FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

Table of Contents
Capitalized lease
The capitalized lease is recognized when all the risks and benefits associated with the ownership of the assets are retained substantially. Accordingly: (i) ownership of the asset is
transferred to the Company upon termination of the term; (ii) the price for acquiring the asset upon termination of the term is deemed to be a bargain purchase option; (iii) the lease term
covers the majority of the asset’s economic life; and (iv) the present value of the minimum lease payments substantially represents the fair value of the asset at the inception of the
lease. Financial leasing is capitalized at the inception of the lease at the lower of fair value of the property under the lease agreement or the present value of future minimum payments.
Obligations under financial leasing arrangements are included in other short or long-term payables. The financial cost is expensed during the lease term. The asset acquired is
depreciated in accordance with the Company’s depreciation policies.
p) Provisions, contingent assets and liabilities and commitments
The Group recognizes the liabilities of present obligations on which the transfer of assets or the rendering of future services are unavoidable, and arise as a consequence of past
transactions or events. Provisions are recognized when present, legal or assumed, obligations are unavoidable and will require the disbursement of economic resources or can be
reasonably estimated.
Significant obligations or losses related to contingencies are periodically evaluated. They are accounted for when it is likely that present obligations will require the disbursement of
economic resources, and there are reasonable elements for their quantification. If there are no such reasonable elements, the contingencies are disclosed in the notes to the financial
statements. Contingent revenues, income or assets are only recognized when their realization is practically certain.
Commitments are not recognized unless they result in a loss. Commitments are disclosed when they represent significant additions of fixed assets, goods or services contracted that
substantially exceed the immediate needs of the Group or represent contractual obligations.
q) Employee benefits
i) In accordance with Mexican FRS D-3, “Employee Benefits” (FRS D-3), the Group recognizes the labor obligations derived from defined benefits for retirement pensions and
seniority premiums, as well as severance benefits to employees for termination of the employment relationship (legal ordinary indemnifications) when they complete the employment
relationship prior to the retirement age which is not associated to a restructuring event. Costs are expensed as employees render their services. Toward that end, actuarial
computations are applied to the present value of labor obligations. Retirement pensions are granted to all personnel that have completed at least ten years of pension service and have
reached sixty-five years of age. Seniority premiums are granted for a voluntary separation of personnel after completing fifteen years of service and then calculated based on the
number of years worked. Severance benefits for termination of the employment relationship are granted by Law in the event of a dismissal, based on the years of service and last salary
of personnel.
Defined benefit obligations, unamortized items, and the net periodic cost applicable to labor obligations referred to above are determined by using the “projected unit credit
method”. Severance benefits which arise from restructuring causes should continue to follow the Mexican Bulletin C-9, “Liability, provisions, contingent assets and liabilities, and
commitments”.
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