Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Employee Benefits

v3.20.1
Employee Benefits
 12 Months Ended
Dec. 31, 2019
Employee benefits [Abstract]  
Employee benefits
19. Employee benefits

 

Post-employment benefits –

 

The Group recognizes the liability and corresponding impacts to profit and loss as well as comprehensive income regarding to the seniority premiums to be paid to its employees. This benefit is determined considering the years of service and the compensation from the employees.

 

The components of the defined benefit liability for the years ended at December 31, 2019, 2018 and 2017, are as follows:

 

a) Movement in net defined liability –

 

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit liability and its components:

 

    2019     2018  
             
Balance at January 1   Ps. 1,355       1,283  
                 
Included in profit or loss:                
Current service cost     424       441  
Interest cost     123       92  
                 
Net cost of the period     547       533  
                 
Included in OCI:                
Actuarial loss (gain)     (102 )     (165 )
Income tax effect     (26 )     (71 )
                 
Other:                
Benefits paid     (196 )     (225 )
                 
Balance as of December 31   Ps. 1,630       1,355  

 

 

b) Actuarial assumptions –

 

The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages):

 

    2019     2018     2017  
                   
Financial:                  
Future salary growth     6.6 %     4.8 %     4.5 %
Discount rate     7.1 %     9.2 %     7.4 %
                         
Demographic:                        
Number of employees     654       684       622  
Age average     35 years       35 years       36 years  
Longevity average     3 years       2 years       2 years  

 

c) Sensitivity analysis –

 

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation considering a change of ±0.50% in the discount rate.

 

    Effects at December 31, 2019     Effects at December 31, 2018  
             
Increase / decrease in the discount rate            
+0.50%   Ps. (127 )     (93 )
-0.50%     115       103