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Trade account receivables

12 Months Ended

Dec. 31, 2022

Trade account receivables [Abstract]

	2022			2021			2020
Trade account receivables	Ps.	1,092,855			835,757			744,109
Expected credit loss		(121,792	)		(90,164	)		(9,083	)
	Ps.	971,063			745,593			735,026

The trade accounts receivable detailed above are measured at their amortized cost. The average, with respect to Betterware´s the turnover of accounts receivable, is from 14 to 28 days as of December 31, 2022, 2021 and January 3, 2021; and JAFRA´s the turnover of accounts receivable, is from 30 to 120 days as of December 31, 2022. No interest is charged on outstanding accounts receivable.

The Group measures the loss reserve for commercial accounts receivable in an amount equal to the expected lifetime credit loss. Expected credit losses in accounts receivable are estimated using a provisions matrix with reference to the debtor’s previous default history and an analysis of the debtor’s current financial situation, adjusted for factors specific to the debtors and the general economic conditions of the industry in which the debtors operate, and assessing both current and predicted conditions as of the reporting date.

The Group’s significant growth in recent years have caused volatility in collections. Because of this, management has applied significant estimation to determine the estimated expected credit losses as of December 31, 2022 and 2021; where the weighting of the historical behavior was analyzed, given what happened due to the extraordinary events of the COVID-19 pandemic, thus normalizing the expectation of future credit losses for the year 2023.

The Group cancels an account receivable when there is information that indicates that the debtor is experiencing serious financial difficulties and there is no realistic prospect of recovery, e.g. when the debtor has been placed in liquidation or has entered bankruptcy proceedings, or when a commercial account receivable is more than one year old, whichever occurs first. For the periods ended December 31, 2022, 2021 and January 3, 2021 Ps.237,928, Ps.117,414 and Ps.62,184 have been canceled, respectively.

The following table shows the expected lifetime credit loss recognized for accounts receivable in accordance with the simplified approach established in IFRS 9.

Trade receivables – days past due
	Betterware de México												JAFRA in Mexico and United States
As of December 31, 2022	Not past due			14-21			21-28			>28			Not past due			>30-59			>60-120			>120			Total
Expected credit loss rate		1	%		18	%		39	%		41	%		1	%		7	%		21	%		61	%
Estimated total gross carrying amount at default	Ps.	365,978			24,198			15,592			161,204			374,039			77,509			31,366			42,969			1,092,855
Expected credit loss	Ps.	3,561			4,337			6,142			66,126			3,589			5,130			6,735			26,172			121,792

Trade receivables – days past due
As of December 31, 2021	Not past due			14-21			21 – 28			>28			Total
Expected credit loss rate		1	%		27	%		60	%		28	%
Estimated total gross carrying amount at default	Ps.	560,642			31,439			22,463			221,213			835,757
Expected credit loss	Ps.	6,814			8,338			13,386			61,626			90,164

Trade receivables – days past due
As of January 3, 2021	Not past due			14-21			21 – 28			>28			Total
Expected credit loss rate		2	%		30	%		62	%		33	%
Estimated total gross carrying amount at default	Ps.	640,675			31,918			17,772			53,744			744,109
Expected credit loss	Ps.	8,163			9,588			10,946			17,563			46,260

The following table shows the movement in lifetime expected credit loss that has been recognized for trade account receivables in accordance with the simplified approach set out in IFRS 9.

	Total
Balance as of January 1, 2020	Ps.	(13,640	)
Expected credit loss		(46,260	)
Specific credit loss		(11,367	)
Amounts written off		62,184
Balance as of January 3, 2021		(9,083	)
Expected credit loss		(198,495	)
Amounts written off		117,414
Balance as of December 31, 2021		(90,164	)
Expected credit loss		(269,595	)
Amounts written off		237,928
Foreign currency translation		39
Balance as of December 31, 2022	Ps.	(121,792	)