(a) As of December 31, 2020 and 2019, derivative financial instruments have been qualified as effective hedge instruments and are as follows:
Entity
item ______________________ Fair value
2020 2019
(b) In May 2018, InRetail Pharma S.A. signed a new “Call Spread” contract for a reference value of US$400,000,000 in order to reduce exposure to foreign exchange risk arising from the senior notes issued in foreign currency in May 2018 (see note 21(b)). The price paid for such derivative (premium) was financed by Citibank N.A. in installments that correspond to those of the
issuances, thus generating a liability, which balance as of December 31, 2020 amounts to US$9,874,000, equivalent to approximately S/35,785,000 (US$13,413,000, equivalent to approximately S/44,491,000, as of December 31, 2019), see note 20(a). In accordance with IFRS 9, this premium was recorded and charged against the non-current asset in the caption
“Derivative financial instrument – ‘Call Spread’” and is recognized in profit or loss using a straight-line method over the hedging term. Consequently, the amount accrued during the fiscal year ended on December 31, 2020 and 2019 is S/12,623,000 and S/11,129,000, respectively, and is recorded in the caption “Finance expenses – ‘Call Spread’ straight-line accrued premium”, see note 26. During 2020, approximately S/61,412,000 (S/12,742,000 during 2019) were recognized into the caption "Unrealized results on derivative financial instruments" in the consolidated statements of changes in equity, representing the derivative financial instrument hedging effect during such year.
As of December 31, 2020 and 2019, this instrument hedges 100 percent of the risk exposure resulting from the issuance of the principal in foreign currency and protects the changes in exchange rates ranging from S/3.26 to S/3.75 per US$1.00.
(c) In March 2018, InRetail Shopping Malls signed a new “Call Spread” contract with J.P. Morgan for a reference value of US$350,000,000 in order to reduce exposure to foreign exchange risk arising from senior notes issued in foreign currency by InRetail Shopping Malls in April 2018, see note 21(c).
As of December 31, 2020 and 2019, this financial instrument hedges 100 percent of the foreign exchange exposure of the issuance’s principal and protects the exchange rate variations ranging from S/3.26 to S/3.75 per US$1.00.
The premium for the derivative was financed by J.P. Morgan, thus generating a liability which balance as of December 31, 2020 amounts to US$19,431,000, equivalent to approximately S/70,418,000 (equivalent to approximately S/70,086,000, as of December 31, 2019), see note 20(a). In accordance with IFRS 9, the financed premium was recorded and charged against the non-current asset in the caption “Derivative financial instrument – ‘Call Spread’” and is
recognized in profit or loss using a straight-line method over the hedging term. Consequently, the amount accrued during the fiscal year ended December 31, 2020 and 2019 was S/9,474,000 and S/8,806,000, respectively, and is recorded in the caption “Finance expenses – ‘Call Spread’
straight-line accrued premium”, see note 26. During 2020, approximately S/79,482,000 (S/19,134,000 during 2019) were recognized into the caption "Unrealized results on derivative financial instruments" in the consolidated statements of changes in equity, representing the derivative financial instrument hedging effect during such year.
(a) Below is the composition of the item as of December 31, 2020 and 2019:
assets in transit Total
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)
Useful lives (years) - 10-15 4-10 5 10 -
Cost -
Balance as of January 1, 2019 813,329 2,402,438 1,286,824 4,374 206,393 127,192 4,840,550
Additions (b) 109,737 96,438 112,358 318 21,167 104,232 444,250
Disposals and/or sales (e) - (6,764) (98,943) (840) (5,217) (1,222) (112,986)
Transfers - 5,226 2,205 - 940 (8,371) -
Transfers to investment properties, note 15(b) - 54,651 (3,519) - (280) (93,935) (43,083)
Transfers to intangible assets, note 16(a) - - - - - (654) (654)
Translation effect __________ - __________ (72) __________ (764) __________ (2) __________ (164) __________ (7) __________ (1,009)
Balance as of December 31, 2019 923,066 2,551,917 1,298,161 3,850 222,839 127,235 5,127,068
__________ __________ __________ __________ __________ __________ __________
Acquisition of Subsidiary, note 2(a) 409,671 326,471 51,804 1,353 22,768 4,520 816,587
Additions (b) 804 79,398 97,415 203 15,301 27,387 220,508
Translation effect __________ - __________ 377 __________ 4,001 __________ 4 __________ 929 __________ 4 __________ 5,315 Balance as of December 31, 2020 __________ 1,333,529 __________ 3,025,457 __________ 1,393,729 __________ 4,767 __________ 254,249 __________ 63,181 __________ 6,074,912 Accumulated depreciation -
Translation effect __________ - __________ (158) __________ (606) __________ (3) __________ (152) __________ - __________ (919) Balance as of December 31, 2019 __________ - __________ 586,483 __________ 801,627 __________ 2,646 __________ 133,387 __________ - __________ 1,524,143
Acquisition of Subsidiary, note 2(a) - 72,459 36,671 834 14,031 - 123,995
Additions, note 24(b) - 90,317 119,235 507 20,668 - 230,727
Disposals and/or sales (e) - (14,413) (50,271) (594) (5,888) - (71,166)
Sale of Subsidiary, note 2(b) - (801) (1,668) - (867) - (3,336)
Translation effect __________ - __________ 283 __________ 2,953 __________ 4 __________ 768 __________ - __________ 4,008 Balance as of December 31, 2020 __________ - __________ 734,328 __________ 908,547 __________ 3,397 __________ 162,099 __________ - __________ 1,808,371
Net book value as of December 31, 2020 __________ 1,333,529 __________ 2,291,129 __________ 485,182 __________ 1,370 __________ 92,150 __________ 63,181 __________ 4,266,541
Net book value as of December 31, 2019 __________ 923,066 __________ 1,965,434 __________ 496,534 __________ 1,204 __________ 89,452 __________ 127,235 __________ 3,602,925
InRetail Group maintains mortgages on certain lands, buildings and facilities for a net book value of approximately S/879,610,000 and S/702,010,000, respectively, in guarantee of financial obligations, see note 20(a).
(c) The InRetail Group maintains insurance on its main assets in accordance with the policies established by Management. In the opinion of InRetail Group Management, its insurance policies are consistent with international practices in the industry.
(d) As of December 31, 2020 and 2019, the cost and corresponding accumulated depreciation of assets acquired through finance leases are the following:
December 31, 2020 December 31, 2019
____________________________________________________ ____________________________________________________
Cost
Accumulated
depreciation Net cost Cost
Accumulated
depreciation Net cost
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)
Buildings and facilities 438,278 (68,262) 370,016 317,127 (43,812) 273,315
Miscellaneous equipment 334,124 (231,123) 103,001 361,338 (236,210) 125,128
Furniture and fixture and other ___________ 573 ___________ (473) ___________ 100 ___________ - ___________ - ___________ -
772,975 (299,858) 473,117 678,465 (280,022) 398,443
___________ ___________ ___________ ___________ ___________ ___________
(e) The net cost of retired and/or sold fixed assets during the years 2020 and 2019 is detailed as follows:
2020 2019
S/(000) S/(000)
Assets sold (1) 4,757 5,683
Assets retired (2) 13,719 1,964
__________ __________
18,476 7,647
_________ __________
(1) During 2020 and 2019, it mainly corresponds to the sale of scrap, for S/1,852,000 and S/1,120,000, respectively, paid in cash, thereby generating a profit of approximately S/2,905,000 and S/4,563,000, respectively.
(2) During 2020 and 2019, corresponds to the write-off of unused assets as a result of the remodeling process of some stores designated by Management. These retirements are included in the caption “Other operating income, net" in the consolidated income statements integral.
(f) Management periodically reviews the residual values, useful life and the depreciation method to ensure that they are consistent with the economic benefits and life expectancy of the property, furniture and equipment. As of December 31, 2020 and 2019, the InRetail Group’s Management performed an evaluation of its property, furniture and equipment, and has not found any indication of impairment.
(a) The composition of this caption is presented below as of December 31, 2020 and 2019:
Year of acquisition or
construction Valuation profit (loss)
Valuation
Real Plaza Trujillo (**) Province 214,980 217,479 2007 (2,977) 19,995 DCF and Appraisal
Real Plaza Centro Cívico (*) Province 204,301 202,885 2010 (5,875) 379 DCF
Real Plaza Huancayo (*) Province 134,141 142,119 2008 (8,327) 962 DCF
Real Plaza Pucallpa (**) Province 109,953 114,465 2018 (4,751) (20,944) DCF and Appraisal
Real Plaza Huánuco (*) Province 102,421 103,705 2012 (1,330) 10,254 DCF
Real Plaza Cajamarca Province 90,125 90,447 2013 (408) 2,068 DCF
Real Plaza Santa Clara Altamirano (**) Lima 84,351 84,477 2010 (531) 8,492 DCF and Appraisal
Villa María del Triunfo – La Curva (*) Lima 82,156 82,791 2017 (883) 639 DCF
acquisition or
construction Valuation profit (loss)
methodology 2019/2020 _____________________________
2020 2019 2020 2019
S/(000) S/(000) S/(000) S/(000)
Shopping malls under construction:
Plaza Center Ilo Project Province 38,702 38,288 2019 - - Appraisal
Lands:
Rex Lima 73,927 68,908 2014 4,723 9,124 Appraisal
Chacarilla Lima 38,127 35,633 2014 2,507 (626) Appraisal
San Miguel Lima 32,822 31,150 2019 1,333 - Appraisal
Carabayllo Lima 26,350 23,988 2012 2,362 (432) Appraisal
Valle Cañete Lima 18,282 17,089 2010 1,193 (310) Appraisal
Tarapoto Province 17,171 16,057 2012 994 (411) Appraisal
Zapallal Lima 16,065 14,753 2012 1,311 (264) Appraisal
Lurín 2 Lima 13,077 12,246 2018 831 (38) Appraisal
Pisco Province __________ 5,392 __________ 5,060 2012 _______ 335 _______ (90) Appraisal
Balance as of December 31 3,899,509 3,879,572 (84,520) 157,158
__________ __________ _______ _______
DCF: Discounted cash flow
(*) It corresponds to shopping malls built using surface rights or usufruct. As of December 31, 2020 and 2019, the usufruct contracts for lands upon which the InRetail Group has built shopping malls have a validity from 20 to 70 years.
(**) As of December 31, 2020 and 2019, the fair value includes the value of lands adjacent to operational shopping malls owned by the InRetail Group for future extensions, amounting to S/57,551,000 and S/53,808,000, respectively.
(b) The movement of this caption was as follows:
2020 2019
S/(000) S/(000)
Opening balance 3,879,572 3,299,018
Project – CC Puruchuco (c) 26,651 219,681
Project – CC Tumbes 5,065 22,792
Acquisition of lands (d) - 31,150
Works for expansions and remodeling 72,451 106,735
Transfers of property, furniture and equipment, note 14(a) 290 43,038
(c) Puruchuco mall is located in the district of Ate, Lima; the land was acquired in 2014. In July 2018, financing was obtained for the construction of a shopping center through the signing of a financial lease agreement between Scotiabank del Perú S.A.A. and Patrimonio en Fideicomiso D.S. N° 0093-2002 – EF Interproperties Perú for an amount of S/380,000,000. On November 13, 2019, the aforementioned shopping center was inaugurated. As of December 31, 2020 and 2019, Scotiabank del Perú S.A.A. has disbursed approximately S/380,000,000 and
S/239,970,000, respectively, amounts that are net of its restructuring cost for S/4,622,000 and S/4,462,000, respectively.
(d) In 2019, the acquisitions of lands were made to third parties in cash and at market values prevailing at the acquisition date.
(e) As of December 31, 2020 and 2019, the InRetail Group does not have properties classified within Levels 1 or 2 of the fair value hierarchy. As of said dates, the fair value of investment properties is classified within Level 3 and was determined using the discounted cash flow (DCF) method for the operational shopping malls and properties, and using a valuation made by an independent expert registered in CONATA (National Council of Valuators) and REPEV (Registry of Expert Appraisers) of the SBS (Superintendence of Banking and Insurance) for parcels.
According to note 4.3(I), to estimate the fair values of the investment properties, the Management of the Company and its subsidiaries have used their market expertise and professional judgement.
During 2020 and 2019, the fluctuation of the investment properties’ fair value was a loss and gain for approximately S/84,520,000 and S/157,158,000, respectively; which is shown in the
“Changes in fair value of investment property in fair value of investment properties” of the consolidated income statement.
A brief description of the assumptions considered for the cash flows determination, which are prepared on an added and unlevered basis, as of December 31, 2020 and 2019, are presented below:
Percentage
___________________________________
2020 2019
- Long-term inflation -
Increase of the general level of prices expected in Peru
for the long term. 2.00 - 2.50 2.00 – 2.50
- Long-term average occupancy rate -
Expected occupancy level of tenants in the leased
properties. 98.00 – 99.52 97.90 – 99.18
Percentage
___________________________________
2020 2019
- Average growth rate of rental income -
Rate that expresses the rental income growth and includes growth factors of the industry, inflation rates, stable exchange rate, per capita income and increasing
expenses. 2.5 – 7.36 2.50 – 2.75
- Average EBITDA margin -
Projected from the rental income from leasable areas by property and marketing income, minus costs related to administration fees, other administrative expenses,
insurance, taxes and other expenses. 71.18 - 82.56 67.31 – 83.36
The fair value of parcels is determined based on the value set by an external appraiser. The external appraiser uses the comparative market analysis, through which the fair value of a property is estimated based on similar transactions. The unit of comparison applied by the InRetail Group is the price per square meter. As of December 31, 2020, the parcels’ price range per square meter and the average price per square meter in the geographical area of the parcels are as follows:
Geographical area Rank Average
US$ US$
Rex – Lima 1,305 -1,579 1,466
Cañete 185 – 243 214
Chacarilla – Lima 1,961 – 2,388 2,176
Carabayllo – Lima 138 - 157 147
Carabayllo II – Lima 207 – 245 232
San Miguel – Lima 1,089 1,089
Pisco - Ica 105 – 132 117
Tarapoto – San Martin 294 – 489 361
Zapallal - Lima 222 – 274 246
Lurín 2 - Lima 304 – 343 327
Puruchuco - Lima 1,263 – 1,400 1,315
Santa Clara - Lima 744 - 784 771
Trujillo - La Libertad 800 – 886 840
(f) The sensitivity analysis of the investment properties valuation, in front of changes in the factors that management considers relevant, are presented below:
Rate change 2020 2019
(g) The future amounts of the fixed minimum rents by currency corresponding to leases are as follows:
2020
______________________________________________________________________________________
Related parties Third parties Total
___________________________ ___________________________ ___________________________
US$(000) S/(000) US$(000) S/(000) US$(000) S/(000)
2026-2076 __________ 81,428 __________ 1,461,004 __________ 75,937 __________ 1,097,531 __________ 157,365 __________ 2,558,535
108,041 1,888,254 96,212 1,657,104 204,253 3,545,358 __________ __________ __________ __________ __________ __________
2019
______________________________________________________________________________________
Related parties Third parties Total
___________________________ ___________________________ ___________________________
US$(000) S/(000) US$(000) S/(000) US$(000) S/(000)
2025-2076 84,988 625,166 136,597 2,109,496 221,585 2,734,662
__________ __________ __________ __________ __________ __________
99,812 786,096 174,768 3,011,633 274,580 3,797,729
__________ __________ __________ __________ __________ __________
As of December 31, 2020 and 2019, the minimum rents are calculated on the basis of a time horizon between 1 and 76 years.
The Companies maintain insurance on its investment properties in accordance with the policies established by Management.
(a) The table below presents the movements and composition of this caption as of December 31, 2020 and 2019:
Balance as of January 1, 2019 252,767 41,328 805,135 1,982,106 46,300 204,800 39,902 3,372,338
Additions (e) 5,629 - - - - - 17,008 22,637
Write-downs, note 25 (2,236) - - - - - (813) (3,049)
Transfers 7,414 - - - - - (7,414) -
Transfers of property, installations, furniture and
equipment, note 14(a) - - - - - - 654 654
Translation effect __________ (86) __________ - __________ - __________ - __________ - __________ - __________ (8) __________ (94) Balance as of December 31, 2019 __________ 263,488 __________ 41,328 __________ 805,135 __________ 1,982,106 __________ 46,300 __________ 204,800 __________ 49,329 __________ 3,392,486
Acquisition of Subsidiary, note 2(a) 58,946 - 57,293 739,968 - - - 856,207
Additions (e) 32,170 - - - - - 12,446 44,616
Write-downs, note 25 (173) - - - - - (2,393) (2,566)
Disposal to Subsidiary, note 2(b) (525) - - - - - - (525)
Transfers 36,545 - - - - - (36,545) -
Transfers of property, installations, furniture and
equipment, note 14(a) 323 - - - - - 166 489
Translation effect __________ 355 __________ - __________ - __________ - __________ - __________ - __________ - __________ 355 Balance as of December 31, 2020 __________ 391,129 __________ 41,328 __________ 862,428 __________ 2,722,074 __________ 46,300 __________ 204,800 __________ 23,003 __________ 4,291,062
Accumulated amortization -
__________ __________ __________ __________ __________ __________ __________ __________
Acquisition of Subsidiary, note 2(a) 54,212 - - - - - - 54,212
Additions, note 24(b) 28,493 2,298 - - 1,877 41,182 636 74,486
Write-downs, note 25 (173) - - - - - - (173)
Disposal to Subsidiary, note 2(b) (525) - - - - - - (525)
(b) The InRetail Group Management has estimated the fair value of this intangible assets using the
“Relief from royalty” method, which constitutes a usual method of discounted cash flows used for the valuation of commercial brands. The main assumption of this method is that the company owner of the brand saves the royalty payment to other hypothetical owner, therefore the value of this brand would be represented by the amount that is avoided to pay for these royalties. The detail of the brands with indefinite useful live is presented below:
Amount S/(000)
Brands with indefinite life -
Inkafarma, acquired in 2011 373,054
Mifarma, acquired in 2018 395,355
Química Suiza, acquired in 2018 17,791
Ninet, acquired in 2018 15,911
Makro, note 2(a) 57,293
Other _________ 3,024
862,428 _________
The factors considered to determine that the brand has an indefinite life are the following:
- History and expected use of the asset by the Company: this is the most important factor to consider in the definition of the useful life of the brands “Inkafarma”, “Mifarma”, “Química Suiza”, “Ninet”,
“CiFarma”, “CIPA” and “Makro”, considering that those are the most recognized brands in the pharmacy and food retail industries in Peru and the InRetail Group expects to further strengthen them in the market in the long term.
- Legal, regulatory or contractual limits to the useful life of the intangible asset: there are no legal regulatory or contractual limits linked to the brands. The brands are duly protected, and the pertinent registrations remain valid.
- Effect of obsolescence, demand, competition and other economic factors: “Inkafarma”, “Mifarma”,
“Química Suiza”, “Ninet”, “CiFarma”, “CIPA” and “Makro”, are the most recognized brands in the pharmacy and food retail industries in Peru. This implies a low risk of obsolescence.
- Maintenance of the necessary investment levels to produce the projected future cash flows for the brands are based on investments in marketing, technology and the growth and revamping of the pharmacy and food retail chains infrastructure. Furthermore, efficiencies are expected as a result of synergies and the growth in scale of the operations, which are compatible and reasonable for the industry. However, an increase in general administration expenses is also contemplated to sustain the projected increase in sales.
- Relationship of the useful life of an asset or group of assets with the useful life of an intangible asset:
The brands do not depend on the useful life of any asset or group of assets as they exist
independently, and are not related to sectors subject to technological obsolescence or other causes.
(c) Goodwill is initially measured at cost, which corresponds to the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, if existing, over the net identifiable assets acquired and liabilities assumed. The details of goodwill are presented below:
Amount S/(000)
Goodwill -
Inkafarma, acquired in 2011 709,472
Quicorp, acquired in 2018 1,272,634
Makro, note 2(a) __________ 739,968
2,722,074 __________
Management carries out an annual recoverability test to its indefinite-life assets, composed of goodwill and brands. To do so, the goodwill and the brands acquired in business mergers were allocated to the cash generating unit (CGU) “Pharmacies” and “Food Retail” from the acquisition date.
When the CGU’s recoverable amount is less than its carrying amount, an impairment loss is recognized. The impairment losses related to goodwill cannot be reversed in future periods.
The recoverable amount of the “Pharmacies” and “Food Retail” have been determined based on fair value minus cost to sales calculated using cash flow projections from financial budgets approved by senior management covering a ten-year period.
The cash flows that continue beyond the period indicated in the projections were extrapolated using a specific growth rate similar to the average long-term growth rate for the country in which each entity operates.
Following are the key assumptions used in the impairment assessment for each CGU as of December 31, 2020 and 2019:
- Sales growth rate – A sales growth rate was considered for each CGU between 3 and 11 percent. This growth rate is based on expected operational plans for each CGU and brand.
- Royalty rate - A royalty rate from 0.9 to 1.9 percent was considered. Royalty rates are based on values considered in the purchase price allocation of Quicorp. In addition, these rates were corroborated with information of similar transactions in purchase price allocation processes.
- Discount rates – Discount rates used for each CGU are between 8.06 as of December 2020 (between 8.7 and 9.7 percent as of December 2019). Discount rates represent the current market assessment of the risks specific to each CGU and brand, taking into consideration the time value of money and individual risks of the underlying assets that have not been
incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the CGU and brands and represents its weighted average cost of capital (WACC). The beta factors are evaluated annually based on publicly available market data. The factors that have an impact on the discount rate calculation, as country risk, free discount rate, beta, market premium and cost of debt are evaluated annually based on publicly available market data.
In the opinion of the InRetail Group’s Management, the aforementioned assumptions are, in general terms, aligned to information of the sector in which each CGU and brand operates.
As of December 31, 2020 and 2019, the book value of goodwill related to each CGU has been compared with the recoverable value and Management has determined that it is not necessary to record any impairment.
The key assumptions described above may change if market conditions and the economy change.
The Company estimates that changes in these assumptions, which would be reasonable to expect, would not cause the recoverable amount of "Pharmacies" and “Food Retail” CGU to decrease below their book value.
(d) For the valuation of customer relationships and contracts with represented companies, the “Multi Period Excess Earning Method” was applied. It reflects the present value of the surplus cash flows generated by the intangible asset during their lifespan after deducting tax charges for the tangible or intangible operating assets used.
Customer relationships result from the provision of a service for the manufacture of one or more specific products. To determine the lifespan, the historical loss of customers in each business operation and its consistency with the characteristics of the business and the market in which it operates were analyzed.
On the other hand, contracts with represented companies mainly define the exclusivity for the distribution of a product, as well as the inventory levels required to maintain the operation. To determine the lifespan, the remaining lifespan of contracts in force at the transaction date and the history of renewals were considered.
(e) During 2020 and 2019, additions correspond mainly to disbursements made for the acquisition of computer programs, commercial programs, and other logistic programs and the corresponding licenses of use for the computer equipment. Such disbursements include the costs of acquisition of the software and licenses, development costs and other directly attributable costs. In Management's opinion, the ongoing projects as of December 31, 2020, will be substantially completed during 2021.
(f) As of December 31, 2020 and 2019, the InRetail Group does not maintain guarantees on their intangible assets.
(g) In the case of intangible assets with a definite useful life, in the opinion of Management, there is no indication of impairment in those assets as of December 31, 2020 and 2019. Likewise, as of December 31, 2020 and 2019, Management performed an impairment test for brands with an indefinite useful life (detailed in (b), above), and as a result of said test, it has determined that it is not necessary to recognize any provision for impairment.
17. Leases
(a) The InRetail Group maintains leasing contracts for land, buildings, facilities and vehicles used for its operations. Leases of land, buildings and facilities generally have terms of 1 to 60 years, and leases of vehicles have terms of 2 to 4 years. The Companies obligations under its leases are guaranteed by the lessor's title of the leased assets.
There are several leases that include extension and termination options and variable payments.
The InRetail Group has also entered into certain leases of premises with terms of 12 months or less and leases of low-value office equipment. The Companies apply the short-term and low-value lease exemptions for this kind of leases.
(b) The carrying amounts of right-of-use assets and movements recognized during the period are detailed below:
Land
Buildings and
facilities Vehicles Total S/(000)
Cost -
Balance as of January 1, 2019, note 4.2 147,767 1,427,413 1,679 1,576,859
Additions 5,676 140,470 289 146,435
Land
Buildings and
facilities Vehicles Total S/(000)
__________ __________ __________ __________
Balance as of December 31, 2020 154,375 1,840,197 4,042 1,998,614 __________ __________ __________ __________
Accumulated depreciation -
Balance as of January 1, 2019 - - - -
Additions, (e) and note 24(b) 7,463 298,849 550 306,862
Disposals, note 25 - (1,570) - (1,570)
Translation effect - (27) 2 (25)
__________ __________ __________ __________
Balance as of January 1, 2020 __________ 7,463 __________ 297,252 __________ 552 __________ 305,267
Acquisition of Subsidiary, note 2(a) - 3,989 - 3,989
Additions, (e) and note 24(b) 7,406 297,848 968 306,222
Disposals, note 25 - (9,207) (194) (9,401)
Disposals Subsidiary, note 2(b) - (2,380) - (2,380)
Translation effect - 1,142 49 1,191
__________ __________ __________ __________
Balance as of December 31, 2020 14,869 588,644 1,375 604,888
__________ __________ __________ __________
Net book value of December 31, 2020 139,506 1,251,553 2,667 1,393,726
Net book value of December 31, 2020 139,506 1,251,553 2,667 1,393,726