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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, 2023

Disclosure of subsidiaries [line items]

Summary of Equity Interest in Most Significant Subsidiaries

The equity interest in the most significant subsidiaries is as follows:


	Country		Equity interest at December 31
	Country		2022			2023
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		99.6	%		99.6	%
NII Brazil Holding S.A.R.L c)		Luxembourg		100.0	%		—
AMX International Mobile S.A. de C.V. c)		Mexico		—			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	%
América Móvil Perú, S.A.C b)		Peru		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	%		58.4	%
EuroTeleSites AG and subsidiaries d)		Austria		—			57.0	%
Joint venture:
Claro Chile, SpA		Chile		50.0	%		50.0	%

a)	Holding companies.

b)	Operating companies of mobile and fixed services.

c)	On January 2023, this entity merged with AMX International Mobile, S.A. de C.V.

d)	Company spun-off from Telekom Austria AG on September 22, 2023.

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 2022 and 2023 impairment evaluations are shown below:


	Average margin on EBIDTA		Average margin on CAPEX		Average pre-tax discount rate (WACC)
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%
2023:
Europe (7 countries)		26.81% - 43.90%		4.46% - 16.89%		6.08% - 29.15%
Brazil (fixed line, wireless and TV)		43.07%		14.37%		10.45%
Puerto Rico		23.92%		10.46%		6.31%
Dominican Republic		52.34%		13.78%		11.95%
Mexico (fixed line and wireless)		36.10%		10.66%		9.37%
Ecuador		50.81%		18.49%		21.77%
Peru		41.80%		7.11%		9.13%
El Salvador		46.27%		9.26%		20.15%
Colombia		43.39%		20.78%		10.15%
Other countries		28.06% - 51.46%		11.68% - 27.15%		10.29% - 22.79%

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		2 to 24 years
Property		2 to 24 years
Other equipment		2 to 20 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	2021		2022		2023		2022		2023
Argentina (1)	Argentine Peso (AR$)		0.2137		0.1586		0.0680		0.1096		0.0209
Brazil	Real (R$)		3.7625		3.9045		3.5545		3.7209		3.4895
Colombia	Colombian Peso (COP$)		0.0054		0.0048		0.0041		0.0040		0.0044
Guatemala	Quetzal		2.6212		2.5981		2.2675		2.4725		2.1584
U.S.A. (2)	US Dollar		20.2769		20.1283		17.7617		19.4143		16.8935
Uruguay	Uruguay Peso		0.4655		0.4893		0.4574		0.4845		0.4329
Nicaragua	Cordoba		0.5765		0.5611		0.4875		0.5359		0.4613
Honduras	Lempira		0.8384		0.8171		0.7184		0.7853		0.6819
Chile	Chilean Peso (CLP$)		0.0268		0.0232		0.0212		0.0226		0.0193
Paraguay	Guaraní		0.0030		0.0029		0.0024		0.0026		0.0023
Peru	Sol (PEN$)		5.2297		5.2454		4.7394		5.0823		4.5498
Dominican Republic	Dominican Peso		0.3540		0.3647		0.3163		0.3436		0.2893
Costa Rica	Colon		0.0325		0.0310		0.0324		0.0323		0.0321
European Union	Euro		23.9835		21.2285		19.2047		20.7830		18.6487
Bulgaria	Lev		12.2617		10.8523		9.8189		10.6188		9.5336
Belarus	New Belarusian Ruble		7.9932		7.3993		6.4630		7.0644		6.1471
Croatia	Croatian Kuna		3.1852		2.8173		2.5487		2.7584		2.4751
Macedonia	Macedonian Denar		0.3893		0.3445		0.3119		0.3378		0.3038
Serbia	Serbian Denar		0.2040		0.1807		0.1638		0.1772		0.1593

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

(2)	Includes Ecuador, El Salvador and Puerto Rico.

In December 2023, a new Argentine administration took office and called for new economic framework calling for liberalization of economic policy. This caused a major devaluation of the country’s currency, with the Argentine peso losing nearly 60% of its value

vis-á-vis

the U.S. dollar in December alone.

In addition, as of December 31, 2023, the Argentinean peso suffered a devaluation of its currency of 80.9%

year-to-date

against the Mexican peso, therefore, this matter is considered within the consolidated foreign currency exchange figure as of the date of the consolidated statement of comprehensive income.

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.

Claro Panama [Member]

Disclosure of subsidiaries [line items]

Summary of Net profit for the year from discontinued operations

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


	For the year ended December 31,			July 1 st .
	2021			2022
Operating revenue:
Revenue services		Ps. 2,667,497			Ps. 1,210,109
Sales of equipment		394,534			206,595

		3,062,031			1,416,704
Total costs and expenses		3,378,614			1,403,311

Operating (loss) profit		(316,583	)		13,393
Financial costs		(89,974	)		(39,538	)
Gain on sale of discontinued operations		—			3,405,014
(Loss) profit before income taxes from discontinued operations		(406,557	)		3,378,869
Income taxes:		5,297			—

Net (loss) profit of the period of discontinued operations		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

Tracfone Wireless Inc Tracfone [member]

Disclosure of subsidiaries [line items]

Summary of Net profit for the year from discontinued operations

The results of TracFone for the year are presented below:


	For the years ended December 31
	2021
Operating revenues:
Service revenues		Ps.130,091,540
Sales of equipment		22,160,481

		152,252,021
Total costs and expenses		134,495,316

Operating income		17,756,705

Financial cost		(1,733	)
Gain on disposal of discontinued operations		132,821,709

Profit before income tax discontinued operations		150,576,681

Tax expense:
Related to pre-tax profit from the ordinary activities for the period		2,571,541
Related to gain on disposal from discontinued operations		26,294,422

Net profit for the year from discontinued operations		Ps.121,710,718

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

The assets and liabilities deconsolidated on the date of the disposal were as follows:


	November 23,
	2021
Current assets
Cash	Ps.	338,439
Subscribers, distributors, recoverable taxes, contract assets and other net		12,368,407
Inventories, net		9,604,658
Other current assets, net		389,052

Total current assets		22,700,556
Non-current assets:
Property, plant and equipment		1,989,498
Intangibles, net		555,012
Goodwill		2,695,557
Deferred income taxes		1,094,756
Other assets, net		327,546
Rights of use		1,625

Total assets	Ps.	29,364,550

Short term liability related to right of use of assets	Ps.	1,625
Accounts payable		17,446,513
Income tax		3,267,585
Deferred revenue		13,187,667

Total liabilities		33,903,390

Net liability directly associated with disposal group	Ps.	(4,538,840	)

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 years ended as of December 31,2021			For the period ended as of October 6, 2022
Operating revenue:
Service revenues	Ps.	17,276,464		Ps.	10,500,087
Sales of equipment		4,508,925			2,626,823

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

Operating loss		(1,107,026	)		(1,827,616	)
Financial costs		(533,899	)		(685,129	)

Loss before income taxes of discontinued operations		(1,640,925	)		(2,512,745	)
Income taxes:		(4,578,004	)		(1,805,500	)

Net profit (loss) of the period from discontinued operations	Ps.	2,937,079		Ps.	(707,245	)