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FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2019
Financial Instruments [Abstract]  
Disclosure of financial assets
Except as detailed in the following table, the carrying amounts of financial assets and liabilities included in the consolidated statement of financial position as of December 31, 2019 and 2018, are a reasonable approximation of fair value due to the short time of realization.
 
 
 
As of December 31, 2019
 
As of December 31, 2018
 
 
Carrying amount
 
Fair value
 
Carrying amount
 
Fair value
Non-current assets
 
 
 
 
 
 
 
 
Other receivables
 
 
 
 
 
 
 
 
Guarantee deposits
 
2,683

 
2,571

 
1,681

 
1,539

Tax credit - VAT
 
626

(*) 
600

 
356

(*) 
326

Income tax credits
 
1,515

 
1,453

 
1,259

 
1,153

Tax credit - Software Promotion Regime
 
—

 
—

 
749

(*) 
686

Other tax credits
 
210

 
200

 
170

 
157

Other assets
 
7,796

 
7,140

 
—

 
—

Non-current liabilities
 
 
 
 
 
 
 
 
Trade payables
 
5,500

 
5,101

 
—

 
—

Borrowings
 
50,188

 
51,070

 
—

 
—


(*) As of December 31, 2019 and 2018, is presented net of allowance for impairment of tax credit - VAT of 378 and 600, respectively. As of December 31, 2018 is presented net of 74 related to allowance of Tax credit - Software Promotion Regime.

As of December 31, 2019 and 2018, the foreign exchange forward contracts that were recognized as financial assets and liabilities at fair value through profit or loss were as follows:

 
 
Currency
 
Foreign currency
 
Notional foreign
 
Fair value assets /
Settlement date
 
from contracts
 
rate from contracts
 
currency rate
 
(liabilities)
January 27, 2020
 
Indian Rupee
 
72.36
 
71.56

 
11

January 31, 2020
 
Chilean Peso
 
747.68
 
751.57

 
5

January 31, 2020
 
Colombian Peso
 
3,323.65
 
3,281.28

 
39

January 31, 2020
 
Colombian Peso
 
3,515.42
 
3,281.94

 
356

January 31, 2020
 
Colombian Peso
 
3,512.66
 
3,281.93

 
422

January 31, 2020
 
Uruguayan Peso
 
38.09
 
37.73

 
29

February 25, 2020
 
Indian Rupee
 
71.45
 
71.77

 
7

February 28, 2020
 
Colombian Peso
 
3,518.27
 
3,288.08

 
351

Fair value as of December 31, 2019
 
 
 
 
 
 
 
1,220

 
 
Currency
 
Foreign currency
 
Notional foreign
 
Fair value assets /
Settlement date
 
from contracts
 
rate from contracts
 
currency rate
 
(liabilities)
January 31, 2019
 
Argentine Peso
 
40.06
 
39.67

 
26

February 28, 2019
 
Argentine Peso
 
41.54
 
41.17

 
15

April 30, 2019
 
Argentine Peso
 
44.44
 
44.30

 
3

Fair value as of December 31, 2018
 
 
 
 
 
 
 
44

 
 
 
 
 
 
 
 
 
April 30, 2019
 
Argentine Peso
 
44.26
 
44.3

 
(1
)
May 31, 2019
 
Argentine Peso
 
45.74
 
45.92

 
(5
)
May 31, 2019
 
Argentine Peso
 
45.69
 
45.92

 
(6
)
Fair value as of December 31, 2018
 
 
 
 
 
 
 
(12
)
 
 
As of December 31, 2019
 
 
FVTPL
FVTOCI
Amortised cost
Financial assets
 
 
 
 
Cash and cash equivalents
 
—

—

62,721

Investments
 
 
 
 
Mutual funds
 
19,384

—

—

LETEs
 
—

396

—

Contribution to risk funds
 
—

—

418

Trade receivables
 
—

—

156,676

Other assets
 
—

—

21,235

Other receivables
 
—

—

28,118

Other financial assets
 
 
 
 
Convertible notes
 
3,536

—

—

Foreign exchange forward contracts
 
1,220

71

—

Guarantee payments related to the future lease of a property under construction
 
—

—

1,383


 
 
As of December 31, 2019
 
 
FVTPL
FVTOCI
Amortised cost
Financial liabilities
 
 
 
 
Trade payables
 
—

—

36,987

Payroll and social security taxes payable
 
—

—

72,252

Borrowings
 
—

—

51,386

Other financial liabilities
 
 
 
 
Other financial liabilities related to business combinations
 
10,554

—

—

Lease liabilities
 
61,363

—

—

Tax liabilities
 
—

—

12,510

Other liabilities
 
—

—

368


 
 
As of December 31, 2018
 
 
FVTPL
FVTOCI
Amortised cost
Financial assets
 
 
 
 
Cash and cash equivalents
 
—

—

77,606

Investments
 
 
 
 
Mutual funds
 
4,050

—

—

LETEs
 
—

1,015

—

T-Bills
 
—

3,493

—

LECAPs
 
—

77

—

Contribution to risk funds
 
—

—

527

Trade receivables
 
—

—

110,898

Other receivables
 
—

—

49,538

Other financial assets
 
 
 
 
Convertible notes
 
106

—

—

Foreign exchange forward contracts
 
44

—

—

Other financial asset related to the acquisition of Clarice
 
400

—

—

Guarantee payments related to the future lease of a property under construction
 
—

—

345

 
 
 
 
 
Financial liabilities
 
 
 
 
Trade payables
 
—

—

17,578

Payroll and social security taxes payable
 
—

—

58,535

Other financial liabilities
 
 
 
 
Foreign exchange forward contracts
 
12

—

—

Other financial liabilities related to business combinations
 
12,753

—

—

Tax liabilities
 
—

—

7,399

Other liabilities
 
—

—

44
Disclosure of financial liabilities

Outstanding balances of financial liabilities related to the above mentioned acquisitions as of December 31, 2019 and 2018 are as follows:
 
 
 
As of December 31, 2019
 
As of December 31, 2018
 
 
Other financial liabilities - current
 
Other financial liabilities - non current
 
Other financial liabilities - current
 
Other financial liabilities - non current
 
 
 
 
 
 
 
 
 
Clarice
 
1,580

 
—

 
3,127

 
1,527

Subscription agreement
 
—

 
—

 
400

 
—

Ratio
 
903

 
—

 
1,992

 
851

PointSource
 
1,086

 
—

 
746

 
1,040

Small Footprint
 
—

 
—

 
3,070

 
—

Avanxo
 
1,147

 
1,102

 
—

 
—

Belatrix
 
4,221

 
—

 
—

 
—

BI Live
 
—

 
515

 
—

 
—

Total
 
8,937

 
1,617

 
9,335

 
3,418

 
 
As of December 31, 2019
 
 
FVTPL
FVTOCI
Amortised cost
Financial assets
 
 
 
 
Cash and cash equivalents
 
—

—

62,721

Investments
 
 
 
 
Mutual funds
 
19,384

—

—

LETEs
 
—

396

—

Contribution to risk funds
 
—

—

418

Trade receivables
 
—

—

156,676

Other assets
 
—

—

21,235

Other receivables
 
—

—

28,118

Other financial assets
 
 
 
 
Convertible notes
 
3,536

—

—

Foreign exchange forward contracts
 
1,220

71

—

Guarantee payments related to the future lease of a property under construction
 
—

—

1,383


 
 
As of December 31, 2019
 
 
FVTPL
FVTOCI
Amortised cost
Financial liabilities
 
 
 
 
Trade payables
 
—

—

36,987

Payroll and social security taxes payable
 
—

—

72,252

Borrowings
 
—

—

51,386

Other financial liabilities
 
 
 
 
Other financial liabilities related to business combinations
 
10,554

—

—

Lease liabilities
 
61,363

—

—

Tax liabilities
 
—

—

12,510

Other liabilities
 
—

—

368


 
 
As of December 31, 2018
 
 
FVTPL
FVTOCI
Amortised cost
Financial assets
 
 
 
 
Cash and cash equivalents
 
—

—

77,606

Investments
 
 
 
 
Mutual funds
 
4,050

—

—

LETEs
 
—

1,015

—

T-Bills
 
—

3,493

—

LECAPs
 
—

77

—

Contribution to risk funds
 
—

—

527

Trade receivables
 
—

—

110,898

Other receivables
 
—

—

49,538

Other financial assets
 
 
 
 
Convertible notes
 
106

—

—

Foreign exchange forward contracts
 
44

—

—

Other financial asset related to the acquisition of Clarice
 
400

—

—

Guarantee payments related to the future lease of a property under construction
 
—

—

345

 
 
 
 
 
Financial liabilities
 
 
 
 
Trade payables
 
—

—

17,578

Payroll and social security taxes payable
 
—

—

58,535

Other financial liabilities
 
 
 
 
Foreign exchange forward contracts
 
12

—

—

Other financial liabilities related to business combinations
 
12,753

—

—

Tax liabilities
 
—

—

7,399

Other liabilities
 
—

—

44
Sensitivity analysis for types of market risk
The following tables illustrate the Company's sensitivity to increases and decreases in the U.S. dollar against the relevant foreign currency. The following sensitivity analysis includes outstanding foreign currency denominated monetary items at December 31, 2019 and adjusts their translation at the year-end for changes in U.S. dollars against the relevant foreign currency. 

 
 
 
 
 

 
Gain/(loss)
Account
 
Currency
 
Amount
 
% Increase
 
Amount
 
% Decrease
 
Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
Net balances
 
Argentine pesos
 
8,023

 
40
%
 
(2,292
)
 
10
%
 
891

 
 
Chilean pesos
 
(2,789
)
 
10
%
 
254

 
10
%
 
(310
)
 
 
Colombian pesos
 
(7,770
)
 
10
%
 
706

 
10
%
 
(863
)
 
 
Indian rupees
 
(252
)
 
10
%
 
23

 
10
%
 
(28
)
 
 
Uruguayan pesos
 
(4,034
)
 
10
%
 
363

 
10
%
 
(443
)
 
 
Total
 
(6,822
)
 
 
 
(946
)
 
 
 
(753
)
Disclosure of maturity analysis for non-derivative financial liabilities
The table below analyzes financial liabilities into relevant maturity groups based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.
 
 
 
Expected Maturity Date
 
 
2020
 
2021
 
2022
 
Thereafter
 
Total
 
 
 
 
 
 
 
 
 
 
 
Borrowings
 
1,198

 
—

 
188

 
50,000

 
51,386

Lease liabilities
 
20,002

 
15,263

 
11,552

 
28,164

 
74,981

Other financial liabilities
 
8,937

 
1,617

 
—

 
—

 
10,554

TOTAL
 
30,137

 
16,880

 
11,740

 
78,164

 
136,921
Disclosure of fair value measurement of assets
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into a three-level fair value hierarchy as mandated by IFRS 13, as follows:
 
Level 1 fair value measurements are those derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities.
 
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
 
Level 3 fair value measurements are those derived from unobservable inputs for the assets or liabilities.
 
 
As of December 31, 2019
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial assets
 
 

 
 

 
 

 
 

Mutual funds
 
—

 
19,384

 
—

 
19,384

LETEs
 
—

 
396

 
—

 
396

Foreign exchange forward contracts
 
—

 
1,291

 
—

 
1,291

Convertibles notes
 
—

 
111

 
3,425

 
3,536

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Contingent consideration
 
—

 
—

 
9,252

 
9,252

 
 
 
As of December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial assets
 
 
 
 
 
 
 
 
Mutual funds
 
—

 
4,050

 
—

 
4,050

LETEs
 
—

 
1,015

 
—

 
1,015

T-Bills
 
—

 
3,493

 
—

 
3,493

LECAPs
 
—

 
77

 
—

 
77

Foreign exchange forward contracts
 
—

 
44

 
—

 
44

Convertibles notes
 
—

 
106

 
—

 
106

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Contingent consideration
 
—

 
—

 
9,767

 
9,767

Foreign exchange forward contracts
 
—

 
12

 
—

 
12
Disclosure of fair value measurement of liabilities
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into a three-level fair value hierarchy as mandated by IFRS 13, as follows:
 
Level 1 fair value measurements are those derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities.
 
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
 
Level 3 fair value measurements are those derived from unobservable inputs for the assets or liabilities.
 
 
As of December 31, 2019
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial assets
 
 

 
 

 
 

 
 

Mutual funds
 
—

 
19,384

 
—

 
19,384

LETEs
 
—

 
396

 
—

 
396

Foreign exchange forward contracts
 
—

 
1,291

 
—

 
1,291

Convertibles notes
 
—

 
111

 
3,425

 
3,536

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Contingent consideration
 
—

 
—

 
9,252

 
9,252

 
 
 
As of December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial assets
 
 
 
 
 
 
 
 
Mutual funds
 
—

 
4,050

 
—

 
4,050

LETEs
 
—

 
1,015

 
—

 
1,015

T-Bills
 
—

 
3,493

 
—

 
3,493

LECAPs
 
—

 
77

 
—

 
77

Foreign exchange forward contracts
 
—

 
44

 
—

 
44

Convertibles notes
 
—

 
106

 
—

 
106

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Contingent consideration
 
—

 
—

 
9,767

 
9,767

Foreign exchange forward contracts
 
—

 
12

 
—

 
12
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments
The following table shows the results from remeasurement of the contingent considerations described above:
 
 
For the year ended December 31,
 
 
2019
 
2018
 
2017
(Loss) gain on remeasurement of the contingent consideration of PointSource
 
(16
)
 
5,506

 
—

Loss on remeasurement of the contingent consideration of Avanxo
 
(4
)
 
—

 
—

Loss on remeasurement of the contingent consideration of Clarice
 
(3
)
 
—

 
(1,173
)
Gain on remeasurement of the contingent consideration of L4
 
—

 
1,848

 
4,058

Gain on remeasurement of the contingent consideration of WAE
 
—

 
—

 
3,850

Loss on remeasurement of the contingent consideration of Ratio
 
(62
)
 
(654
)
 
—

TOTAL
 
(85
)
 
6,700

 
6,735

The following table shows the reconciliation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy:
 
Financial Assets
 
Financial liabilities
 
Call option on minority interest
 
Contingent consideration
 
Put option on minority interest
December 31, 2017
455

 
23,905

 
2,797

Fair value remeasurement (1)
—

 
(6,700
)
 
(1,611
)
Reclassification to amortised cost (1)
—

 
(1,778
)
 
—

Derecognition of call option (1)
(455
)
 
—

 
—

Acquisition of business (1)
—

 
3,029

 
—

Payments (2)
—

 
(8,947
)
 
(1,186
)
Interests (1)
—

 
258

 
—

December 31, 2018
—

 
9,767

 
—


 
Financial Assets
 
Financial liabilities
 
 
 
Convertible notes
 
Contingent consideration
 
 
December 31, 2018
—

 
9,767

 
 
Fair value remeasurement (1)
—

 
85

 
 
Acquisition of business (1)
—

 
6,835

 
 
Payments (2)
3,350

 
(7,695
)
 
 
Interests (1)
75

 
260

 
 
December 31, 2019
3,425

 
9,252

 
 


(1) Non-cash transactions.
(2) Cash transactions included in investing activities in the Consolidated Statement of Cash Flows.
Disclosure of detailed information about hedging instruments
The following table detail the foreign currency forward contracts outstanding as of December 31, 2019:

Hedging instruments - Outstanding contracts
 
 
Currency
 
Foreign currency
 
Notional foreign
 
Fair value assets
Settlement date
 
from contracts
 
rate from contracts
 
currency rate
 

January 31, 2020
 
Argentine Peso
 
66.45
 
62.2

 
71

Fair value as of December 31, 2019
 
 
 
 
 
 
 
71