Company: DLO
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0000950170-25-058197
Chunk: 169

Company: dLocal Ltd
Filing Date: 2025-04-24
Form: 20-F
Item: Item 16K
Chunk 169
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ian Pound Non-delivery forwards 8,965 ( 96 - - 
Sell EUR
Moroccan Dirham Forward - - ( 3,274 ( 28
US Dollar Non-delivery forwards - - ( 6,323 ( 40
Sell USD
Indian Rupee Non-delivery forwards - - ( 950 ( 1
South African Rand Forward ( 6,654 ( 104 - - 
South African Rand Futures Contract ( 6,662 ( 116 - - 
Total ( 6,227 ( 948
2024 2023 2022
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Net gain on foreign currency forwards recognized in ‘ Costs of Services’ (Note 6) 13,461 17,433 14,559
Net loss on foreign currency forwards recognized in ‘ Finance Costs’ (Note 11) ( 19,462) ( 28,013) ( 18,763)

(i) Classification of derivatives

F-41

Derivatives are financial instruments entered into only for economic hedging purposes and not contracted as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are classified as ‘held for trading’ for accounting purposes and are accounted for at fair value through profit or loss. The full fair value of hedging derivatives is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months, otherwise they are classified as a current asset or liability. Derivatives held for trading are classified as a current asset or liability.

F-42

25.
Provisions
(a)
Current or potential proceedings for labor provisions and civil claims
The Group has been associated with civil and labor lawsuits that present potential loss risk. Provisions for losses arising from these lawsuits and potential labor contingencies are recognized when management, based on assessments by the Group’s legal advisors, determines that an outflow of resources is more likely than not required to settle the obligation and that a reliable estimate of the amount can be made.
As of December 31, 2024, the total amount recognized for existing contingencies classified as probable by the Group, as evaluated by its legal advisors, is USD500 thousands. This amount includes provisions for labor contractor claims and civil claims.
(b)
Movements in provisions
Movements in Labor provisions are set out below:
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Carrying amount as of January 1 362