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Right of use assets and lease debt
 12 Months Ended
Dec. 31, 2019
Presentation of leases for lessee [abstract]  
Right of use assets and lease debt
15.
Right-of-use
assets and lease debt
The Company has lease contracts for various items of towers & sites, property and other equipment used in its operations. Towers and sites generally have lease terms between 5 and 12 years, while property and other equipment generally have lease terms between 5 and 25 years.
Set out below, are the carrying amounts of the Company’s
right-of-use
assets and lease liabilities and the movements during the period:
 
 
 
Right-of-use
assets
 
 
 
 
 
 
Towers & Sites
 
 
Property
 
 
Other
equipment
 
 
Total
 
 
Liability related to
right-of-use
of
assets
 
As of January 1, 2019
 
 
Ps.  94,252,098
 
 
 
Ps.  21,075,884
 
 
 
Ps.  4,750,320
 
 
 
Ps.  120,078,302
 
 
 
Ps.  119,387,660
 
Additions and release
 
 
6,364,508
 
 
 
921,542
 
 
 
729,001
 
 
 
8,015,051
 
 
 
7,437,621
 
Business Combinations
 
 
9,668,507
 
 
 
—  
 
 
 
—  
 
 
 
9,668,507
 
 
 
10,810,111
 
Modifications
 
 
7,474,469
 
 
 
1,288,974
 
 
 
728,837
 
 
 
9,492,280
 
 
 
8,363,045
 
Depreciation
 
 
(17,286,497
) 
 
 
(4,941,222
) 
 
 
(1,365,847
) 
 
 
(23,593,566
) 
 
 
—  
 
Interest expense
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
7,940,240
 
Payments
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(26,765,075
) 
Translation adjustment
 
 
(4,370,636
) 
 
 
(905,808
) 
 
 
(380,907
) 
 
 
(5,657,351
) 
 
 
(6,576,869
) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2019
 
 
Ps.  96,102,449
 
 
 
Ps.  17,439,370
 
 
 
Ps.  4,461,404
 
 
 
Ps.  118,003,223
 
 
 
Ps.  120,596,733
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The total of the
right-of-use
assets include an amount of Ps. 22,878,245 corresponding to related parties and the total of lease liabilities include an amount of Ps. 23,805,275 corresponding to related parties.
The implementation of IFRS 16 required a significant effort due to the fact of the need to make certain estimates, such as the lease term, based on the
non-cancelable
period and the periods covered by options to extend the lease. The Company considered the extension of the lease terms beyond the
non-cancelable
period only when it was reasonably certain to extend it. The reasonability of the extension was affected by several factors, such as regulation, business model, and geographical business strategies.
The maturity analysis of lease debt is disclosed as follows as of December 31, 2019:
 
 
  
2019
 
Short term
  
Ps.
25,894,711
 
Long term
  
 
94,702,022
 
 
  
 
 
 
Total
  
Ps.
  120,596,733
 
 
  
 
 
 
 
Maturity analysis
  
2019
 
Within one year
  
Ps.
25,894,711
 
After one year but not more than five years
  
 
80,981,832
 
More than five years
  
 
13,720,190
 
 
  
 
 
 
Total
  
Ps.
  120,596,733
 
 
  
 
 
 
 
The following are the amounts recognized in profit or loss:
 
 
  
2019
 
 
  
Others
 
  
Related parties
 
  
Total
 
Depreciation expense of
right-of-use
assets
  
 
Ps. 18,176,521
 
  
 
Ps. 5,417,045
 
  
 
Ps. 23,593,566
 
Interest expense on lease liabilities
  
 
5,654,721
 
  
 
2,285,519
 
  
 
7,940,240
 
Expense relating to short-term leases
  
 
1,978,403
 
  
 
1,958
 
  
 
1,980,361
 
Expense relating to leases of
low-value
assets
  
 
25,935
 
  
 
—  
 
  
 
25,935
 
Variable lease payments
  
 
1,299,502
 
  
 
—  
 
  
 
1,299,502
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total
  
 
Ps. 27,135,082
 
  
 
Ps. 7,704,522
 
  
 
Ps. 34,839,604