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Intangible assets, net
 12 Months Ended
Dec. 31, 2022
Intangible assets, net [Abstract]  
Intangible assets, net
13.Intangible assets, net

 

Acquisition cost:  As
January 1,
2020		   Additions   Disposals   As of
January 3,
2021		 
Brand  Ps.253,000    
-
    
-
    253,000 
Customer relationships   64,000    
-
    
-
    64,000 
Software   21,651    24,333    
-
    45,984 
Brands and logo rights   7,608    276    (2,491)   5,393 
   Ps.346,259    24,609    (2,491)   368,377 

 

Accumulated amortization:  As of
January 1,
2020		   Amortization
expense		   Disposals   As of
January 3,
2021		 
Customer relationships  Ps.(30,933)   (6,400)   
        -
    (37,333)
Software   (421)   (6,675)   
-
    (7,096)
Brands and logo rights   (3,940)   (647)   
-
    (4,587)
   Ps.(35,294)   (13,722)   
-
    (49,016)

 

Acquisition cost:  As of
January 3,
2021		   Additions   Disposals   As of
December 31,
2021		 
Brand  Ps.253,000    -         -    253,000 
Customer relationships   64,000    -    -    64,000 
Software   45,984    65,356    -    111,340 
Brands and logo rights   5,393    70    -    5,463 
   Ps.368,377    65,426    -    433,803 

 

Accumulated amortization:  As of
January 3,
2021		   Amortization
expense		   Disposals   As of
December 31,
2021		 
Customer relationships  Ps.(37,333)   (6,400)   
       -
    (43,733)
Software   (7,096)   (8,377)   
-
    (15,473)
Brands and logo rights   (4,587)   (250)   
-
    (4,837)
   Ps.(49,016)   (15,027)   
-
    (64,043)

 

Acquisition cost:  As of
December 31,
2021		   Subsidiaries’
Acquisitions		   Additions   Disposals   Foreign
currency
translation		  

As of
December 31,
2022

 
Brand  Ps.253,000    840,616    9,493       -    (1,003)   1,102,106 
Customer relationships   64,000    553,808    -    -    -    617,808 
Software   111,340    -    41,443    -    -    152,783 
Brands and logo rights   5,463    -    109    -    -    5,572 
   Ps.433,803    1,394,424    51,045    -    (1,003)   1,878,269 

 

Accumulated amortization:  As of
December 31,
2021		   Amortization
expense		   Disposals   Foreign
currency
translation		   As of
December 31,
2022		 
Customer relationships  Ps.(43,733)   (40,412)   
    -
    
    -
    (84,145)
Software   (15,473)   (29,686)   
-
    
-
    (45,159)
Brands and logo rights   (4,837)   (246)   
-
    
-
    (5,083)
   Ps.(64,043)   (70,344)   
-
    
-
    (134,387)

 

Brands:

 

●The “Betterware” brand is an intangible asset with an indefinite useful life and a carrying amount of Ps.253,000, which is presented in the consolidated statements of financial position. This brand was transmitted to the Group through a merger carried out on July 28, 2017 with Strevo Holding, S.A. de C.V. (a related party under common control). Strevo obtained such brand when acquiring the majority of the Betterware’s shares in March 2015.

 

●

The “JAFRA” brands are intangible assets with an indefinite useful life and a carrying amount of Ps.849,106, which is presented in the consolidated statements of financial position. Since the business combination with the Group on the date of on April 7, 2022, the JAFRA brands were valued at their fair value.

 

Customer relationships:

 

●The intangible for the relationship with customers of Betterware was transferred to the Group through a merger with Strevo carried out on July 28, 2017, this intangible asset has a useful life of ten years and are amortized using the straight-line method.

 

●

The intangible for the relationship with customers of JAFRA arose from the valuation of assets acquired and liabilities assumed by business combination dated April 7, 2022 this intangible asset has a useful life of twelve years and are amortized using the straight-line method. The calculation comprised the revenues attributable of Jafra Mexico and the total number of consultants as of the valuation date. In addition, future revenues, growth rate and desertion were projected.

The customers relationships balances of the Group are described below:

 

   As of
December 31,
2022		   As of
December 31,
2021		   As of
January 3,
2021		 
Betterware  Ps.13,867    20,267    26,667 
JAFRA Mexico   519,796    -    - 
Total of customers relationships  Ps.533,663    20,267    26,667 

 

Brands and logo rights

 

●Betterware has incurred expenses related to the registration trademarks and logos rights with intellectual property authorities, which have a defined life, are amortized linearly over their estimated useful life, which ranges from 10 to 30 years. As of December 31, 2022, 2021 and January 3, 2021, intangible assets for brands and logo rights are presented in the consolidated statement of financial position for a total of Ps.489, Ps.626 and Ps.806, respectively.

 

At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. As of December 31, 2022, 2021 and January 3, 2021, the Group have been not identified indications of impairment.

 

In relation to impairment of intangible assets with indefinite useful life (brand), the Group estimates the recoverable amount of the intangible asset which is based on fair value less costs of disposal, estimated using discounted cash flows. The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used (see note 12).