Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Equity Interest in Most Significant Subsidiaries

The equity interest in the most significant subsidiaries at December 31, 2019 and 2020 is as follows:


Company name	Country		Equity interest at December 31
Company name	Country		2019			2020
Subsidiaries:
América Móvil B.V. a)		Netherlands		100.0	%		100.0	%
Compañía Dominicana de Teléfonos, S.A. (“Codetel”) b)		Dominican Republic		100.0	%		100.0	%
Sercotel, S.A. de C.V. a)		Mexico		100.0	%		100.0	%
Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (“Telcel”) b)		Mexico		100.0	%		100.0	%
Puerto Rico Telephone Company, Inc. b )		Puerto Rico		100.0	%		100.0	%
Servicios de Comunicaciones de Honduras, S.A. de C.V. (“Sercom Honduras”) b )		Honduras		100.0	%		100.0	%
TracFone Wireless, Inc. (“TracFone”) b)		USA		100.0	%		100.0	%
Claro S.A. (Claro Brasil) b)		Brazil		98.2	%		98.2	%
NII Brazil Holding S.A.R.L a)		Luxembourg		100.0	%		100.0	%
Nextel Telecomunicações Ltda b)		Brazil		100.0	%		100.0	%
Telecomunicaciones de Guatemala, S.A. (“Telgua”) b)		Guatemala		99.3	%		99.3	%
Claro Guatemala, S.A. b)		Guatemala		100.0	%		100.0	%
Empresa Nicaragüense de Telecomunicaciones, S.A. (“Enitel”) b)		Nicaragua		99.6	%		99.6	%
Compañía de Telecomunicaciones de El Salvador, S.A. de C.V. (“CTE”) b)		El Salvador		95.8	%		95.8	%
Comunicación Celular, S.A. (“Comcel”) b)		Colombia		99.4	%		99.4	%
Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) b)		Ecuador		100.0	%		100.0	%
AMX Argentina, S.A. b)		Argentina		100.0	%		100.0	%
AMX Paraguay, S.A. b)		Paraguay		100.0	%		100.0	%
AM Wireless Uruguay, S.A. b)		Uruguay		100.0	%		100.0	%
Claro Chile, S.A. b)		Chile		100.0	%		100.0	%
América Móvil Perú, S.A.C b)		Peru		100.0	%		100.0	%
Claro Panamá, S.A. b)		Panamá		100.0	%		100.0	%
Teléfonos de México, S.A.B. de C.V. b)		Mexico		98.8	%		98.8	%
Telekom Austria AG b)		Austria		51.0	%		51.0	%

a)	Holding companies

b)	Operating companies of mobile and fixed services

Summary of Annual Depreciation Rates

Annual depreciation rates are as follows:


Network infrastructure			5%-33%
Buildings and leasehold improvement			2%-33%
Other assets			10%-50%

Summary of Most Significant Forward Looking Estimates Used for Impairment Evaluations

The most significant forward-looking estimates used for the 2019 and 2020 impairment evaluations are shown below:


	Average margin on EBIDTA		Average margin on CAPEX		Average pre-tax discount rate (WACC)
2019 :
Europe (7 countries)		29.40% - 44.50%		10.90% - 19.30%		5.77% - 14.96%
Brazil (fixed line, wireless and TV)		40.43%		23.50%		11.00%
Puerto Rico		21.94%		17.94%		4.39%
Dominican Republic		47.23%		16.17%		13.84%
Mexico (fixed line and wireless)		38.81%		9.84%		6.94%
Ecuador		44.98%		11.65%		19.85%
Peru		32.51%		18.51%		8.86%
El Salvador		44.04%		25.03%		16.05%
Chile		26.85%		18.00%		4.16%
Colombia		45.58%		19.25%		17.27%
Other countries		7.40% - 52.40%		0.57% - 31.0%		6.41% - 34.75%
2020:
Europe (7 countries)		32.20% - 40.76%		7.04% - 19.39%		3.88% - 12.02%
Brazil (fixed line, wireless and TV)		40.67%		25.36%		9.50%
Puerto Rico		23.06%		14.57%		3.53%
Dominican Republic		47.57%		13.71%		8.27%
Mexico (fixed line and wireless)		32.69%		11.01%		6.03%
Ecuador		49.23%		11.14%		17.50%
Peru		38.72%		15.43%		4.76%
El Salvador		45.92%		21.19%		14.63%
Chile		26.34%		13.18%		3.37%
Colombia		43.45%		18.19%		6.44%
Other countries		10.07% - 47.23%		0.48% - 31.67%		3.42% - 21.85%

Summary of quantitative information about right-of-use assets

Right-of-use

assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:


Assets		Useful life
Towers and sites		5 to 12 years
Property		10 to 25 years
Other equipment		5 to 15 years

Summary of Exchange Rates Used forTranslation of Foreign Currencies

The exchange rates used for the translation of foreign currencies against the Mexican peso are as follows:


		Average exchange rate						Closing exchange rate at December 31,
Country or Zone	Currency	2018		2019		2020		2019		2020
Argentina (1)	Argentine Peso (AR$)		0.7311		0.4110		0.3070		0.3147		0.2371
Brazil	Real (R$)		5.2937		4.8907		4.1850		4.6754		3.8387
Colombia	Colombian Peso (COP$)		0.0065		0.0059		0.0058		0.0058		0.0058
Guatemala	Quetzal		2.5591		2.5023		2.7826		2.4478		2.5596
U.S.A. (2)	US Dollar		19.2397		19.2641		21.4860		18.8452		19.9487
Uruguay	Uruguay Peso		0.6274		0.5479		0.5110		0.5051		0.4712
Nicaragua	Cordoba		0.6097		0.5817		0.6257		0.5569		0.5728
Honduras	Lempira		0.7994		0.7806		0.8678		0.7597		0.8215
Chile	Chilean Peso		0.0300		0.0275		0.0271		0.0252		0.0281
Paraguay	Guaraní		0.0034		0.0031		0.0032		0.0029		0.0029
Peru	Sol (PEN$)		5.8517		5.7708		6.1483		5.6814		5.5046
Dominican Republic	Dominican Peso		0.3876		0.3737		0.3766		0.3542		0.3416
Costa Rica	Colon		0.0332		0.0326		0.0366		0.0327		0.0323
European Union	Euro		22.7101		21.5642		24.5080		21.1311		24.3693
Bulgaria	Lev		11.6110		11.0257		12.5284		10.8076		12.4594
Belarus	New Belarusian Ruble		9.4451		9.2159		8.8172		8.9420		7.5721
Croatia	Croatian Kuna		3.0613		2.9069		3.2498		2.8406		3.2279
Macedonia	Macedonian Denar		0.3688		0.3504		0.3975		0.3431		0.3950
Serbia	Serbian Denar		0.1920		0.1830		0.2083		0.1795		0.2071

(1)	Year-end rates are used for the translation of revenues and expenses if IAS 29 “Financial Reporting in Hyperinflationary Economies” is applied.

Financial reporting in hyperinflationary economies

Financial statements of Argentina subsidiaries are restated before translation to the reporting currency of the Company and before consolidation in order to reflect the same value of money for all items. Items recognized in the statements of financial position which are not measured at the applicable

year-end

measuring unit are restated based on the general price index. All

non-monetary

items measured at cost or amortized cost is restated for the changes in the general price index from the date of transaction or the last hyperinflationary calculation to the reporting date. Monetary items are not restated. All items of shareholders’ equity are restated for the changes in the general price index since their addition or the last hyperinflationary calculation until the end of the reporting period. All items of comprehensive income are restated for the change in a general price index from the date of initial recognition to the reporting date. Gains and losses resulting from the

net-position

of monetary items are reported in the consolidated statements of operations in financial result in exchange differences. In accordance with IFRS, prior year financial statements were not restated.

(2)	Includes U.S.A., Ecuador, El Salvador, Puerto Rico and Panama.