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

12 Months Ended

Dec. 31, 2022

Disclosure of subsidiaries [line items]

Summary of Equity Interest in Most Significant Subsidiaries

The equity interest in the most significant subsidiaries at December 31, 2021 and 2022 is as follows:


Company name	Country		Equity interest at December 31
Company name	Country		2021			2022
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	%
Claro S.A. b)		Brazil		98.2	%		98.2	%
NII Brazil Holding S.A.R.L a)		Luxembourg		100.0	%		100.0	%
Claro NXT Telecomunicações, S.A. 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. c)		Chile		100.0	%		—
América Móvil Perú, S.A.C b)		Peru		100.0	%		100.0	%
Claro Panamá, S.A. b) d)		Panama		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	%
Joint venture:
Claro Chile, SpA c)		Chile		—			50.0	%

a)	Holding companies

b)	Operating companies of mobile and fixed services

c)	On October 6, 2022, this entity combined its operations with the Chilean operations of LLA to form a joint venture. See Note 12b.

d)	On July 1, 2022, this entity was discontinued operations. See Note 2Ac.

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 2021 and 2022 impairment evaluations are shown below:


	Average margin on EBIDTA		Average margin on CAPEX		Average pre-tax discount rate (WACC)
2021:
Europe (7 countries)		31.60% - 45.32%		7.48% - 24.37%		2.91% - 9.83%
Brazil (fixed line, wireless and TV)		41.37%		22.98%		4.62%
Puerto Rico		21.54%		14.36%		3.00%
Dominican Republic		52.02%		13.86%		5.84%
Mexico (fixed line and wireless)		36.21%		15.89%		6.24%
Ecuador		44.76%		12.48%		14.48%
Peru		36.63%		17.19%		3.99%
El Salvador		44.82%		24.25%		10.78%
Colombia		43.36%		23.18%		7.18%
Other countries		30.55% - 48.52%		4.91% - 30.03%		4.64% - 14.39%
2022:
Europe (7 countries)		32.70% - 47.31%		7.7% - 21.1%		5.47% - 24.11%
Brazil (fixed line, wireless and TV)		41.90%		19.62%		9.30%
Puerto Rico		26.98%		8.91%		6.14%
Dominican Republic		53.93%		13.82%		11.13%
Mexico (fixed line and wireless)		36.19%		18.61%		8.60%
Ecuador		47.14%		18.42%		20.13%
Peru		36.53%		21.05%		10.39%
El Salvador		45.18%		17.59%		22.37%
Colombia		42.25%		27.41%		13.70%
Other countries		32.92% - 49.54%		9.63% - 25.97%		9.16% - 29.94%

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	2020		2021		2022		2021		2022
Argentina (1)	Argentine Peso (AR$)		0.3070		0.2137		0.1586		0.2004		0.1096
Brazil	Real (R$)		4.1850		3.7625		3.9045		3.6885		3.7209
Colombia	Colombian Peso (COP$)		0.0058		0.0054		0.0048		0.0052		0.0040
Guatemala	Quetzal		2.7826		2.6212		2.5981		2.6666		2.4725
U.S.A. (2)	US Dollar		21.4860		20.2769		20.1283		20.5835		19.4143
Uruguay	Uruguay Peso		0.5110		0.4655		0.4893		0.4605		0.4845
Nicaragua	Cordoba		0.6257		0.5765		0.5611		0.5795		0.5359
Honduras	Lempira		0.8678		0.8384		0.8171		0.8396		0.7853
Chile	Chilean Peso		0.0271		0.0268		0.0232		0.0244		0.0226
Paraguay	Guaraní		0.0032		0.0030		0.0029		0.0030		0.0026
Peru	Sol (PEN$)		6.1483		5.2297		5.2454		5.1484		5.0823
Dominican Republic	Dominican Peso		0.3766		0.3540		0.3647		0.3570		0.3436
Costa Rica	Colon		0.0366		0.0325		0.0310		0.0319		0.0323
European Union	Euro		24.5080		23.9835		21.2285		23.4220		20.7830
Bulgaria	Lev		12.5284		12.2617		10.8523		11.9762		10.6188
Belarus	New Belarusian Ruble		8.8172		7.9932		7.3993		8.0279		7.0644
Croatia	Croatian Kuna		3.2498		3.1852		2.8173		3.1161		2.7584
Macedonia	Macedonian Denar		0.3975		0.3893		0.3445		0.3800		0.3378
Serbia	Serbian Denar		0.2083		0.2040		0.1807		0.1992		0.1772

(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

Summary of Net profit for the year from discontinued operations

The results of discontinued operations for the year are shown below:


	For the years ended December 31,						July 1 st .
	2020			2021			2022
Operative revenue:
Revenue services	Ps.	2,932,390		Ps.	2,667,497		Ps.	1,210,109
Sales of equipment		317,802			394,534			206,595

		3,250,192			3,062,031			1,416,704
Total costs and expenses		5,198,532			3,378,614			1,403,311

Operating profit		(1,948,340	)		(316,583	)		13,393
Financial costs		(117,300	)		(89,974	)		(39,538	)
Gain on sale of discontinued operations		—			—			3,405,014
Profit before income taxes of discontinued operations		(2,065,640	)		(406,557	)		3,378,869
Income taxes:		14,713			5,297			—

Net profit of the period of discontinued operations	Ps.	(2,080,353	)	Ps.	(411,854	)	Ps.	3,378,869

Summary of assets and liabilities deconsolidated on the date of the disposal

The deconsolidated assets and liabilities of Claro Panama as of the date of disposal were the following:


	As of July 1,
	2022
Current assets:
Cash	Ps.	24,202
Account receivable to subscribers, distributors and others Net		666,114
Inventories, net		169,851
Other assets, net		4,457

Total current assets		864,624
Non-current assets:
Property, plant and equipment		1,102,062
Intangibles, net		1,810,964
Account receivables to subscribers, distributors and others, Net		42,368
Other assets, net		12,291
Right-of-use		975,019

Total assets	Ps.	4,807,328

Short term liability related to right-of-use assets	Ps.	198,289
Accounts payable		576,522
Payable taxes		24,981
Related parties		1,159
Deferred income		126,904
Long term liability related to right-of-use assets	Ps.	855,969
Deferred income		129,062

Total liabilities		1,912,886

Net assets directly related to the Group’s disposal	Ps.	2,894,442

Joint ventures [member]

Disclosure of subsidiaries [line items]

Summary of Net profit for the year from discontinued operations

The results of discontinued operations are as follows:


	For the yearsended as of December 31,						For the period ended as of October 6,
	2020			2021			2022
Operative revenue:
Revenue services	Ps.	17,521,377		Ps.	17,276,464		Ps.	10,500,087
Sales of equipment		3,536,505			4,508,925			2,626,823

		21,057,882			21,785,389			13,126,910
Total costs and expenses		22,418,969			22,892,415			14,954,526

Operating profit		(1,361,087	)		(1,107,026	)		(1,827,616	)
Financial costs		(1,647,069	)		(533,899	)		(685,129	)

Profit before income taxes of discontinued operations		(3,008,156	)		(1,640,925	)		(2,512,745	)
Income taxes:		316,386			(4,578,004	)		(1,805,500	)

Net profit of the period of discontinued operations	Ps.	(3,324,542	)	Ps.	2,937,079		Ps.	(707,245	)