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

Table of Contents
22. Differences between Mexican FRS and U.S. GAAP:
Basis of presentation under U.S. GAAP
The Group’s consolidated financial statements are prepared based on Mexican FRS, which differ in certain material respects from generally accepted accounting principles applicable in
the United States (U.S. GAAP). The term “SFAS” as used herein refers to U.S. Statements of Financial Accounting Standards. In addition, the term “FASB” refers to the U.S. Financial
Accounting Standards Board.
On July 1, 2009, the FASB changed the manner in which accounting standards were organized by the implementation of the FASB Accounting Standards Codification
(ASC). Therefore, ASC 105, “Generally Accepted Accounting Principles” (ASC 105) was issued. Effective that date, ASC 105 is the single official source of authoritative
nongovernmental U.S. GAAP, except for Securities and Exchange Commission (SEC) rules and interpretive releases, which are sources of authoritative U.S. GAAP for SEC
registrants. The standard is effective for interim and annual periods ending after September 15, 2009. The Group adopted the provisions of the standard on September 30, 2009, which
did not have a material impact on its audited consolidated financial statements.
a) Impact of inflation
As discussed in Note 3 e) hereinabove, through December 31, 2007, the last date on which the Group operated in an inflationary economic environment, the inflation impact was
recognized in accordance with Mexican Bulletin B-10, “Recognition of the impact of inflation on the financial information (Integrated document)” (Bulletin B-10), regardless of the
level of inflation. The inflation adjustments effect previously recognized is maintained in the financial statements of the last year reported in accordance with Mexican FRS B-10, which
superseded Bulletin B-10. FRS B-10 requires that the restated amounts of nonmonetary assets as reported at December 31, 2007 become the carrying amounts for those assets effective
January 1, 2008. Therefore, those carrying amounts affected the net income of 2011, 2010, and 2009. For example, depreciation expense is based on carrying amounts of fixed assets that
include inflation adjustments.
Effective January 1, 2008, the Group adopted FRS B-10 which sets forth the financial statements that recognize the inflation impact are those relative to an entity whose functional
currency applies to a country in which there is an inflationary economic environment (inflation equal to or higher than 26 percent accumulated in the three annual prior
years). Therefore, the Group has not recognized the impact of inflation for the years ended December 31, 2011, 2010, and 2009 due to the non-inflationary economic environment existing
in the countries where the Group operates.
The reconciliation of the reported net income and stockholders’ equity from Mexican FRS to U.S. GAAP does not include the reversal of inflation accounting adjustments as of and for
the years ended December 31, 2011, 2010 and 2009 as permitted by the Form 20-F of the Securities and Exchange Commission of the United States of America. Nevertheless, the
economic environment effect that is inflationary under Mexican FRS, but not hyperinflationary under US GAAP arising as of 2008 and henceforth represents a difference that should be
reconciled for U.S. GAAP purposes.
Other than inflation accounting, the principal differences between Mexican FRS and U.S. GAAP that affect the Group’s consolidated financial statements are described below along with
an explanation, where appropriate, of the method used to determine the adjustments between Mexican FRS and U.S. GAAP.
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