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

Implementation of IFRS.
As described in our Note 21 to our audited consolidated financial statements, we have adopted IFRS for the preparation of our financial information beginning in 2012. Pursuant to
current SEC reporting requirements, foreign private issuers may provide in their SEC filings financial statements prepared in accordance with IFRS, without reconciliation to U.S. GAAP.
The consolidated financial statements that we issue for the year ending December 31, 2012 will be our first annual financial statements prepared in accordance with IFRS. Our IFRS
transition date is January 1, 2011, and accordingly, the year ended December 31, 2011 will constitute part of the comparative period covered by IFRS 1, “First-Time Adoption of
International Financial Reporting Standards” (which we refer to as IFRS 1). We have therefore applied all mandatory exemptions and certain optional exemptions from the retrospective
application of IFRS provided by IFRS 1.
The Group applied the relevant mandatory exceptions to retrospective application of IFRS as follows:
Attributed cost
An entity may elect to measure an item or all of property, plant and equipment, as well as certain intangible assets at the transition date at its fair value and use that fair value as its
attributed cost at that date. In addition, a first-time adopter may elect to use a previous GAAP’s revaluation of an item of property, plant and equipment at, or before, of the transition
date as attributed cost at the date of the revaluation, if the revaluation was, at the date of the revaluation, broadly comparable to: (i) fair value; or (ii) cost or depreciated cost in
accordance with IFRS, adjusted to reflect changes in a general or specific price index. The Group has adopted the following criteria:
● For real property, use a revaluation under GAAP at a date prior to the date of transition as attributed cost;
● for minor property and equipment and certain intangibles, use their values restated in accordance with GAAP at a date prior to the transition as an attributed cost.
● for indefinite-lived intangible assets (trademarks), use the fair value related to the acquisition of FASA, which was completed in October 2010.
Employee Benefits:
At the transition date, the Company will apply IAS 19, “Employee benefits” (revised), which eliminates the use of the "corridor method” that tends to defer actuarial gains and losses,
and it is required to be recorded in other items of comprehensive income. Therefore, the Company will recognize actuarial gains and losses existing at the date of transition against the
opening balance of retained earnings. As of the transition date, the Company will recognize the effect of all actuarial gains and losses in "other comprehensive income" when accrued.
In the transition date, the Company will eliminate the liability of termination benefits due to a cause other than restructuring under Mexican FRS against retained earnings. Under IAS
19, this item is recognized when the entity has the legal obligation with its employees. If not, its effect is recorded in income as accrued.
Accumulated translation differences
At the transition date, the Company will reverse the accumulated effect of translation gains or losses generated under Mexican FRS. Therefore, the Company will transfer the balance of
the "Accumulated translation effect" against the opening balance of retained earnings as of the transition date. This reclassification would not affect the balance of stockholders’
equity.
Investments in subsidiaries, jointly controlled entities and associates
IFRS 1 allows for valuing these investments as of the transition date as indicated below, provided that the entity selects the “cost model”:
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at cost, determined in accordance with IAS 27, "Consolidated and individual financial statements"; or
at the attributed cost that can be: (i) fair value under IAS 39, "Financial Instruments: Recognition and Measurement" as of the transition date in the individual financial
statements of the entity; or carrying value on that date under prior GAAP.
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