Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 327

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 327
---
 a right to defer settlement.  

  That a right to defer must exist at the end of the reporting period.  

  That classification is unaffected by the likelihood that an entity will  
  exercise its deferral right.                                             
 ───────────────────────────────────────────────────────────────────────────

  That only if an embedded derivative in a convertible liability is itself            

In addition, a requirement has been introduced to require
disclosure when a liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement
is contingent on compliance with future covenants within 12 months.

As of January 1, 2024 and December 31, 2024, these amendments
did not impact the Company’s audited consolidated financial statements. Since the changes primarily aim to provide greater clarity
on classification criteria of certain loan agreements with the right to defer settlement, and its disclosure requirements related to future
covenants, the Company has not identified any loan agreements classified as non-current with the characteristics aforementioned; therefore,
the Company is not required to present any further disclosures within the audited consolidated financial statements. Thus, there is no
material impact on the presentation of liabilities in the current financial statements.

Amendments to IFRS 16: Lease Liability in a Sale and Leaseback

In September 2022, the IASB issued amendments to IFRS 16 to
specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure
the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains.

The amendments are effective for annual reporting periods
beginning on or after January 1, 2024 and must be applied retrospectively to sale and leaseback transactions entered into after the date
of initial application of IFRS 16. Earlier application is permitted, and that fact must be disclosed.

As of January 1, 2024 and December 31, 2024, these amendments
did not have a material impact on the audited consolidated financial statements of the Company on the subsequent measurement of the liability,
due to the Company not having lease variable payments that are not dependent on a rate or index.

Supplier Finance Arrangements - Amendments to IAS 7
and IFRS 7

In May 2023, the IASB issued amendments to IAS 7 “ Statement
of Cash Flows” and IFR