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Retirement Benefits – Defined Benefit Obligations
 12 Months Ended
Dec. 31, 2022
Employee benefits [Abstract]  
Retirement benefits – Defined benefit obligations
20.Retirement benefits – Defined benefit obligations

 

The Group recognizes the liability and corresponding impacts to profit and loss as well as comprehensive income regarding to the seniority premiums to be paid to its employees. This benefit is determined considering the years of service and the compensation from the employees.

 

The components of the defined benefit liability for the periods of 2022, 2021 and 2020, are as follows:

 

a)Movement in defined liability

 

The following table shows a reconciliation from the opening balances to the closing balances for the defined benefit liability and its components:

 

   2022   2021   2020 
Balance at January 1  Ps.2,093    1,678    1,630 
                
Additions for subsidiaries’ acquisition   149,243    
-
    
-
 
                
Included in profit or loss:               
Current service cost   13,322    614    425 
Interest cost   9,461    101    114 
Net cost of the period   22,783    715    539 
                
Included in other comprehensive income:               
Actuarial (gain) loss   (15,585)   (83)   1,199 
Income tax effect   
-
    
-
    (360)
                
Other:               
Benefits paid   (4,627)   (217)   (1,330)
Balance as of December 31  Ps.153,907    2,093    1,678 

 

b)Actuarial assumptions

 

The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages):

 

   2022   2021   2020 
   Betterware   JAFRA   Betterware   Betterware 
Financial:                
Future salary growth   6.5%   5.5%   5.0%   4.0%
Discount rate   9.2%   9.5%   7.6%   6.1%
                     
Demographic:                    
Number of employees   901    1,276    1,272    1,294 
Age average   34 años    38 años    32 years    31 years 
Longevity average   3 años    7 años    2 years    2 years 

 

c)Sensitivity analysis

 

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation considering a change of ±0.50% in the discount rate.

 

   Effects as of
December 31, 2022		   Effects as of
December 31,
2021		   Effects as of
January 3,
2021		 
   Betterware   JAFRA   Betterware   Betterware 
Increase / decrease in the discount rate                
+ 0.50%  Ps.361    146    156    126 
- 0.50%   (174)   (151)   (174)   (141)