Business Context and Reporting Period
Company: Southeast Airport Group (Grupo Aeroportuario del Sureste, S.A.B. de C.V.)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: April 29, 2010
Context: ASUR, the first privatized airport group in Mexico, operates nine airports in the southeast of Mexico, including Cancún. This filing responds to a request by the Mexican National Banking and Securities Commission (CNBV) and the Mexican Stock Exchange (BMV) to disclose the company's program for adopting International Financial Reporting Standards (IFRS).
Key Financial Metrics
This filing is a regulatory disclosure regarding accounting standards transition and does not contain specific financial performance data for the period.
- Revenue, Profit, Cash Flow, Margins: Not provided in this filing.
- Debt and Liquidity: Not provided in this filing.
- Key Metric: Estimated IFRS Adoption Date is January 1, 2011, with a transition period starting January 1, 2010.
Material Changes
The filing details the progress of ASUR's transition from local accounting standards to IFRS. Key status updates include:
- Completed Activities (100%): Coordination with management, preliminary identification of accounting impacts, selection of IFRS 1 alternatives, and review of contracts for potential covenant breaches (none identified).
- In-Progress Activities: Definition of new accounting policies (80% complete), evaluation of impact on information systems (80% complete), and identification of effects on performance measures (60% complete).
- Upcoming Activities: Parallel implementation of financial statements and preparation of opening balances are currently at 20-50% completion.
Guidance, Outlook, and Risks
Management Commentary: ASUR has established a dedicated transition team led by Manuel Canal Hernando, with external support from PricewaterhouseCoopers (Auditors) and Deloitte (Advisor). The company confirms that the transition to IFRS will not result in breaches of current commitments or covenants.
Risks and Contingencies: The primary operational risk identified is the complexity of modifying information systems and internal controls to accommodate IFRS requirements. The company is currently designing quality control processes to ensure the reliability of future financial information.
Investor Verification Checklist
- Verify the final impact of IFRS adoption on reported earnings and equity when the January 1, 2011, transition occurs.
- Review the April 22, 2010, quarterly report referenced in this filing for actual financial performance metrics.
- Monitor the completion of information system upgrades required for IFRS compliance.
- Confirm that no material changes to debt covenants arise as the transition progresses.