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

Retirement Benefits ??? Defined Benefit Obligations

v3.23.1
Retirement Benefits – Defined Benefit Obligations
 12 Months Ended
Dec. 31, 2022
Employee benefits [Abstract]  
Retirement benefits – Defined benefit obligations
20. Retirement benefits – Defined benefit obligations

 

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 periods of 2022, 2021 and 2020, are as follows:

 

a) Movement in defined liability

 

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

 

    2022     2021     2020  
Balance at January 1   Ps. 2,093       1,678       1,630  
                         
Additions for subsidiaries’ acquisition     149,243      
-
      
-
  
                         
Included in profit or loss:                        
Current service cost     13,322       614       425  
Interest cost     9,461       101       114  
Net cost of the period     22,783       715       539  
                         
Included in other comprehensive income:                        
Actuarial (gain) loss     (15,585 )     (83 )     1,199  
Income tax effect    
-
      
-
       (360 )
                         
Other:                        
Benefits paid     (4,627 )     (217 )     (1,330 )
Balance as of December 31   Ps. 153,907       2,093       1,678  

 

b) Actuarial assumptions

 

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

 

    2022     2021     2020  
    Betterware     JAFRA     Betterware     Betterware  
Financial:                        
Future salary growth     6.5 %     5.5 %     5.0 %     4.0 %
Discount rate     9.2 %     9.5 %     7.6 %     6.1 %
                                 
Demographic:                                
Number of employees     901       1,276       1,272       1,294  
Age average     34 años       38 años       32 years       31 years  
Longevity average     3 años       7 años       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 as of
December 31, 2022		     Effects as of
December 31,
2021		     Effects as of
January 3,
2021		  
    Betterware     JAFRA     Betterware     Betterware  
Increase / decrease in the discount rate                        
+ 0.50%   Ps. 361       146       156       126  
- 0.50%     (174 )     (151 )     (174 )     (141 )