Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 328

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 328
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S 7 “ Financial Instruments: Disclosures,” to clarify the characteristics of supplier finance arrangements
and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of
financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure
to liquidity risk.

As of January 1, 2024 and December 31, 2024, these amendments
did not impact the Company’s audited consolidated financial statements, due to the fact that the Company did not enter into reverse
factoring agreements/transactions (“supplier finance arrangements”), which means that the Company does not have to comply
with any new disclosure requirements and does not have to alter the classification or presentation of liabilities and cash flows.

Standards, amendments issued but not yet effective

Lack of exchangeability - Amendments to IAS 21

In August 2023, the IASB issued amendments to IAS 21 “ The
Effects of Changes in Foreign Exchange Rates” to specify how an entity should assess whether a currency is exchangeable and how
it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables
users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected
to affect, the entity’s financial performance, financial position and cash flows.

The amendments will be effective for annual reporting periods
beginning on or after January 1, 2025. Early adoption is permitted but will need to be disclosed. When applying the amendments, an entity
cannot restate comparative information.

The Company is currently assessing the impact of these amendments,
which it expects to adopt on the effective date.

Amendments to the Classification and Measurement of
Financial Instruments - Amendments to IFRS 9 and IFRS 7

On May 30, 2024, the IASB issued targeted amendments to IFRS
9 “ Financial Instruments” andIFRS 7 “ Financial Instruments: Disclosures” to respond to recent questions
arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. These amendments:

  clarify the date of recognition and derecognition of some financial assets                                                

  clarify and add further guidance for assessing whether a financial asset  

  add new disclosures for certain instruments with contractual terms that                                                                  

  update the disclosures for equity instruments designated at fair value through  

The amendments in (b) are most relevant to financial