Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

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Summary of Estimated Useful Life of Property, Plant and Equipment

The depreciation of other assets that do not qualify as “Major equipment” is calculated under the straight-line method to allocate their cost less their residual values over their estimated useful lives, as follows:

	Years
Buildings and facilities	Between 3 and 50
Machinery and equipment	Between 2 and 10
Vehicles	Between 2 and 10
Furniture and fixtures	Between 2 and 10
Other equipment	Between 2 and 10

Summary of Reclassified Discontinued Operations

	As of December 31,								As of December 31,
	2019		Reclassified (a)			Adexus (b)			2019
	Audited								As restated
ASSETS
Current assets
Cash and cash equivalents		948,978		—			1,723			950,701
Trade accounts receivables, net		821,737		—			92,467			914,204
Work in progress, net		49,457		—			—			49,457
Accounts receivable from related parties		36,658		—			—			36,658
Other accounts receivable		444,500		—			9,974			454,474
Inventories, net		552,573		—			2,828			555,401
Prepaid expenses		11,348		—			5,130			16,478
		2,865,251		—			112,122			2,977,373
Non-current assets as held for sale		205,418		—			(203,020	)		2,398
Total current assets		3,070,669		—			(90,898	)		2,979,771
Non-current assets
Trade accounts receivable, net		753,202		—			26,407			779,609
Work in progress, net		23,117		—			—			23,117
Accounts receivable from related parties		546,941		27,782			—			574,723
Prepaid expenses		27,934		—			—			27,934
Other accounts receivable		300,323		(27,782	)		891			273,432
Investments in associates and joint ventures		37,035		—			—			37,035
Investment property		28,326		—			—			28,326
Property, plant and equipment, net		443,870		—			20,120			463,990
Intangible assets, net		853,315		—			912			854,227
Right-of-use assets, net		78,813		—			11,768			90,581
Deferred income tax asset		240,919		—			30,800			271,719
Total non-current assets		3,333,795		—			90,898			3,424,693
Total assets		6,404,464		—			—			6,404,464

	As of December 31,								As of December 31,
	2019			Reclassified (a)		Adexus (b)			2019
	Audited								As restated
LIABILITIES AND EQUITY
Current liabilities
Borrowings		454,260			—		27,269			481,529
Bonds		44,737			—		—			44,737
Trade accounts payable		1,136,121			—		22,954			1,159,075
Accounts payable to related parties		38,916			—		—			38,916
Current income tax		47,999			—		3,170			51,169
Other accounts payable		635,305			—		34,369			669,674
Provisions		113,483			—		—			113,483
Total current liabilities		2,470,821			—		87,762			2,558,583
Non-current liabilities as held for sale		210,025			—		(210,025	)		—
Total current liabilities		2,680,846			—		(122,263	)		2,558,583
Non-current liabilities
Borrowings		344,806			—		64,260			409,066
Bonds		879,305			—		—			879,305
Trade accounts payable		—			—		34,814			34,814
Other accounts payable		273,101			—		23,189			296,290
Accounts payable to related parties		22,583			—		—			22,583
Provisions		214,952			—		—			214,952
Derivative financial instruments		52			—		—			52
Deferred income tax liability		112,734			—		—			112,734
Total non-current liabilities		1,847,533			—		122,263			1,969,796
Total liabilities		4,528,379			—		—			4,528,379
Equity
Capital		871,918			—		—			871,918
Legal reserve		132,011			—		—			132,011
Voluntary reserve		29,974			—		—			29,974
Share Premium		1,132,179			—		—			1,132,179
Other reserves		(177,506	)		—		—			(177,506	)
Retained earnings		(510,766	)		—		—			(510,766	)
Equity attributable to controlling interest in the Company		1,477,810			—		—			1,477,810
Non-controlling interest		398,275			—		—			398,275
Total equity		1,876,085			—		—			1,876,085
Total liabilities and equity		6,404,464			—		—			6,404,464

As a result of this process, the amounts in the consolidated statement of income are reclassified as follows:

	For the year ended December 31, 2018
	Reported			Adexus			As restated
Revenues from construction activities		1,961,100			—			1,961,100
Revenues from services provided		1,003,623			85,692			1,089,315
Revenue from real estate and sale of goods		934,739			217,244			1,151,983
		3,899,462			302,936			4,202,398
Cost of construction activities		(1,921,112	)		—			(1,921,112	)
Cost of services provided		(741,172	)		(165,781	)		(906,953	)
Cost of real estate and sale of goods		(562,689	)		(97,674	)		(660,363	)
		(3,224,973	)		(263,455	)		(3,488,428	)
Gross profit		674,489			39,481			713,970
Administrative expenses		(278,433	)		(32,730	)		(311,163	)
Other income and expenses		(61,335	)		(4,519	)		(65,854	)
Loss from the sale of investments		(7	)		—			(7	)
Operating profit		334,714			2,232			336,946
Financial expenses		(247,982	)		(12,786	)		(260,768	)
Financial income		50,925			611			51,536
		(3,709	)		—			(3,709	)
Profit (loss) before income tax		133,948			(9,943	)		124,005
Income tax expense		(113,318	)		2,325			(110,993	)
Profis (loss) from continuing operations		20,630			(7,618	)		13,012
Profit from discontinued operations		36,785			7,618			44,403
Profit for the period		57,415			—			57,415
Profit (loss) attributable to:
Owners of the Company		11,336			(94,524	)		(83,188	)
Non-controlling interest		46,079			94,524			140,603
		57,415			—			57,415

	For the year ended December 31, 2019
	Reported			Adexus			As restated
Revenues from construction activities		2,411,880			—			2,411,880
Revenues from services provided		1,089,465			164,594			1,254,059
Revenue from real estate and sale of goods		583,659			88,263			671,922
		4,085,004			252,857			4,337,861
Cost of construction activities		(2,351,563	)		—			(2,351,563	)
Cost of services provided		(866,326	)		(168,925	)		(1,035,251	)
Cost of real estate and sale of goods		(425,352	)		(75,258	)		(500,610	)
		(3,643,241	)		(244,183	)		(3,887,424	)
Gross profit		441,763			8,674			450,437
Administrative expenses		(213,908	)		(34,744	)		(248,652	)
Other income and expenses		(326,754	)		(12,740	)		(339,494	)
Operating loss		(98,899	)		(38,810	)		(137,709	)
Financial expenses		(231,709	)		(21,425	)		(253,134	)
Financial income		74,656			(310	)		74,346
Share of the profit or loss of associates and joint ventures accounted for using the equity method		(218,774	)		—			(218,774	)
Loss before income tax		(474,726	)		(60,545	)		(535,271	)
Income tax expense		(319,957	)		16,586			(303,371	)
Loss from continuing operations		(794,683	)		(43,959	)		(838,642	)
(Loss) profit from discontinued operations		(43,959	)		43,959			—
Loss for the year		(838,642	)		—			(838,642	)
(Loss) profit attributable to:
Owners of the Company		(884,721	)		—			(884,721	)
Non-controlling interest		46,079			—			46,079
		(838,642	)		—			(838,642	)