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

Material Accounting Policies (Tables)

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Material Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Significant Accounting Policies [Abstract]  
Schedule of Consolidated Statement of Financial Position Consolidated Statement of Financial Position as of December 31, 2021
    Adjusted     Previously Presented     Difference     Reference
Assets                      
Current assets:                      
Trade accounts receivable, net   $ 745,593       778,054       (32,461 )   a
Inventories     1,286,155       1,339,378       (53,223 )   a, b
Prepaid expenses     35,596       69,224       (33,628 )   c
Total current assets     3,352,747       3,472,059       (119,312 )    
Total assets   $ 5,185,229       5,304,541       (119,312 )    
                             
Liabilities and stockholders’ equity                            
Current liabilities:                            
Accrued expenses   $ 159,354       142,169       17,185     b
Provisions     118,468       115,192       3,276     d
Income tax payable     97,634       88,679       8,955     f
Total current liabilities   $ 2,449,919       2,420,503       29,416      
                             
Non-current liabilities:                            
Deferred income tax   $ 38,975       80,907       (41,932 )   a, b, c, d
Total non-current liabilities     1,535,107       1,577,039       (41,932 )    
Total liabilities   $ 3,985,026       3,997,542       (12,516 )    
                             
Stockholder’s equity                            
Capital stock   $ 321,312       294,999       26,313     e
Retained earnings (deficit)     856,994       990,103       (133,109 )   a, b, c, d, e, f
Equity attributable to owners of the Group     1,185,548       1,292,344       (106,796 )    
Total stockholders’ equity     1,200,203       1,306,999       (106,796 )    
Total liabilities and stockholders’ equity   $ 5,185,229       5,304,541       (119,312 )    

 

(a) Cut-off for revenue where control was not transferred to the customer.
   
(b) Cost of inventory overstated on the international freight standard cost assumption; offset by overstated accruals liabilities on import expenses.
   
(c) Cost of catalogues that had a non-GAAP treatment as prepaids and were expensed at the same time the revenues were realized; instead of when catalogues were received as IFRS states.
   
(d) Immaterial provisions for labor matters.
   
(e) Reclassification between capital stock and retained earnings for combination instead of consolidation of capital in 2020.
   
(f) Accrual for the tax contingency explained in note 28 was not recorded previously.
w. Accounts payable to suppliers and accrued expenses
Schedule of Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended December 31, 2021
    Adjusted     Previously Presented     Difference     Reference
                       
Net revenue   $ 10,067,683       10,039,668       28,015     a
                             
Cost of sales     4,498,008       4,399,164       98,844     a, b
                             
Gross profit     5,569,675       5,640,504       (70,829 )    
                             
Administrative expenses     1,247,742       1,247,436       306     d
Selling expenses     1,256,289       1,264,581       (8,292 )   c
Distribution expenses     463,779       463,779      
-
      
      2,967,810       2,975,796       (7,986 )    
                             
Operating income     2,601,865       2,664,708       (62,843 )    
                             
Income before income taxes     2,562,495       2,625,338       (62,843 )    
                             
Current income tax     791,856       782,901       8,955     f
Deferred income tax     22,700       41,553       (18,853 )   a, b, c, d
                             
Net income for the year   $ 1,747,939       1,800,884       (52,945 )    
(a) Cut-off for revenue where control was not transferred to the customer.
   
(b) Cost of inventory overstated on the international freight standard cost assumption; offset by overstated accruals liabilities on import expenses.
   
(c) Cost of catalogues that had a non-GAAP treatment as prepaids and were expensed at the same time the revenues were realized; instead of when catalogues were received as IFRS states.
   
(d) Immaterial provisions for labor matters.
   
(e) Reclassification between capital stock and retained earnings for combination instead of consolidation of capital in 2020.
   
(f) Accrual for the tax contingency explained in note 28 was not recorded previously.
Schedule of Percentage of Participation As of December 31, 2023, 2022 and 2021 the percentage of participation that it maintains over its subsidiaries are the following:
    Operating   Functional     % Participation  
The Group’s companies:   Country   currency     2023     2022     2021  
Home organization (“Betterware”):                            
Betterware de México, S.A.P.I. de C.V.   Mexico     Peso       Last controlling entity  
BLSM Latino América Servicios, S.A. de C.V.   Mexico     Peso       99 %     99 %     99 %
Betterware de Guatemala, S.A.   Guatemala     Quetzal       70 %     70 %     70 %
Programa Lazos, S.A. de C.V.   Mexico     Peso       70 %     70 %     70 %
GurúComm, S.A.P.I. de C.V. (1)   Mexico     Peso      
-
      
-
       60 %
Innova Catálogos, S.A. de C.V. (2)   Mexico     Peso      
-
      
-
       70 %
Betterware Ningbo Trading Co, LTD. (3)   China     Yuan      
-
       100 %     100 %
Finayo, S.A.P.I. de C.V. SOFOM ENR   Mexico     Peso       100 %     100 %    
-
  
Betterware América, LLC.   United States     Dollar       100 %     100 %    
-
  
                                     
Beauty and personal care (B&PC) (“JAFRA”):                                    
Jafra México Holding Company, B.V.   Mexico     Euro       100 %     100 %    
-
  
Distribuidora Comercial JAFRA, S.A. de C.V.   Mexico     Peso       100 %     100 %    
-
  
Jafra Cosmetics International, S.A. de C.V.   Mexico     Peso       100 %     100 %    
-
  
Jafra Cosmetics, S.A. de C.V.   Mexico     Peso       100 %     100 %    
-
  
Serviday, S.A. de C.V.   Mexico     Peso       100 %     100 %    
-
  
Jafrafin, S.A. de C.V.   Mexico     Peso       100 %     100 %    
-
  
Distribuidora Venus, S.A. de C.V.   Mexico     Peso       100 %     100 %    
-
  
Jafra Cosmetics International, Inc.   United States     Dollar       100 %     100 %    
-
  
(1) GurúComm was part of the Group until March 28, 2022.
(2) Innova Catálogos was part of the Group until November 18, 2022.
(3) Betterware Ningbo Trading Co, LTD was part of the Group until June 21, 2023.
● Sale of products in the home organization segment and the beauty and personal care segment.
Schedule of Useful Lives are Used in the Calculation of Depreciation The following useful lives, considering separately each of the asset’s components, are used in the calculation of depreciation:
Buildings     5 – 50 years  
Molds and machinery     3 – 15 years  
Vehicles     4 years  
Computers and equipment     3 – 10 years  
Leasehold improvements     3 – 5 years  
Schedule of Lives of Intangible Assets with a Defined Useful Life The estimated useful lives of intangible assets with a defined useful life are summarized as follows:
Intangibles:   Betterware   JAFRA
Customer relationships   10 years   12 years
Software   3 years   -
Brands and logo rights   10 – 30 years   -