IRSA Propiedades Comerciales S.A.
 
Unaudited Condensed Interim Consolidated Financial Statements for the six-month period ended December 31, 2019, presented comparatively
 
 
 
 
 
 
 
 
 
 
 
Legal Information
 
 
Denomination: IRSA PROPIEDADES COMERCIALES S.A.
 
Fiscal year N°: 130, beginning July 1, 2019.
 
Legal address: Moreno 877, 22nd floor, Autonomous City of Buenos Aires, Argentina.
 
Main business: Real estate investment and development.
 
Date of registration with the Public Registry of Commerce of the By-laws: August 29, 1889.
 
Date of registration of last amendment: October 29, 2018.
 
Expiration of company charter: August 28, 2087.
 
Registration number with the Supervisory Board of Companies: 801,047.
 
Capital stock: 126,014,050 common shares.
 
Subscribed, issued and paid up (in thousands of Ps.): 126,014.
 
Direct Majority Shareholder: IRSA Inversiones y Representaciones Sociedad Anónima (IRSA).
 
Majority Shareholder of the Group: Inversiones Financieras del Sur S.A.
 
Legal Address: Bolívar 108, 1st floor, Autonomous City of Buenos Aires, Argentina.
 
Main business: Real estate investment.
 
Direct and indirect ownership interest: 101,624,666 common shares.
 
Voting stock (direct and indirect equity interest): 80.65%.
 
 
Type of shares
CAPITAL STRUCTURE
Outstanding shares
Shares authorized for public offering
Subscribed, issued and paid-in
(in thousands of Ps.)
Registered, common shares with a nominal value of Ps. 1 each, 1 vote per share
126,014,050
126,014,050
126,014
 
 
 
 
 
 
 
 
 
 
1
IRSA Propiedades Comerciales S.A.
 
Unaudited Condensed Interim Consolidated Statements of Financial Position
as of December 31, 2019 and June 30, 2019
 (All amounts in thousands of Argentine Pesos, except for shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
 
Note
12.31.19
 
06.30.19
ASSETS
 
 
 
 
Non-current assets
 
 
 
 
Investment properties
8
76,808,150
 
75,902,313
Property, plant and equipment
9
393,803
 
418,097
Trading properties
10
154,206
 
156,043
Intangible assets
11
1,005,051
 
510,541
Rights of use assets
12
527,380
 
 -
Investments in associates and joint ventures
7
4,212,680
 
2,021,566
Deferred income tax assets
19
63,821
 
90,554
Income tax and minimum presumed income tax credits
 
4,050
 
11,387
Trade and other receivables
14
2,252,237
 
613,290
Investments in financial assets
13
643,822
 
566,176
Total non-current assets
 
86,065,200
 
80,289,967
Current Assets
 
 
 
 
Trading properties
10
 -
 
1,397
Inventories
 
33,875
 
36,392
Income tax and minimum presumed income tax credits
 
68,094
 
80,182
Trade and other receivables
14
9,705,748
 
8,574,297
Derivative financial instruments
13
1,618
 
7,062
Investments in financial assets
13
5,002,146
 
7,640,708
Cash and cash equivalents
13
4,139,298
 
5,283,156
Total current assets
 
18,950,779
 
21,623,194
TOTAL ASSETS
 
105,015,979
 
101,913,161
SHAREHOLDERS’ EQUITY
 
 
 
 
Total capital and reserves attributable to equity holders of the parent
 
47,281,682
 
48,359,010
Non-controlling interest
 
2,795,406
 
2,740,682
TOTAL SHAREHOLDERS’ EQUITY
 
50,077,088
 
51,099,692
LIABILITIES
 
 
 
 
Non-current liabilities
 
 
 
 
Trade and other payables
16
1,134,340
 
1,082,067
Borrowings
17
22,999,902
 
28,022,031
Leases liabilities
 
531,380
 
 -
Deferred income tax liabilities
19
17,379,413
 
16,533,820
Provisions
18
63,277
 
55,208
Derivative financial instruments
13
22,935
 
17,368
Total non-current liabilities
 
42,131,247
 
45,710,494
Current liabilities
 
 
 
 
Trade and other payables
16
2,693,654
 
3,163,520
Income tax liabilities
 
7,611
 
18,823
Payroll and social security liabilities
 
163,498
 
273,608
Borrowings
17
9,826,944
 
1,584,655
Leases liabilities
 
34,652
 
 -
Derivative financial instruments
13
31,347
 
17,052
Provisions
18
49,938
 
45,317
Total current liabilities
 
12,807,644
 
5,102,975
TOTAL LIABILITIES
 
54,938,891
 
50,813,469
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
 
105,015,979
 
101,913,161
 
 
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
2
IRSA Propiedades Comerciales S.A.
 
Unaudited Condensed Interim Consolidated Statements of Comprehensive Income
     for the six and three-month periods ended December 31, 2019 and 2018
(All amounts in thousands of Argentine Pesos, except for shares and per share data and as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
 
 
Six months
 
Three months
 
Note
12.31.19
 
12.31.18
 
12.31.19
 
12.31.18
Income from sales, rentals and services
20
5,004,931
 
5,061,881
 
2,728,680
 
2,666,932
Income from expenses and collective promotion fund
20
1,542,402
 
1,754,972
 
795,315
 
901,713
Operating costs
21
(2,022,946)
 
(2,270,442)
 
(1,042,911)
 
(1,156,739)
Gross profit
 
4,524,387
 
4,546,411
 
2,481,084
 
2,411,906
Net gain from fair value adjustments of investment properties
8
2,068,338
 
(9,807,574)
 
(4,950,561)
 
(17,814,049)
General and administrative expenses
21
(650,029)
 
(615,200)
 
(351,827)
 
(333,219)
Selling expenses
21
(358,499)
 
(322,390)
 
(223,514)
 
(117,085)
Other operating results, net
22
59,723
 
114,970
 
68,414
 
105,032
Profit/ (Loss) from operations
 
5,643,920
 
(6,083,783)
 
(2,976,404)
 
(15,747,415)
Share of profit of associates and joint ventures
7
274,970
 
141,086
 
(128,577)
 
(492,068)
Profit/ (Loss) from operations before financing and taxation
 
5,918,890
 
(5,942,697)
 
(3,104,981)
 
(16,239,483)
Finance income
23
194,505
 
75,801
 
134,937
 
11,833
Finance cost
23
(1,613,498)
 
(1,540,345)
 
(825,830)
 
(933,137)
Other financial results
23
(3,416,596)
 
(703,927)
 
1,810,810
 
4,407,139
Inflation adjustment
23
(142,506)
 
(277,819)
 
(135,852)
 
(98,610)
Financial results, net
 
(4,978,095)
 
(2,446,290)
 
984,065
 
3,387,225
Profit/ (Loss) before income tax
 
940,795
 
(8,388,987)
 
(2,120,916)
 
(12,852,258)
Income tax expense
19
(1,191,155)
 
1,962,776
 
(655,707)
 
2,524,816
Loss for the period
 
(250,360)
 
(6,426,211)
 
(2,776,623)
 
(10,327,442)
Total comprehensive loss for the period
 
(250,360)
 
(6,426,211)
 
(2,776,623)
 
(10,327,442)
 
 
 
 
 
 
 
 
 
Attributable to:
 
 
 
 
 
 
 
 
Equity holders of the parent
 
(381,424)
 
(6,694,285)
 
(2,620,485)
 
(9,830,157)
Non-controlling interest
 
131,064
 
268,074
 
(156,138)
 
(497,285)
 
 
 
 
 
 
 
 
 
Loss per share attributable to equity holders of the parent for the period:
 
 
 
 
 
 
 
 
Basic
 
(3.03)
 
(53.12)
 
(20.80)
 
(78.01)
Diluted
 
(3.03)
 
(53.12)
 
(20.80)
 
(78.01)
 
 
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
3
IRSA Propiedades Comerciales S.A.
 
Unaudited Condensed Interim Consolidated Statement of Changes in Shareholders’ Equity
for the six-month period ended December 31, 2019
(All amounts in thousands of Argentine Pesos, except for shares and per share data and as otherwise indicated)
Free translation from de original prepared in Spanish for publication in Argentina
 
 
 
Share capital
Inflation adjustment of share capital
Share premium
Legal reserve
Special reserve CNV 609/12 (1)
Other reserves
Retained earnings
Subtotal
Non-controlling interest
Total shareholder’s equity
Balance as of June 30, 2019
126,014
2,969,738
8,504,061
117,560
8,127,045
65,460,846
(36,946,254)
48,359,010
2,740,682
51,099,692
Comprehensive loss for the period
 -
 -
 -
 -
 -
 -
(381,424)
(381,424)
131,064
(250,360)
Assignment of results - Shareholders’ meeting as of October 30, 2019
 -
 -
 -
 -
 -
(37,589,791)
36,946,254
(643,537)
(128,707)
(772,244)
Changes in non-controlling interest
 -
 -
 -
 -
 -
(52,367)
 -
(52,367)
52,367
 -
Balance as of December 31, 2019
126,014
2,969,738
8,504,061
117,560
8,127,045
27,818,688
(381,424)
47,281,682
2,795,406
50,077,088
 
 
 
 
 
Reserve for future dividends
Special reserve
Changes in non-controlling interest
Total other reserves
Balance as of June 30, 2019
28,490,067
37,078,613
(107,834)
65,460,846
Assignment of results - Shareholders’ meeting as of October 29, 2018
(643,537)
(36,946,254)
 -
(37,589,791)
Changes in non-controlling interest
 -
 -
(52,367)
(52,367)
Balance as of December 31, 2019
27,846,530
132,359
(160,201)
27,818,688
 
 
(1)
Corresponds to General Resolution 609/12 of National Securities Commission (“CNV”). Furthermore includes the effect for the standard change in investment properties as of June 1, 2011.
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
4
IRSA Propiedades Comerciales S.A.
 
Unaudited Condensed Interim Consolidated Statement of Changes in Shareholders’ Equity
for the six-month period ended December 31, 2018
(All amounts in thousands of Argentine Pesos, except for shares and per share data and as otherwise indicated)
Free translation from de original prepared in Spanish for publication in Argentina
 
 
 
 
Share capital
Inflation adjustment of share capital
Share premium
Legal reserve
Special reserve CNV 609/12 (1)
Other reserves
Retained earnings
Subtotal
Non-controlling interest
Total shareholder’s equity
Balance as of June 30, 2018
126,014
2,969,738
8,504,061
117,560
8,127,045
6,724,416
45,409,055
71,977,889
2,823,805
74,801,694
Adjustments previous periods (IFRS 9)(2)
 -
 -
 -
 -
 -
 -
(36,250)
(36,250)
 -
(36,250)
Balance as of June 30, 2018 - Adjusted
126,014
2,969,738
8,504,061
117,560
8,127,045
6,724,416
45,372,805
71,941,639
2,823,805
74,765,444
Comprehensive loss for the period
 -
 -
 -
 -
 -
 -
(6,694,285)
(6,694,285)
268,074
(6,426,211)
Assignment of results - Shareholders’ meeting as of October 29, 2018
 -
 -
 -
 -
 -
58,784,791
(59,671,767)
(886,976)
 -
(886,976)
Changes in non-controlling interest
 -
 -
 -
 -
 -
(50,477)
 -
(50,477)
50,477
 -
Balance as of December 31, 2018
126,014
2,969,738
8,504,061
117,560
8,127,045
65,458,730
(20,993,247)
64,309,901
3,142,356
67,452,257
 
 
 
 
Reserve for future dividends
Special reserve
Changes in non-controlling interest
Total other reserves
Balance as of June 30, 2018
 -
6,783,891
(59,475)
6,724,416
Assignment of results - Shareholders’ meeting as of October 29, 2018
28,490,066
30,294,725
 -
58,784,791
Changes in non-controlling interest
 -
 -
(50,477)
(50,477)
Balance as of December 31, 2018
28,490,066
37,078,616
(109,952)
65,458,730
 
(1) 
Corresponds to General Resolution 609/12 of National Securities Commission (“CNV”). Furthermore includes the effect for the standard change in investment properties as of June 1, 2011.
(2)   See Note 2.2.
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
 
5
IRSA Propiedades Comerciales S.A.
 
Unaudited Condensed Interim Consolidated Statements of Cash Flows
for the six-month periods ended December 31, 2019 and 2018
(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)
Free translation from de original prepared in Spanish for publication in Argentina
 
 
 
 
 
 
Note
12.31.19
 
12.31.18
Operating activities:
 
 
 
 
Cash generated from operations
15
3,333,841
 
1,680,384
Income tax paid
 
(66,004)
 
(132,924)
Net cash generated by operating activities
 
3,267,837
 
1,547,460
 
 
 
 
 
Investing activities:
 
 
 
 
Capital contributions in associates and joint ventures
 
(26,477)
 
(21,191)
Acquisition of investment properties
 
(640,040)
 
(1,516,820)
Acquisition of property, plant and equipment
 
(36,859)
 
(21,051)
Advance payments
 
(595,417)
 
(2,706,869)
Acquisition of intangible assets
 
(8,820)
 
(81,947)
Acquisitions of investments in financial assets
 
(6,697,673)
 
(14,730,276)
Proceeds from investments in financial assets
 
7,936,753
 
16,672,568
Loans granted, net
 
(861,208)
 
5,325
Loans granted to related parties
 
(2,232,601)
 
 -
Loans payment received from related parties
 
586,334
 
8,464
Proceeds from sales of investment properties
 
3,375
 
 -
Collection of financial assets interests
 
259,045
 
301,040
Acquisition of subsidiaries, net of cash acquired
 
 -
 
(32,861)
Dividends received
 
96,769
 
5,984
Net cash used in investing activities
 
(2,216,819)
 
(2,117,634)
 
 
 
 
 
Financing activities:
 
 
 
 
Repurchase of non-convertible notes
 
(220,673)
 
(54,371)
Borrowings obtained from related parties
 
 -
 
14,092
Payments of financial leasing
 
 -
 
(8,324)
Dividends paid to non-controling shareholders
 
(82,341)
 
(55,894)
Payment of derivative financial instruments
 
(333,012)
 
(572,051)
Pay of leases liabilities
 
(23,003)
 
 -
Proceeds from derivative financial instruments
 
349,532
 
1,000,921
Payment of interest
 
(1,437,743)
 
(1,375,522)
Dividends paid
 
(642,879)
 
(886,831)
Short-term loans, net
 
105,973
 
188,574
Net cash used in financing activities
 
(2,284,146)
 
(1,749,406)
 
 
 
 
 
Net decrease in cash and cash equivalents
 
(1,233,128)
 
(2,319,580)
Cash and cash equivalents at beginning of period
13
5,283,156
 
7,131,122
Financial result of cash and cash equivalents
 
118,209
 
150,158
Inflation adjustment
 
(28,939)
 
(8,312)
Cash and cash equivalents at end of the period
13
4,139,298
 
4,953,388
 
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
 
6
IRSA Propiedades Comerciales S.A.
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements
(All amounts in thousands of Argentine Pesos, except for shares and per share data and as otherwise indicated)
Free translation from de original prepared in Spanish for publication in Argentina
 
1.
Group’s business and general information
 
IRSA PROPIEDADES COMERCIALES S.A. (“IRSA Propiedades Comerciales” or “the Company”) is an Argentine real estate company mainly engaged in holding, leasing, managing, developing, operating and acquiring shopping malls and office buildings and holds a predominant position within the Argentine market. IRSA Propiedades Comerciales was incorporated in 1889 under the name Sociedad Anonima Mercado de Abasto Proveedores (SAMAP) and until 1984 operated the main fresh product market in the Autonomous City of Buenos Aires. SAMAP’s core asset was the historical building of Mercado de Abasto, which served as site of the market from 1889 until 1984, when a sizable part of its operations was interrupted.
 
Since the Company was acquired by IRSA Inversiones y Representaciones Sociedad Anónima (hereinafter, IRSA) in 1994, it has grown through a series of acquisitions and development projects that resulted in a corporate reorganization pursuant to which the company was renamed Alto Palermo S.A. which was subrequentily changed to our current denomination.
 
As of the end of these unaudited condensed interim consolidated financial statements (hereinafter, financial statements), the Company operates 332,812 square meters (sqm) in 14 shopping malls, 115,639  sqm in 8 premium offices and an extensive land reserve for future commercial developments; operates and holds a majority interest in a portfolio of 14 shopping malls in Argentina, six of which are located in the Autonomous City of Buenos Aires (Abasto Shopping, Alcorta Shopping, Alto Palermo, Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two in Buenos Aires province (Alto Avellaneda and Soleil Premium Outlet) and the rest are situated in different provinces (Alto Noa in the City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza in the City of Mendoza, Córdoba Shopping Villa Cabrera in the City of Córdoba, Alto Comahue in the City of Neuquén and La Ribera Shopping in the City of Santa Fe). The Company also owns the historic building where the Patio Olmos Shopping Mall is located, operated by a third party.
 
The Company’s shares are traded on the Buenos Aires Stock Exchange (MERVAL: IRCP) and in United States of America on the NASDAQ (NASDAQ: IRCP).
 
IRSA Propiedades Comerciales and its subsidiaries are hereinafter referred to jointly as "the Group". See Notes 2.3 and 6 for further description of the Group’s companies and segments. Our main shareholder and parent company is IRSA and Inversiones Financieras del Sur S.A. is our ultimate parent company.
 
These financial statements have been approved by the Board of Directors to be issued on February 7, 2020.
 
2.            
Summary of significant accounting policies
 
2.1.         
Basis of preparation
 
The National Securities Commission (CNV), in Title IV "Periodic Information Regime" - Chapter III "Rules relating to the presentation and valuation of financial statements" - Article 1, of its standards, has established the application of the Technical Resolution No. 26 (RT 26) of the FACPCE and its amendments, which adopt IFRS, issued by the IASB, for certain companies included in the public offering regime of Law No. 26,831, either because of its stock or its non-convertible notes, or that have requested authorization to be included in the aforementioned regime.
 
For the preparation of these financial statements, the Group has made use of the option provided by IAS 34, and has prepared them in condensed form. Therefore, these financial statements do not include all the information required in a complete set of annual financial statements and, consequently, their reading is recommended together with the annual financial statements as of June 30, 2019.
 
The management of the Group has prepared these financial statements in accordance with the accounting principles established by the CNV, which are based on the application of IFRS, in particular of IAS 34.
 
Additionally, the information required by the CNV indicated in article 1, Chapter III, Title IV of General Resolution N° 622/13 has been included. This information is included in a note to these financial statements.
 
 
 
 
 
 
 
 
7
IRSA Propiedades Comerciales S.A.
 
IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated by non-monetary items. This requirement also includes the comparative information of the financial statements.
 
In order to conclude on whether an economy is categorized as high inflation in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of an accumulated inflation rate in three years that is approximate or exceed 100%. Accumulated inflation in Argentina in three years is over 100%. It is for this reason that, in accordance with IAS 29, Argentina must be considered a country with high inflation economy starting July 1, 2018.
 
In addition, Law No. 27,468 (published in the Official Gazette on December 4, 2018), amended Section 10 of Law No. 23,928, as amended, and established that the derogation of all the laws or regulations imposing or authorizing price indexation, monetary restatement, cost variation or any other method for strengthening debts, taxes, prices or rates of goods, works or services, does not extend to financial statements, as to which the provisions of Section 62 in fine of the General Companies Law No. 19,550 (1984 revision), as amended, shall continue to apply. Moreover, the referred law repealed Decree No. 1269/2002 dated July 16, 2002, as amended, and delegated to the Argentine Executive Branch the power to establish, through its controlling agencies, the effective date of the referred provisions in connection with the financial statements filed with it. Therefore, under General Resolution 777/2018 (published in the Official Gazette on December 28, 2018) the Argentine Securities Commission (CNV) ordered that issuers subject to its supervision shall apply the inflation adjustment to reflect the financial statements in terms of the current measuring unit set forth in IAS 29 in their financial statements closed on or after December 31, 2018 .
 
Pursuant to IAS 29, the financial statements of an entity whose functional currency is that of a high inflationary economy should be reported in terms of the measuring unit current as of the date of the financial statements. All the amounts included in the statement of financial position which are not stated in terms of the measuring unit current as of the date of the financial statements should be restated applying the general price index. All items in the statement of income should be stated in terms of the measuring unit current as of the date of the financial statements, applying the changes in the general price index occurred from the date on which the revenues and expenses were originally recognized in the financial statements.
 
Adjustment for inflation in the initial balances has been calculated considering the indexes reported by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) based on the price indexes published by the Argentine Institute of Statistics and Census (INDEC).
 
The principal inflation adjustment procedures are the following:
 
- Monetary assets and liabilities that are recorded in the currency current as of the balance sheet’s closing date are not restated because they are already stated in terms of the currency unit current as of the date of the financial statements.
- Non-monetary assets and liabilities are recorded at cost as of the balance sheet date, and equity components are restated applying the relevant adjustment ratios.
- All items in the statement of income are restated applying the relevant conversion factors.
- The effect of inflation in the Company’s net monetary position is included in the statement of income under Financial results, net, in the item “Inflation adjustment”.
- Comparative figures have been adjusted for inflation following the procedure explained in the previous paragraphs.
 
Upon initially applying inflation adjustment, the equity accounts were restated as follows:
- Capital was restated as from the date of subscription or the date of the most recent inflation adjustment for accounting purposes, whichever is later. The resulting amount was included in the “Capital adjustment” account.
- Other comprehensive income / (loss) was restated as from each accounting allocation.
- The other reserves in the statement of income were not restated as of the initial application date, i.e., June 30, 2016.
 
As a consequence of the aforementioned, these financial statements as of December 31, 2019 were restated in accordance with IAS 29.
 
 
 
 
 
 
 
 
8
IRSA Propiedades Comerciales S.A.
 
2.2.         Significant accounting policies
 
The accounting policies applied in the presentation of these financial statements are consistent with those applied in the preparation of the information are described in Note 2 to the Annual Cosolidated Financial Statements from June 30, 2019 and implementing the IFRS 16: leases, from July 1, 2019.
 
IFRS 16: Leases
 
The standard establishes the criteria for recognition and valuation of leases for lessees and lessors. The changes incorporated mainly impact the tenant's accounting. IFRS 16 provides that the lessee recognize an asset for the right of use and a liability at present value with respect to those contracts that meet the definition of lease agreements according to IFRS 16. In accordance with the standard, a lease agreement is one that provides the right to control the use of an identified asset for a specific period. In order for a company to have control over the use of an identified asset: a) it must have the right to obtain substantially all the economic benefits of the identified asset and b) it must have the right to direct the use of the identified asset.
 
The standard allows an entity to exclude the short-term contracts (under 12 months) and those in which the underlying asset has low value.
 
The application of IFRS 16 will generate an increase in assets and liabilities and a decrease in operating costs. Furthermore, amortizations and financial results generated by the update of the lease liabilities will be increased.
 
2.3.        Comparability of information
 
The amounts as of June 30, 2019 and December 31, 2018, which are disclosed for comparative purposes, arise from the financial statements at said dates restated in accordance with IAS 29. Certain figures have been reclassified for comparison purposes in these Financial Statements.
 
2.4.         Use of estimates
 
The preparation of Financial Statements at a certain date requires the Group’s Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements. In the preparation of these financial statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same applied by the Group in the preparation of the Annual Consolidated Financial Statements of the information are described in Note 3 as of June 30, 2019.
 
3.
Seasonal effects on operations
 
The operations of the Group’s shopping mall are subject to seasonal effects, which affect the level of sales recorded by tenants. During summer time (January and February), the tenants of shopping mall experience the lowest sales levels in comparison with the winter holidays (July) and during the period of Christmas’ Seasons (December) when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping mall sales. Sale discounts at the end of each season also impact the business. As a consequence, a higher level of revenues is generally expected in shopping mall operations during the second half of the year.
 
4.
Acquisitions and disposals
 
Barter transaction airspace
 
On October 25, 2019, the Company has transferred in a barter transaction the rights to construct an apartment building (“Torre 1”) to an unrelated third party on the airspace of the COTO Supermarket located in the Abasto neighborhood of the Autonomous City from Buenos Aires. Torre 1 will have 22 apartments of 1 to 3 rooms totaling an area of 8,400 square meters. The amount of the operation was set at USD 4.5 millions: USD 1 million will be pay in cash and remaining balance in at least 35 functional units of departments, representing the equivalent of 24.20% of the own square meters, with a minimum insured of 1,982 square meters.
 
 
Within 30 months of the signing of the contract, when certain conditions have been met, IRSA CP must transfer to the same unrelated third party the rights to build a second apartment building.
 
 
 
 
 
 
 
 
 
 
9
IRSA Propiedades Comerciales S.A.
 
 
As of December 31, 2019 the results of this transaction amounts to ARS 252 million that are included in the line “Income from sales, rentals and services” and “Operating costs” of the Statements of Comprehensive Income.
 
Barter agreement Plot 1 - Caballito Tower
 
On December 23, 2019, the Company has transferred in a barter transaction the Plot 1 of the land located in Av. Avellaneda and Olegario Andrade 367, in the Caballito neighborhood of the Autonomous City of Buenos Aires, to an unrelated third party.
 
Plot 1 has an estimated surface area of ​​3,221 square meters in which a 10-story apartment building will be developed for a total of 11,400 square meters, a commercial ground floor for 1,216 square meters and a basement of 138 parking spaces (“Building 1”).
 
The amount of the operation was set at the sum of USD 5.5 million to be paid in future functional units of Building 1, which represent the equivalent of 23.53% of the own square meters, with a minimum footage insured of 2,735 square meters composed by 1,215.62 square meters of commercial destination, 1,519.68 square meters of residential destination and a certain number of parking spaces that represent 22.50% of the own square meters with that destination and never less than 31 units. The aforementioned consideration is granted by a mortgage on Plot 1 and Building 1. The buyer has an option to acquire Plot 2 of the same property until August 31, 2020 and Plots 3 and 4 until March 31, 2021, subject to certain suspensive conditions. As of December 31, 2019 this transaction has not had impact on the profit and loss statement of the Company.
 
TGLT – Recapitalization agreement
 
On August 8, 2019, we entered into certain arrangements with TGLT S.A. (“TGLT”) providing for collaboration in TGLT’s financial restructuring and recapitalization. We participated in the recapitalization agreement whereby TGLT committed: (i) to make a public offer to subscribe Class A preferred shares at a subscription price of US$1.00 per TGLT share; (ii) to make a public offering of new Class B preferred shares which may be subscribed by (a) the exchange for ordinary shares of TGLT, at an exchange ratio of one Class B preferred share for every 6.94 ordinary shares of the Company and / or (b) the exchange for convertible notes, at an exchange ratio of a Class B preferred share for each US$1.00 of convertible notes (including accumulated and unpaid interests under the existing convertible notes); and (iii) to grant an option to subscribe new Class C preferred shares in a public offer for cash to be carried out if: (a) the public offer of Class A and Class B preferred shares are consummated and (b) a minimum number of option holders have exercised that option at a subscription price per Class C preferred share of US$1.00 (or its equivalent in pesos).
 
 
Likewise, IRSA Propiedades Comerciales signed as a holder of convertible notes of TGLT an agreement for deferment of payment of interest payable as of February 15, 2019 and August 15, 2019 until November 8, 2019 and an option agreement which may be subscribed Class C preferred shares.
 
Finally, supporting the recapitalization plan, IRSA Propiedades Comerciales signed with TGLT a subscription commitment for Class A preferred shares under Class A Public Offer to make a contribution in kind of shares of the company La Maltería SA, 100% of its ownership, for an amount up to US$ 24 million and promised to exchange its convertible negotiable obligations into preferred Class B shares.
 
In turn, on November 22, 2019, TGLT held a bondholders of convertible negotiable obligations meeting in order to consider the modification of different clauses of the indenture in force at that date, and in line with what was agreed in the recapitalization agreement , IRSA Propiedades Comerciales voted in favor of the modifications.
 
Under the agreements described above, the successful consummation of the offer by TGLT, and having reached the thresholds of consent of the holders of convertible notes of TGLT, on December 11, 2019, the Company concluded the envisaged process in the recapitalization agreement and related documents through the subscription of preferred class A shares, integrating them in kind through the contribution of the shares of the company La Maltería SA, 100% of their ownership and, likewise, proceeded to the exchange of the convertible note - including deferred interest and accrued interest from August 15, 2019 to December 11, 2019 - in preferred Class B shares.
 
 
 
 
 
 
 
 
 
10
IRSA Propiedades Comerciales S.A.
 
5.
Financial risk management and fair value estimates
 
These Financial Statements do not include all the information and disclosures on financial risk management; therefore, they should be read along with Note 5 to the Consolidated Financial Statements as of June 30, 2019. There have been no changes in risk management or risk management policies applied by the Group since year-end.
 
Since June 30, 2019 as of the date of this Financial Statements, there have been no significant changes in business or economic circumstances affecting the fair value of the Group's assets or liabilities of the Group except for that the indicated in Note 27. Furthermore, there have been no transfers between the different hierarchies used to assess the fair value of the Group’s financial instruments.
 
6.
Segment reporting
 
The following is a summary analysis of the Group's business segments, corresponding to the periods ended December 31, 2019 and 2018. Additionally, a reconciliation between results of operations corresponding to segment information and the results of operations as per the statements of comprehensive income and total assets by segment and total assets according to the statement of financial position. The information by segments has been prepared and classified according to the businesses in which the Group carries out its activities, which are described in Note 6 of the Annual Consolidated Financial Statements as of June 30, 2019, with the exception of the incorporation of TGLT S.A. to the “Others” segment (Note 4).
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11
IRSA Propiedades Comerciales S.A.
 
 
 
12.31.19
 
Shopping Malls
 
Offices
 
Sales and developments
 
Others
 
Total segmet reporting
 
Adjustment for expenses and collective promotion funds
 
Adjustment for share in profit/ (loss) of joint ventures
 
Total as per statement of comprehensive income
 
 
 
 
 
 
 
 
Revenues
3,643,696
 
1,076,149
 
271,863
 
51,012
 
5,042,720
 
1,542,402
 
(37,789)
 
6,547,333
Operating costs
(286,657)
 
(52,233)
 
(54,215)
 
(38,665)
 
(431,770)
 
(1,609,536)
 
18,360
 
(2,022,946)
Gross profit/ (loss)
3,357,039
 
1,023,916
 
217,648
 
12,347
 
4,610,950
 
(67,134)
 
(19,429)
 
4,524,387
Net (loss)/ gain from fair value changes in investment properties
(1,876,245)
 
3,211,646
 
929,710
 
56,115
 
2,321,226
 
 -
 
(252,888)
 
2,068,338
General and administrative expenses
(439,987)
 
(112,349)
 
(43,214)
 
(55,555)
 
(651,105)
 
 -
 
1,076
 
(650,029)
Selling expenses
(254,095)
 
(38,330)
 
(40,179)
 
(5,369)
 
(337,973)
 
(24,800)
 
4,274
 
(358,499)
Other operating results, net
(85,120)
 
(15,841)
 
(3,529)
 
82,846
 
(21,644)
 
67,134
 
14,233
 
59,723
Profit/ (Loss) from operations
701,592
 
4,069,042
 
1,060,436
 
90,384
 
5,921,454
 
(24,800)
 
(252,734)
 
5,643,920
Share of profit of associates and joint ventures
 -
 
 -
 
 -
 
91,171
 
91,171
 
 -
 
183,799
 
274,970
Profit/ (Loss) before financing and taxation
701,592
 
4,069,042
 
1,060,436
 
181,555
 
6,012,625
 
(24,800)
 
(68,935)
 
5,918,890
Investment properties
42,866,729
 
30,113,941
 
6,283,143
 
242,847
 
79,506,660
 
 -
 
(2,698,510)
 
76,808,150
Property, plant and equipment
208,402
 
202,743
 
 -
 
 -
 
411,145
 
 -
 
(17,342)
 
393,803
Trading properties
 -
 
 -
 
154,206
 
 -
 
154,206
 
 -
 
 -
 
154,206
Goodwill
9,254
 
27,355
 
 -
 
79,357
 
115,966
 
 -
 
(36,609)
 
79,357
Right to receive units (barter transactions)
 -
 
 -
 
670,356
 
 -
 
670,356
 
 -
 
 -
 
670,356
Inventories
34,577
 
 -
 
 -
 
 -
 
34,577
 
 -
 
(702)
 
33,875
Investments in associates and joint ventures
 -
 
 -
 
 -
 
2,108,341
 
2,108,341
 
 -
 
2,104,104
 
4,212,445
Operating assets
43,118,962
 
30,344,039
 
7,107,705
 
2,430,545
 
83,001,251
 
 -
 
(649,059)
 
82,352,192
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 

 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12.31.18
 
Shopping Malls
 
Offices
 
Sales and developments
 
Others
 
Total segmet reporting
 
Adjustment for expenses and collective promotion funds
 
Adjustment for share in profit/ (loss) of joint ventures
 
Total as per statement of comprehensive income
 
 
 
 
 
 
 
 
Revenues
4,207,073
 
799,243
 
29,192
 
68,664
 
5,104,172
 
1,754,972
 
(42,291)
 
6,816,853
Operating costs
(318,588)
 
(47,298)
 
(21,475)
 
(78,037)
 
(465,398)
 
(1,830,004)
 
24,960
 
(2,270,442)
Gross profit/ (loss)
3,888,485
 
751,945
 
7,717
 
(9,373)
 
4,638,774
 
(75,032)
 
(17,331)
 
4,546,411
Net (loss)/ gain from fair value changes in investment properties
(13,662,951)
 
3,766,234
 
125,378
 
(37,746)
 
(9,809,085)
 
 -
 
1,511
 
(9,807,574)
General and administrative expenses
(454,473)
 
(77,103)
 
(39,473)
 
(45,752)
 
(616,801)
 
 -
 
1,601
 
(615,200)
Selling expenses
(268,303)
 
(42,550)
 
(6,024)
 
(7,464)
 
(324,341)
 
 -
 
1,951
 
(322,390)
Other operating results, net
32,664
 
(5,790)
 
(6,244)
 
17,572
 
38,202
 
75,032
 
1,736
 
114,970
(Loss)/ Profit from operations
(10,464,578)
 
4,392,736
 
81,354
 
(82,763)
 
(6,073,251)
 
 -
 
(10,532)
 
(6,083,783)
Share of profit of associates and joint ventures
 -
 
 -
 
 -
 
82,802
 
82,802
 
 -
 
58,284
 
141,086
(Loss)/ Profit before Financing and Taxation
(10,464,578)
 
4,392,736
 
81,354
 
39
 
(5,990,449)
 
 -
 
47,752
 
(5,942,697)
Investment properties
66,040,726
 
29,606,704
 
5,211,177
 
291,076
 
101,149,683
 
 -
 
(3,347,805)
 
97,801,878
Property, plant and equipment
177,047
 
201,633
 
 -
 
 -
 
378,680
 
 -
 
(2,044)
 
376,636
Trading properties
 -
 
 -
 
269,555
 
 -
 
269,555
 
 -
 
 -
 
269,555
Goodwill
9,257
 
27,353
 
 -
 
241,424
 
278,034
 
 -
 
(36,611)
 
241,423
Right to receive units (barter transactions)
 -
 
 -
 
114,442
 
 -
 
114,442
 
 -
 
 -
 
114,442
Inventories
41,506
 
 -
 
 -
 
 -
 
41,506
 
 -
 
(970)
 
40,536
Investments in associates and joint ventures
 -
 
 -
 
 -
 
585,329
 
585,329
 
 -
 
2,586,851
 
3,172,180
Operating assets
66,268,536
 
29,835,690
 
5,595,174
 
1,117,829
 
102,817,229
 
 -
 
(800,579)
 
102,016,650
 
 
12
IRSA Propiedades Comerciales S.A.
 
7.
Investments in associates and joint ventures
 
The table below lists information about the Group’s investments in associates and joint ventures:
 
Name of the entity
 
% of ownership interest held by non-controlling interests
 
Value of Company’s interest in equity
 
Company’s interest in comprehensive income
 
12.31.19
 
06.30.19
 
12.31.19
 
06.30.19
 
12.31.19
 
12.31.18
Joint ventures
 
 
 
 
 
 
 
 
 
 
 
 
Quality Invest S.A.
 
50.00%
 
50.00%
 
1,856,865
 
1,645,491
 
184,897
 
32,757
Nuevo Puerto Santa Fe S.A.
 
50.00%
 
50.00%
 
247,239
 
273,442
 
(1,098)
 
25,527
La Rural S.A.(2)
 
50.00%
 
50.00%
 
183,514
 
89,085
 
94,429
 
26,550
Associates
 
 
 
 
 
 
 
 
 
 
 
 
TGLT S.A.(5)
 
(i)
 
 -
 
1,914,817
 
 -
 
 -
 
 -
Tarshop S.A.(2)
 
 -
 
 -
 
 -
 
 -
 
 -
 
51,238
Otra asociadas (3)(4)
 
 
 
 
 
10,010
 
13,263
 
(3,258)
 
5,014
Total interests in associates and joint ventures
 
 
 
 
 
4,212,445
 
2,021,281
 
274,970
 
141,086
 
 
Name of the entity
 
Place of business / Country of incorporation
 
Main activity
 
Common shares
 
Last financial statements issued
 
 
 
 
Share capital (nominal value)
 
Income for the period
 
Equity
Joint ventures
 
 
 
 
 
 
 
 
 
 
 
 
Quality Invest S.A.
 
Argentina
 
Real estate
 
163,039,244
 
326,078
 
369,794
 
3,659,019
Nuevo Puerto Santa Fe S.A. (1)
 
Argentina
 
Real estate
 
138,750
 
27,750
 
(2,195)
 
475,970
La Rural S.A. (2)
 
Argentina
 
Event organization and others
 
714,498
 
1,430
 
199,324
 
289,683
Associates
 
 
 
 
 
 
 
 
 
 
 
 
TGLT S.A. (5)
 
Argentina
 
Real estate
 
3,003,990 (i)
 
80,655
 
 -
 
(3,327,053)
 
 
(1)
Nominal value per share Ps. 100.
(2)
Correspond to profit for the six-month period ended at December 31, 2019 and 2018, respectively.
(3)
Represents other individually non-significant associates.
(4)
Includes Ps. 235 as of December 31, 2019 and Ps. 285 as of June 30, 2019, in relation to the equity interest in Avenida Compras disclosed in Provisions.
(5)
See Note 4 in these Financial Statements. Latest information available at the date of presentation of these Financial Statements as TGLT S.A. closes its fiscal year as of December 31.
(i)
In addition, 21,600,000 preferred class A shares and 24,948,798 preferred class B shares were subscribed, subject to conversion. As of the date of issuance of these Financial Statements, these preferred shares have not been converted.
.
 
Changes in the Group’s investments in associates and joint ventures for the period ended December 31, 2019 and for the year ended June 30, 2019 were as follows:
 
 
 
12.31.19
 
06.30.19
Beginning of the period/ year
 
2,021,281
 
3,050,416
Adjustment previous periods(i)
 
 -
 
(36,250)
Share of profit/ (loss)
 
274,970
 
(508,779)
Dividends distributed
 
(25,100)
 
(392,111)
Sale of interest in associates (i)
 
 -
 
(155,939)
Acquisition of interest in associates (ii)(Note 24)
 
1,914,817
 
 -
Irrevocable contributions (Note 24)
 
26,477
 
63,944
End of the period/ year (4)
 
4,212,445
 
2,021,281
 
(i)
See Note 2.2 to the Annual Financial Statements as of June 30, 2019.
(ii)
Corresponds to the acquisition of TGLT S.A. See Note 4 to these Financial Statements.
 
 
 
 
 
 
 
13
IRSA Propiedades Comerciales S.A.
 
8.
Investment properties
 
Changes in the Group’s investment properties for the six-month period ended December 31, 2019 and for the year ended June 30, 2019 were as follows:
 
 
Shopping Malls
 
Office and Other rental properties
 
Undeveloped parcels of land
 
Properties under development
 
Others
 
12.31.19
 
06.30.19
Fair value at beginning of the period / year
42,937,807
 
24,527,988
 
7,186,897
 
1,063,841
 
185,780
 
75,902,313
 
106,095,395
Additions
327,081
 
3,773
 
623
 
334,661
 
952
 
667,090
 
2,192,372
Capitalization of financial costs
 -
 
 -
 
 -
 
284
 
 -
 
284
 
84,798
Capitalized lease costs
9,953
 
3,448
 
 -
 
 -
 
 -
 
13,401
 
13,784
Depreciation of capitalized lease costs (i)
(5,766)
 
(3,148)
 
 -
 
 -
 
 -
 
(8,914)
 
(11,198)
Transfers
(275)
 
 -
 
 -
 
 -
 
 -
 
(275)
 
68,017
Disposals
 -
 
 -
 
(343,038)
 
 -
 
 -
 
(343,038)
 
 -
Net gain from fair value adjustment on investment properties (ii)
(1,919,723)
 
2,950,565
 
929,710
 
51,671
 
56,115
 
2,068,338
 
(32,540,855)
Decrease due to loss of control (Note 4)
 -
 
 -
 
(1,491,049)
 
 -
 
 -
 
(1,491,049)
 
 -
Fair value at end of the period / year
41,349,077
 
27,482,626
 
6,283,143
 
1,450,457
 
242,847
 
76,808,150
 
75,902,313
 
 
    (i)
As of December 31, 2019 the depreciation charge was included in “Costs” in the amount of Ps 8,914, in the Statement of Comprehensive Income (Note 21).
   (ii)
For the six-month period ended December 31, 2019, the net gain from fair value adjustment on investment properties was Ps. 2,068.3 millons. The net impact of the values in Argentine pesos of our properties was mainly a consequence of the change in macroeconomic conditions:
 
a)
Net gain of Ps. 19,638.8 millions as a result of an increase in the projected inflation rate plus GDP, with the consequent increase in the cash flow of shopping malls revenues;
b)
Net loss of Ps. 21,592.6 millions due to the conversion to dollars of the projected cash flow in Argentine pesos according to the exchange rate estimates used in the cash flow;
c)
An increase of 72 basics points in the discount rate, mainly due to a rise in the country risk component of the WACC discount rate used to discount the flow of funds, which generated a decrease in the value of the shopping malls of Ps. 2,244.05 millions.
d)
Net gain of Ps. 11,560.7 millons as a result of the conversion to Argentine pesos of the value of the shopping malls in dollars based on the exchange rate at the end of the period.
e)
In addition, for the impact of the inflation adjustment the Group reclassified by shopping malls Ps. 8,811.14 millions to Inflation adjustment.
f)
The value of our office buildings and other rental properties measured in real terms increased by 12.0% during the six-month period as of December 31, 2019, due to a devaluation of the Argentine peso exceeding the inflation rate of the period.
 
   (iii)
Barter disposal of “Land Plot 1” of Caballito Ferro Land (Note 4).

 
The following amounts have been recognized in the statements of comprehensive income:
 
 
12.31.19
 
06.30.19
Revenues from rental and services (Note 20)
4,735,656
 
5,059,218
Expenses and collective promotion fund (Note 20)
1,542,402
 
1,754,972
Rental and services costs (Note 21)
(1,970,579)
 
(2,249,123)
Net unrealized gain from fair value adjustment on investment properties
1,748,088
 
(9,807,574)
Net realized gain from fair value adjustment on investment properties(i)
320,250
 
 -
 
(i)   Includes Ps. 3,384 and Ps. 316,866 for the monetary and non-monetary benefit, respectively, corresponding to the barter transaction of the Caballito Ferro land.
 
Valuation techniques are described in Note 9 to the Financial Statements as of June 30, 2019. There were no changes to the valuation techniques. The Group has reassessed the assumptions at the end of the period, incorporating the effect of the changes in macroeconomics conditions.
 
9.
Property, plant and equipment
 
Changes in the Group’s property, plant and equipment for the six-month period ended December 31, 2019 and for the year ended June 30, 2019 were as follows:
 
 
Other buildings and facilities
 
Furniture and fixtures
 
 Machinery and equipment
 
 Vehicles
 
Others
 
12.31.19
 
06.30.19
Costs
412,075
 
229,599
 
1,256,136
 
17,216
 
732
 
1,915,758
 
1,814,655
Accumulated depreciation
(218,452)
 
(149,160)
 
(1,113,470)
 
(16,579)
 
 -
 
(1,497,661)
 
(1,418,754)
Net book amount at beginning of the period / year
193,623
 
80,439
 
142,666
 
637
 
732
 
418,097
 
395,901
Additions
 -
 
6,287
 
30,572
 
 -
 
 -
 
36,859
 
84,353
Disposals
 -
 
(462)
 
(1,371)
 
 -
 
 -
 
(1,833)
 
(1,605)
Transfers to right to use assets
 -
 
 -
 
(18,524)
 
 -
 
 -
 
(18,524)
 
17,841
Depreciation charges (i)
(7,293)
 
(6,253)
 
(26,175)
 
(466)
 
 -
 
(40,187)
 
(78,907)
Net gain from fair value adjustment
 -
 
(119)
 
(490)
 
 -
 
 -
 
(609)
 
514
Net book amount at end of the period / year
186,330
 
79,892
 
126,678
 
171
 
732
 
393,803
 
418,097
Costs
412,075
 
235,305
 
1,266,323
 
17,216
 
732
 
1,931,651
 
1,915,758
Accumulated depreciation
(225,745)
 
(155,413)
 
(1,139,645)
 
(17,045)
 
 -
 
(1,537,848)
 
(1,497,661)
Net book amount at end of the period / year
186,330
 
79,892
 
126,678
 
171
 
732
 
393,803
 
418,097
 
(i)
On December 31, 2019 depreciation charges were included in “Costs” in the amount of Ps. 15,094, in “General and administrative expenses” in the amount of Ps. 24,812 and in “Selling expenses“ in the amount of Ps. 281 in the Statement of Comprehensive Income (Note 21).
 
 
 
14
IRSA Propiedades Comerciales S.A.
 
10.
Trading properties
 
Changes in in the Group’s trading properties for the six-month period ended December 31, 2019 and for the year ended June 30, 2019 were as follows:
 
 
Completed properties
 
Undeveloped sites
 
12.31.19
 
06.30.19
Net book amount at beginning of the period / year
2,093
 
155,347
 
157,440
 
269,643
Additions
 -
 
13,437
 
13,437
 
14,065
Disposals
 -
 
(16,671)
 
(16,671)
 
(1,105)
Transfers
 -
 
 -
 
 -
 
(84,840)
Impairment
 -
 
 -
 
 -
 
(40,323)
Net book amount at end of the period / year
2,093
 
152,113
 
154,206
 
157,440
Non - current
 
 
 
 
154,206
 
156,043
Current
 
 
 
 
 -
 
1,397
Total
 
 
 
 
154,206
 
157,440
 
 
11.
Intangible assets
 
Changes in the Group’s intangible assets for the six-month period ended December 31, 2019 and for the year ended June 30, 2019 were as follows:
 
 
Goodwill
 
Software
 
Rights of use (ii)
 
Right to receive units (Barters) (iii)
 
Others
 
12.31.19
 
06.30.19
Costs
79,357
 
369,663
 
239,980
 
113,563
 
55,582
 
858,145
 
857,859
Accumulated amortization
 -
 
(126,261)
 
(165,761)
 
 -
 
(55,582)
 
(347,604)
 
(266,683)
Net book amount at beginning of the period / year
79,357
 
243,402
 
74,219
 
113,563
 
 -
 
510,541
 
591,176
Additions
 -
 
8,820
 
 -
 
556,793
 
 -
 
565,613
 
163,632
Transfers
 -
 
 -
 
 -
 
 -
 
 -
 
 -
 
(1,018)
Amortization charge (i)
 -
 
(69,004)
 
(2,099)
 
 -
 
 -
 
(71,103)
 
(80,921)
Impairment (iv)
 -
 
 -
 
 -
 
 -
 
 -
 
 -
 
(162,328)
Net book amount at end of the period / year
79,357
 
183,218
 
72,120
 
670,356
 
 -
 
1,005,051
 
510,541
Costs
79,357
 
378,483
 
239,980
 
670,356
 
55,582
 
1,423,758
 
858,145
Accumulated amortization
 -
 
(195,265)
 
(167,860)
 
 -
 
(55,582)
 
(418,707)
 
(347,604)
Net book amount at end of the period / year
79,357
 
183,218
 
72,120
 
670,356
 
 -
 
1,005,051
 
510,541
 
(i)  On December 31, 2019 depreciation charges were included in “Costs” in the amount of Ps. 36,633, in “General and administrative expenses” in the amount of Ps. 33,977 and in “Selling expenses“ in the amount of Ps. 493 in the Statement of Comprehensive Income (Note 21).
(ii) Corresponds to Distrito Arcos.
(iii) Corresponds to in kind receivables representing the right to receive residential apartments in the future under barter transactions (Note 14).
(iv) Corresponds to impaired goodwill of La Arena S.A..
 
12.
 Rights of use assets
 
 
 
12.31.19
Convention center
 
370,962
Stadium DirecTV Arena
 
134,616
Machinery and equipment
 
14,886
Shopping malls
 
6,916
Total rights of use assets
 
527,380
Non-current
 
527,380
Total
 
527,380
 
 
 
 
 
12.31.19
Convention center
 
(4,176)
Stadium DirecTV Arena
 
(7,384)
Machinery and equipment
 
(3,913)
Shopping malls
 
(7)
Total amortizations (i)
 
(15,480)
 
(i)   As of December 31, 2019 the depreciation charge was included in “Costs”, in the Statement of Comprehensive Income (Note 21).
 
 
 
15
IRSA Propiedades Comerciales S.A.
 
13.
Financial instruments by category
 
The present note shows the financial assets and financial liabilities by category of financial instrument and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy. For further information, related to fair value hierarchy see Note 13 to the Financial Statements as of June 30, 2019.
 
Financial assets and financial liabilities as of December 31, 2019 are as follows:
 
 
 
Financial assets at amortized cost (i)
 
Financial assets at fair value through profit or loss
Subtotal financial assets
Non-financial assets
Total
 December 31, 2019
 
 
 Level 1
 Level 2
 Level 3
 
 
 
 Assets as per Statement of Financial Position
 
 
 
 
 
 
 
 
 Trade and other receivables (excluding allowance for doubtful accounts) (Note 14)
5,531,181
 
 -
 -
 -
5,531,181
6,810,692
12,341,873
 Investments in financial assets:
 
 
 
 
 
 
 
 
 - Investment in equity public companies’s securities
 -
 
158,355
 -
 -
158,355
 -
158,355
 - Mutual funds
 -
 
120,920
643,822
 -
764,742
 -
764,742
 - Bonds
 -
 
4,722,871
 -
 -
4,722,871
 -
4,722,871
 Derivative financial instruments
 
 
 
 
 
 
 
 
 - Futures contracts
 -
 
 -
1,618
 -
1,618
 -
1,618
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
 - Cash at banks and on hand
2,442,593
 
 -
 -
 -
2,442,593
 -
2,442,593
 - Short- term investments
1,462,457
 
234,248
 -
 -
1,696,705
 -
1,696,705
Total
9,436,231
 
5,236,394
645,440
 -
15,318,065
6,810,692
22,128,757
 
 
 
Financial liabilities at amortized cost (i)
 
Financial liabilities at fair value through profit or loss
 
Subtotal financial liabilities
 
Non-financial liabilities
 
Total
 
 
 
Level 2
 
 
 
 
 
 
Liabilities as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
Trade and other payables (Note 16)
1,114,559
 
 -
 
1,114,559
 
2,713,435
 
3,827,994
Derivative financial instruments
 
 
 
 
 
 
 
 
 
 - Futures contracts
 -
 
1,417
 
1,417
 
 -
 
1,417
 - Swaps of interest rate (ii)
 -
 
52,865
 
52,865
 
 -
 
52,865
Borrowings (Note 17)
32,826,846
 
 -
 
32,826,846
 
 -
 
32,826,846
Total
33,941,405
 
54,282
 
33,995,687
 
2,713,435
 
36,709,122
 
Group´s financial assets and financial liabilities as of June 30, 2019 were as follows:
 
 
 
Financial assets at amortized cost (i)
 
Financial assets at fair value through profit or loss
Subtotal financial assets
Non-financial assets
Total
June 30, 2019
 
 
Level 1
Level 2
Level 3
 
 
 
Assets as per Statement of Financial Position
 
 
 
 
 
 
 
 
Trade and other receivables (excluding allowance for doubtful accounts) (Note 14)
3,199,860
 
 -
 -
 -
3,199,860
6,324,416
9,524,276
Investments in financial assets:
 
 
 
 
 
 
 
 
- Investment in equity public companies’s securities
 -
 
492,176
 -
 -
492,176
 -
492,176
- Mutual funds
 -
 
1,827,642
548,675
 -
2,376,317
 -
2,376,317
- Bonds
 -
 
4,488,040
 -
850,351
5,338,391
 -
5,338,391
Derivative financial instruments
 
 
 
 
 
 
 
 
- Futures contracts
 -
 
 -
7,062
 -
7,062
 -
7,062
Cash and cash equivalents:
 
 
 
 
 
 
 
 
- Cash at banks and on hand
3,820,113
 
 -
 -
 -
3,820,113
 -
3,820,113
- Short- term investments
 -
 
1,463,043
 -
 -
1,463,043
 -
1,463,043
Total
7,019,973
 
8,270,901
555,737
850,351
16,696,962
6,324,416
23,021,378
 
 
 
 
 
 
16
IRSA Propiedades Comerciales S.A.
 
 
Financial liabilities at amortized cost (i)
 
Financial liabilities at fair value through profit or loss
 
Subtotal financial liabilities
 
Non-financial liabilities
 
Total
 
 
 
Level 2
 
 
 
 
 
 
Liabilities as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
Trade and other payables (Note 16)
1,208,766
 
 -
 
1,208,766
 
3,036,821
 
4,245,587
Derivative financial instruments
 
 
 
 
 
 
 
 
 
 - Bonds
 -
 
505
 
505
 
 -
 
505
 - Swaps of interest rate (ii)
 -
 
33,915
 
33,915
 
 -
 
33,915
Borrowings (excluding finance leases liabilities) (Note 17)
29,587,556
 
 -
 
29,587,556
 
 -
 
29,587,556
Total
30,796,322
 
34,420
 
30,830,742
 
3,036,821
 
33,867,563
 
(i)
The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value, except for borrowings (Note 17).
(ii)
The maturity date is February 16, 2023 and it is associated with the loan obtained through its subsidiary, Panameriacan Mall S.A, with the purpose of paying for the work that is being carried out at the Polo Dot.
 
 
The valuation models used by the Group for the measurement at different levels of hierarchy are no different from those used as of June 30, 2019.
 
The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table. When no quoted prices in an active market are available, fair values (particularly with derivatives) are based on recognized valuation methods.
 
Description
 
Pricing model
 
Parameters
 
 
Fair value hierarchy
 
Foreign-currency contracts
 
Present value method - Theoretical price
 
Money market curve; Interest curve
 
 
Level 2
 
 
 
 
Foreign exchange curve
 
 
 
 
 
 
 
 
 
 
 
 
 
Swaps of interest rate
 
Discounted cash flow
 
Interest rate futures
 
 
Level 2
 
 
 
As of December 31, 2019, there have been no changes to the economic or business circumstances affecting the fair value of the financial assets and liabilities of the Group, that is indicated in Note 27.
 
14.         Trade and other receivables
 
The following table shows the amounts of Group's trade and other receivables as of December 31, 2019 and June 30, 2019:
 
 
12.31.19
 
06.30.19
Lease and services receivables
1,262,103
 
1,236,612
Post-dated checks
575,101
 
778,798
Averaging of scheduled rent escalation
673,583
 
670,942
Debtors under legal proceedings
330,447
 
286,014
Property sales receivables
42,772
 
37,872
Consumer financing receivables
16,441
 
20,686
Less: allowance for doubtful accounts
(383,723)
 
(336,481)
Total trade receivables
2,516,724
 
2,694,443
Loans
889,590
 
60,375
Advance payments
487,090
 
531,372
Others (*)
177,055
 
184,347
Prepayments
168,108
 
205,976
Other tax receivables
131,342
 
153,986
Expenses to be recovered
22,540
 
17,504
Guarantee deposit
1,711
 
1,616
Less: allowance for doubtful accounts
(165)
 
(208)
Total other receivables
1,877,271
 
1,154,968
Related parties (Note 24)
7,563,990
 
5,338,176
Total current trade and other receivables
11,957,985
 
9,187,587
Non-current
2,252,237
 
613,290
Current
9,705,748
 
8,574,297
Total
11,957,985
 
9,187,587
 
 (*) Includes Ps. 136,199 and Ps. 161,695 as of December 31, 2019 and June 30, 2019, respectively, consistent with the assumption of debt with the State Assets Administration Agency (AABE). (Note 17)
 
 
17
IRSA Propiedades Comerciales S.A.

Movements on the Group’s allowance for doubtful accounts and other receivables are as follows:
 
 
12.31.19
 
06.30.19
Beginning of the period/ year
336,689
 
393,591
Additions (i)
105,936
 
107,366
Unused amounts reversed (i)
(17,381)
 
(45,900)
Used during the period
(2,296)
 
(7,226)
Inflation adjustment
(39,060)
 
(111,142)
End of the period/ year
383,888
 
336,689
 
(i)
As of December 31, 2019, additions and unused amount reversed charged were charged to “Selling expenses”, in the amount of Ps 88,555 in the Statement of Comprehensive Income (Note 21).
 
15.         Cash flow and cash equivalent information
 
Following is a detailed description of cash flows generated by the Group’s operations for the six-month periods ended December 31, 2019 and 2018:
 
 
 
Note
12.31.19
 
12.31.18
Net loss for the period
 
(250,360)
 
(6,426,211)
Adjustments:
 
 
 
 
Income tax expense
19
1,191,155
 
(1,962,776)
Amortization and depreciation
21
135,684
 
82,556
Net gain from fair value adjustment on investment properties
 
(2,068,338)
 
9,807,574
Gain from disposal of trading properties
 
(223,865)
 
(2,437)
Disposals by concession maturity
 
1,833
 
 -
Averaging of schedule rent escalation
20
(160,299)
 
(33,727)
Directors’ fees
 
101,538
 
163,095
Financial results, net
 
5,123,173
 
2,043,269
Provisions and allowances
 
130,318
 
96,399
Share of profit of associates and joint ventures
7
(274,970)
 
(141,086)
Disposals of investment properties and property and equipment
 
 -
 
4,214
Changes in operating assets and liabilities
 
 
 
 
(Increase)/ Decrease in trading properties
 
(13,437)
 
2,663
Decrease of Inventories
 
2,517
 
8,171
Decrease/ (Increase) in trade and other receivables
18
338,696
 
(521,721)
Decrease in trade and other payables
 
(560,671)
 
(1,247,186)
Decrease in payroll and social security liabilities
 
(110,110)
 
(150,629)
Uses of provisions and inflation adjustment
 
(29,023)
 
(41,784)
Net cash generated by operating activities before income tax paid
 
3,333,841
 
1,680,384
 
 
 
 
12.31.19
 
12.31.18
Non-cash transactions
 
 
 
 
Decrease in intangible assets through an increase in trading properties
 
 -
 
138
Increase in investment properties through an increase in trade and other payables
 
40,451
 
2,821
Decrease in trade and other receivables through an increase in investment in associates and joint ventures
 -
 
7,481
Decrease in investment in associates and joint ventures through a decrease in borrowings
 -
 
7,180
Decrease in equity through an increase in trade and other payables
 
658
 
146
Decrease in investment in associates and joint ventures through a decrease in equity
 -
 
36,250
Increase in rights of use assets through a decrease in properties plant and equipment
18,799
 
 -
Increase in investment properties through an increase in borrowings
 
284
 
 -
Increase in properties plant and equipment through a decrease in investment properties
275
 
 -
Decrease in equity through an increase in borrowings
 
46,366
 
 -
Increase in trade and other receivables through a decrease in investments in financial assets
1,045
 
 -
Increase in investments in financial assets through a decrease in investment in associates and joint ventures
19,370
 
 -
Increase in investment in associates and joint ventures through a decrease in investments in financial assets
723,162
 
 -
Decrease in trading properties through an increase in intangible assets
 
329,553
 
 -
 
 
Increase in investment in associates through a decrease due to loss of control in subsidiaries
 
 
 
12.31.19
Investment properties
 
1,491,049
Income tax and minimum presumed income tax credits
 
1,979
Trade and other receivables
 
28,039
Deferred income tax liabilities
 
(324,066)
Trade and other payables
 
(3,544)
Income tax and minimum presumed income tax liabilities
 
(1,979)
Decrease due to loss of control
 
1,191,478
 
 
 
 
18
IRSA Propiedades Comerciales S.A.
 
16.          Trade and other payables
 
The following table shows the amounts of Group's trade and other payables as of December 31, 2019 and June 30, 2019:
 
 
12.31.19
 
06.30.19
Rent and service payments received in advance
1,132,464
 
966,408
Admission rights
1,077,143
 
1,266,112
Accrued invoices
366,305
 
381,005
Trade payables
275,881
 
192,134
Tenant deposits
92,020
 
96,285
Payments received in advance
86,049
 
60,493
Total trade payables
3,029,862
 
2,962,437
Tax payable
343,949
 
315,825
Others
160,708
 
158,700
Other payments received in advance to be accrued
65,342
 
69,224
Tax payment plans
8,488
 
358,759
Dividends
125
 
157
Total other payables
578,612
 
902,665
Related parties (Note 24)
219,520
 
380,485
Total trade and other payables
3,827,994
 
4,245,587
Non-current
1,134,340
 
1,082,067
Current
2,693,654
 
3,163,520
Total
3,827,994
 
4,245,587
 
 
17.          Borrowings
 
The following table shows the Group's borrowings as of December 31, 2019 and June 30, 2019:
 
 
 
Book Value at 12.31.19
 
Book Value at 06.30.19
 
Fair Value at 12.31.19
 
Fair Value at 06.30.19
Non-Convertible notes
 
29,962,513
 
26,905,970
 
26,288,007
 
26,779,684
Bank loans
 
2,212,680
 
2,160,047
 
2,109,683
 
1,962,871
Bank overdrafts
 
369,251
 
277,013
 
369,251
 
277,013
AABE Debts
 
136,199
 
161,695
 
136,199
 
161,695
Loans with non-controlling interests
 
146,203
 
82,831
 
146,203
 
82,831
Finance leases
 
 -
 
19,130
 
 -
 
19,130
Total borrowings
 
32,826,846
 
29,606,686
 
29,049,343
 
29,283,224
Non-current
 
22,999,902
 
28,022,031
 
 
 
 
Current
 
9,826,944
 
1,584,655
 
 
 
 
Total
 
32,826,846
 
29,606,686
 
 
 
 
 
 
18.          Provisions
 
The following table shows the movements in the Group's provisions at December 31, 2019 and June 30, 2019 categorized by type of provision:
 
 
Labor, legal and other claims
 
Investments in associates (*)
 
12.31.19
 
06.30.19
Balances at the beginning of the period / year
100,240
 
285
 
100,525
 
109,778
Inflation adjustment
(23,764)
 
 -
 
(23,764)
 
(44,324)
Increases (i)
58,431
 
 -
 
58,431
 
76,506
Recovery (i)
(16,668)
 
 -
 
(16,668)
 
(19,110)
Used during the period
(5,259)
 
 -
 
(5,259)
 
(22,203)
Others (*)
 -
 
(50)
 
(50)
 
(122)
Balances at the end of the period / year
112,980
 
235
 
113,215
 
100,525
Non-current
 
 
 
 
63,277
 
55,208
Current
 
 
 
 
49,938
 
45,317
Total
 
 
 
 
113,215
 
100,525
 
(*)  Corresponds to investments in associates with negative equity.
(i)
Additions and unused amount reversed charged were charged to “Other operating results, net”, in the Statement of Comprehensive Income (Note 22).
 
 
19
IRSA Propiedades Comerciales S.A.
 
19.          Current and deferred income tax
 
The details of the Group’s income tax expense are as follows:
 
 
12.31.19
 
12.31.18
Current income tax
5,237
 
(86,431)
Deferred income tax
(1,196,392)
 
2,049,207
Income tax - (loss)/ gain
(1,191,155)
 
1,962,776
 
Changes in the deferred tax account are as follows:
 
 
12.31.19
 
06.30.19
Beginning of the period / year
(16,443,266)
 
(22,310,105)
Income tax
(1,196,392)
 
5,866,839
Decrease due to loss of control
324,066
 
 -
End of the period / year
(17,315,592)
 
(16,443,266)
 
 
Below there is a reconciliation between the income tax recognized and that which would result from applying the prevailing tax rate to the profit before income tax:
 
 
12.31.19
 
12.31.18
Profit for period before income tax at the prevailing tax rate (i)
(282,239)
 
2,509,229
Tax effects of:
 
 
 
Rate change
956,700
 
700,531
Result by rate transparency
88,477
 
(214,544)
Share of profit of associates and joint ventures (ii)
82,491
 
40,821
Non-taxable / non-deductible items
(22,501)
 
 -
Loss from sale of subsidiaries
(406,314)
 
 -
Difference between provisions and affidavits
43,027
 
(6,363)
Non-tax loss carry-forwards
(69,965)
 
(140)
Inflation adjustment
(403,430)
 
(1,059,320)
Tax inflation adjustment
(1,189,852)
 
 -
Others
12,451
 
(7,438)
Income tax - (loss)/ gain
(1,191,155)
 
1,962,776
 
(i)
Does not include Uruguayan-source results for Ps. (7,467) as of December 31, 2018.
(ii)
Does not include Uruguayan-source results due to equity interest in associates and joint ventures for Ps. 1,505 as of December 31, 2018.
 
Law No. 27,541 of social solidarity and productive revival in the framework of Argentine public emergency, published on December 23, 2019 introduced some modifications to different taxes and the creation of the tax for an Inclusive and Solidarity Argentina (PAIS).
 
The main modifications affecting the Group in relation to income tax are the following:
 
● In the first and second fiscal year beginning after January 1, 2019, the gain or loss from tax inflation adjustment will be charged one sixth in the determination exercise and the remaining five sixths in the following fiscal periods;
 
The applicable rate to companies for the third year beginning after January 1, 2018 is increased from 25% to 30%.
 
 
 
 
 
 
20
IRSA Propiedades Comerciales S.A.
 
20.
Revenue
 
 
12.31.19
 
12.31.18
Base rent
2,692,745
 
2,959,682
Contingent rent
1,052,547
 
896,227
Admission rights
453,195
 
481,390
Parking fees
190,648
 
239,679
Averaging of scheduled rent escalation
160,299
 
33,727
Commissions
108,201
 
165,506
Property management fees
49,680
 
62,055
Others
28,341
 
220,952
Total revenues from rentals and services
4,735,656
 
5,059,218
Sale of trading properties
269,275
 
2,663
Total revenues from sale of properties
269,275
 
2,663
Total revenues from sales, rentals and services
5,004,931
 
5,061,881
Expenses and collective promotion fund
1,542,402
 
1,754,972
Total revenues from expenses and collective promotion funds
1,542,402
 
1,754,972
Total revenues
6,547,333
 
6,816,853
 
21.          Expenses by nature
 
The Group disclosed expenses in the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”. The following table provides additional disclosure regarding expenses by nature and their relationship to the function within the Group.
 
 
Costs (ii)
 
General and administrative expenses
 
Selling expenses
 
12.31.19
 
12.31.18
Salaries, social security costs and other personnel administrative expenses (i)
646,837
 
216,921
 
31,720
 
895,478
 
991,054
Maintenance, security, cleaning, repairs and other
692,767
 
56,317
 
829
 
749,913
 
814,647
Taxes, rates and contributions
201,883
 
4,917
 
206,538
 
413,338
 
450,543
Advertising and other selling expenses
294,100
 
 -
 
19,880
 
313,980
 
372,721
Directors' fees
 -
 
194,777
 
 -
 
194,777
 
111,052
Amortization and depreciation
76,121
 
58,789
 
774
 
135,684
 
82,556
Fees and payments for services
27,781
 
84,198
 
7,196
 
119,175
 
187,452
Allowance for doubtful accounts (additions and unused amounts reversed) (Note 14)
 -
 
 -
 
88,555
 
88,555
 
76,333
Leases and expenses
49,063
 
12,089
 
1,220
 
62,372
 
70,932
Traveling, transportation and stationery
10,712
 
8,629
 
1,785
 
21,126
 
36,473
Cost of sale of properties
16,671
 
 -
 
 -
 
16,671
 
226
Bank expenses
2,267
 
10,692
 
 -
 
12,959
 
13,280
Other expenses
4,744
 
2,700
 
2
 
7,446
 
763
Total 12.31.19
2,022,946
 
650,029
 
358,499
 
3,031,474
 
 -
Total 12.31.18
2,270,442
 
615,200
 
322,390
 
 -
 
3,208,032
 
(i)
For the six-month period ended December 31, 2019, includes Ps. 878,350 of Salaries, Bonuses and Social Security and Ps. 17,128 of other concepts. For the six-month period ended December 31, 2018, includes Ps. 953,523 of Salaries, Bonuses and Social Security and Ps. 37,531 of other concepts.
(ii)
For the six-month period ended December 31, 2019, includes Ps. 1,970,579 of Rental and services costs and Ps. 52,367 of Cost of sales and developments. For the six-month period ended December 31, 2018, includes Ps. 2,249,123 of Rental and services costs and Ps. 21,319 of Cost of sales and developments.
 
 
22.          Other operating results, net
 
 
12.31.19
 
12.31.18
Canon
87,650
 
29,669
Interest generated by operating credits
69,128
 
174,266
Management fees
3,566
 
8,433
Loss resulting from disposals of property plant and equipment
(1,904)
 
(4,014)
Loss from sale of associates and joint ventures
(5,780)
 
 -
Others
(17,839)
 
(10,008)
Donations
(33,335)
 
(57,909)
Lawsuits (Note 18)
(41,763)
 
(25,467)
Total other operating results, net
59,723
 
114,970
 
 
 
21
IRSA Propiedades Comerciales S.A.
 
23.          Financial results, net
 
 
12.31.19
 
12.31.18
- Interest income
194,505
 
75,801
Finance income
194,505
 
75,801
- Interest expense
(1,496,497)
 
(1,412,054)
- Others financial costs
(117,285)
 
(128,291)
Subtotal finance costs
(1,613,782)
 
(1,540,345)
Less: Capitalized finance costs
284
 
 -
Finance costs
(1,613,498)
 
(1,540,345)
Foreing exchange, net
(3,256,826)
 
(2,034,006)
- Fair value (loss)/ gains of financial assets at fair value through profit or loss
(206,357)
 
940,224
- (Loss)/ Gain from derivative financial instruments
(16,583)
 
385,076
- Gain from repurchase of non-convertible notes
63,170
 
4,779
Other financial results
(3,416,596)
 
(703,927)
 - Inflation adjustment
(142,506)
 
(277,819)
Total financial results, net
(4,978,095)
 
(2,446,290)
 
 
24.          Related parties transactions
 
The following is a summary of the balances with related parties:
 
Item
 
12.31.19
 
06.30.19
Trade and other receivables
 
7,563,990
 
5,338,176
Investments in financial assets
 
4,709,005
 
4,009,789
Trade and other payables
 
(219,520)
 
(380,485)
Total
 
12,053,475
 
8,967,480
 
 
Related parties
 
12.31.19
 
06.30.19
 
Description of transaction
IRSA Inversiones y Representaciones Sociedad Anónima (IRSA)
 
5,350,569
 
4,762,140
 
Advances
 
 
2,853,348
 
2,032,674
 
 Non-convertible notes
 
 
1,456,347
 
 -
 
 Loans granted
 
 
119,780
 
106,854
 
 Other credits
 
 
86,641
 
71,159
 
 Corporate services
 
 
12,448
 
15,662
 
 Equity incentive plan
 
 
9,336
 
815
 
 Leases and/or rights to use space
 
 
830
 
 -
 
 Commissions
 
 
11,357
 
 -
 
 Lease collections
 
 
 -
 
5,994
 
 Reimbursement of expenses
 
 
(1,678)
 
(517)
 
 Reimbursement of expenses to pay
 
 
(14,609)
 
(18,381)
 
 Equity incentive plan to pay
 
 
 -
 
(165)
 
 Lease collections to pay
Total direct parent company
 
9,884,369