are not restated as they are already expressed in terms of the monetary unit current at the date of the Financial Statements.
-
Non-monetaryassets and liabilities accounted for at their acquisition cost at the date of the Financial Statements, and equity items are restated by applying the corresponding index adjustments.
-All items in the statement of income are restated by applying the corresponding index adjustments. - The effect of inflation on the Company's net monetary position is included in the statement of income, in Financial and holding results, under the heading Income/(loss) on monetary position.
- Comparative amounts have been inflation-adjusted following the same procedure explained above.
See our report dated | ||||
May 9, 2024 | ||||
PRICE WATERHOUSE & CO. S.R.L. | For the Statutory Audit Committee | |||
(Partner) | ||||
Ernesto Allaria | Fernando Díaz | |||
C.P.C.E.C.A.B.A. V. 1 F. 17 | President |