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Financial Assets and Liabilities
 9 Months Ended
Sep. 30, 2023
Text block [abstract]  
Financial Assets and Liabilities
8.
Financial Assets and Liabilities
Set out below is the categorization of the financial instruments, excluding cash and cash equivalents, held by the Company as of September 30, 2023 and December 31, 2022:
                         
    
September 30, 2023
  
    
Loans and
Receivables
     
Fair value
through
profit or loss
     
Fair value
through OCI
  
Financial Assets:
                           
Equity investments at fair value through OCI and other short-term investments
   
Ps. 
5,889,985
 
   
Ps. 
—  
 
   
Ps. 
68,627,966
 
Accounts receivable from subscribers, distributors, contractual assets and other
   
 
163,010,399
 
   
 
—  
 
   
 
—  
 
Related parties
   
 
1,395,450
 
   
 
—  
 
   
 
—  
 
Derivative financial instruments
   
 
—  
 
   
 
1,779,953
 
   
 
—  
 
    
 
 
     
 
 
     
 
 
  
Total current assets
   
 
170,295,834
 
   
 
1,779,953
 
   
 
68,627,966
 
    
 
 
     
 
 
     
 
 
  
Debt instruments at fair value through OCI
   
 
—  
 
   
 
—  
 
   
 
14,510,542
 
    
 
 
     
 
 
     
 
 
  
Total
   
Ps. 
170,295,834
 
   
Ps. 
1,779,953
 
   
Ps. 
83,138,508
 
    
 
 
     
 
 
     
 
 
  
Financial Liabilities:
                           
Debt
   
Ps. 
507,043,629
 
   
Ps. 
—  
 
   
Ps. 
—  
 
Liability related to
right-of-use
of assets
   
 
131,467,840
 
   
 
—  
 
   
 
—  
 
Accounts payable
   
 
169,397,530
 
   
 
—  
 
   
 
—  
 
Related parties
   
 
6,037,132
 
   
 
—  
 
   
 
—  
 
Derivative financial instruments
   
 
—  
 
   
 
24,499,284
 
   
 
—  
 
    
 
 
     
 
 
     
 
 
  
Total
   
Ps. 
813,946,131
 
   
Ps. 
24,499,284
 
   
Ps. 
—  
 
    
 
 
     
 
 
     
 
 
  
                         
     December 31, 2022  
     Loans and
Receivables		      Fair value
through
profit or loss		      Fair value
through OCI		  
Financial Assets:
                           
Equity investments at fair value through OCI and other short-term investments
    Ps.  —        Ps.  —        Ps.  88,428,111  
Accounts receivable from subscribers, distributors, contractual assets and other
      161,201,512        —          —    
Related parties
      2,287,213        —          —    
Derivative financial instruments
      —          2,602,680        —    
    
 
 
     
 
 
     
 
 
  
Total current assets
      163,488,725        2,602,680        88,428,111  
    
 
 
     
 
 
     
 
 
  
Debt instruments at fair value through OCI
      —          —          6,981,149  
    
 
 
     
 
 
     
 
 
  
Total
    Ps.  163,488,725      Ps.  2,602,680      Ps.  95,409,260  
    
 
 
     
 
 
     
 
 
  
Financial Liabilities:
                           
Debt
    Ps.  510,589,480      Ps.  —        Ps.  —    
Liability related to
right-of-use
of assets
      134,148,811        —          —    
Accounts payable
      174,472,769        —          —    
Related parties
      7,224,218        —          —    
Derivative financial instruments
      —          25,331,346        —    
    
 
 
     
 
 
     
 
 
  
Total
    Ps.  826,435,278      Ps.  25,331,346      Ps.  —    
    
 
 
     
 
 
     
 
 
  
Fair value hierarchy
The Company’s valuation techniques used to determine and disclose the fair value of its financial instruments are based on the following hierarchy:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Variables other than quoted prices in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices); and
 
Level 3: Variables used for the asset or liability that are not based on any observable market data
(non-observable
variables).
The fair value for the financial assets (excluding cash and cash equivalents) and financial liabilities shown in the interim condensed consolidated statements of financial position at September 30, 2023 and December 31, 2022 is as follow:
                                 
    
Measurement of fair value at September 30, 2023
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
Assets:
                                    
Equity investments at fair value through OCI and other short-term investments
   
Ps. 
68,627,966
 
   
Ps. 
—  
 
   
 
Ps.5,889,985
 
   
 
Ps.74,517,951
 
Derivative financial instruments
   
 
—  
 
   
 
1,779,953
 
   
 
—  
 
   
 
1,779,953
 
Revalued of assets
   
 
—  
 
   
 
—  
 
   
 
27,812,945
 
   
 
27,812,945
 
Pension plan assets
   
 
191,871,841
 
   
 
14,298,222
 
   
 
35,860
 
   
 
206,205,923
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total current assets
   
 
260,499,807
 
   
 
16,078,175
 
   
 
33,738,790
 
   
 
310,316,772
 
Debt instruments at fair value through OCI
   
 
5,032,597
 
   
 
9,477,945
 
   
 
—  
 
   
 
14,510,542
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
Ps. 
265,532,404
 
   
Ps. 
25,556,120
 
   
Ps. 
33,738,790
 
   
Ps. 
324,827,314
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Liabilities:
                                    
Debt
   
Ps. 
349,654,882
 
   
Ps. 
127,557,171
 
   
Ps. 
—  
 
   
Ps. 
477,212,053
 
Liability related to
right-of-use
of assets
   
 
131,467,840
 
   
 
—  
 
   
 
—  
 
   
 
131,467,840
 
Derivative financial instruments
   
 
—  
 
   
 
24,499,284
 
   
 
—  
 
   
 
24,499,284
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
Ps. 
481,122,722
 
   
Ps. 
152,056,455
 
   
Ps. 
—  
 
   
Ps. 
633,179,177
 
    
 
 
     
 
 
     
 
 
     
 
 
  
                                 
     Measurement of fair value at December 31, 2022  
     Level 1      Level 2      Level 3      Total  
Assets:
                                    
Equity investments at fair value through OCI and other short-term investments
    Ps.  88,428,111      Ps.  —        Ps.  —        Ps.  88,428,111  
Derivative financial instruments
      —          2,602,680        —          2,602,680  
Revalued of assets
      —          —          38,353,719        38,353,719  
Pension plan assets
      192,829,688        15,657,661        39,270        208,526,619  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total current assets
      281,257,799        18,260,341        38,392,989        337,911,129  
    
 
 
     
 
 
     
 
 
     
 
 
  
Debt instruments at fair value through OCI
      —          6,981,149        —          6,981,149  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
    Ps.  281,257,799      Ps.  25,241,490      Ps.  38,392,989      Ps.  344,892,278  
    
 
 
     
 
 
     
 
 
     
 
 
  
Liabilities:
                                    
Debt
    Ps.  371,709,395      Ps.  116,848,635      Ps.  —        Ps.  488,558,030  
Liability related to
right-of-use
of assets
      134,148,811        —          —          134,148,811  
Derivative financial instruments
      —          25,331,346        —          25,331,346  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
    Ps.  505,858,206      Ps.  142,179,981      Ps.  —        Ps.  648,038,187  
    
 
 
     
 
 
     
 
 
     
 
 
  
Fair value of derivative financial instruments is valued using valuation techniques with market observable inputs. To determine its Level 2 fair value, the Company applies different valuation techniques including forward pricing and swaps models, using present value calculations. The models incorporate various inputs including credit quality of counterparties, foreign exchange spot and forward rates and interest rate curves. Fair value of debt Level 2 has been determined using a model based on present value calculation incorporating credit quality of AMX. The fair value of VTR bonds in AMX B.V. as debt instruments at fair value through OCI, were classified as Level 1 as they are listed on the regulated market. The Company’s investment in equity investments at fair value, specifically the investment in KPN N.V.and Verizon, is valued using the quoted prices (unadjusted) in active markets for identical assets. The net realized loss related to derivative financial instruments for the nine-months period ended September 30, 2023 and 2022 was
Ps. (9,051,611) and Ps. (1,444,143) respectively.
The fair value of the asset revaluation was calculated using valuation techniques, using observable market data and internal information on transactions carried out with independent third parties. To determine fair value, we use level 2 and 3 information, the Company used inputs such as average rents, contract term and discount rates for discounted flow modeling techniques; in the case of discount rates, we use level 2 data where the information is public and is found in recognized databases, such as country risks, inflation, etc. In the case of average rents and contract terms, we use level 3 data, where the information is mainly internal based on lease contracts entered into with independent third parties.
For the nine-months period ended September 30, 2023, and 2022, no
transfers were made between Level 1, Level 2 and Level 3 fair value measurement hierarchies.