Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Globant S.A. |
Entity Central Index Key | 0001557860 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 37,101,771 |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Profit or loss [abstract] | ||||
Revenues | [1] | $ 659,325 | $ 522,310 | $ 413,439 |
Cost of revenues | [2],[3] | (405,164) | (318,554) | (263,171) |
Gross profit | 254,161 | 203,756 | 150,268 | |
Selling, general and administrative expenses | [3],[4] | (172,478) | (133,187) | (110,813) |
Net impairment losses on financial assets | [5] | (228) | (3,469) | (1,581) |
Other operating expense, net | [6] | (720) | (306) | (4,708) |
Profit from operations | 80,735 | 66,794 | 33,166 | |
Gain on transactions with bonds | 1,569 | 0 | 0 | |
Finance income | 13,643 | 11,418 | 7,956 | |
Finance expense | (26,801) | (16,968) | (11,036) | |
Finance expense, net | (13,158) | (5,550) | (3,080) | |
Share of results of investment in associates | (224) | 0 | 0 | |
Other income, net | [7] | 110 | 6,220 | 8,458 |
Profit before income tax | 69,032 | 67,464 | 38,544 | |
Income tax | (15,017) | (15,868) | (8,081) | |
Net income for the year | 54,015 | 51,596 | 30,463 | |
Items that may be reclassified subsequently to profit and loss: | ||||
- Exchange differences on translating foreign operations | (400) | (871) | (265) | |
- Net change in fair value on financial assets measured at FVOCI | (373) | (12) | (27) | |
- Gains and losses on cash flow hedges | 352 | 0 | 0 | |
Total comprehensive income for the year | 53,594 | 50,713 | 30,171 | |
Net income attributable to: | ||||
Owners of the Company | 54,015 | 51,677 | 30,539 | |
Non-controlling interest | 0 | (81) | (76) | |
Total comprehensive income for the year attributable to: | ||||
Owners of the Company | 53,594 | 50,794 | 30,247 | |
Non-controlling interest | $ 0 | $ (81) | $ (76) | |
Earnings per share | ||||
Basic (in usd per share) | $ 1.48 | $ 1.45 | $ 0.87 | |
Diluted (in usd per share) | $ 1.43 | $ 1.41 | $ 0.84 | |
Weighted average of outstanding shares (in thousands) | ||||
Basic (in shares) | 36,586 | 35,746 | 34,919 | |
Diluted (in shares) | 37,674 | 36,685 | 36,094 | |
[1] | Includes transactions with related parties of 1,419, 5,937 and 5,590 for 2019, 2018 and 2017, respectively. See note 23.1. | |||
[2] | Includes depreciation and amortization expense of 7,350, 4,022 and 4,339 for 2019, 2018 and 2017, respectively. See note 6.1. | |||
[3] | Includes share-based compensation expense of 4,976, 4,248 and 5,666 under cost of revenues; and 14,912, 8,665 and 8,798 under selling, general and administrative expenses for 2019, 2018 and 2017, respectively. See note 6. | |||
[4] | Includes depreciation and amortization expense of 16,905, 16,521 and 11,789 for 2019, 2018 and 2017, respectively. See note 6.2. | |||
[5] | Includes a loss of 275 and 3,421 and a gain of 5 on impairment of trade receivables for 2019, 2018 and 2017, respectively (see note 12). Includes a recovery of impairment of tax credits of 47 for 2019, an impairment loss of tax credits of 48 and 1,586 for 2018 and 2017, respectively (see note 4.4). | |||
[6] | Includes an impairment of intangibles assets of 720, 306 (note 4.6) and 4,708 (note 4.10) for 2019, 2018 and 2017, respectively. | |||
[7] | Includes as of December 31,2019, 2018 and 2017 a loss of 85, a gain of 6,700 and 6,735 on remeasurement of the contingent consideration of Avanxo, Pointsource, Clarice, L4, WAE and Ratio explained in note 28.9.1. Includes as of December 31, 2018 and 2017 a gain of 1,611 and 1,726 related to the remeasurement at fair value of the call and put option over non-controlling interest explained in note 28.9.2, respectively. In 2018 includes the derecognition of the call option over non-controlling interest of 455 explained in note 25.2. In 2018 includes the loss of 1,038 related to the settlement agreed with WAE former owners (note 28.9.1). In 2018 includes the impairment of the investment in Collokia of 800 explained in note 11.2. |
CONSOLIDATED STATEMENTS OF PR_2
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | |||
Revenue from rendering of services, related party transactions | $ 1,419,000 | $ 5,937,000 | $ 5,590,000 |
Depreciation and amortization expense, production | 7,350,000 | 4,022,000 | 4,339,000 |
Depreciation and amortization expense, non-production | 16,905,000 | 16,521,000 | 11,789,000 |
Shared-based compensation expense, production | 4,976,000 | 4,248,000 | 5,666,000 |
Shared-based compensation expense, non-production | 14,912,000 | 8,665,000 | 8,798,000 |
Impairment loss (reversal of impairment loss) recognised in profit or loss, trade receivables | 275,000 | 3,421,000 | (5,000) |
Allowance for impairment of tax credits, net of recoveries | (47,000) | 48,000 | 1,586,000 |
Impairment of intangible assets (note 4.6 and 4.10) | 720,000 | 306,000 | 4,708,000 |
(Loss) gain on remeasurement of contingent consideration | (85,000) | 6,700,000 | 6,735,000 |
Gain on remeasurement of valuation of call and put option over non-controlling interest | 1,611,000 | 1,726,000 | |
Derecognition of call option over non-controlling interest | 455,000 | ||
Impairment of investments in Collokia | 0 | 800,000 | 0 |
Collokia investment | |||
Disclosure of detailed information about business combination [line items] | |||
Impairment of investments in Collokia | 800,000 | ||
WAE | |||
Disclosure of detailed information about business combination [line items] | |||
(Loss) gain on remeasurement of contingent consideration | 0 | 0 | 3,850,000 |
Loss recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination | 1,038,000 | ||
Internally generated | Licenses and internal developments | |||
Disclosure of detailed information about business combination [line items] | |||
Impairment of intangible assets (note 4.6 and 4.10) | $ 720,000 | $ 306,000 | $ 0 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets | |||
Cash and cash equivalents | $ 62,721 | $ 77,606 | |
Investments | 19,780 | 8,635 | |
Trade receivables | [1] | 156,676 | 110,898 |
Other assets | 13,439 | 0 | |
Other receivables | 19,308 | 15,341 | |
Other current financial assets | [2] | 4,527 | 550 |
Total current assets | 276,451 | 213,030 | |
Non-current assets | |||
Investments | 418 | 527 | |
Other assets | 7,796 | 0 | |
Other receivables | 8,810 | 34,197 | |
Deferred tax assets | 26,868 | 16,916 | |
Investment in associates | 3,776 | 4,000 | |
Other financial assets | [3] | 1,683 | 345 |
Property and equipment | 87,533 | 51,460 | |
Intangible assets | 27,110 | 11,778 | |
Right-of-use asset | 58,781 | ||
Goodwill | 188,538 | 104,846 | |
Total non-current assets | 411,313 | 224,069 | |
TOTAL ASSETS | 687,764 | 437,099 | |
Current liabilities | |||
Trade payables | 31,487 | 17,578 | |
Payroll and social security taxes payable | 72,252 | 58,535 | |
Borrowings | 1,198 | 0 | |
Other current financial liabilities | [4] | 8,937 | 9,347 |
Lease liabilities | 19,439 | ||
Tax liabilities | 12,510 | 7,399 | |
Other liabilities | 368 | 44 | |
Total current liabilities | 146,191 | 92,903 | |
Non-current liabilities | |||
Trade payables | 5,500 | 0 | |
Borrowings | 50,188 | 0 | |
Other financial liabilities | 1,617 | 3,418 | |
Lease liabilities | 41,924 | ||
Deferred tax liabilities | 1,028 | 0 | |
Provisions for contingencies | 2,602 | 2,862 | |
Total non-current liabilities | 102,859 | 6,280 | |
TOTAL LIABILITIES | 249,050 | 99,183 | |
Capital and reserves | |||
Issued capital | 44,356 | 43,158 | |
Additional paid-in capital | 157,537 | 109,559 | |
Other reserves | (2,557) | (2,136) | |
Retained earnings | 239,378 | 187,335 | |
Total equity | 438,714 | 337,916 | |
TOTAL EQUITY AND LIABILITIES | $ 687,764 | $ 437,099 | |
[1] | Includes balances due from related parties of 91 and 993 as of December 31, 2019 and 2018, respectively. See note 23.1. | ||
[2] | Includes the fair value of convertible notes of 3,236 and 106 (notes 3.12.9.1, 3.12.9.2 and 3.12.9.3) as of December 31, 2019 and 2018, respectively, the fair value of foreign exchange forward contracts of 1,291 and 44 as of December 31, 2019 and 2018, respectively (notes 28.10 and 28.11) and a financial asset related to the acquisition of Clarice of 400 as of December 31, 2018 (note 25.1). | ||
[3] | Includes 1,383 and 345 of guarantee payments related to the future lease of a property under construction as of December 31, 2019 and 2018, respectively. Includes convertible notes of 300 (note | ||
[4] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Balances due from related parties | $ 91,000 | $ 993,000 |
Borrowings | 51,386,000 | 0 |
Other financial liabilities - current | 8,937,000 | 9,335,000 |
Clarice | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets, at fair value | 400,000 | |
Forward contract | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value through profit or loss, forward contracts | 1,220,000 | 44,000 |
Subsidiaries | Collokia investment | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets, at fair value | 115,000 | 106,000 |
Borrowings | 300,000 | |
Convertible notes | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 3,236,000 | 106,000 |
Foreign exchange forward contracts | Forward contract | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets, at fair value | 12,000 | |
Foreign exchange forward contracts | Sistemas Globales S.A. | Forward contract | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value through profit or loss, forward contracts | 1,291,000 | 44,000 |
Guarantee Payments | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | $ 1,383,000 | $ 345,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Issued capital | Additional paid-in capital | Retained earnings | Foreign currency translation reserve | Investment revaluation reserve | Attributable to owners of the Parent | Non- controlling interests | |
Number of shares issued at beginning of period (in shares) at Dec. 31, 2016 | [1] | 34,647,643 | |||||||
Equity at beginning of period at Dec. 31, 2016 | $ 208,560 | $ 41,576 | $ 62,790 | $ 105,119 | $ (961) | $ 0 | $ 208,524 | $ 36 | |
Issuance of shares under share-based compensation plan (see note 29.1) (in shares) | [1] | 425,640 | |||||||
Issuance of shares under share-based compensation plan (see note 29.1) | $ 8,437 | 511 | 7,926 | 8,437 | |||||
Issuance of shares under subscription agreement (see note 29.1) (in shares) | [1] | 153,481 | |||||||
Issuance of shares under subscription agreement (see note 29.1) | $ 5,695 | 184 | 5,511 | 5,695 | |||||
Share-based compensation plan (see note 24) | 10,501 | 10,501 | 10,501 | ||||||
Other comprehensive income (loss) for the year | (292) | (265) | (27) | (292) | |||||
Net income for the year | $ 30,463 | 30,539 | 30,539 | (76) | |||||
Number of shares issued at end of period (in shares) at Dec. 31, 2017 | [1] | 35,226,764 | |||||||
Equity at end of period at Dec. 31, 2017 | $ 263,364 | 42,271 | 86,728 | 135,658 | (1,226) | (27) | 263,404 | (40) | |
Issuance of shares under share-based compensation plan (see note 29.1) (in shares) | [1] | 674,901 | |||||||
Issuance of shares under share-based compensation plan (see note 29.1) | $ 9,085 | 810 | 8,275 | 9,085 | |||||
Issuance of shares under subscription agreement (see note 29.1) (in shares) | [1] | 63,997 | |||||||
Issuance of shares under subscription agreement (see note 29.1) | $ 3,217 | 77 | 3,140 | 3,217 | |||||
Share-based compensation plan (see note 24) | 11,537 | 11,537 | 11,537 | ||||||
Other comprehensive income (loss) for the year | (883) | (871) | (12) | (883) | |||||
Acquisition of non-controlling interest (see note 25.2) | 0 | (121) | (121) | 121 | |||||
Net income for the year | $ 51,596 | 51,677 | 51,677 | (81) | |||||
Number of shares issued at end of period (in shares) (Balance at January 1, 2019) at Dec. 31, 2018 | [1] | 35,965,662 | |||||||
Number of shares issued at end of period (in shares) (Balance at January 1, 2019 restated) at Dec. 31, 2018 | [1] | 35,965,662 | |||||||
Number of shares issued at end of period (in shares) at Dec. 31, 2018 | [1] | 35,965,662 | |||||||
Equity at end of period (Balance at January 1, 2019) at Dec. 31, 2018 | 43,158 | 109,559 | 187,335 | (2,097) | (39) | 337,916 | |||
Equity at end of period (Adjustment on initial application of IFRS 16 (note 2.1)) at Dec. 31, 2018 | (1,972) | (1,972) | |||||||
Equity at end of period (Balance at January 1, 2019 restated) at Dec. 31, 2018 | 43,158 | 109,559 | 185,363 | (2,097) | (39) | 335,944 | |||
Equity at end of period at Dec. 31, 2018 | $ 337,916 | 43,158 | 109,559 | 187,335 | (2,097) | (39) | 337,916 | $ 0 | |
Issuance of shares under share-based compensation plan (see note 29.1) (in shares) | [1] | 899,100 | |||||||
Issuance of shares under share-based compensation plan (see note 29.1) | 1,079 | 21,475 | 22,554 | ||||||
Issuance of shares under subscription agreement (see note 29.1) (in shares) | [1] | 98,857 | |||||||
Issuance of shares under subscription agreement (see note 29.1) | 119 | 7,651 | 7,770 | ||||||
Share-based compensation plan (see note 24) | 18,852 | 18,852 | |||||||
Other comprehensive income (loss) for the year | (400) | (21) | (421) | ||||||
Net income for the year | $ 54,015 | 54,015 | 54,015 | ||||||
Number of shares issued at end of period (in shares) at Dec. 31, 2019 | [1] | 36,963,619 | |||||||
Equity at end of period at Dec. 31, 2019 | $ 438,714 | $ 44,356 | $ 157,537 | $ 239,378 | $ (2,497) | $ (60) | $ 438,714 | ||
[1] | All shares are issued, authorized and fully paid. Each share is issued at a nominal value of $1.20 per share and entitles to one vote. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) | Dec. 31, 2019$ / shares |
Statement of changes in equity [abstract] | |
Par value per share (in dollars per share) | $ 1.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities | ||||
Net income for the year | $ 54,015 | $ 51,596 | $ 30,463 | |
Adjustments to reconcile net income for the year to net cash flows from operating activities: | ||||
Share-based compensation expense | 15,357 | 10,551 | 12,865 | |
Current income tax (note 8.1) | 19,327 | 23,324 | 14,053 | |
Deferred income tax (note 8.1) | (4,310) | (7,456) | (5,972) | |
Depreciation of property and equipment (note 14) | 14,542 | 11,230 | 9,053 | |
Depreciation of right-of-use assets (note 27) | 14,584 | 0 | 0 | |
Amortization of intangible assets (note 15) | 9,713 | 9,313 | 7,075 | |
Impairment of intangible assets (note 4.6 and 4.10) | 720 | 306 | 4,708 | |
Net impairment losses on financial assets (note 4.4) | [1] | 228 | 3,469 | 1,581 |
Impairment of investments in associates (note 11.2) | 0 | 800 | 0 | |
Allowance for claims and lawsuits (note 21) | 0 | 2,070 | 527 | |
Loss (gain) on remeasurement of contingent consideration (note 28.9.1) | 85 | (6,700) | (6,735) | |
Gain on transactions with bonds (note 3.18) | (1,569) | 0 | 0 | |
Net gain on remeasurement of valuation of call and put option over non-controlling interest and on derecognition of the call option (note 28.9.2) | 0 | (1,156) | (1,726) | |
Accrued interest | 4,151 | 270 | 404 | |
Interest received | 734 | 401 | 0 | |
Net gain arising on financial assets measured at FVPL | (1,285) | (2,763) | (303) | |
Net gain arising on financial assets measured at FVOCI | (58) | (258) | (240) | |
Net gain arising on financial assets measured at amortised cost (note 7) | (99) | 0 | 0 | |
Exchange differences | 8,291 | 6,989 | 2,645 | |
Share of results of investment in associates | 224 | 0 | 0 | |
Net increase in trade receivables | (38,945) | (36,356) | (25,599) | |
Net (increase) decrease in other receivables | (8,432) | (10,559) | 1,240 | |
Net increase in other assets | (9,967) | 0 | 0 | |
Net increase in trade payables | 7,235 | 2,479 | 4,341 | |
Net increase in payroll and social security taxes payable | 8,766 | 21,885 | 7,576 | |
Net increase (decrease) in tax liabilities | 2,079 | 939 | (700) | |
Utilization of provision for contingencies (note 21) | (194) | (222) | (1,320) | |
Cash provided by operating activities | 95,192 | 80,152 | 53,936 | |
Income tax paid | (17,055) | (12,955) | (11,383) | |
Proceeds received from reimbursement of income tax | 1,572 | 0 | 436 | |
Net cash provided by operating activities | 79,709 | 67,197 | 42,989 | |
Cash flows from (used in) investing activities [abstract] | ||||
Acquisition of property and equipment | [2] | (20,375) | (19,171) | (19,605) |
Proceeds from disposals of property and equipment and intangibles | 102 | 149 | 468 | |
Acquisition of intangible assets | [3] | (11,617) | (9,711) | (8,447) |
Acquisition of investment in sovereign bonds (note 3.18) | (6,000) | 0 | 0 | |
Proceeds of investment in sovereign bonds (note 3.18) | 7,569 | 0 | 0 | |
(Payments) proceeds related to forward and future contracts | (651) | 2,382 | (579) | |
Acquisition of investments measured at FVTPL | (143,763) | (99,482) | (137,788) | |
Proceeds from investments measured at FVTPL | 129,910 | 103,083 | 140,144 | |
Acquisition of investments measured at FVOCI | (11,684) | (39,435) | (13,824) | |
Proceeds from investments measured at FVOCI | 15,618 | 35,340 | 13,176 | |
Acquisition of investments measured at amortised cost | 0 | (527) | 0 | |
Guarantee payments | (1,038) | (345) | 0 | |
Payments to acquire investments in associates | 0 | (3,250) | (469) | |
Acquisition of investment in convertible notes (note 3.12.9.2 to 3.12.9.4) | (3,350) | 0 | 0 | |
Acquisition of business, net of cash (note 25) | [4] | (97,298) | (4,137) | (19,149) |
Payments of earn-outs related to acquisition of business | (8,981) | (11,013) | (11,461) | |
Net cash used in investing activities | (151,558) | (46,117) | (57,534) | |
Cash flows from financing activities | ||||
Proceeds from the issuance of shares under the share-based compensation plan (note 29.1) | 15,822 | 7,040 | 5,296 | |
Proceeds from subscription agreements (note 29.1) | 7,770 | 3,217 | 5,695 | |
Proceeds from borrowings (note 19) | 90,523 | 0 | 22,000 | |
Repayment of borrowings (note 19) | (40,806) | (6,004) | (16,198) | |
Payments of principal portion of lease liabilities (note 27) | (15,358) | 0 | 0 | |
Convertible notes (note 3.12.9.1) | 0 | 0 | (100) | |
Cash provided by financing activities | 57,951 | 4,253 | 16,693 | |
Payments of lease liabilities interest (note 27) | (475) | 0 | 0 | |
Interest paid (note 19) | (764) | (159) | (95) | |
Net cash provided by financing activities | 56,712 | 4,094 | 16,598 | |
Effect of exchange rate changes on cash and cash equivalents | 252 | (93) | (60) | |
(Decrease) increase in cash and cash equivalents | (14,885) | 25,081 | 1,993 | |
Cash and cash equivalents at beginning of the year | 77,606 | 52,525 | 50,532 | |
Cash and cash equivalents at end of the year | 62,721 | 77,606 | 52,525 | |
Supplemental information | ||||
Cash paid | 103,978 | 4,328 | 21,300 | |
Less: cash and cash equivalents acquired | (6,678) | (191) | (2,151) | |
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | |
[1] | Includes a loss of 275 and 3,421 and a gain of 5 on impairment of trade receivables for 2019, 2018 and 2017, respectively (see note 12). Includes a recovery of impairment of tax credits of 47 for 2019, an impairment loss of tax credits of 48 and 1,586 for 2018 and 2017, respectively (see note 4.4). | |||
[2] | In 2019, 2018 and 2017, there were 2,179, 4,316 and 1,264 of acquisition of property and equipment financed with trade payables, respectively. In 2019, 2018 and 2017, the Company paid 4,316, 1,264 and 478 related to property and equipment acquired in 2018, 2017 and 2016, respectively. In 2019, 2018 and 2017 there were 1,862, 3,301 and 2,861 of advances paid. Finally, 2019 excludes 30,661 of advances reclassified from other receivables which was a non-cash transaction. | |||
[3] | In 2018 and 2017 there were 217 and 344 of acquisition of intangibles financed with trade payables, respectively. In 2019, 2018 and 2017, the Company paid 217, 344 and 7 related to intangibles acquired in 2018, 2017 and 2016, respectively. | |||
[4] | Cash paid for assets acquired and liabilities assumed in the acquisition of subsidiaries (note 25):Supplemental information Cash paid 103,978 4,328 21,300Less: cash and cash equivalents acquired (6,678) (191) (2,151)Total consideration paid net of cash and cash equivalents acquired 97,300 4,137 19,149 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of cash flows [abstract] | |||
Property and equipment, financed with trade payables | $ 2,179 | $ 4,316 | $ 1,264 |
Payment for property and equipment | 4,316 | 1,264 | 478 |
Advanced paid for property and equipment | 1,862 | 3,301 | 2,861 |
Advances reclassified from other receivables | 30,661 | ||
Intangibles assets financed with trade payables | 217 | 344 | |
Payments related to intangible assets | $ 217 | $ 344 | $ 7 |
COMPANY OVERVIEW AND BASIS OF P
COMPANY OVERVIEW AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
COMPANY OVERVIEW AND BASIS OF PRESENTATION | NOTE 1 – COMPANY OVERVIEW AND BASIS OF PRESENTATION Globant S.A. is a company organized in the Grand Duchy of Luxembourg, primarily engaged in building digital journeys that matter to millions of users through its subsidiaries (hereinafter the “Company” or “Globant” or “Globant Group”). The Company specializes in providing innovative software solutions services by leveraging emerging technologies and trends. The Company's principal operating subsidiaries and countries of incorporation as of December 31, 2019 were the following: Sistemas UK Limited and We are London Limited in the United Kingdom and Globant LLC in the United States of America (the “U.S.”), Sistemas Globales S.A., IAFH Global S.A., Dynaflows S.A., Avanxo S.A. and BSF S.A. in Argentina, Sistemas Colombia S.A.S., Avanxo Colombia and Belatrix Colombia S.A.S. in Colombia, Global Systems Outsourcing S. de R.L. de C.V. and Avanxo Servicios S.A. de C.V. in Mexico, Sistemas Globales Uruguay S.A. and Difier S.A. in Uruguay, Globant Brasil Consultoria Ltda. and Orizonta Consutoria de Negocios e Tecnología Ltda. in Brazil; Sistemas Globales Chile Asesorías Limitada in Chile, Globant Peru S.A.C., Avanxo Perú and Belatrix Peru S.A.C. in Peru, Globant India Private Limited in India, Globant Bel LLC in Belarus, Small Footprint S.R.L. in Romania, Software Product Creation S.L. in Spain, Globant France S.A.S. in France, Software Product Creation S.L - Dubai Branch in United Arab Emirates and Globant Canada Corp. in Canada. The Company provides services from development and delivery centers located in United States (San Francisco, New York, Seattle, Raleigh, Chicago and Dallas), Argentina (Buenos Aires, Tandil, Rosario, Tucumán, Córdoba, Resistencia, Bahía Blanca, Mendoza, Mar del Plata and La Plata), Uruguay (Montevideo), Colombia (Bogotá and Medellín), Brazil (São Paulo), Peru (Lima), Chile (Santiago), México (Guadalajara and México City), India (Pune and Bangalore), Spain (Madrid), Belarus (Minsk), Romania (Cluj) and United Kingdom (London) . The Company also has client management centers in United States (Houston, San Francisco, New York, Winston-Salem, Redwood City and Miami), Brazil (São Paulo), Colombia (Bogotá), Uruguay (Montevideo), Argentina (Buenos Aires), France (Paris) and the United Kingdom (London). The Company also has centers of software engineering talent and educational excellence, primarily across Latin America. Most of the revenues are generated through subsidiaries located in the U.S. The Company's workforce is mainly located in Latin America and to a lesser extent in India and U.S. The Company's registered office address is 37A Avenue J.F. Kennedy L-1855, Luxembourg . |
BASIS OF PREPARATION OF THESE C
BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS | NOTE 2 – BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). These consolidated financial statements are presented in thousands of United States dollars ("U.S. dollars") and have been prepared under the historical cost convention except as disclosed in the accounting policies below. 2.1 – Application of new and revised International Financial Reporting Standards • Adoption of new and revised standards The Company has adopted all of the new and revised standards and interpretations issued by the IASB that are relevant to its operations and that are mandatorily effective at December 31, 2019 . The impact of the new and revised standards and interpretations mentioned on these consolidated financial statements is described as follows. The Company has initially adopted IFRS 16 Leases from January 1, 2019. The Company has elected the practical expedient to not restate comparative information and has recognised the cumulative effect of initially applying the Standard as an adjustment to the opening balance of retained earnings at January 1, 2019. The Company has lease contracts for office spaces. Before the adoption of IFRS 16, in an operating lease, the leased property was not capitalised and the lease payments were recognised as rent expense in profit or loss on a straight–line basis over the lease term. Any prepaid rent and accrued rent were recognised under Other receivables and Trade and other payables, respectively. On adoption of IFRS 16, the Company recognised lease liabilities in relation to leases which had previously been classified as operating leases under the principles of IAS 17 Leases. These lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities recognised on January 1, 2019, was 6.14 %. Operating lease commitments disclosed as at December 31, 2018 55,222 Discounted using the lessee's incremental borrowing rate of at the date of initial application 46,887 Lease liability recognised as at January 1, 2019 46,887 The associated right-of-use assets were measured on a retrospective basis as if IFRS 16 had always been applied. The net impact on retained earnings on January 1, 2019, was a decrease of 1,972 . The effect of adoption IFRS 16 as at January 1, 2019 (increase/(decrease)) is as follows: Assets Right-of-use assets 46,567 Prepayments (1,652 ) Liabilities Lease liabilities 46,887 Total adjustment on equity: Retained earnings (1,972 ) In applying IFRS 16 for the first time, the Company has used the following practical expedients permitted by the standard: • the use of a single discount rate to a portfolio of leases with reasonably similar characteristics; • reliance on previous assessments on whether leases are onerous; • the accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019, as short-term leases; • the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application. The Company has also elected not to reassess whether a contract is, or contains a lease at the date of the initial application. Instead, for contracts entered into before the transition date the group relied on its assessment made applying IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease. As a practical expedient, IFRS 16 permits a lessee not to separate non–lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has not used this practical expedient. From January 1, 2019, leases are recognised as a right-of-use asset and a corresponding lease liability at the commencement date of the lease. Each payment is allocated between the liability and a finance cost. The finance cost is charged to profit or loss over the lease term so as to produce a constant period rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the lease term on a straight-line basis. The Company has also adopted the following standards and interpretation that became applicable for annual periods commencing on or after January 1, 2019: IFRIC 23 Uncertainty over Income Tax Treatments Amendments to IFRS 3 and 11 and IAS 12 and 23 Annual improvements 2015-2017 Cycle Amendment to IAS 28 Long-term Interests in Associates and Joint Ventures Amendment to IFRS 9 Prepayment Features with Negative Compensation Amendments to IAS 19 Plan Amendment, Curtailment or Settlement Those standards did not have any impact on the Company's accounting policies and did not require retrospective adjustments, except for IFRIC 23 "Uncertainty over Income Tax Treatments" that required a retrospective analysis which concluded that there is a possibility that a loss may have been incurred of 1,768 related to the fiscal years 2014 to 2019. As of December 31, 2019 these matter has not been recorded, it may be subject to inspection by the tax authority and claims may be asserted in the future . • New accounting pronouncements The Company has not applied the following new and revised IFRSs that have been issued but are not yet mandatorily effective: Amendments to References to the Conceptual Framework in IFRS Standards 1 Amendment to IFRS 3 Definition of a business 2 Amendment to IAS 1 and IAS 8 Definition of material 1 Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform 1 Amendments to IAS 1 Classification of Liabilities as Current or Non-Current 3 1 Effective for annual reporting periods beginning on or after January 1, 2020. Earlier application is permitte d. 2 Effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. Earlier application is permitted . 3 Effective for annual reporting periods beginning on or after January 1, 2022 and are to be applied retrospectively. Earlier application is permitted . • On March 29, 2018, the IASB issued the Amendments to References to the Conceptual Framework in IFRS Standards. The document contains amendments to IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32. Not all amendments, however update those pronouncements with regard to references to and quotes from the framework so that they refer to the revised Conceptual Framework. Some pronouncements are only updated to indicate which version of the framework they are referencing to (the IASC framework adopted by the IASB in 2001, the IASB framework of 2010, or the new revised framework of 2018) or to indicate that definitions in the standard have not been updated with the new definitions developed in the revised Conceptual Framework. The management of the Company does not anticipate that the application of these amendments will have a material impact on the Company's consolidated financial statements. The amendments are effective for annual periods beginning on or after January 1, 2020. • On October 22, 2018, the IASB has issued 'Definition of a Business (Amendments to IFRS 3)' aimed at resolving the difficulties that arise when an entity determines whether it has acquired a business or a group of assets. The amendments in Definition of a Business (Amendments to IFRS 3) are changes to Appendix A Defined terms, the application guidance, and the illustrative examples of IFRS 3 only. They: ◦ clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs; ◦ narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference to an ability to reduce costs; ◦ add guidance and illustrative examples to help entities assess whether a substantive process has been acquired; ◦ remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs; ◦ and add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The management of the Company does not anticipate that the application of this amendment will have a material impact on the Company's consolidated financial statements. This amendment is effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. Earlier application is permitted. The Company has not opted for early application. • On October 31, 2018, the IASB has issued 'Definition of Material (Amendments to IAS 1 and IAS 8)' to clarify the definition of ‘material’ and to align the definition used in the Conceptual Framework and the standards themselves. The changes in Definition of Material (Amendments to IAS 1 and IAS 8) all relate to a revised definition of 'material' which is quoted as follows from the final amendments: "Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity". Three new aspects of the new definition should especially be noted: ◦ Obscuring. The existing definition only focused on omitting or misstating information, however, the Board concluded that obscuring material information with information that can be omitted can have a similar effect. Although the term obscuring is new in the definition, it was already part of IAS 1 (IAS 1.30A). ◦ Could reasonably be expected to influence. The existing definition referred to 'could influence' which the Board felt might be understood as requiring too much information as almost anything ‘could’ influence the decisions of some users even if the possibility is remote. ◦ Primary users. The existing definition referred only to 'users' which again the Board feared might be understood too broadly as requiring to consider all possible users of financial statements when deciding what information to disclose. • On September 26, 2019, IASB has issued 'Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)' as a first reaction to the potential effects the Interbank Offered Rate ("IBOR") reform could have on financial reporting. The amendments published deal with issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark with an alternative interest rate and address the implications for specific hedge accounting requirements. The changes in Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) ◦ modify specific hedge accounting requirements so that entities would apply those hedge accounting requirements assuming that the interest rate benchmark on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform; ◦ are mandatory for all hedging relationships that are directly affected by the interest rate benchmark reform; ◦ are not intended to provide relief from any other consequences arising from interest rate benchmark reform (if a hedging relationship no longer meets the requirements for hedge accounting for reasons other than those specified by the amendments, discontinuation of hedge accounting is required); ◦ require specific disclosures about the extent to which the entities' hedging relationships are affected by the amendments. The management of the Company does not anticipate that the application of these amendments will have a material impact on the Company's consolidated financial statements. These amendments are effective for annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The Company has not opted for early application. • On January 23, 2020, IASB has issued 'Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)' providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments in Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) affect only the presentation of liabilities in the statement of financial position — not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They: ◦ clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least twelve months and make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability; ◦ clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and ◦ make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The management of the Company does not anticipate that the application of these amendment will have a material impact on the Company's consolidated financial statements. These amendments are effective for annual reporting periods beginning on or after January 1, 2022. Earlier application is permitted. The Company has not opted for early application. 2.2 – Basis of consolidation These consolidated financial statements include the consolidated financial position, results of operations and cash flows of the Company and its consolidated subsidiaries. Control is achieved where the company has the power over the investee; exposure, or rights, to variable returns from its involvement with the investee and the ability to use its power over the investee to affect the amount of the returns. All intercompany transactions and balances between the Company and its subsidiaries have been eliminated in the consolidation process. Non-controlling interest in the equity of consolidated subsidiaries is identified separately from the Company's net liabilities therein. Non-controlling interest consists of the amount of that interest at the date of the original business combination and the non-controlling share of changes in equity since the date of the consolidation. Losses applicable to non-controlling shareholders in excess of the non-controlling interest in the subsidiary's equity are allocated against the interest of the Company, except to the extent that the non-controlling interest has a binding obligation and is able to make an additional investment to cover the losses. Acquired companies are accounted for under the acquisition method whereby they are included in the consolidated financial statements from their acquisition date. Detailed below are the subsidiaries of the Company whose financial statement line items have been included in these consolidated financial statements. Company Country Main Percentage ownership of Activity As of December 31, incorporation 2019 2018 2017 Sistemas UK Limited United Kingdom Customer referral services and software development support and consultancy 100.00 % 100.00 % 100.00 % Globant, LLC United States of America Customer referral services and software development support and consultancy 100.00 % 100.00 % 100.00 % Sistemas Colombia S.A.S. Colombia Software development and consultancy 100.00 % 100.00 % 100.00 % Global Systems Outsourcing S. de R.L. de C.V. Mexico Software development and consultancy 100.00 % 100.00 % 100.00 % Software Product Creation S.L. Spain Holding, investment, software development and consultancy 100.00 % 100.00 % 100.00 % Globant España S.A. (sociedad unipersonal) Spain Holding and investment activities 100.00 % 100.00 % 100.00 % Sistemas Globales Uruguay S.A. Uruguay Software development and consultancy 100.00 % 100.00 % 100.00 % Sistemas Globales S.A. Argentina Software development and consultancy 100.00 % 100.00 % 100.00 % IAFH Global S.A. Argentina Software development and consultancy 100.00 % 100.00 % 100.00 % Sistemas Globales Chile Asesorías Limitada Chile Software development and consultancy 100.00 % 100.00 % 100.00 % Globers S.A. Argentina Travel organization services 100.00 % 100.00 % 100.00 % Globant Brasil Consultoria Ltda. Brazil Software development and consultancy 100.00 % 100.00 % 100.00 % Huddle Group S.A. (1) Argentina Software development and consultancy - - 100.00 % Globant Peru S.A.C. Peru Software development and consultancy 100.00 % 100.00 % 100.00 % Globant India Private Limited India Software development and consultancy 100.00 % 100.00 % 100.00 % Dynaflows S.A. (2) Argentina Software development and consultancy 100.00 % 100.00 % 66.73 % We Are London Limited United Kingdom Service design consultancy 100.00 % 100.00 % 100.00 % Company Country Main Percentage ownership of Activity As of December 31, incorporation 2019 2018 2017 Difier S.A. Uruguay Software development and consultancy 100.00 % 100.00 % 100.00 % Globant Bel LLC Belarus Software development and consultancy 100.00 % 100.00 % - Globant Canada Corp. Canada Software development and consultancy 100.00 % 100.00 % 100.00 % Globant France S.A.S. France Software development and consultancy 100.00 % 100.00 % - Small Footprint S.R.L. Romania Software development and consultancy 100.00 % 100.00 % - Globant Ventures S.A.S. (3) Argentina Holding and investment activities 100.00 % 100.00 % - Software Product Creation SL Dubai Branch (4) United Arab Emirates Software development and consultancy 100.00 % - - Avanxo (Bermuda) Limited (5) Bermuda Holding, investment activities and software development 100.00 % - - Avanxo México Sociedad Anónima Promotora de inversión de Capital Variable (5) Mexico Cloud consulting and implementation services 100.00 % - - Avanxo Servicios S.A. de C.V. (5) Mexico Cloud consulting and implementation services 100.00 % - - Avanxo Brasil Tecnología da Informacao LTDA (5) Brasil Cloud consulting and implementation services 100.00 % - - Orizonta Consutoria De Negocios E Tecnologia LTDA (5) Brasil Cloud consulting and implementation services 100.00 % - - Avanxo S.A. (5) Argentina Cloud consulting and implementation services 100.00 % - - Avanxo - Sucursal del Perú (5) Perú Cloud consulting and implementation services 100.00 % - - Avanxo Colombia (5) Colombia Cloud consulting and implementation services 100.00 % - - Belatrix Global Corporation S.A. (6) Spain Holding and investment activities 100.00 % - - BSF S.A. (6) Argentina Agile product development services 100.00 % - - Belatrix Peru SAC (6) Peru Agile product development services 100.00 % - - Belatrix Colombia SAS (6) Colombia Agile product development services 100.00 % - - Belatrix Service Corp (6) United States Of America Agile product development services 100.00 % - - (1) On December 31, 2017, Huddle Group S.A. was merged into Sistemas Globales S.A. (currently under registration). (2) On October 26, 2018, the sellers exercised the put option on the non-controlling interest of Dynaflows (see note 25.2). (3) Globant Ventures S.A.S was registered on January 17, 2019. (4) Software Product Creation SL Dubai Branch obtained its definitive professional license on February 21, 2019 . (5) Avanxo (Bermuda) Limited along with its subsidiaries in Brazil, Mexico, Colombia, Peru, Argentina and the United States ("Avanxo Group") were acquired on February 1, 2019 (see note 25.8). (6) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3.1 – Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets transferred to the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity interests issued by the Company in exchange for control of the acquiree. Acquisition-related charges are recognized in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: • deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively ; and • liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Company entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquired business, and the fair value of the acquirer's previously held equity interest in the acquired business (if any) over the net of the acquisition date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquired business and the fair value of the acquirer's previously held equity interest in the acquired business (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests' proportionate share of the recognized amounts of the acquired business identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. When the consideration transferred by the Company in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the 'measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IFRS 3 and IFRS 13, as appropriate, with the corresponding gain or loss being recognized in profit or loss. When a business combination is achieved in stages, the Company's previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of. Arrangements that include remuneration of former owners of the acquiree for future services are excluded of the business combinations and will be recognized in expense during the required service period. 3.2 – Goodwill Goodwill arising in a business combination is carried at cost as established at the acquisition date of the business less accumulated impairment losses, if any. For the purpose of impairment testing, goodwill is allocated to a unique cash generating unit (CGU). Goodwill is not amortised and is reviewed for impairment at least annually or more frequently when there is an indication that the business may be impaired. If the recoverable amount of the business is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the business and then to the other assets of the business pro-rata on the basis of the carrying amount of each asset in the business. Any impairment loss for goodwill is recognized directly in profit or loss in the consolidated statement of income and other comprehensive income. An impairment loss recognized for goodwill is not reversed in a subsequent period. The Company has not recognized any impairment loss in the years ended December 31, 2019 , 2018 and 2017 . 3.3 – Revenue recognition The Company generates revenue primarily from the provision of software development, testing, infrastructure management, application maintenance, outsourcing services, consultancy and Services over Platforms (SoP). SoP is a new concept for the services industry that aims to deliver digital journeys in more rapid manner providing specific platforms as a starting point and then customizing them to the specific need of the customers. Revenue is measured at the fair value of the consideration received or receivable. The Company’s services are performed under both time-and-material and fixed-price contracts. For revenues generated under time-and-material contracts, revenues are recognized as a performance obligation satisfied over time, using an input method based on hours incurred. The majority of such revenues are billed on an hourly, daily or monthly basis whereby actual time is charged directly to the client. The Company recognizes revenues from fixed-price contracts applying the input or output methods depending on the nature of the project and the agreement with the customer, recognizing revenue on the basis of the Company’s efforts to the satisfaction of the performance obligation relative to the total expected inputs to the satisfaction of the performance obligation, or recognizing revenue on the basis of direct measurements of the value to the customer of the services transferred to date relative to the remaining services promised under the contract, respectively. Each method is applied according to the characteristics of each contract and client. The inputs and outputs are selected based on how faithfully they depict the Company's performance towards complete satisfaction of the performance obligation. The Company also provides hosted access to software applications for a subscription-based fee. The revenue from these subscription resales contracts is recognised at a point in time, given that the performance obligation is satisfied when the contract is signed by the customer and the Company. The Company acts as an agent because the performance obligation is to arrange for the service to be provided to the customer by another party (the owner of the software applications). Consequently, the revenue is measured as the amount of the commission, which is the net amount of consideration that the Company retains after paying the other party the consideration received in exchange for the services to be provided by that party. 3.4 – Leases During 2018, the Company applied IAS 17 for leases recognition, where leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Finance leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the consolidated statement of profit or loss and other comprehensive income. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term. Operating lease payments are recognized as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognized as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentives is recognized as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. As of January 1, 2019, the Company applied IFRS 16 where t he Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (leases with a lease term of 12 months or less) and leases of low value assets (assets with a value of 5 or less when new). For these leases, the Company recognizes the lease payments as an operating expense on a straightline basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • fixed payments, less any lease incentives receivable; • variable lease payments that are based on an index or a rate; • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. The Company remeasures the lease liability (and makes a corresponding adjustment to the related right–of–use asset) whenever: 1. the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. 2. the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used). 3. a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The Company made adjustments related to leases that are subject to changes in the consumer price index. As of December 31, 2019 , such adjustments amounted to 126 . Right-of-use asset are measured at cost comprising the following: • the amount of the initial measurement of lease liability; • any lease payments made at or before the commencement date less any lease incentives received; • any initial direct costs. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses. Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. The costs are included in the related right–of-use asset. The right-of-use assets are presented as a separate line in the consolidated statement of financial position. The Company applies IAS 36 Impairment of Assets to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 3.10 . Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets are assets with a value of 5 or less when new. In determining the lease term, management considers all fact and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options and periods after termination options are only included in the lease term if the lease is reasonably certain to be extended or not terminated. The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the lessee. 3.5 – Foreign currencies The functional currency of the Company and most of its subsidiaries is the U.S. dollar, except for: • Globant Brasil Consultoría Ltda.: the functional currency is the Brazilian Real. • Globers S.A.: the functional currency is the Argentine Peso. • We are London Limited: the functional currency is the Great Britain Pound • Avanxo Servicios S.A. de C.V.: the functional currency is the Mexican Peso. • Avanxo Mexico S.A.P.I de C.V.: the functional currency is the Mexican Peso. • Avanxo Brasil Tecnología da Informacao LTDA: the functional currency is the Brazilian Real. • Orizonta Consutoria De Negocios E Tecnologia LTDA: the functional currency is the Brazilian Real. • Avanxo S.A.: the functional currency is the Argentine Peso. • Avanxo - Sucursal del Perú: the functional currency is the Peruvian Sol. • Avanxo Colombia: the functional currency is the Colombian Peso. In preparing these consolidated financial statements, transactions in currencies other than the U.S. dollar (“foreign currencies”) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are kept at the original translated cost. Exchange differences are recognized in profit and loss in the period in which they arise. In the case of the subsidiaries with a functional currency other than the U.S. dollar, assets and liabilities are translated at current exchange rates, while income and expense are translated at the date of the transaction rate. The resulting foreign currency translation adjustment is recorded as a separate component of accumulated other comprehensive income (loss) in equity. Accounting standards are applied on the assumption that the value of money (the unit of measurement) is constant over time. However, when the rate of inflation is no longer negligible, a number of issues arise impacting the true and fair nature of the accounts of entities that prepare their financial statements on a historical cost basis. To address such issues, entities apply IAS 29 Financial Reporting in Hyperinflationary Economies from the beginning of the period in which the existence of hyperinflation is identified. Based on the statistics published on July 17, 2018, the 3-year cumulative rate of inflation for consumer prices and wholesale prices in Argentina reached a level of about 123% and 119%, respectively. On that basis, Argentina was considered an hyperinflationary economy since July 1, 2018. As of December 31, 2019, the Company has recognized the effects of inflation in their financial statements, it also has evaluated this situation and concluded that it has no significant impact considering that the most significant Argentine subsidiaries have the U.S. dollars as their functional currency, except for Globers S.A. and Avanxo S.A as explained above. 3.6 – Borrowing costs The Company does not have borrowings attributable to the construction or production of assets. All borrowing costs are recognized in profit and loss under finance loss. 3.7 – Taxation 3.7.1 – Income taxes – current and deferred Income tax expense represents the estimated sum of income tax payable and deferred tax. 3.7.1.1 – Current income tax The current income tax payable is the sum of the income tax determined in each taxable jurisdiction, in accordance with their respective income tax regimes. Taxable profit differs from profit as reported in the consolidated statement of profit or loss and other comprehensive income because taxable profit excludes items of income or expense that are taxable or deductible in future years and it further excludes items that are never taxable or deductible. The Company's liability for current income tax is calculated using tax rates that have been enacted or substantively enacted as of the balance sheet dates. The current income tax charge is calculated on the basis of the tax laws in force in the countries in which the consolidated entities operate. For the fiscal year 2019, Globant S.A, is subject to a corporate income tax rate of 17% on taxable income exceeding EUR 200 , the rate is 15% if annual taxable income does not exceed EUR 175 . For amounts between EUR 175 and EUR 200 , corporate income tax is calculated based on a formula, adding EUR 26.2 (i.e. EUR 175 x 15%) and 31% of the income amount exceeding EUR 175 . For fiscal year 2018, the rate was 18% for a company whose taxable income exceeds EUR 30 and 15% if annual taxable income does not exceed EUR 25 . The corporate income tax is increased by a contribution of 7% to the unemployment fund. A municipal business tax also may be imposed at rates ranging from 6% to 12% depending on where the undertaking is located. In 2008, Globant España S.A. elected to be included in the Spanish special tax regime for entities having substantially all of their operations outside of Spain, known as “ Empresas Tenedoras de Valores en el Exterior ” (“ETVE”), on which dividends distributed from its foreign subsidiaries as well as any gain resulting from disposal are tax free. In order to be entitled to the tax exemption, among other requirements, the main activity of Globant España S.A. must be the administration and management of equity instruments from non-Spanish entities and such entities must be subject to a tax regime similar to that applicable in Spain for non-ETVEs companies. The subsidiaries did not distribute dividends during 2017. During 2018 the Company’s Uruguayan and Argentinian subsidiaries distributed dividends to Globant España S.A. for a total amount of 27,462 . As of December 31, 2019 the Uruguayan subsidiary distributed dividends for a total amount of 11,000 to Globant España S.A and BSF S.A distributed dividends for a total amount of 310 to Belatrix Global Corporation S.A. If this tax exemption would not apply, the applicable tax rate should be 25% . The Company´s Spanish subsidiary Software Product Creation S.L. is subject to a 25% corporate income tax rate. Also, Belatrix Global Corporation S.A. is an ETVE company located in Spain, subject to the benefits of the regime. The company was registered as ETVE on December, 2013. Argentine companies are subject to a 30% corporate income tax rate. In May 2008, IAFH Global S.A. and Sistemas Globales S.A. were notified by the Argentine Government through the Ministry of Economy and Public Finance that they had been included within the promotional regime for the software industry established under Law No. 25,922 (the “Software Promotion Regime”). BSF S.A is benefited by the promotional regimen as well. The incorporation was notified on April 2008. Under Argentina’s Software Promotion Law No. 25,922 (Ley de Promoción de la Industria de Software), as amended by Law No. 26,692 and Decree No. 95/2018 (the "Software Promotion Law"), the Company's operating subsidiaries in Argentina benefit from a 60% reduction in their corporate income tax rate (as applied to income from promoted software activities) and a tax credit of up to 70% of amounts paid for certain social security taxes (contributions) that may be offset against value-added tax liabilities. Law No. 26,692, the 2011 amendment to the Software Promotion Law (“Law No. 26,692”), also allows such tax credits to be applied to reduce the Company's Argentine subsidiaries’ corporate income tax liability by a percentage not higher than the subsidiaries’ declared percentage of exports and extends the tax benefits under the Software Promotion Law until December 31, 2019. The Software Promotion Law remains in effect until December 31, 2019. On May 22, 2019 the Argentine Congress approved Law No. 27,506 that creates a promotion regime for knowledge economy-related business (the "Knowledge based economy law") which is applicable to IAFH Global S.A., Sistemas Globales S.A. and BSF S.A. The Law is valid from January 1, 2020 until December 31, 2029. The beneficiaries of the regime will enjoy the following benefits: • Fiscal stability as of the moment of the registration and for the term of validity of the Regime.This benefit may be also extended to provincial and municipal taxes, as long as such jurisdictions adhere to this Knowledge based Economy Law. • Beneficiaries are not subject to any value-added tax withholding or collection regimes. • A reduced corporate income tax rate of 15% to the extent that the beneficiaries maintain their payroll in accordance with the conditions described in the regulations. • Beneficiaries will be allowed to deduct a tax credit derived from any payment or withholding of foreign taxes, if the taxed income constitutes an Argentine source of income. • A reduction from their employer social security contributions, in relation to each employee, of an amount equal to 7,003 ARS per employee for year 2020. • A tax credit equal to 1.6 times the amount of the employer’s social security contributions applicable to the detraction. This tax credit, which is onetime transferable, can be used to offset the beneficiary's income tax liability and/or value added tax liability with no restriction. The beneficiaries of the Software Promotion Law must declare their intention to be transferred to the Knowledge Economy Regime until December 31, 2019. Sistemas Globales S.A. and IAFH S.A. have been incorporated in the National Registry of Beneficiaries of the Regime for the Promotion of the Knowledge Economy on November 12, 2019 and BSF S.A. was included on December 3, 2019. Both registrations are treated as provisional and the companies must fill a final declaration before June 30, 2020. Additionally, Ministry of Production and Labor issued on October 10, 2019, the Resolution No. 1084/2019, which appointed the Secretariat of Entrepreneurs and Small and Medium-Sized Enterprises as enforcement authority of the Regime and authorized the Secretariat to issue complementary regulations. Consequently, the Secretariat issued Resolution No. 449/2019, establishing the details of the procedure to be followed and the conditions to be met to enjoy the benefits of the Regime. Also, the Secretariat will be in charge of analyzing the information submitted and verifying compliance with all the relevant requirements. On January 20, 2020, Ministry of Productive Development issued Resolution No. 30/2020, revoking Resolution No. 1,084/2019 and Resolution No. 449/2019. Also, under the new administrative structure, Ministry of Productive Development appointed the Secretariat of Industry, Knowledge Economy and External Commercial Management of the Ministry of Productive Development as enforcement authority of the New Regime and authorized that Secretariat to issue complementary regulations. Finally, the review and processing of applications filed so far have been suspended until new complementary regulations are issued by such new enforcement authority. Therefore, the Law and the Decree are currently in force, and have not been repealed, suspended or modified. According to the New Regime – currently in force – beneficiaries of the Regime for the Promotion of the Software Industry (Law 25,922) have the right to enjoy the benefits established as long as they are registered in the Registry for which it is necessary to: (i) have submitted the application for the provisional incorporation into the New Regime until December 31, 2019 (which allows the definitive registration to have effects as from January 1st, 2020), and (ii) prove the compliance of the requirements provided in the Law and complementary regulations before June 30, 2020. The Argentine Executive Power is considering a bill to modify the Knowledge based Economy Law to include the following:: • a 60% reduction in the total amount of corporate income tax applied to income from the promoted activities. • a tax credit equal to the 70% of the social security contribution paid. The social security contribution benefit would apply only to a portion of the beneficiary’s payroll. On December 29, 2017, Argentina enacted a comprehensive tax reform (Law No. 27,430) through publication in the Official Gazette. The Law is effective from January 1, 2018. Specifically, introduces amendments to income tax (both at corporate and individual levels), value added tax (VAT), tax procedural law, criminal tax law, social security contributions, excise tax, tax on fuels, and tax on the transfer of real estate. At a corporate level, the law decreases the corporate income tax rate from 35% to 30% for fiscal years starting January 1, 2018 to December 31, 2019, and to 25% for fiscal years starting January 1, 2020 and onwards. The Law also establishes dividend withholding tax rates of 7% for profits accrued during fiscal years starting January 1, 2018 to December 31, 2019, and 13% for profits accrued in fiscal years starting January 1, 2020 and onwards. The new withholding rates apply to distributions made to shareholders qualifying as resident individuals or nonresidents. Even though the combined effective rate for shareholders on distributed income (corporate income tax rates plus dividend withholding rates on the after tax profit) will be close to the prior 35% rate, this change is aimed at promoting the reinvestment of profits. Additionally, the Law repeals the “equalization tax” (i.e., 35% withholding applicable to dividends distributed in excess of the accumulated taxable income) for income accrued from January 1, 2018. On December 23, 2019, the Argentine Government enacted the Ley de Solidaridad Social y Reactivación Productiva No. 27,541 (the "Law on Social Solidarity and Productive Reactivation " or the "Social Solidarity Law") which declared a public emergency in economic, financial, fiscal, administrative, social security, tariff, energy, health and social matters, and also delegated legislative powers to the National Executive Power, until December 31, 2020. According to the Social Solidarity Law, the corporate income tax for years starting January 1, 2020 is 30%, and the tax rate applicable to dividends is 7%, delaying the effectiveness of the 25% and 13% rates until tax years starting on January 1, 2021. The Social Solidarity Law also introduced amendments to the income tax, personal assets tax, excise tax on certain goods, tax on debits and credits in local bank accounts and social security rules. It also establishes a new tax on certain purchases of foreign currency, a new tax debt settlement plan for certain taxpayers, and establish new rates on export of goods and services . According to the Social Solidarity Law, the corporate income tax for years starting January 1, 2020 is 30%, extending the enforcement of the 25% to tax year starting January 1, 2021. The Company’s Argentine subsidiaries, Globers Travel, Dynaflows, Globant Ventures SAS and Avanxo S.A. are subject to a corporate income tax rate of 30% as they are not in included within the Software Promotion Regime nor Knowledge Economy Regime. The Company’s Uruguayan subsidiary Sistemas Globales Uruguay S.A. is domiciled in a tax free zone and has an indefinite tax relief of 100% of the income tax rate and an exemption from VAT. Aggregate income tax relief arising under Sistemas Globales Uruguay S.A. for years ended December 31, 2019 , 2018 and 2017 were 21,224 , 11,095 , 2,488 , respectively. The Company’s Uruguayan subsidiary Difier S.A. is located outside tax-free zone and according to Article 163 bis of Decree No. 150/007 the software development services performed are exempt from income tax and value-added tax applicable as long as they are exported and utilized abroad, except for the financial results that are taxable at a rate of 25%. Difier S.A is 100% export-oriented. The Colombian subsidiaries are subject to federal corporate income tax at the rate of 33% . Until December 31, 2018 the Company's Colombian subsidiary Sistemas Colombia S.A.S. was subject to federal corporate income tax at the rate of 33% and a surcharge at the rate of 4% calculated on net income before income tax. Law N°1,943 gradually reduces the corporate tax rates from 33% to 30% from fiscal years 2020 to 2022. The Company’s U.S. subsidiaries are subject to U.S. federal income tax at the rate of 21% . Fiscal years beginning before January 1, 2018 were subject to corporate tax at the rate of 35% . On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“Tax Act”) that instituted fundamental changes to the taxation of multinational corporations. The Tax Act includes significant changes to the U.S. corporate income tax system, including a federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, changes regarding net operating loss carryforwards, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. Furthermore, as part of the transition to the new tax system, a one-time transition tax is imposed on a U.S. shareholder's historical undistributed earnings of foreign affiliates. The Tax Act introduces various other changes to the Internal Revenue Code. The reform also introduces base erosion provisions for U.S corporations that are part of multinational group. For fiscal years beginning after December 31, 2017, a U.S corporation is potentially subject to tax under the Base Erosion Anti-Abuse Tax provision (“BEAT”), if the controlled group of which it is a part has sufficient gross receipts and derives a sufficient level of “base erosion tax benefits”. On December 13, 2018, the Internal Revenue Service (“IRS”) published a proposed regulation that provide guidance regarding the BEAT application for public comments. The final document was published in the Federal Register on December 2, 2019. The Company’s English subsidiaries Sistemas UK Limited and We are London Limited are subject to corporate income tax at the rate of 19% , the same rate was applied for the years 2018 and 2017. The rate is reduced to 17% a s from April 1, 2020. The Company’s Chilean subsidiary Sistemas Globales Chile Ases. Ltda. is subject to corporate income tax at the rate of 27% . For the years 2018 and 2017, the corporate income tax rates were 27% and 25.5% , respectively. The Company’s Brazil |
CRITICAL ACCOUNTING JUDGEMENTS
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | NOTE 4 – CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Company's accounting policies, which are described in note 3, the Company's management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years. The critical accounting estimates concerning the future and other key sources of estimation uncertainty at the end of the reporting year that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year are the following: 1. Revenue recognition In accounting for fixed-price contracts the Company applies the input or output methods depending on the nature of the project and the agreement with the customer, recognizing revenue on the basis of the Company’s efforts to the satisfaction of the performance obligation relative to the total expected inputs to the satisfaction of the performance obligation, or recognizing revenue on the basis of direct measurements of the value to the customer of the services transferred to date relative to the remaining services promised under the contract, respectively. Each method is applied according to the characteristics of each contract and client. These methods are followed where reasonably dependable estimates of revenues and costs can be made. Fixed-price projects generally correspond to short-term contracts. Some fixed-price contracts are recurring contracts that establish a fixed amount per month and do not require the Company to apply significant judgment in accounting for those types of contracts. In consequence, the use of estimates is only applicable for those contracts that are on-going at the year end and that are not recurring. Reviews to these estimates may result in increases or decreases to revenues and income and are reflected in the consolidated financial statements in the periods in which they are first identified. If the estimates indicate that a contract loss will be incurred, a loss provision is recorded in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated costs of the contract exceed the estimated total revenues that will be generated by the contract and are included in cost of revenues in the consolidated statement of income and other comprehensive income. Contract losses for the periods presented in these consolidated financial statements were immaterial. 2. Goodwill impairment analysis Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to tangible and intangible assets acquired less liabilities assumed. The determination of the fair value of the tangible and intangible assets involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. The Company evaluates goodwill for impairment at least annually or more frequently when there is an indication that the unit may be impaired. When determining the fair value of the Company's cash generating unit, the Company utilizes both the market and income approaches. The Company first determines the value of the unit using the market approach. For the purposes of the calculation, the Company considers the value of the shares in the market. In addition, the Company utilizes the income approach, using discounted cash flow. The income approach considers various assumptions including increase in headcount, headcount utilization rate, income from each country and revenue per employee, income tax rates and discount rates. The assumptions considered by the Company as of December 31, 2019 are the following: projected cash flows for the following five years , the average growth rate considered was 22.0% and the rate used to discount cash flows was 9.50% . The long-term rate used to extrapolate cash flows beyond the projected period was 3% . Any adverse changes in key assumptions about the businesses and their prospects or an adverse change in market conditions may cause a change in the estimation of fair value and could result in an impairment charge. Based upon the Company's evaluation of goodwill, no impairments were recognized during 2019 , 2018 and 2017 . 3. Income taxes Determining the consolidated provision for income tax expenses, deferred income tax assets and liabilities requires significant judgment. The provision for income taxes is calculated over the net income of the company and is inclusive of federal, local and state taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences in each of the jurisdictions where the Company operates of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of the deferred tax assets to be utilized. This assessment requires judgments, estimates and assumptions by management. In evaluating the Company's ability to utilize its deferred tax assets, the Company considers all available positive and negative evidence, including the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable. The Company's judgments regarding future taxable income are based on expectations of market conditions and other facts and circumstances. Any adverse change to the underlying facts or the Company's estimates and assumptions could require that the Company reduces the carrying amount of its net deferred tax assets. The Company evaluates the uncertain tax treatment, such determination requires the use of significant judgment in evaluating the tax treatments and assessing the timing and amounts of deductible and taxable items, see note 3.7.1.3 . 4. Impairment of financial assets The Company measures ECL using reasonable and supportable forward looking information, which is based on assumptions for the future movement of different economic drivers and how these drivers will affect each other. Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive. Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions. As of December 31, 2019, 2018 and 2017, the Company recorded an impairment of trade receivables for an amount of 275 , an impairment of 3,421 and a recovery of 5 , respectively, using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific to debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date. As of December 31, 2019, 2018 and 2017, the Company recorded a recovery for an amount of 47 , an impairment of tax credits for an amount of 48 and 1,586 , respectively, based on assumptions about expected credit losses. The Company uses judgment in making these assumptions based on existing regulatory conditions as well as forward looking estimates, which are described as follows. The tax credits included in the allowance for impairment are mainly related to Argentine taxation. The Company estimated the future VAT credit and VAT debit that comes from domestic purchases and sales, respectively. Since exports are zero-rated, any excess portion of the credit not used against any VAT debit is reimbursable to the Company, through a special VAT recovery regime. However, according to VAT recovery rules, there are certain limitations on the amount that may be reimbursed and the Company considered any VAT credit that cannot be reimbursed to be an impairment. 5. Share-based compensation plan The Company's grants under its share-based compensation plan with employees are measured based on fair value of the Company's shares at the grant date and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. Determining the fair value of the share-based awards at the grant date requires judgments. The Company calculated the fair value of each option award on the grant date using the Black-Scholes option pricing model. The Black-Scholes model requires the input of highly subjective assumptions, including the fair value of the Company's shares, expected volatility, expected term, risk-free interest rate and dividend yield. Fair value of the shares: For 2014 Equity Incentive Plan, the fair value of the shares is based on the quote market price of the Company's shares at the grant date. For 2012 Equity Incentive Plan, as the Company's shares were not publicly traded the fair value was determined using the market approach technique based on the value per share of private placements. The Company had gone in the past through a series of private placements in which new shares have been issued. The Company understood that the price paid for those new shares was a fair value of those shares at the time of the placement. In January 2012, Globant España S.A. had a capital contribution from a new shareholder, which included cash plus share options granted to the new shareholder, therefore, the Company considered that amount to reflect the fair value of their shares. The fair value of the shares related to this private placement resulted from the following formula: cash minus fair value of share options granted to new shareholder divided by number of newly issued shares. The fair value of the share options granted to the new shareholder was determined using the same variables and methodologies as the share options granted to the employees. After the reorganization in December 2012, shares of Globant S.A (Luxembourg) were sold by existing shareholders in a private placement to WPP Plc. The fair value of the shares related to this private placement results from the total amount paid by WPP Plc. to the existing shareholders. Expected volatility: Since January 1, 2018 the expected volatility of the Company's shares is calculated by using the average share price volatility of the Company since January 1, 2016 to the date of grant. Before 2018, as the Company did not have sufficient trading history for the purpose of valuing the share options, the expected volatility of their shares was estimated by using the average historic price volatility of the NASDAQ 100 Telecommunication Index. Expected term: The expected life of options represents the period of time the granted options are expected to be outstanding. Risk free rate: The risk-free rate for periods within the contractual life of the option is based on the U.S. Federal Treasury yield curve with maturities similar to the expected term of the options. Dividend yield: The Company has never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. 6. Recoverability of internally generated intangible assets If any impairment indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount is the higher of fair value less costs of disposal and value in use.The discount rate use is the appropriate weighted average cost of capital. During the year, the Company considered the recoverability of its internally generated intangible asset which are included in the consolidated financial statements as of December 31, 2019 and 2018 with a carrying amount of 9,388 and 7,855 , respectively . A detailed recoverability analysis has been carried out by the Company, considering both, revenue from customers in case of the assets sold to third parties and internal usage for those assets that are used internally, and, as a result, the Company has recognized an impairment of 720 and 306 as of December 31, 2019 and 2018 . In 2017 no impairment losses were recorded. The impairment was recognized as a result of the Company's evaluation of such internal developments, upon which the Company projected lower future cash flows from the related intangible assets. 7. Fair value measurement and valuation processes Certain assets and liabilities of the Company are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company estimates the fair value of an asset or a liability by converting future amounts (e.g. cash flows or income and expenses) to a single current (i.e. discounted) amount. If necessary the Company engages third party qualified valuers to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in note 28.8 . 8. Useful lives of property, equipment and intangible assets The Company reviews the estimated useful lives of property, equipment and intangible assets at the end of each reporting period. The Company determined that the useful lives of the assets included as property, equipment and intangible assets are in accordance with their expected lives. 9. Provision for contingencies Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. 10. Recoverability of intangible assets acquired in business combinations, other than goodwill The Company evaluates intangible assets acquired in business combinations for impairment at least annually or more frequently when there is an indication that the asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount is the higher of fair value less costs of disposal and value in use. The determination of the fair value of intangible assets acquired in business combinations involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. When determining the fair value, we utilize the income approach using discounted cash flow. A total amount of 4,708 of impairment loss related to the intangible assets acquired in business combinations was recognized as of December 31, 2017 and is included as other operating expense. The impairment was recognized as a result of the Company's evaluation of such intangible assets, upon which the Company projected lower future cash flows from the related customer relationships. In 2019 and 2018 no impairment losses were recorded. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of revenue from contracts with customers [Abstract] | |
REVENUE | NOTE 5 – REVENUE The following tables present the Company’s revenues disaggregated by type of contracts, by revenue source regarding the industry vertical of the client and by currency. The Company provides technology services to enterprises in a range of industry verticals including media and entertainment, travel and hospitality, professional services, technology and telecommunications, banks, financial services and insurance and consumer, retail and manufacturing, among others. The Company understands that disaggregating revenues into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenues may be affected by economic factors. However, this information is not considered by the chief operating decision-maker to allocate resources and in assessing financial performance of the Company. As noted in the business segment reporting information in note 26, the Company operates in a single operating and reportable segment. For the year ended December 31, By Industry vertical 2019 2018 2017 Media and Entertainment 156,292 133,093 99,640 Travel & Hospitality 92,773 89,212 68,400 Banks, Financial Services and Insurance 143,788 114,439 94,994 Technology & Telecommunications 88,183 67,310 60,648 Professional Services 73,282 52,318 40,660 Consumer, Retail & Manufacturing 85,698 54,087 36,025 Other Verticals 19,309 11,851 13,072 TOTAL 659,325 522,310 413,439 For the year ended December 31, By Currency 2019 2018 2017 United States dollar (USD) 563,747 447,314 354,824 European euro (EUR) 28,237 30,087 23,518 Pound sterling (GBP) 3,012 6,550 4,107 Argentine peso (ARS) 26,948 20,651 12,856 Mexican peso (MXN) 19,939 11,711 6,942 Colombian peso (COP) 6,831 4,068 2,341 Brazilian real (BRL) 8,030 46 126 Others 2,581 1,883 8,725 TOTAL 659,325 522,310 413,439 For the year ended December 31, By Contract Type 2019 2018 2017 Time and material contracts 544,131 431,295 376,718 Fixed-price contracts 106,386 90,980 36,687 Subscription resales 8,525 — — Others 283 35 34 TOTAL 659,325 522,310 413,439 |
COST OF REVENUES AND SELLING, G
COST OF REVENUES AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
COST OF REVENUES AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | NOTE 6 – COST OF REVENUES AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 6.1 - Cost of revenues For the year ended December 31, 2019 2018 2017 Salaries, employee benefits and social security taxes (366,594 ) (293,171 ) (239,013 ) Shared-based compensation expense (4,976 ) (4,248 ) (5,666 ) Depreciation and amortization expense (7,350 ) (4,022 ) (4,339 ) Travel and housing (17,115 ) (6,623 ) (6,631 ) Office expenses (2,583 ) (2,082 ) (1,692 ) Professional services (4,440 ) (5,248 ) (5,005 ) Promotional and marketing expenses (252 ) (1,575 ) (244 ) Recruiting, training and other employee expenses (1,854 ) (1,382 ) (415 ) Taxes — (203 ) (166 ) TOTAL (405,164 ) (318,554 ) (263,171 ) 6.2 - Selling, general and administrative expenses For the year ended December 31, 2019 2018 2017 Salaries, employee benefits and social security taxes (69,056 ) (47,805 ) (41,956 ) Share-based compensation expense (14,912 ) (8,665 ) (8,798 ) Rental expenses (1) (5,260 ) (17,185 ) (13,739 ) Office expenses (10,733 ) (11,602 ) (11,800 ) Professional services (13,167 ) (13,754 ) (9,885 ) Travel and housing (7,259 ) (6,259 ) (4,460 ) Taxes (16,201 ) (6,126 ) (6,140 ) Depreciation and amortization expense (16,905 ) (16,521 ) (11,789 ) Depreciation expense of right-of-use assets (14,584 ) — — Recruiting, training and other employee expenses (2,299 ) (1,507 ) (941 ) Promotional and marketing expenses (2,102 ) (3,763 ) (1,305 ) TOTAL (172,478 ) (133,187 ) (110,813 ) (1) Includes rental expenses from short–term leases and leases of low–value assets due to the impact of the adoption of IFRS 16 since January 1, 2019. |
FINANCE INCOME _ EXPENSE
FINANCE INCOME / EXPENSE | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
FINANCE INCOME / EXPENSE | NOTE 7 – FINANCE INCOME / EXPENSE For the year ended December 31, 2019 2018 2017 Finance income Interest gain 958 407 479 Gain arising from financial assets measured at fair value through PL 4,977 3,869 923 Gain arising from financial assets measured at fair value through OCI (*) 72 258 240 Gain arising from financial assets measured at amortised cost 120 — — Foreign exchange gain 7,516 6,884 6,314 Subtotal 13,643 11,418 7,956 Finance expense Interest expense on borrowings (1,226 ) (152 ) (95 ) Interest expense on lease liabilities (3,464 ) — — Loss arising from financial assets measured at fair value through PL (3,770 ) (1,106 ) (620 ) Loss arising from financial assets measured at amortised cost (21 ) — — Foreign exchange loss (16,357 ) (14,321 ) (9,043 ) Other interest (419 ) (525 ) (788 ) Other (1,544 ) (864 ) (490 ) Subtotal (26,801 ) (16,968 ) (11,036 ) TOTAL (13,158 ) (5,550 ) (3,080 ) (*) As of December 31, 2019 , 2018 and 2017 includes 373 , 12 and 27 , respectively, related to the gain recognized as Other comprehensive income . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 8 – INCOME TAXES 8.1 – INCOME TAX RECOGNIZED IN PROFIT AND LOSS For the year ended December 31, 2019 2018 2017 Tax expense: Current tax expense (19,327 ) (23,324 ) (14,053 ) Deferred tax gain (1) 4,310 7,456 5,972 TOTAL INCOME TAX EXPENSE (15,017 ) (15,868 ) (8,081 ) (1) As of December 31, 2017, includes 1,004 of deferred tax gain related to changes in tax rates. Most of the revenues are generated through subsidiaries located in the U.S. The Company's workforce is mainly located in Latin America and to a lesser extent in India and U.S. The following table provides a reconciliation of the statutory tax rate to the effective tax rate. As the operations of the Argentine subsidiaries are the most significant source of net taxable income of the Company, the following reconciliation has been prepared using the Argentine tax rate: For the year ended December 31, 2019 2018 2017 Profit before income tax 69,032 67,464 38,544 Tax rate (note 3.7.1.1) 30 % 30 % 35 % Income tax expense (20,710 ) (20,239 ) (13,490 ) Permanent differences Argentine Software Promotion Regime (note 3.7.1.1) 3,256 6,844 3,541 Effect of different tax rates of subsidiaries operating in countries other than Argentina 7,996 4,352 2,019 Non-deductible expenses 925 1,130 1,187 Tax loss carry forward not recognized (2,402 ) (1,462 ) (374 ) Exchange difference (4,365 ) (8,777 ) (860 ) Other 283 2,284 (104 ) INCOME TAX EXPENSE RECOGNIZED IN PROFIT AND LOSS (15,017 ) (15,868 ) (8,081 ) 8.2 – DEFERRED TAX ASSETS AND LIABILITIES As of December 31, 2019 2018 Share-based compensation plan 11,587 4,731 Provision for vacation and bonus 6,533 6,624 Intercompany trade payables 3,553 2,207 Property and equipment 1,163 716 Goodwill (1,752 ) (1,005 ) Contingencies 714 546 Others 3,031 1,236 Loss carryforward (1) 2,039 1,861 TOTAL DEFERRED TAX ASSETS 26,868 16,916 As of December 31, 2019 2018 Other Assets (1,028 ) — TOTAL DEFERRED TAX LIABILITIES (1,028 ) — (1) As of December 31, 2019 and 2018 , the detail of the loss carryforward is as follows: 2019 2018 Company Loss carryforward Expiration date Loss carryforward Expiration date Globant S.A. — 547 does not expire Dynaflows S.A. 138 2024 96 2020 Dynaflows S.A. 53 2023 — Dynaflows S.A. 4 2022 — IAFH Global S.A 594 2024 — Globant Brasil Consultoría Ltda. (2) 767 does not expire 887 does not expire Sistemas UK Limited — — 116 does not expire We Are London Limited 163 does not expire 215 does not expire Difier S.A 3 does not expire — Sistemas Globales S.A. 25 2023 — Avanxo S.A. 129 2024 — BSF S.A. 140 2024 — Avanxo - Sucursal del Perú 20 2022 — Globant France S.A.S. 3 does not expire — 2,039 1,861 (2) The amount of the carryforward that can be utilized for Globant Brasil Consultoría Ltda. is limited to 30% of taxable income in each carryforward year. As of December 31, 2019 , no deferred tax liability has been recognised on investments in subsidiaries. The Company has concluded it has the ability and intention to control the timing of any distribution from its subsidiaries and it is probable that will be no reversal in the foreseeable future in a way that would result in a charge to taxable profit. The roll forward of the deferred tax assets/(liabilities) presented in the consolidated financial position is as follows: 2019 Opening Recognised in Recognised in Recognised Acquisitions/ Additions from Closing balance profit or loss (*) other comprehensive directly in equity disposals business combinations balance income Deferred tax assets/(liabilities) in relation to: Share-based compensation plan 4,731 718 — 9,864 (3,726 ) — 11,587 Provision for vacation and bonus 6,624 (275 ) — — — 184 6,533 Intercompany trade payables 2,207 1,346 — — — — 3,553 Property and equipment 716 447 — — — — 1,163 Goodwill (1,005 ) (747 ) — — — — (1,752 ) Contingencies 546 168 — — — — 714 Other assets — (389 ) — — — (639 ) (1,028 ) Others 1,236 1,795 — — — — 3,031 Subtotal 15,055 3,063 — 9,864 (3,726 ) (455 ) 23,801 Loss carryforward 1,861 876 (698 ) — — — 2,039 TOTAL 16,916 3,939 (698 ) 9,864 (3,726 ) (455 ) 25,840 (*) Includes foreign exchange loss o f 371 . 2018 Opening Recognised in Recognised in Recognised Acquisitions/ Closing balance profit or loss (*) other comprehensive directly in equity disposals balance income Deferred tax assets/(liabilities) in relation to: Share-based compensation plan 5,772 915 — 2,367 (4,323 ) 4,731 Provision for vacation and bonus 1,309 5,315 — — — 6,624 Intercompany trade payables 3,126 (919 ) — — — 2,207 Property and equipment 756 (40 ) — — — 716 Goodwill (479 ) (526 ) — — — (1,005 ) Contingencies — 546 — — — 546 Others 297 939 — — — 1,236 Subtotal 10,781 6,230 — 2,367 (4,323 ) 15,055 Loss carryforward 2,405 321 (165 ) — (700 ) 1,861 TOTAL 13,186 6,551 (165 ) 2,367 (5,023 ) 16,916 (*) Includes foreign exchange loss o f 905 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | NOTE 9 – EARNINGS PER SHARE The earnings and weighted average number of shares used in the calculation of basic and diluted earnings per share are as follows: For the year ended December 31, 2019 2018 2017 Net income for the year attributable to owners of the Company 54,015 51,677 30,539 Weighted average number of shares (in thousands) for the purpose of basic earnings per share 36,586 35,746 34,919 Weighted average number of shares (in thousands) for the purpose of diluted earnings per share 37,674 36,685 36,094 BASIC EARNINGS PER SHARE $1.48 $1.45 $0.87 DILUTED EARNINGS PER SHARE $1.43 $1.41 $0.84 The following potential ordinary shares are anti-dilutive and are therefore excluded from the weight average number of ordinary shares for the purpose of diluted earnings per share: For the year ended December 31, 2019 2018 2017 Shares deemed to be issued in respect of employee options 4,470 205,940 603,159 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 10 – CASH AND CASH EQUIVALENTS As of December 31, 2019 2018 Cash and bank balances 62,426 63,574 Time deposits 295 14,032 TOTAL 62,721 77,606 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
INVESTMENTS | NOTE 11 – INVESTMENTS 11.1 – Investments As of December 31, Current 2019 2018 Mutual funds (1) 19,384 4,050 Bills issued by the Treasury of the Argentine Republic ("LETEs") (2) 396 1,015 Bills issued by the Treasury Department of the U.S. ("T-Bills") (2) — 3,493 Capitalizable bills issued by the Treasury of the Argentine Republic ("LECAPs") (2) — 77 TOTAL 19,780 8,635 (1) Measured at fair value through profit or loss. (2) Measured at fair value through other comprehensive income. As of December 31, Non current 2019 2018 Contribution to risk funds (3) 418 527 TOTAL 418 527 (3) On December 27, 2018, the Company signed an agreement pursuant to which the Company made a contribution to the risk fund of a Mutual Guarantee Company. Such contribution accrues an interest which is collectible on a quarterly basis. As of December 31, 2019 and 2018, the Company has recorded 418 and 527 , respectively, as a non current investment, measured at amortised cost. 11.2 – Investments in associates CHVG investment As of December 31, 2018 , the Company owned the 40% of total shares of CHVG S.A. ("CHVG") and accounted for this investment using the equity method. On January 15, 2019, the Company sold the shares of CHVG S.A for a total amount of 10 (ARS 390 ). Collokia investment As of December 31, 2019 and 2018, the Company has a 19.5% of participation in Collokia LLC. On February 25, 2016, the Company signed a subscription agreement with Collokia LLC, through which Collokia LLC agreed to increase its capital by issuing 55,645 preferred units, from which the Company acquired 20,998 at the price of $23.81 per share for a total amount of 500 . After this subscription, the Company has a 19.5% of participation in Collokia LLC for a total amount of 800 and accounted for this investment using the equity method considering that the Company has significant influence over the operating and governance decisions of Collokia LLC, as the participation in the board of director, the approval of budget and business plan, among other decisions. As of December 31, 2018 , indicators that the investment in Collokia may not be recovered arose and the Company performed an impairment test. As a consequence, an impairment loss of 800 was recognized and is included in Other income, net. Acamica investment On January 26, 2016, the Company signed a subscription agreement with Ignacio Moreno, Tomás Escobar, Gonzalo Orsi and Juan Badino (jointly "the Founders"); Fitory S.A., a company organized under the laws of Uruguay; Wayra Argentina S.A., a corporation organized under the laws of Argentina; Stultum Pecuniam Ventures LLC, a limited liability company organized under the laws of the state of Washington, United States; Ms. Eun Young Hwang ("Rebecca"); Acamica S.A., a company organized under the laws of Argentina ("Acamica Argentina") and Acamica Inc, a corporation organized under the laws of the state of Delaware, United States ("Acamica US" and together with Acamica Argentina, the "Acamica Group Companies") whereas the Founders own 100% of the capital share of Acamica Group Companies and formed a new company organized under the laws of Spain ("Holdco") which owned 100% of the capital shares of Acamica US and 97% of the capital shares of Acamica Argentina. On January 3, 2017, pursuant to the terms of the subscription agreement the Company made a capital contribution of 750 to the Acamica Tecnologías S.L. (previously referred as Holdco) in exchange for a 20% ownership stake in the entity. On May 17, 2018, the Company signed a new share purchase and subscription agreement with Fitory S.A., Stultum Pecunian Ventures, LLC, Wayra Argentina S.A., Eun Young Hwang and Acámica Tecnologías S.A. Pursuant to such agreement, the Company purchased additional shares for an amount of 3,250 . As of December 31, 2019 , the Company has a 47.5% of participation in Acámica Tecnologías S.L. The investment is accounted using the equity method considering that the Company has significant influence over the operating and governance decisions of Acamica Tecnologías S.L., as the participation in the board of director, the approval of budget and business plan, among other decisions. The Company's share on the profit or loss or other comprehensive income of all the above-mentioned investments for the years ended 2018 and 2017 were not significant individually nor in the aggregate, except for the impairment recognized in Collokia in 2018. For the year ended December 31, 2019 the Company's share on the profit or loss of the investment in Acamica amounted to a loss of 224 . |
TRADE RECEIVABLES
TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE RECEIVABLES | NOTE 12 – TRADE RECEIVABLES As of December 31, 2019 2018 Accounts receivable (1) 146,382 101,754 Unbilled revenue 13,970 13,101 Subtotal 160,352 114,855 Less: Allowance for doubtful accounts (3,676 ) (3,957 ) TOTAL 156,676 110,898 (1) Includes amounts due from related parties of 91 and 993 as of December 31, 2019 and 2018 (see note 23.1 ). Allowance for doubtful accounts The following tables detail the risk profile of trade receivables based on the Company's provision matrix as of December 31, 2019 and 2018 . December 31, 2019 Trade receivables - days past due < 30 31 - 60 61 - 90 91-120 121-180 > 180 Total Expected credit loss rate 0.80% 2.00% 3.50% 7.80% 20.30% 79.50% Estimated total gross carrying amount at default 21,165 8,852 3,091 829 410 3,867 38,214 Lifetime ECL 169 177 108 65 83 3,074 3,676 December 31, 2018 Trade receivables - days past due < 30 31 - 60 61 - 90 91-120 > 120 Total Expected credit loss rate 0.06% 1.90% 4.40% 11.90% 85.90% Estimated total gross carrying amount at default 17,815 6,843 2,814 2,778 3,801 34,051 Lifetime ECL 107 130 124 331 3,265 3,957 The movements in the allowance are calculated based on lifetime expected credit loss model for 2019 and 2018, and incurred loss model for 2017 . The following table shows the movement in ECL that has been recognised for trade receivables in accordance with the simplified approach: As of December 31, 2019 2018 2017 Balance at beginning of year (3,957 ) (609 ) (617 ) Additions, net of recoveries (note 4.4) (275 ) (3,421 ) 5 Write-off of receivables 556 73 3 Balance at end of year (3,676 ) (3,957 ) (609 ) The average credit period on sales is 78 days . No interest is charged on trade receivables. The Company always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected credit losses on trade receivables are estimated using the provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER RECEIVABLES | NOTE 13 – OTHER RECEIVABLES As of December 31, 2019 2018 Other receivables Current Tax credit - VAT 2,592 5,202 Tax credit - Software Promotion Regime (note 3.7.1.1) 4,504 3,555 Income tax credits 4,534 1,410 Other tax credits 577 276 Advances to suppliers 1,666 611 Prepaid expenses 4,268 3,982 Loans granted to employees 211 49 Other 956 256 TOTAL 19,308 15,341 As of December 31, 2019 2018 Non-current Advances to suppliers (1) 3,579 28,799 Tax credit - VAT 1,004 1,031 Income tax credits 1,516 1,259 Tax credit - Software Promotion Regime (note 3.7.1.1) — 749 Other tax credits 209 170 Guarantee deposits 2,683 1,681 Loans granted to employees 152 208 Prepaid expenses 45 475 Other — 500 Subtotal 9,188 34,872 Allowance for impairment of tax credits (378 ) (675 ) TOTAL 8,810 34,197 (1) Includes advances to acquire buildings as of December 31, 2018 (Note 22). Roll forward of the allowance for impairment of tax credits As of December 31, 2019 2018 2017 Balance at beginning of year 675 1,300 — (Recovery) additions (note 4.4) (47 ) 48 1,586 Foreign exchange (250 ) (673 ) (286 ) Balance at end of year 378 675 1,300 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
PROPERTY AND EQUIPMENT | NOTE 14 – PROPERTY AND EQUIPMENT Property and equipment as of December 31, 2019 included the following: Computer equipment and software Furniture and office supplies Office fixtures Vehicles Buildings Lands Properties under construction Total Useful life (years) 3 5 3 5 50 Cost Values at beginning of year 30,053 7,142 41,904 37 13,401 2,354 4,365 99,256 Additions related to business combinations (note 25.12) 878 727 1,585 71 420 — — 3,681 Additions 8,397 570 1,055 — — — 37,015 47,037 Transfers 48 1,369 5,787 — — — (7,204 ) — Disposals (268 ) (42 ) — — — — (5 ) (315 ) Translation (169 ) (167 ) 26 — — — — (310 ) Values at end of year 38,939 9,599 50,357 108 13,821 2,354 34,171 149,349 Depreciation Accumulated at beginning of year 18,873 4,296 23,997 21 609 — — 47,796 Additions 6,759 1,225 6,283 7 268 — — 14,542 Disposals (191 ) (46 ) — — — — — (237 ) Translation (164 ) (131 ) 10 — — — — (285 ) Accumulated at end of year 25,277 5,344 30,290 28 877 — — 61,816 Carrying amount 13,662 4,255 20,067 80 12,944 2,354 34,171 87,533 Property and equipment as of December 31, 2018 included the following: Computer equipment and software Furniture and office supplies Office fixtures Vehicles Buildings Lands Properties under construction Total Useful life (years) 3 5 3 5 50 Cost Values at beginning of year 23,381 5,810 33,275 37 6,981 2,354 11,167 83,005 Additions related to business combinations (note 25.12) — 5 43 — — — — 48 Additions 7,055 719 1,083 — — — 10,065 18,922 Transfers 6 845 9,596 — 6,420 — (16,867 ) — Disposals (353 ) (229 ) (2,005 ) — — — — (2,587 ) Translation (36 ) (8 ) (88 ) — — — — (132 ) Values at end of year 30,053 7,142 41,904 37 13,401 2,354 4,365 99,256 Depreciation Accumulated at beginning of year 14,609 3,694 20,421 13 389 — — 39,126 Additions 4,641 832 5,529 8 220 — — 11,230 Disposals (346 ) (224 ) (1,868 ) — — — — (2,438 ) Translation (31 ) (6 ) (85 ) — — — — (122 ) Accumulated at end of year 18,873 4,296 23,997 21 609 — — 47,796 Carrying amount 11,180 2,846 17,907 16 12,792 2,354 4,365 51,460 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 15 – INTANGIBLE ASSETS Intangible assets as of December 31, 2019 included the following: Licenses and internal developments Customer relationships and contracts Non-compete agreement Total Useful life (years) 5 1 - 4 3 Cost Values at beginning of year 36,957 10,896 586 48,439 Additions related to business combinations (note 25.12) — 14,389 — 14,389 Additions from separate acquisitions 4,188 — — 4,188 Additions from internal development 7,212 — — 7,212 Disposals (26 ) — — (26 ) Translation (13 ) — — (13 ) Values at end of year 48,318 25,285 586 74,189 Amortization and impairment Accumulated at beginning of year 26,179 9,896 586 36,661 Additions 8,589 1,124 — 9,713 Impairment loss recognised in profit or loss (note 4.6) 720 — — 720 Disposals (2 ) — — (2 ) Translation (13 ) — — (13 ) Accumulated at end of year 35,473 11,020 586 47,079 Carrying amount 12,845 14,265 — 27,110 Intangible assets as of December 31, 2018 included the following: Licenses and internal developments Customer relationships and contracts Non-compete agreement Total Useful life (years) 5 1 - 4 3 Cost Values at beginning of year 27,381 10,153 586 38,120 Additions related to business combinations (note 25.12) — 173 — 173 Additions from separate acquisitions 3,480 — — 3,480 Additions from internal development 6,104 — — 6,104 Translation (8 ) 570 — 562 Values at end of year 36,957 10,896 586 48,439 Amortization and impairment Accumulated at beginning of year 17,325 8,844 586 26,755 Additions 8,556 757 — 9,313 Impairment loss recognised in profit or loss (note 4.6) 306 — — 306 Translation (8 ) 295 — 287 Accumulated at end of year 26,179 9,896 586 36,661 Carrying amount 10,778 1,000 — 11,778 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER ASSETS | NOTE 16 – OTHER ASSETS The Company bills customers and receives invoices from suppliers based on a billing schedule established in the subscription resales contracts. Therefore, the outstanding balance of other assets includes the right to consideration related to subscriptions that have not yet been invoiced by the Company, and trade payables includes the expenses accrual for the cost that have not yet been invoiced by the suppliers. The outstanding balance of other assets as of December 31, 2019 and 2018 is as follows: As of December 31, 2019 2018 Other assets Current 13,439 — Non-current 7,796 — TOTAL 21,235 — |
TRADE PAYABLES
TRADE PAYABLES | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE PAYABLES | NOTE 17 – TRADE PAYABLES As of December 31, 2019 2018 Current Suppliers 10,623 6,137 Advanced payments from customers — 291 Expenses accrual 20,864 11,150 TOTAL 31,487 17,578 As of December 31, 2019 2018 Non current Expenses accrual 5,500 — TOTAL 5,500 — |
PAYROLL AND SOCIAL SECURITY TAX
PAYROLL AND SOCIAL SECURITY TAXES PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
PAYROLL AND SOCIAL SECURITY TAXES PAYABLE | NOTE 18 – PAYROLL AND SOCIAL SECURITY TAXES PAYABLE As of December 31, 2019 2018 Salaries 8,376 4,434 Social security tax 13,564 7,548 Provision for vacation, bonus and others 49,909 46,181 Directors fees 281 315 Other 122 57 TOTAL 72,252 58,535 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
BORROWINGS | NOTE 19 – BORROWINGS The principal balances of outstanding borrowings under lines of credit with banks and financial institutions were as follows: As of December 31, 2019 2018 HSBC Bank and Citibank - Syndicated loan (United States) 50,363 — Banco Santander (Colombia) 549 — Banco Supervielle (Argentina) 309 — Banco ICBC (Argentina) 96 — Others 69 — TOTAL 51,386 — Such balances were included as current and non-current borrowings in the consolidated statement of financial position as follows: As of December 31, 2019 2018 Current borrowings 1,198 — Non-current borrowings 50,188 — TOTAL 51,386 — On November 1, 2018, Globant LLC, the Company's U.S. subsidiary, entered into an Amended and Restated Credit Agreement by and among certain financial institutions, as lenders, and HSBC Bank USA, National Association, as administrative agent, issuing bank and swingline lender. The A&R Credit Agreement amends and restates the existing Credit Agreement dated as of August 3, 2017, which provided for a secured revolving credit facility under which the Company may borrow up to 40,000 in advances. Under the A&R Credit Agreement, Globant LLC may borrow (i) up to 50,000 in a single borrowing on or prior to May 1, 2019 under a delayed-draw term loan facility and (ii) up to 150,000 under a revolving credit facility. In addition, Globant, LLC may request increases of the maximum amount available under the revolving facility in an agregament amount not to exceed 100,000 . The maturity date of the facilities is October 31, 2023. Pursuant to the terms of the A&R Credit Agreement, interest on loans extended thereunder shall accrue at a rate per annum equal to London Interbank Offered Rate ("LIBOR") plus 1.75% . Globant LLC’s obligations under the A&R Credit Agreement are guaranteed by the Company and its subsidiary Globant España S.A., and are secured by substantially all of Globant LLC’s now owned and after-acquired assets. The A&R Credit Agreement also contains the following covenants: delivery of certain financial information; payment of obligations, including tax liabilities; use of proceeds only for transaction costs payments, for lawful general corporate purposes and working capital; Globant LLC's Fixed Charge Coverage Ratio shall not be less than 1.25 to 1.00 ; Globant LLC's Maximum Total Leverage Ratio shall not exceed 2.50 to 1.00 ; Globant LLC or any of its subsidiaries shall not incur in any indebtedness; Globant LLC or any of its subsidiaries shall not assume any Lien; restricted payments not to exceed 10,000 per year; advances to officers, directors and employees of the Borrower and Subsidiaries in an aggregate amount not to exceed 50 outstanding at any time; Globant LLC shall not maintain intercompany payables owed to any of its Argentina Affiliates except to the extent (i) such payables are originated in transactions made in the ordinary course of business and (ii) the aggregate amount of such payables do not exceed an amount equal to five times the average monthly amount of such Affiliates’ billings for the immediately preceding 12 month period; Globant LLC's capital expenditures limited to 10% the Company's consolidated net revenue per year and Globant LLC's annual revenue is to remain at no less than 60% of the Company's consolidated annual revenue. Movements in borrowings are analyzed as follows: As of December 31, 2019 2018 2017 Balance at the beginning of year — 6,011 217 Borrowings related to business combination (note 25.12) (1) (4) 1,290 — — Proceeds from new borrowings (2) (5) 90,523 — 22,000 Payment of borrowings (3) (5) (41,570 ) (6,163 ) (16,293 ) Accrued interest (4) 1,226 152 95 Foreign exchange (4) (83 ) — (8 ) TOTAL 51,386 — 6,011 (1) Corresponds to borrowings with Banco de Bogotá and BBVA, with maturity date in September 2019, ICBC with maturity date November 2020 and Supervielle with maturity date in July 2022. These borrowings do not have covenants. (2) On April 12, 2019, August 6, 2019, August 8, 2019 and October 28, 2019 Globant LLC borrowed 25,000 , 30,000 , 10,000 and 25,000 , respectively under the Amended and Restated Credit Agreement. From the loans mentioned, 50,000 will mature on October 31, 2023 and 40,000 before December 31, 2019. On September 26, 2019, Avanxo borrowed 523 from Banco Santander with maturity date on March 26, 2020. During 2017, Sistemas Globales S.A. and IAFH Global S.A., entered into 6 loan agreements with Santander Rio for a total amount o f 16,000 . These loans matured before December 31, 2017. On December 19, 2017, Globant LLC has borrowed 6,000 under the credit facility mentioned above. This loan matured on July 23, 2018 . (3) During the year ended on December 31, 2019, the principal payments were as follows, Globant LLC paid 40,301 of the 40,000 borrowed under the Amended and Restated Credit Agreement. In September 2019, Avanxo Colombia paid 520 related to the borrowing with BBVA and paid 37 in interests regarding the borrowing with Santander in November 2019. During the year ended in December 31, 2019, BSF, S.A paid 52 and 39 regarding the borrowings with Supervielle and ICBC, respectively. On July 23, 2018, Globant LLC paid 6,163 borrowed in December 2017, under de A&R Credit Agreement. During December 2017, the Company through its Argentine subsidiary, Sistemas Globales S.A and IAFH Global S.A., paid 16,293 of the loan agreements acquired with Santander Rio in 2017. (4) Non-cash transactions. (5) Cash transactions. |
TAX LIABILITIES
TAX LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TAX LIABILITIES | NOTE 20 – TAX LIABILITIES As of December 31, 2019 2018 Income tax 4,612 4,526 Periodic payment plan 17 28 Software Promotion Law - Annual and monthly rates 366 523 VAT payable 2,558 1,208 Wage withholding taxes 1,266 558 Sales taxes payable 1,576 — Other 2,115 556 TOTAL 12,510 7,399 |
PROVISIONS FOR CONTINGENCIES
PROVISIONS FOR CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
PROVISIONS FOR CONTINGENCIES | NOTE 21 – PROVISIONS FOR CONTINGENCIES The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. The Company has recorded a provision for labor, regulatory and commercial claims where the risk of loss is considered probable. The final resolution of these potential claims is not likely to have a material effect on the results of operations, cash flow or the financial position of the Company. Breakdown of reserves for lawsuits claims and other disputed matters include the following: As of December 31, 2019 2018 Reserve for labor claims 91 678 Reserve for commercial claims 1,000 — Reserve for regulatory claims 1,511 2,184 TOTAL 2,602 2,862 Roll forward is as follows: As of December 31, Reserve for labor claims 2019 2018 2017 Balance at beginning of year 678 49 1,138 Additions 907 926 187 Recovery (1,247 ) — — Utilization of provision for contingencies (99 ) (222 ) (1,288 ) Foreign exchange (148 ) (75 ) 12 Balance at end of year 91 678 49 As of December 31, Reserve for regulatory claims 2019 2018 2017 Balance at beginning of year 2,184 1,130 807 Additions (1) 219 1,144 340 Recovery (879 ) — — Utilization of provision for contingencies (95 ) — (32 ) Foreign exchange 82 (90 ) 15 Balance at end of year 1,511 2,184 1,130 As of December 31, Reserve for commercial claims 2019 2018 2017 Balance at beginning of year — — — Additions (2) 1,000 — — Balance at end of year 1,000 — — (1) As of December 31, 2019, the Company's Colombian subsidiary is currently under examination by the Unidad de Gestión Pensional y Parafiscales ("UGPP") regarding social contribution payments for the year 2016. On November 6, 2019, the UGPP issued a demand letter to the Company's Colombian subsidiary proposing a preliminary assessment of $ 2.1 million plus penalties and interest for social contribution payments during such year and requesting to revert with its own assessment. The response letter was presented on February 5, 2019, after which the UGPP will have six months to issue its final determination. Also, certain of the Company's non-U.S. subsidiaries are currently under examination by the U.S. Internal Revenue Service (“IRS”) regarding payroll and employment taxes primarily in connection with services performed by employees of the Company's subsidiaries in the United States from 2013 to 2015. On May 1, 2018, the IRS issued 30-day letters to those subsidiaries proposing total assessments of $ 1.4 million plus penalties and interest for employment taxes for those years. The Company's subsidiaries filed protests of these proposed assessments with the IRS on July 16, 2018 and as of December 31, 2019 the Company has not received an answer. (2) On August 8, 2019, Certified Collectibles Group, LLC (“CCG”) and its affiliates filed a complaint in the U.S. District Court for the Middle District of Florida, Tampa Division, (Civil Action No. 19-CV-1962) against Globant S.A. and Globant, LLC. The complaint, arising from a dispute relating to a service contract, alleges nine causes of action against Globant, LLC: (1) fraudulent inducement of contract; (2) fraud; (3) fraudulent concealment; (4) negligent misrepresentation; (5) breach of contract and breach of express warranty; (6) violation of Florida’s Deceptive and Unfair Trade Practices Act; (7) professional negligence; (8) declaratory judgment; and (9) unjust enrichment. The complaint names Globant S.A. as a defendant with respect to several of these causes of action (counts 2-4, 6-7, and 9), on the alleged theory that Globant S.A. was an “alter ego” or agent of Globant, LLC. Globant, LLC has filed a motion to dismiss the complaint for failure to state a claim, and Globant S.A. has filed a motion to dismiss for lack of personal jurisdiction. CCG has opposed these filings. The court has not yet ruled on the motions to dismiss. |
ADVANCES TO ACQUIRE BUILDINGS
ADVANCES TO ACQUIRE BUILDINGS | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
ADVANCES TO AQUIRE BUILDINGS | NOTE 22 – ADVANCES TO ACQUIRE BUILDINGS On December 4, 2015, our Argentine subsidiaries Sistemas Globales S.A. and IAFH Global S.A., entered into a Purchase Agreement with IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”) to acquire four floors representing approximately 4,896 square meters in a building to be constructed in a premium business zone of the City of Buenos Aires, Argentina. In consideration for the property the subsidiaries agreed to pay IRSA the following purchase price: (i) AR$ 180,279 on the date of signing of the purchase agreement, equivalent to 18,779 at such date; (ii) 8,567 during a three-year term beginning in June 2016; and (iii) the remaining 3,672 at the moment of transfer of the property ownership, after finalization of the building. As explained in note 4.4, during the years 2019 and 2018 , the Company estimated the future use of some tax credits and concluded that the value-added tax related to the advance payments to IRSA which amounted to 70 and 363 , respectively, will not be recoverable and were included as advances to suppliers paid to IRSA. As of December 31, 2018 , 28,799 are included in these consolidated financial statements as other receivables non-current. As of December 31, 2019 , the building was finalized and the property ownership was transferred. Consequently, a total amount of 30,661 was reclassified from other receivables non-current to property and equipment. NOTE 23 – RELATED PARTIES BALANCES AND TRANSACTIONS 23.1 – Related parties The Company provides software and consultancy services to certain WPP subsidiaries and other related parties. WPP was a shareholder of the Company with significant influence, until it sold its shares of the Company on June 20, 2018. The Company also provides software services to Morgan Stanley, which holds a share over 5% on the Company. Outstanding receivable balances as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 2018 Mercado Libre S.R.L. — 440 TNS — 56 Morgan Stanley Investment Management Inc. 91 497 Total 91 993 During the year ended December 31, 2019 , 2018 and 2017 , the Company recognized revenues for 1,419 , 5,937 and 5,590 , respectively, as follows: For the year ended December 31, 2019 2018 2017 Added Value — — 13 Grey Global Group Inc. (*) — 472 1,238 Group M Worldwide Inc (*) — 102 521 JWT (*) — 204 1,043 Kantar Group (*) — 216 791 Kantar Retail (*) — 39 93 Ogilvy & Mather Brasil Comunication (*) — 82 1,677 JP Morgan Chase & Co. (*) — 1,784 — JP Morgan Chase S.A. (*) — 48 — JP Morgan Services Argentina S.R.L. (*) — 1,503 — TNS (*) — 8 30 Morgan Stanley Investment Management Inc. 1,257 964 — Mercado Libre S.R.L. 162 515 143 Mirum Inc. — — 41 Total 1,419 5,937 5,590 ( *) WPP and JP Morgan subsidiaries were no longer considered related parties as of December 31, 2019. 23.2 – Compensation of key management personnel The remuneration of directors and other members of key management personnel during each of the three years are as follows: For the year ended December 31, 2019 2018 2017 Salaries and bonuses 6,914 5,140 4,507 Total 6,914 5,140 4,507 The remuneration of directors and key executives is determined by the Board of Directors based on the performance of individuals and market trends. During 2017, the Company granted 12,836 and 62,162 restricted stock units at a grant price of $34.96 and $37.00 , respectively. During 2018, the Company granted 115,000 and 6,000 share options at a strike price of $46.00 and $50.92 , respectively. During 2018, the Company granted 93,000 , 10,000 and 4,054 restricted stock units at a grant price of $46.00 , $50.92 and $45.50 , respectively. During 2019, the Company granted 4,000 share options at a strike price of $52.10 . During 2019, the Company granted 82,800 , 2,400 and 2,390 restricted stock units at a grant price of $87.44 , $52.10 and $69.77 , respectively. |
RELATED PARTIES BALANCES AND TR
RELATED PARTIES BALANCES AND TRANSCATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
RELATED PARTIES BALANCES AND TRANSACTIONS | NOTE 22 – ADVANCES TO ACQUIRE BUILDINGS On December 4, 2015, our Argentine subsidiaries Sistemas Globales S.A. and IAFH Global S.A., entered into a Purchase Agreement with IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”) to acquire four floors representing approximately 4,896 square meters in a building to be constructed in a premium business zone of the City of Buenos Aires, Argentina. In consideration for the property the subsidiaries agreed to pay IRSA the following purchase price: (i) AR$ 180,279 on the date of signing of the purchase agreement, equivalent to 18,779 at such date; (ii) 8,567 during a three-year term beginning in June 2016; and (iii) the remaining 3,672 at the moment of transfer of the property ownership, after finalization of the building. As explained in note 4.4, during the years 2019 and 2018 , the Company estimated the future use of some tax credits and concluded that the value-added tax related to the advance payments to IRSA which amounted to 70 and 363 , respectively, will not be recoverable and were included as advances to suppliers paid to IRSA. As of December 31, 2018 , 28,799 are included in these consolidated financial statements as other receivables non-current. As of December 31, 2019 , the building was finalized and the property ownership was transferred. Consequently, a total amount of 30,661 was reclassified from other receivables non-current to property and equipment. NOTE 23 – RELATED PARTIES BALANCES AND TRANSACTIONS 23.1 – Related parties The Company provides software and consultancy services to certain WPP subsidiaries and other related parties. WPP was a shareholder of the Company with significant influence, until it sold its shares of the Company on June 20, 2018. The Company also provides software services to Morgan Stanley, which holds a share over 5% on the Company. Outstanding receivable balances as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 2018 Mercado Libre S.R.L. — 440 TNS — 56 Morgan Stanley Investment Management Inc. 91 497 Total 91 993 During the year ended December 31, 2019 , 2018 and 2017 , the Company recognized revenues for 1,419 , 5,937 and 5,590 , respectively, as follows: For the year ended December 31, 2019 2018 2017 Added Value — — 13 Grey Global Group Inc. (*) — 472 1,238 Group M Worldwide Inc (*) — 102 521 JWT (*) — 204 1,043 Kantar Group (*) — 216 791 Kantar Retail (*) — 39 93 Ogilvy & Mather Brasil Comunication (*) — 82 1,677 JP Morgan Chase & Co. (*) — 1,784 — JP Morgan Chase S.A. (*) — 48 — JP Morgan Services Argentina S.R.L. (*) — 1,503 — TNS (*) — 8 30 Morgan Stanley Investment Management Inc. 1,257 964 — Mercado Libre S.R.L. 162 515 143 Mirum Inc. — — 41 Total 1,419 5,937 5,590 ( *) WPP and JP Morgan subsidiaries were no longer considered related parties as of December 31, 2019. 23.2 – Compensation of key management personnel The remuneration of directors and other members of key management personnel during each of the three years are as follows: For the year ended December 31, 2019 2018 2017 Salaries and bonuses 6,914 5,140 4,507 Total 6,914 5,140 4,507 The remuneration of directors and key executives is determined by the Board of Directors based on the performance of individuals and market trends. During 2017, the Company granted 12,836 and 62,162 restricted stock units at a grant price of $34.96 and $37.00 , respectively. During 2018, the Company granted 115,000 and 6,000 share options at a strike price of $46.00 and $50.92 , respectively. During 2018, the Company granted 93,000 , 10,000 and 4,054 restricted stock units at a grant price of $46.00 , $50.92 and $45.50 , respectively. During 2019, the Company granted 4,000 share options at a strike price of $52.10 . During 2019, the Company granted 82,800 , 2,400 and 2,390 restricted stock units at a grant price of $87.44 , $52.10 and $69.77 , respectively. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
EMPLOYEE BENEFITS | NOTE 24 – EMPLOYEE BENEFITS 24.1 – Share-based compensation plan Share-based compensation expense for awards of equity instruments to employees and non-employee directors is determined based on the grant-date fair value of the awards. Fair value is calculated using Black & Scholes model. In June 2012, the Company decided to replace its Stock Appreciation Rights ("SAR") program with a new share-based compensation program. The 2012 share-based compensation agreement was signed by the employees on June 30, 2012, considering the actual grant dates of the SARs to employees. Each employee share option converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry (seven years after the effective date). All options vested on the date of modification of the plan or all other non-vested options expire within seven years after the effective date or seven years after the period of vesting finalizes. In July 2014, the Company adopted a new Equity Incentive Program, the 2014 Plan. Pursuant to this plan, on July 18, 2014, the first trading day of the Company common shares on the NYSE, the Company made the annual grants for 2014 Plan to certain of the executive officers and other employees. The grants included share options with a vesting period of 4 years , becoming exercisable a 25% of the options on each anniversary of the grant date through the fourth anniversary of the grant. Share-based compensation expense for awards of equity instruments is determined based on the fair value of the awards at the grant date. Each employee share option converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry ( ten years after the effective date). Under this share-based compensation plan, during the years 2019 and 2018, other share-based compensation agreements were signed for a total of 4,000 and 221,000 options granted, respectively. During the years 2019 and 2018 , as part of the 2014 Equity Incentive Plan, the Company granted awards to certain employees in the form of Restricted Stock Units ("RSUs"), having a par value of $1.20 each, with a specific period of vesting. Each RSU is equivalent in value to one share of the company´s common stock and represents the Company´s commitment to issue one share of the Company's common stock at a future date, subject to the term of the RSU agreement. Until the RSUs vest, they are an unfunded promise to issue shares of stock to the recipient at some point in the future. The RSUs carry neither rights to dividends nor voting rights. RSU's vesting is subject to the condition that the employee must remain in such condition at of the vesting date. The Company may determine a percentage of RSU, as part of the full year compensation package payment. These RSUs agreements have been recorded as Equity Settled transactions in accordance to IFRS 2, and they were measured at fair value of shares at the grant date. The following shows the evolution of the share options for the years ended at December 31, 2019 and 2018 : As of December 31, 2019 As of December 31, 2018 Number of options Weig hted average exercise price Number of options Weighted average exercise price Balance at the beginning of year 1,786,467 27.96 2,155,851 23.02 Options granted during the year 4,000 52.10 221,000 46.45 Forfeited during the year (21,625 ) 31.77 (78,716 ) 36.89 Exercised during the year (717,240 ) 22.06 (511,668 ) 13.76 Balance at end of year 1,051,602 31.82 1,786,467 27.96 The following shows the evolution of the RSUs for the years ended at December 31, 2019 and 2018 : As of December 31, 2019 As of December 31, 2018 Number of RSU Weighted average grant price Number of RSU Weighted average grant price Balance at the beginning of year 535,838 44.70 164,859 37.58 RSU granted during the year 309,539 85.80 564,995 46.29 Forfeited during the year (38,621 ) 47.69 (30,783 ) 44.14 Issued during the year (181,860 ) 37.00 (163,233 ) 43.13 Balance at end of year 624,896 64.05 535,838 44.70 The following tables summarizes the RSU at the end of the year: Grant date Grant price ($) Number of Restricted Stock Units Fair value at grant date ($) Expense as of December 31, 2019 ($) (*) 2017 36.30 1,000 36 18 37.00 45,242 1,674 2,217 42.00 3,250 137 77 2018 46.00 281,180 12,934 5,221 50.92 7,500 382 129 52.74 3,000 158 54 55.07 3,000 165 56 56.87 — — 67 2019 52.10 2,400 125 61 87.44 268,750 23,500 6,450 94.93 4,000 380 116 69.77 — — 446 103.75 3,000 311 20 Subtotal 622,322 39,802 14,932 Non employees RSU 2018 46.00 — — 35 57.39 — — 18 2019 87.44 2,574 225 126 Subtotal 2,574 225 179 Total 624,896 40,027 15,111 The following tables summarizes the share options at the end of the year: Grant date Exercise price ($) Number of stock options Number of stock options vested as of December 31, 2019 Fair value at grant date ($) Fair value vested ($) Expense as of December 31, 2019 (*) 2012 0.95 — — — — 5 2.48 — — — — 9 3.38 — — — — 85 12.22 — — — — — 2014 10.00 107,826 107,826 359 359 500 2015 22.77 — — — — — 28.31 205,748 205,748 1,426 1,426 1,422 29.34 3,875 3,875 26 26 — 34.20 5,500 5,500 47 47 39 2016 29.01 117,480 52,480 810 362 888 32.36 338,173 211,798 2,740 1,716 1,487 2017 38.16 30,000 20,000 273 182 91 36.30 15,000 7,500 127 64 32 2018 44.97 15,000 — 268 — 118 46.00 170,000 36,250 3,434 732 1,349 55.07 7,500 — 181 — 97 50.92 4,500 — 101 — 61 2019 52.10 4,000 — 89 — 43 Subtotal 1,024,602 650,977 9,881 4,914 6,226 Non employees stock options 2016 39.37 27,000 20,250 248 186 62 Subtotal 27,000 20,250 248 186 62 Total 1,051,602 671,227 10,129 5,100 6,288 ( *) Includes social security taxes. Deferred income tax asset arising from the recognition of the share-based compensation plan amounted to 11,587 and 4,731 f or the years ended December 31, 2019 and 2018 , respectively. 24.2 - Share options exercised and RSU vested during the year: As of December 31, 2019 As of December 31, 2018 Number of options exercised Exercise Number of options exercised Exercise Granted in 2006 — 0.95 9,900 0.95 Granted in 2007 — 0.71 200,000 0.71 Granted in 2007 — 1.40 616 1.40 Granted in 2010 — 2.48 1,793 2.48 Granted in 2010 — 3.38 19,732 3.38 Granted in 2011 — 2.71 6,031 2.71 Granted in 2012 22,170 6.77 — 6.77 Granted in 2012 1,103 0.95 — 0.95 Granted in 2012 1,304 2.48 — 2.48 Granted in 2012 13,223 3.38 — 3.38 Granted in 2012 22,170 10.00 — 10.00 Granted in 2012 47,169 12.22 — 12.22 Granted in 2014 173,211 10.00 66,146 10.00 Granted in 2014 — 13.20 3,769 13.20 Granted in 2015 163,834 28.31 111,843 28.31 Granted in 2015 8,000 34.20 3,000 34.20 Granted in 2015 12,097 29.34 1,200 29.34 Granted in 2015 30,000 22.77 — 22.77 Granted in 2016 105,020 29.01 18,750 29.01 Granted in 2016 98,939 32.36 68,888 32.36 Granted in 2018 5,000 44.97 — 44.97 Granted in 2018 10,000 46.00 — 46.00 Granted in 2018 1,500 50.92 — 50.92 Granted in 2018 2,500 55.07 — 55.07 Balance at end of the year 717,240 511,668 The average market price of the share amounted to 88.51 and 52.82 for years 2019 and 2018 , respectively. The following tables summarizes the RSU vested during the years 2019 and 2018 : December 31, 2019 December 31, 2018 Number of RSUs vested Grant price Number of RSUs vested Grant price Granted in 2017 500 36.30 500 36.30 Granted in 2017 45,283 37.00 45,906 37.00 Granted in 2017 — 38.21 2,671 38.21 Granted in 2017 2,250 42.00 2,250 42.00 Granted in 2018 — 45.50 107,463 45.50 Granted in 2018 — 53.29 4,443 53.29 Granted in 2018 100,206 46.00 — 46.00 Granted in 2018 1,000 55.07 — 55.07 Granted in 2018 436 57.39 — 57.39 Granted in 2018 1,000 52.74 — 52.74 Granted in 2018 2,500 50.92 — 50.92 Granted in 2018 1,500 56.87 — 56.87 Granted in 2019 27,185 69.77 — 69.77 Balance at end of the year 181,860 163,233 24.3 - Fair value of share-based compensation granted Determining the fair value of the stock-based awards at the grant date requires judgment. The Company calculated the fair value of each option award on the grant date using the Black-Scholes option pricing model. The Black-Scholes model requires the input of highly subjective assumptions, including the fair value of the Company's shares, expected volatility, expected term, risk-free interest rate and dividend yield. The Company estimated the following assumptions for the calculation of the fair value of the share options: Assumptions Granted in Granted in Granted in Stock price 52.10 46.45 39.69 Expected option life 6 years 6 years 6 years Volatility 40% 40% 19% Risk-free interest rate 3.10% 3.00% 2.00% See Note 4 .5 for a description of the assumptions. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
BUSINESS COMBINATIONS | NOTE 25 – BUSINESS COMBINATIONS 25.1 Acquisition of Clarice Technologies On May 14, 2015 ("closing date"), Globant España S.A. acquired Clarice Technologies PVT, Ltd ("Clarice"), a company organized and existing under the laws of India. Clarice is an innovative software product development services company that offers product engineering and user experience (UX) services and has operations in the United States and India. As of the closing date, the total headcount of Clarice was 337 employees distributed in India and United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of Clarice. On August 5, 2015 the Company changed the legal name from Clarice to Globant India Private Limited ("Globant India"). The aggregate purchase price under the Stock Purchase Agreement ("SPA") amounted to 20,184 . On May 16, 2017, the Company signed an amendment to the SPA. Based on this amendment, purchase price may be subject to adjustments based on the future performance of Clarice and was payable to the sellers as follows: 1. First Closing : As of the closing date, the sellers transferred 10,200 shares representing 76.13% of the shares to the Company for an aggregate consideration of 9,324 paid by the Company to the sellers on May 14, 2015. 2. Staggered Acquisition : The remaining 23.87% of the shares shall be transferred to the Company and the remaining purchase price shall be paid to each of the Sellers in three tranches, in the following manner, provided that the remaining purchase price paid out to each of the sellers shall be the higher of the following: 2.1 Fair Market Value of such shares, calculated in accordance with the methodology prescribed by the Reserve Bank of India by an appointed chartered accountant; or 2.2 The consideration as detailed below: 2.2.1 The second share transfer tranche, comprising 1,249 shares representing 9.32% of the shares of Globant India was transferred by the sellers to the Company on July 15, 2016. Based on the targets achieved by Globant India for the period between May 15, 2015 and May 15, 2016, the Company paid on July 15, 2016, 4,208 and recognized as of December 31, 2016 a gain of 418 arisen on the remeasurement of the liability, included in "Other income, net". 2.2.2 The third Share transfer tranche, comprising 920 o f the shares representing 6.87% of the shares of Globant India, was transferred by the sellers to the Company on March, 2018. Based on the targets achieved by Globant India for the period between January 1, 2017 and December 31, 2017, the Company paid on March 2018, 3,128 . 2.2.3 The fourth share transfer tranche comprising the transfer of 550 shares representing 4.11% of the shares of Globant India was transferred by the sellers to the Company on March 14, 2019. Based on the targets achieved by Globant India for the period between January 1, 2018 and December 31, 2018, the Company paid on March 14, 2019, 3,135 . 2.2.4 The fifth share transfer tranche comprising the transfer of 277 shares representing 2.07% of the shares of Globant India shall be transferred by the sellers to the Company no later than on March 31, 2020, in consideration for payment of the minimum share price for such shares, defined as 971 per share for this tranche, plus an amount of 1,316 , subject to the achievement of certain targets by Globant India. The Company has concluded that as in the same SPA all parties have agreed the transfer of the 100% of the shares of Clarice in different stages, the transaction should be considered as one, and therefore the Company has accounted the acquisition for the 100% of the shares of Clarice and the consideration involved is the sum of the amount paid at closing date and the installments payables in years 2016, 2017, 2018, 2019 and 2020. The consideration transferred for Globant India acquisition was calculated as follows: Purchase price Amount Down payment 9,324 Installment payment 2,483 (a) Contingent consideration 8,377 (a) Total consideration 20,184 (a) As of December 31, 2019 and 2018 included 1,580 and 3,127 as Other financial liabilities current, respectively, and as of December 31, 2018 included 1,527 as Other financial liabilities non-current. On February 23, 2017, the Company signed an amendment of the SPA with one of the shareholders where they agreed on the acquisition of the shares held by the employee for an amount of 600 and the termination of the employment agreement. As a consequence of the amendments to the SPA and remeasurement of the fair value of the contingent considerations, the Company recorded a gain of 1,173 as of December 31, 2017 . Clarice sellers' subscription agreement On May 14, 2015, the Company signed two agreements whereas agreed to issue to the subscribers, as detailed below, and the subscribers agree to subscribe from the Company the number of shares set forth below: First agreement First tranche The first tranche for 38,984 common shares were subscribed by two employees and their spouses for a total amount of 800 . Second and third tranches Regarding the second and third tranches, on July 25, 2016 and April 5,2019, the Company issued 20,896 and 7,654 common shares for an amount of 800 and 400 , respectively. Second agreement First tranche The first tranche for 4,873 common shares was subscribed by one employee for a total amount of 100 . Second and third tranches Regarding second tranche, on July 25, 2016, the Company issued 2,612 common shares for an amount of 100 . Based on the amendment to the SPA signed on February 23, 2017, third tranche was canceled and no shares were issued . Fourth tranche Regarding fourth tranche, on April 5, 2019, the Company issued 7,654 common shares for an amount of 400 . Both agreements are forward contracts to issue and sell a variable number of shares for a fixed amount of cash, thus according to IFRS 9, the Company recorded a financial liability and a financial asset for the shares to be issued and the payment to be received, respectively, for an amount of 400 as of December 31, 2018 . As of December 31, 2019 the financial asset and the financial liability were fully settled. 25.2 Acquisition of Dynaflows On October 22, 2015, the Company acquired from Alfonso Amat, Wayra Argentina S.A., BDCINE S.R.L., Laura A. Muchnik, Facundo Bertranou, Mora Amat and Fabio Palioff (jointly "the Sellers) 9,014 shares, which represents 38.5% of the capital stock of Dynaflows S.A. Before this acquisition, the Company had 22.7% of the capital stock of Dynaflows and classified it as investment in associates. Through this transaction, the Company gained the control of Dynaflows S.A. As a consequence, the Company accounted for this acquisition in accordance with IFRS 3 as a business combination achieved in stages and as such, the Company remeasured its previously held equity interest in Dynaflows at its acquisition date fair value and recognize the resulting gain for an amount of 625 in Other income and expense, net. The aggregate purchase price under the Stock Purchase Agreement ("SPA") amounted to ARS 13,316 ( 1,402 ) and 414 , payable in two installments, as following: - The first installment amounted to ARS 13,316 ( 1,402 ) paid at the closing date. - The second installment amounted to 414 paid on April 22, 2016. On the same date, the Company made a capital contribution of 868 (ARS 8,250 ) to Dynaflows by issuing 9,190 shares. After both agreements and considering the previous equity interest held by the Company of 22.7% , the Company held the 66.73% of participation in Dynaflows. The consideration transferred for Dynaflows acquisition was calculated as follows: Purchase price Amount Down payment 1,402 Installment payment 414 Total consideration 1,816 (a) (a) As of December 31, 2019 and 2018 the consideration was fully settled. Minority interest purchase agreement On October 22, 2015, the Company entered into a Shareholders Agreement (the "Minority Interest SHA") with Alfonso Amat and Mora Amat (the "non-controlling shareholders") to agree on a put option over the 33.27% of the remaining interest of Dynaflows effective on the third or fifth anniversary from the date of acquisition, pursuant to which the non-controlling shareholders shall have the right (the "Put Option") to sell and the Company shall purchase all, but not less than all the shareholder's non-controlling interest . On October 26, 2018, the non-controlling shareholders exercised such option and the Company paid a total amount of 1,186 based on the EBITDA and Revenue of Dynaflows for the twelve months ended on September, 2018. Given that the exercise of the option occurred earlier than expected, a gain of 1,611 was recognized as of December 31, 2018 and disclosed as Other income, net. As of December 31, 2017 , the Company has recognized as non-current other financial liabilities the written put option for an amount of 2,797 , equal to the present value of the amount that could be required to be paid to the counterparty discounted at an interest rate of 3.5% . Changes in the measurement of the gross obligation were recognized in profit or loss. Pursuant to the shareholder's agreement, the Company also agreed on a call option over non-controlling interest effective after the fifth anniversary from the closing date till the sixth anniversary from the closing date pursuant to which the Company shall have the right to purchase and the non-controlling interest shareholders shall sell all but not less than all the shareholder's non-controlling interest then owned by the non-controlling shareholders. During the year ended December 31, 2018 , the call option was derecognized and a loss of 455 was recognized as Other income, net. 25.3 Acquisition of WAE On May 23, 2016 (closing date), Globant España S.A. acquired 100% of shares of We Are London Limited (WAE UK), a company organized and existing under the laws of England and Wales and 100% of shares of We Are Experience, Inc. a corporation organized and existing under the Laws of the State of New York, United States (WAE US) (jointly WAE UK and WAE US are WAE). WAE is a service design consultancy, specialized in three distinct but complementary service offerings - Research, Strategy and Creative. Total headcount of WAE was 40 employees with operations in United States and United Kingdom. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of WAE. The aggregate purchase price under the Stock Purchase Agreement (SPA) amounted to 19,851 , of which 12,131 relates to WAE UK and 7,720 relates to WAE US. Such purchase price may be subject to adjustments based on the future performance of WAE and is payable to the sellers as follows: 1. Up-front payment: As of the closing date, the Company paid an aggregate consideration of 8,500 to the sellers. 2. First earn-out payment: On August 16, 2017 , the Company paid an amount of 5,000 to the sellers. 3. Second earn-out payment: Not later than August 20, 2018 , the amount of 5,000 , provided that such amount shall be reduced in proportion to the percentage of targets achievement by WAE during the period commencing on June 1, 2017 and ending on May 31, 2018 . However, the Company and the sellers of WAE have entered into discussions concerning circumstances that may have impacted the calculation of targets on the base of which the final amount of Year 2 Deferred Consideration should have been calculated. For that reason, in July, 2018, the Company and the sellers of WAE signed a final settlement in order to avoid future claims on this matter. During the year ended December 31, 2018 , the Company recognized a loss arising from the settlement agreement that amounted to 1,038 and is disclosed as Other income, net. In July, 2018, the Company paid a total amount of 1,867 . Additionally, the Company shall pay to the sellers an amount of 575 in cash on the first earn-out payment date and/or the second earn-out payment date related to the corporation tax saved by WAE UK prior to such date as a result of any deduction obtained under income tax law applicable to United to Kingdom attributable to the exercise of the stock options plan granted by WAE UK to the option holders. This amount is considered by the Company as part of the consideration amount. On October 2017, the Company paid 436 in cash related to the corporation tax saved to be reimbursed to the sellers. Finally, as part of the total consideration the Company computed the working capital adjustment defined in the SPA. Total adjustment amounted to 1,357 . Acquisition-related charges amounting to 515 have been excluded from the consideration transferred and have been recognized as an expense in profit or loss in the current year, within the Professional services line item. The fair value of the consideration transferred for WAE acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 8,500 Working capital adjustment 1,352 Installment payment 551 (a) Contingent consideration 9,448 (a) Total consideration 19,851 (a) As of December 31, 2019 and 2018 , the consideration was fully settled. 25.4 Acquisition of L4 On November 14, 2016 ("closing date"), Globant LLC acquired 100 % of shares of L4 Mobile, LLC ("L4"), a limited liability company organized and existing under the laws of the State of Washington, United States. L4 offers the digital product consulting, design, development and quality assurance services necessary to build and manage robust digital products. Total headcount of L4 was 90 employees with operations in United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of L4. The aggregate purchase price under the Stock Purchase Agreement ("SPA") amounted to 20,388 . On January 30, 2018, the Company signed an amendment to the SPA. Considering this amendment, purchase price may be subject to adjustments based on the future performance of L4 and is payable to the seller as follows: 1. Up-front payment : As of the closing date, the Company paid an aggregate consideration of 11,000 to the seller. 2. First earn-out payment: On February 15, 2017 , the Company paid an aggregate consideration of 990 to the sellers. 3. Second earn-out payment: On February 15, 2018 , the Company paid an aggregate consideration of 1,850 . 4. Third and fourth earn-out payment: Not later than February 15, 2019 , the amount of 1,160 , provided that such amount shall be reduced in proportion to the percentage of targets achievement by L4 during the period commencing on January 1, 2018 and ending on December 31, 2018 . Not later than February 15, 2020, the amount of 1,160 , provided that such amount shall be reduced in proportion to the percentage of targets achievement by L4 during the period commencing on January 1, 2019 and ending on December 31, 2019. However, as of December 31, 2018 , the Company remeasured the fair value of the contingent consideration related to these earn-outs, considering the non achievement of targets established by the Share Purchase Agreement. Gain arising from the change in fair amounted to 1,848 and is disclosed as Other income, net as of December 31, 2018 . The fair value of the consideration transferred for L4 acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 11,000 Working capital adjustment 817 (a) Contingent consideration 8,571 (a) Total consideration 20,388 (a) As of December 31, 2019 and 2018 the fair value of the contingent consideration was zero . Acquisition related expenses were not material and were recognized directly as expense. 25.5 Acquisition of Ratio On February 28, 2017, Globant LLC acquired 100% of shares of Ratio Cypress, LLC ("Ratio"), a limited liability company organized and existing under the laws of the State of Washington, United States. Ratio offers design, development and quality assurance services necessary to build and manage robust digital products and video streaming solutions for major media companies. Total headcount of Ratio was 45 employees with operations in United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of Ratio. The aggregate purchase price under the Stock Purchase Agreement ("SPA"), amended on March 2, 2018, amounted to 9,529 . Such purchase price may be subject to adjustments based on the future performance of Ratio and is payable to the seller as follows : 1. Up-front payment: As of the closing date, the Company paid an aggregate consideration of 5,800 to the seller. 2. First earn-out payment: On February 15, 2018, the Company paid the aggregate consideration 1,669 to the sellers. 3. Second earn-out payment: On February 15, 2019, the Company paid the aggregate consideration of 2,019 , to the sellers. 4. Third earn-out payment: On February 18, 2020, the Company paid the aggregate consideration of 1,783 , considering the targets achievement by Ratio during the period commencing on January 1, 2019 and ending on December 31, 2019. The fair value of the consideration transferred for Ratio acquisition was calculated as follows: Purchase price at acquisition date Amount Down payment 5,800 Working capital adjustment (97 ) Contingent consideration 3,826 (a) Total consideration 9,529 (a) As of December 31, 2019 includes 903 as Other financial liabilities current. As of December 31, 2018 included 1,992 and 851 as Other financial liabilities current and non-current, respectively . Acquisition related expenses were not material and were recognized directly as expense. 25.6 Acquisition of PointSource On June 1, 2017, Globant LLC acquired 100% of shares of PointSource, LLC ("PointSource"), a limited liability company organized and existing under the laws of the State of Florida, United States. PointSource offers digital solutions to its customers which include design, digital strategy, development and marketing services. Total headcount of PointSource was 97 employees with operations in United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of PointSource. The aggregate purchase price under the Stock Purchase Agreement ("SPA") amounted to 28,629 . In May, 2018, the Company signed an amendment to the SPA, pursuant to which a new fixed-payment was established, in replacement of previous payment subject to targets achievements. The amended purchase price is payable to the seller as follows: 1. Up-front payment: The Company paid the first payment of 15,500 in two installments: a. As of the closing date, the Company paid an aggregate consideration of 3,100 to the seller. b. On June 7, 2017, the Company paid the second portion of the first payment for a total amount of 12,400 . 2. First earn-out payment: On February 22, 2018, the Company paid the aggregate consideration of 2,206 to the sellers. 3. Second earn-out payment: On February 28, 2019, the Company paid the aggregate consideration of 750 to the sellers. 4. Third earn-out payment: Not later than February 29, 2020, the fixed-amount of 1,450 and 1,198 subject to the achievement of targets during the period commencing on January 1, 2019 and ending on December 31, 2019. Additionally, as part of the total consideration the Company computed the working capital adjustment for a total amount of 3,756 . Equity purchase agreement On June 1, 2017, the Company signed an equity purchase agreement to have the option to acquire the 100% of the shares of PointSource Limited Liability Company (PS Belarus), a company established in accordance with the laws of the Republic of Belarus and totally owned by Christopher L. Hugill, Chief Executive Officer (CEO) of PointSource. Additionally, PointSource and PS Belarus are parties in a subcontractor agreement, dated as of July 1, 2015, pursuant to which PS Belarus performs services to PointSource as an independent contractor. Considering that the Company owned 100% of PointSource which is the only customer of PS Belarus and that the CEO of PointSource is the wholly-owned shareholder of PS Belarus, the Company concluded that has the control over PS Belarus and has to consolidated in 100% as the following factors are met: (a) PointSource has power over PS Belarus; (b) PointSource has the ability to use its power over PS Belarus to affect the amounts of its return as it is the only customer. The fair value of the consideration transferred for PointSource acquisition was calculated as follows: Purchase price at acquisition date Amount Down payment 15,500 Working capital adjustment 3,756 Contingent consideration 9,373 (a) Total consideration 28,629 (a) As of December 31, 2019 included 1,086 as Other financial liabilities current. As of December 31, 2018 , included 746 and 1,040 as Other financial liabilities current and non-current, respectively. Acquisition related expenses were not material and were recognized directly as expense. 25.7 Acquisition of Small Footprint On August 20, 2018, Globant España S.A. (sociedad unipersonal) and Globant LLC signed a pre-closing Asset Purchase Agreement (“APA”) with Small Footprint Inc., a corporation organized and existing under the laws of the State of North Carolina, United States, pursuant to which Globant España acquired 100% of shares of Small Footprint S.R.L., a limited liability company organized and existing under the laws of Romania, and Globant LLC acquired the assets and properties used or held for use in connection with the business of Small Footprint Inc. Both transactions were treated as a single business combination according to IFRS 3. The closing date took place on October 15, 2018, which is the date the Company acquired control over Small Footprint. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of Small Footprint. The aggregate purchase price under the APA amounted to 7,397 . Such purchase price may be subject to adjustments based on the future performance of Small Footprint and is payable to the seller as follows: 1. Up-front payment: As of the closing date, the Company paid an aggregate consideration of 4,331 to the seller. 2. First earn-out payment : On March 1, 2019, the Company paid the aggregate consideration of 3,066 to the sellers. 3. Second earn-out payment: On February 13, 2020, the Company paid the aggregate consideration of 2,140 to the sellers given the achievement of billable headcount target during the year 2019 and such amount was recognized as remuneration expense. 4. Third earn-out payment : Not later than February 15, 2021, the amount of 1,610 considering the billable headcount target achievement by Small Footprint during the period commencing on January 1, 2020 and ending on December 31, 2020 which was identified as an arrangement that includes remuneration of former owners of the acquiree for future services and consequently, it was excluded from the business combination and will be recognized in expense during the required service period. The fair value of the consideration transferred for Small Footprint acquisition at the acquisition date was calculated as follows: Purchase price at acquisition date Amount Down payment 3,840 Working capital adjustment 488 Contingent consideration 3,029 (a) Total consideration 7,357 (a) As of December 31, 2018 , included 3,070 as other financial liabilities current. Acquisition related expenses were not material and were recognized directly as expense for each period. 25.8 Acquisition of Avanxo On January 17, 2019, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) with the shareholders of Avanxo (Bermuda) Limited (“Avanxo”), pursuant to which the Company agreed to purchase all of Avanxo’s share capital subject to the terms and conditions set forth in the Purchase Agreement. Avanxo is a cloud consulting and implementation company headquartered in Bermuda, with operations in Brazil, Mexico, Colombia, Peru, Argentina and the United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of Avanxo. The Purchase Agreement contains customary representations, warranties, covenants, indemnities and conditions to closing, including non-objection to the Acquisition by the Colombian antitrust authority (Superintendencia de Industria y Comercio), which was received in January, 2019. The transaction closed on February 1, 2019 (acquisition date). Under the terms of the Purchase Agreement, the total consideration payable by the Company to Avanxo’s shareholders, assuming a debt-free and cash-free balance sheet, is 44,460 . Such purchase price may be subject to a working capital adjustment, reduction for uncollected accounts receivables and the amounts of the Earn-Out Payments (as defined below) that become due and payable . • Up-front payment: On February 1, 2019, the Company paid an aggregate consideration of 40,939 to the seller. The working capital and the minimum cash adjustments amounted to 1,205 and were paid in May, 2019. • Earn-out payments: the total amount of the earn-out payments was 7,618 and will be payable i n two installments, at the end of each of the years ending December 31, 2019 and 2020, and is subject to upwards or downwards adjustment based on Avanxo’s achievement of specified revenue, gross margin and operating margin targets for each of the years ending December 31, 2019 and 2020 (the “Earn Out Payments”) that apply only to certain sellers. Of total amount of the earn-out payments, 2,318 was considered part of the purchase price and 5,300 was identified as an arrangement that includes remuneration of former owners of the acquiree for future services and consequently, it was excluded from the business combination and will be recognized in expense during the required service period. At the Company's sole option, the Company will be entitled to pay a portion of the Total Consideration through the issuance and delivery of common shares, as follows: (i) up to 865 o f the amount payable on the closing of the Acquisition and (ii) at the time of payment of any Earn Out Payments, up to 25% of such Earn Out Payment. The number of common shares that may be issued and delivered to Avanxo´s selling shareholders will be determined based on the volume weighted average trading price for the 60 calendar day period prior to closing of each share subscription. Common shares issued pursuant to the exercise of this option will be subject to a 12-month lock-up period. These common shares are expected to be issued in reliance on the exemption from registration provided by Regulation S under the Securities Act of 1933, as amended. On February 1 and February 20, 2019, the Company issued 14,778 common shares for a total amount of 845 as part of this subscription agreement (note 29.1). The fair value of the consideration transferred for Avanxo acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 42,144 Contingent consideration 2,158 (a) Total consideration 44,302 (a) As of December 31, 2019 included as 1,147 and 1,102 as Other financial liabilities current and non-current, respectively. Acquisition related expenses were not material and were recognized directly as expensed. 25.9 Acquisition of Belatrix On August 9, 2019, Globant S.A. (the “Company”), through certain of its wholly-owned subsidiaries, entered into an Equity Purchase Agreement (the “Purchase Agreement”) with the equityholders of Belatrix Global Corporation S.A., a Spanish stock company (“Belatrix”), pursuant to which the Company purchased all of the outstanding equity interests in Belatrix and its subsidiaries (the “Acquisition”). The transaction was simultaneously signed and closed. Belatrix is a software and applications development company with operations in Argentina, Peru, Colombia and the United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of Belatrix. Upon the closing of the Acquisition, the Company paid 61,468 in cash to the sellers and, pursuant to the terms of the Purchase Agreement, the sellers subscribed for 5,000 of the Company’s common shares, which were valued based on the volume weighted average trading price of the Company’s common shares during the 60-day period until two days prior to the closing date. A portion of the upfront cash consideration is being held in escrow for potential adjustments related to working capital, accounts receivable, minimum cash and other matters. An additional amount of 3,000 is payable to the sellers by October 31, 2020, subject to Belatrix’s achievement of specified revenue targets for the period from August 1, 2019 through July 31, 2020, and it is subject to upwards adjustment based on overachievement of such targets. Of total amount of the earn-out payments , 2,091 was considered part of the purchase price and 909 was identified as an arrangement that includes remuneration of former owners of the acquiree for future services and consequently, it was excluded from the business combination and will be recognized in expense during the required service period. The fair value of the consideration transferred for Belatrix acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 61,468 Contingent consideration 4,165 (a) Total consideration 65,633 (a) As of December 31, 2019 included 4,221 as Other financial liabilities current. Acquisition related expenses were not material and were recognized directly as expense. 25.10 Acquisition of BI Live On October 16, 2019, Globant S.A. (the “Company”), through its subsidiary Sistemas Globales S.A., entered into an Purchase Agreement with BI Live S.R.L., an Argentine company, pursuant to which the Company purchased certain assets and rights of BI Live (the “Acquisition”). The transaction closed on November 11, 2019. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of BI Live. Upon the closing of the acquisition, the Company paid 366 in cash to the sellers. An additional amount of up to 3,000 is payable to the sellers by February 21, 2021, 2022 and 2023, subject to BI Live’s achievement of specified growth and operating margin targets for the years 2020, 2021 and 2022, and it is subject to adjustment based on the achievement of such targets. The fair value of the contingent payment is 512 as of December 31, 2019. The primarily reason for the purchase is to expand to SAP software consulting and innovation services. The preliminary fair value of the consideration transfer for BI Live acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 366 Contingent consideration 512 (a) Total consideration 878 (a) As of December 31, 2019 includes 515 as Other financial liabilities non-current. Acquisition related expenses were not material and were recognized directly as expense. As of the date of issuance of these consolidated financial statements due to the recent of this acquisition, the accounting for this acquisition is incomplete; hence, pursuant the guidance in paragraph B66 of IFRS 3, the Company has included preliminary amounts in the below disclosures as required by such standard, as follows: • Fair value of the total consideration transferred since the Company has not completed the fair value analysis of the contingent consideration as of the date of issuance of these financial statements. • The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed, the total amount of goodwill (including a qualitative description of the factors that make up the goodwill recognized and the amount of goodwill that will be deducted for tax purposes) and other intangibles, as applicable. • The gross contractual amounts of the acquired receivables, and the best estimate at the acquisition date of the contractual cash flows not expected to be collected. For each contingent liability to be recognized, if any, an estimate of its financial effect, an indication of the uncertainties relating to the amount or timing of any outflow and the possibility of any reimbursement, and the reasons why the liabili |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
SEGMENT INFORMATION | NOTE 26 – SEGMENT INFORMATION Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”) in deciding on how to allocate resources and in assessing performance. The Company’s CODM is considered to be the Company’s chief executive officer (“CEO”). The CEO reviews financial information presented on an entity level basis for purposes of making operating decisions and assessing financial performance. Therefore, the Company has determined that it operates in a single operating and reportable segment. The Company provides services related to application development, testing, infrastructure management and application maintenance. The following table summarizes revenues by geography, based on the customers' location: For the year ended December 31, 2019 2018 2017 North America United States of America 483,228 400,029 322,658 Canada 13,125 7,061 2,956 Subtotal North America 496,353 407,090 325,614 Europe Spain 26,134 30,298 23,831 Netherlands 2,723 1,023 69 United Kingdom 15,672 12,970 9,996 Luxembourg 937 1,109 1,000 Germany 437 623 1,540 Sweden — — 1,317 Others 881 217 731 Subtotal Europe 46,784 46,240 38,484 Asia India 2,157 1,063 673 Indonesia 1,157 1,686 — Japan 1,062 — — Others 277 318 27 Subtotal Asia 4,653 3,067 700 Latin America and others Argentina 32,295 24,241 14,886 Brazil 7,964 238 358 Colombia 14,355 5,362 3,553 Chile 29,547 21,246 19,243 Uruguay 17 529 231 Mexico 20,623 11,949 7,418 Perú 6,251 1,718 2,627 Others 483 630 325 Subtotal Latin America and others 111,535 65,913 48,641 TOTAL 659,325 522,310 413,439 The revenues by geography were determined based on the country where the sale took place. One single customer accounted for 11.2% , 11.3% and 10.2% of revenues for the years ended December 31, 2019 , 2018 and 2017 . The following table summarizes non-current assets other than deferred taxes as stated in IFRS 8, paragraph 33.b, by jurisdiction: As of December 31, 2019 2018 Argentina 85,346 70,349 Spain 144,882 46,803 United States of America 70,054 58,083 Brazil 1,775 1,512 Uruguay 1,808 781 Luxembourg 4,289 4,353 Colombia 42,589 12,942 México 14,814 6,121 India 9,817 4,159 Chile 2,883 874 Peru 4,686 458 Other countries 1,502 718 TOTAL 384,445 207,153 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of leases [Abstract] | |
LEASES | NOTE 27 – LEASES The Company is obligated under various leases for office spaces and office equipment. Movements in right-of-use assets and lease liabilities as of December 31, 2019 were as follow : Right-of-use assets Office spaces Office equipments Total January 1, 2019 46,567 — 46,567 Additions 16,778 6,812 23,590 Additions from business combinations (note 25.12) 2,863 409 3,272 Depreciation (note 6) (14,519 ) (65 ) (14,584 ) Translation (64 ) — (64 ) December 31, 2019 51,625 7,156 58,781 Lease liabilities January 1, 2019 46,887 Additions (1) 23,590 Additions from business combinations (note 25.12) 3,347 Foreign exchange difference (1) (92 ) Interest expense (1) 3,464 Payments (2) (15,833 ) December 31, 2019 61,363 (1) Non-cash transactions. (2) Cash transactions . The outstanding balance of the lease liabilities as of December 31, 2019 is as follows : Lease liabilities Current 19,439 Non-current 41,924 TOTAL 61,363 The Company has some lease contracts that have not yet commenced as of December 31, 2019 . The future lease payments for these lease contracts are disclosed as follows: Year Amount 2020 1,413 2021 2,468 2022 2,731 2023 2,775 2024 2,855 2025 478 The maturity analysis of lease liabilities is presented in note 28.5 . The expense related to short-term and low-value leases was not material. As required by the IAS 17, the undiscounted amounts of future fixed minimum annual lease commitments are as follows at December 31, 2018: Year Amount 2019 16,051 2020 14,097 2021 8,356 2022 6,500 2023 onwards 10,218 Total 55,222 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 28 – FINANCIAL INSTRUMENTS 28.1 - Categories of financial instruments As of December 31, 2019 FVTPL FVTOCI Amortised cost Financial assets Cash and cash equivalents — — 62,721 Investments Mutual funds 19,384 — — LETEs — 396 — Contribution to risk funds — — 418 Trade receivables — — 156,676 Other assets — — 21,235 Other receivables — — 28,118 Other financial assets Convertible notes 3,536 — — Foreign exchange forward contracts 1,220 71 — Guarantee payments related to the future lease of a property under construction — — 1,383 As of December 31, 2019 FVTPL FVTOCI Amortised cost Financial liabilities Trade payables — — 36,987 Payroll and social security taxes payable — — 72,252 Borrowings — — 51,386 Other financial liabilities Other financial liabilities related to business combinations 10,554 — — Lease liabilities 61,363 — — Tax liabilities — — 12,510 Other liabilities — — 368 As of December 31, 2018 FVTPL FVTOCI Amortised cost Financial assets Cash and cash equivalents — — 77,606 Investments Mutual funds 4,050 — — LETEs — 1,015 — T-Bills — 3,493 — LECAPs — 77 — Contribution to risk funds — — 527 Trade receivables — — 110,898 Other receivables — — 49,538 Other financial assets Convertible notes 106 — — Foreign exchange forward contracts 44 — — Other financial asset related to the acquisition of Clarice 400 — — Guarantee payments related to the future lease of a property under construction — — 345 Financial liabilities Trade payables — — 17,578 Payroll and social security taxes payable — — 58,535 Other financial liabilities Foreign exchange forward contracts 12 — — Other financial liabilities related to business combinations 12,753 — — Tax liabilities — — 7,399 Other liabilities — — 44 28.2 - Market risk The Company is exposed to a variety of risks: market risk, including the effects of changes in foreign currency exchange rates and interest rates, and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance. The Company does not use derivative instruments to hedge its exposure to risks, apart from those mentioned in note 28.10 and 28.11. 28.3 - Foreign currency risk management The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Except for the subsidiaries mentioned in the Note 3.5, the functional currency of the Company and its subsidiaries is the U.S. dollar. In 2019, 86.3% of the Company's revenues are denominated in U.S. dollars. Because the majority of its personnel are located in Latin America, the Company incurs the majority of its operating expenses and capital expenditures in non-U.S. dollar currencies, primarily the Argentine peso, Uruguayan peso, Brazilian Real, Mexican peso, Peruvian Sol and Colombian peso; however as of December 31,2019, the operating expenses in Argentine peso have decreased compared to December 31, 2018. Operating expenses are also significantly incurred in Indian Rupee and Great Britain Pound. Foreign exchange sensitivity analysis The Company is mainly exposed to Argentine pesos, Chilean pesos, Colombian pesos, Indian rupees and Uruguayan pesos. The following tables illustrate the Company's sensitivity to increases and decreases in the U.S. dollar against the relevant foreign currency. The following sensitivity analysis includes outstanding foreign currency denominated monetary items at December 31, 2019 and adjusts their translation at the year-end for changes in U.S. dollars against the relevant foreign currency. Gain/(loss) Account Currency Amount % Increase Amount % Decrease Amount Net balances Argentine pesos 8,023 40 % (2,292 ) 10 % 891 Chilean pesos (2,789 ) 10 % 254 10 % (310 ) Colombian pesos (7,770 ) 10 % 706 10 % (863 ) Indian rupees (252 ) 10 % 23 10 % (28 ) Uruguayan pesos (4,034 ) 10 % 363 10 % (443 ) Total (6,822 ) (946 ) (753 ) As explained in note 28.10, the subsidiaries in Argentina, Chile, Colombia, India and Uruguay entered into foreign exchange forward and future contracts in order to mitigate the risk of fluctuations in the foreign exchange rate and reduce the impact in the financial statements. The effect in equity of the U.S. dollar fluctuation against the relevant foreign currency as of December 31, 2019, is not material. Depreciation of the Argentine Peso During 2019, the Argentine peso experienced a 59.02% devaluation from 37.60 Argentine peso per U.S dollar to 59.79 Argentine peso per U.S dollar. During 2018, the Argentine peso experienced a 102.2% devaluation from 18.60 Argentine peso per U.S. dollar to 37.60 Argentine peso per U.S. dollar. 28.4 - Interest rate risk management The Company's exposure to market risk for changes in interest rates relates primarily to its cash and bank balances and its credit facilities. The Company's credit line in the U.S. bear interest at a fixed rate of 1.75% and at variable rates linked to LIBOR . The Company does not use derivative financial instruments to hedge its risk of interest rate volatility. 28.5 – Liquidity risk management The Company's primary sources of liquidity are cash flows from operating activities and borrowings under credit facilities. See note 19. Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flow. The table below analyzes financial liabilities into relevant maturity groups based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Expected Maturity Date 2020 2021 2022 Thereafter Total Borrowings 1,198 — 188 50,000 51,386 Lease liabilities 20,002 15,263 11,552 28,164 74,981 Other financial liabilities 8,937 1,617 — — 10,554 TOTAL 30,137 16,880 11,740 78,164 136,921 28.6 - Concentration of credit risk The Company derives revenues from clients in the U.S. (approximately 73.3% ) and clients related from diverse industries. For the years ended December 31, 2019 , 2018 and 2017 , the Company's top five clients accounted for 26.1% , 32.0% and 28.9% of its revenues, respectively. One single customer accounted for 11.2% , 11.3% and 10.2% of revenues for the years ended December 31, 2019 , 2018 and 2017 . 28.7 - Fair value of financial instruments that are not measured at fair value Except as detailed in the following table, the carrying amounts of financial assets and liabilities included in the consolidated statement of financial position as of December 31, 2019 and 2018 , are a reasonable approximation of fair value due to the short time of realization. As of December 31, 2019 As of December 31, 2018 Carrying amount Fair value Carrying amount Fair value Non-current assets Other receivables Guarantee deposits 2,683 2,571 1,681 1,539 Tax credit - VAT 626 (*) 600 356 (*) 326 Income tax credits 1,515 1,453 1,259 1,153 Tax credit - Software Promotion Regime — — 749 (*) 686 Other tax credits 210 200 170 157 Other assets 7,796 7,140 — — Non-current liabilities Trade payables 5,500 5,101 — — Borrowings 50,188 51,070 — — (*) As of December 31, 2019 and 2018 , is presented net of allowance for impairment of tax credit - VAT of 378 and 600 , respectively. As of December 31, 2018 is presented net of 74 related to allowance of Tax credit - Software Promotion Regime. 28.8 - Fair value measurements recognized in the consolidated statement of financial position The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into a three-level fair value hierarchy as mandated by IFRS 13, as follows: Level 1 fair value measurements are those derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3 fair value measurements are those derived from unobservable inputs for the assets or liabilities. As of December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets Mutual funds — 19,384 — 19,384 LETEs — 396 — 396 Foreign exchange forward contracts — 1,291 — 1,291 Convertibles notes — 111 3,425 3,536 Financial liabilities Contingent consideration — — 9,252 9,252 As of December 31, 2018 Level 1 Level 2 Level 3 Total Financial assets Mutual funds — 4,050 — 4,050 LETEs — 1,015 — 1,015 T-Bills — 3,493 — 3,493 LECAPs — 77 — 77 Foreign exchange forward contracts — 44 — 44 Convertibles notes — 106 — 106 Financial liabilities Contingent consideration — — 9,767 9,767 Foreign exchange forward contracts — 12 — 12 There were no transfers of financial assets between Level 1, Level 2 and Level 3 during the period. The Company has applied the market approach technique in order to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable (i.e., similar) assets, liabilities or a group of assets and liabilities. When the inputs required by the market approach are not available, the Company applies the income approach technique. The income approach technique estimates the fair value of an asset or a liability by converting future amounts (e.g. cash flows or income and expenses) to a single current (i.e. discounted) amount. When the income approach is used, the fair value measurement reflects current market expectations about those future amounts. 28.9 Level 3 28.9.1 Contingent consideration As explained in note 25.1, the acquisition of Clarice included a contingent consideration agreement which was payable on a deferred basis and which will be subject to the occurrence of certain events relating to the acquired company's capacity. As of December 31, 2017, the Company remeasured the fair value of the contingent consideration related to Clarice described above, considering the new targets established by the amendment signed on May 16, 2017 to Globant India Private Ltd. (formerly Clarice Technologies PVT Ltd.) Share Purchase Agreement dated on May 14, 2015. Loss arising from the change in fair value amounted to 1,173 and includes a loss arising from the change in fair value of the contingent consideration for an amount of 1,401 . As of December 31, 2019 and 2018 , the nominal value of contingent consideration related to Clarice amounted to 1,316 and 3,947 , respectively. The potential undiscounted amount of all future payments that the Company could be required to make under this agreement was between 439 and 1,316 as of December 31, 2019 , and 1,316 and 3,947 as of December 31, 2018 . The fair value of the contingent consideration related to Clarice arrangement of 1,310 and 3,873 as of December 31, 2019 and 2018 , respectively, was estimated by discounting to present value using a risk-adjusted discount rate. As described in note 25.3, the acquisition of WAE (jointly We are London Limited and We are Experience, Inc.) included a contingent consideration agreement which was payable on a deferred basis and was subject to the occurrence of certain events relating to the acquired company's gross revenue and gross profit. During 2018, the Company and the sellers of WAE have entered into discussions concerning circumstances that may have impacted the calculation of targets on the base of which the final amount of Year 2 Deferred consideration should have been calculated. For that reason, in July, 2018, the Company and the sellers of WAE signed a final settlement in order to avoid future claims on this matter. Loss arising from the settlement agreement amounted to 1,038 as of December 31, 2018 and was disclosed as Other income, net. In July, 2018, the Company paid a total amount of 1,867 . As described in note 25.4, the acquisition of L4 included a contingent consideration agreement which is payable on a deferred basis and which will be subject to certain events relating to the acquired company's gross revenue and gross profit. As of December 31, 2018, the Company remeasured the fair value of the contingent consideration related to L4 described above, considering the non achievement of targets established by the Share Purchase Agreement. Gain arising from the change in fair value amounted to 1,848 and is included as Other income, net. As described in note 25.5, the acquisition of Ratio, included a contingent consideration agreement which is payable on a deferred basis and which will be subject to the occurrence of certain events relating to the acquired company's gross revenue and gross margin. As of December 31, 2019 and 2018 , the nominal value of contingent consideration related to Ratio amounted to 750 and 2,860 , respectively. The potential undiscounted amount of all future payments that the Company could be required to make under this agreement was between 525 and 2,570 as of December 31, 2019 and 2018 , respectively, and an unlimited maximum amount for both years, given that such payment may be increased proportionally to the targets achievements. The fair value of the contingent consideration arrangement of 903 and 2,844 as of December 31, 2019 and 2018 was estimated by discounting to present value using a risk-adjusted discount rate. As of December 31, 2018 , the Company remeasured the fair value of the contingent consideration related to the acquisition of Ratio. Loss arising from the change in fair value amounted to 654 and is included as Other income, net. As described in note 25.6, the acquisition of PointSource, included a contingent consideration agreement which was payable on a deferred basis and which was be subject to the occurrence of certain events relating to the acquired company's gross revenue and gross margin. On May 2018, the Company signed an amendment to the SPA with the former shareholders, pursuant to which a new fixed-payment was established, in replacement of previous payments subject to targets achievements. As a consequence, the Company remeasured the fair value of the liability related to PointSource described above. Gain arising from the change in fair value of the liability amounted to 5,506 as of December 31, 2018. As of December 31, 2019 and December 31, 2018 the fixed payment liability amounted to 1,086 and 1,786 , respectively, and are included in other financial liabilities. As described in note 25.7, the acquisition of Small Footprint included a contingent consideration agreement which was payable on a deferred basis and which was subject to the occurrence of certain events relating to the acquired company's gross revenue, gross margin and billable headcount. As of December 31, 2018, the nominal amount of the contingent consideration related to Small Footprint amounted to 3,066 . Such amount was paid on March 1, 2019. The fair value of the contingent consideration arrangement of 3,070 as of December 31, 2018 was estimated by discounting to present value using a risk-adjusted discount rate. As described in note 25.8, the acquisition of Avanxo (Bermuda) Limited ("Avanxo"), included a contingent consideration agreement which is payable on a deferred basis and which will be subject to the occurrence of certain events relating to the acquired company´s gross revenue, gross margin and operating margin. As of December 31, 2019 , the nominal value of contingent consideration related to Avanxo amounted to 2,318 . The potential undiscounted amount of all future payments that the Company could be required to make under this agreement was between 370 and an unlimited maximum amount as of December 31, 2019 . The fair value of the contingent consideration arrangement of 2,249 as of December 31, 2019 was estimated by discounting to present value using a risk-adjusted discount rate. As described in note 25.9, the acquisition of Belatrix Global Corporation S.A, included a contingent consideration agreement which is payable on a deferred basis and which will be subject to the occurrence of certain events relating to the acquired company's revenue. As of December 31, 2019 , the nominal value of contingent consideration related to Belatrix amounted to 4,097 . The potential undiscounted amount of all future payments that the Company could be required to make under this agreement was between 4,097 and a unlimited maximum amount, given that such payment may be increased proportionally to the targets achievements, as of December 31, 2019 . The fair value of the contingent consideration arrangement of 4,221 as of December 31, 2019 was estimated by discounting to present value using a risk-adjusted discount rate. As described in note 25.10, the acquisition of BI Live, included a contingent consideration agreement which is payable on a deferred basis and which will be subject to the occurrence of certain events relating to the acquired company's growth and operating margin. As of December 31, 2019, the nominal value of contingent consideration related to BI Live amounted to 559 . The potential undiscounted amount of all future payments that the Company could be required to make under this agreement was between 515 and 3,000 as of December 31, 2019. The fair value of the contingent consideration arrangement of 515 as of December 31, 2019 was estimated by discounting to present value using a risk-adjusted discount rate. The following table shows the results from remeasurement of the contingent considerations described above: For the year ended December 31, 2019 2018 2017 (Loss) gain on remeasurement of the contingent consideration of PointSource (16 ) 5,506 — Loss on remeasurement of the contingent consideration of Avanxo (4 ) — — Loss on remeasurement of the contingent consideration of Clarice (3 ) — (1,173 ) Gain on remeasurement of the contingent consideration of L4 — 1,848 4,058 Gain on remeasurement of the contingent consideration of WAE — — 3,850 Loss on remeasurement of the contingent consideration of Ratio (62 ) (654 ) — TOTAL (85 ) 6,700 6,735 28.9.2 Put and call option on minority interests As described in note 25.2, on October 22, 2015, the Company entered into a Shareholders Agreement (the "Minority Interest SHA") with the "non-controlling shareholders" to agree on a put option over the 33.27% of the remaining interest of Dynaflows. On October 26, 2018, the non-controlling shareholders exercised such option and the Company paid a total amount of 1,186 based on the EBITDA and Revenue of Dynaflows for the twelve months ended on September 30, 2018. As of December 31, 2018 , a gain of 1,611 was recognized as Other income, net, given that the exercise of the option occurred earlier than expected. As of December 31, 2018 , the call option was derecognized and a loss of 455 was recognized as Other income, net. As of December 31, 2017 , the Company recorded a gain of 1,726 , related to the remeasurement at fair value of the put and call option described above. 28.9.3. Convertible notes As described in notes 3.12.9.2, 3.12.9.3 and 3.12.9.4 the Company entered into several convertible notes that include the right to convert the outstanding amount into equity shares of the invested companies. The fair value of such convertible notes was estimated using unobservable inputs. The amounts of gains and losses for the period related to changes in the fair value of the convertible notes were not material . 28.9.4. Reconciliation of recurring fair value measurements categorized within Level 3 The following table shows the reconciliation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy: Financial Assets Financial liabilities Call option on minority interest Contingent consideration Put option on minority interest December 31, 2017 455 23,905 2,797 Fair value remeasurement (1) — (6,700 ) (1,611 ) Reclassification to amortised cost (1) — (1,778 ) — Derecognition of call option (1) (455 ) — — Acquisition of business (1) — 3,029 — Payments (2) — (8,947 ) (1,186 ) Interests (1) — 258 — December 31, 2018 — 9,767 — Financial Assets Financial liabilities Convertible notes Contingent consideration December 31, 2018 — 9,767 Fair value remeasurement (1) — 85 Acquisition of business (1) — 6,835 Payments (2) 3,350 (7,695 ) Interests (1) 75 260 December 31, 2019 3,425 9,252 ( 1) Non-cash transactions. (2) Cash transactions included in investing activities in the Consolidated Statement of Cash Flows. 28.10 Foreign exchange futures and forward contracts During the years ended December 31, 2019 , 2018 and 2017 , the Argentinian subsidiaries, Sistemas Globales S.A. and IAFH Global S.A. acquired foreign exchange futures contracts with SBS Sociedad de Bolsa S.A. (SBS) in U.S. dollars, with the purpose of hedging the possible decrease of assets' value held in Argentine Pesos due to the risk of exposure to fluctuations in foreign currency. The foreign exchange futures contracts were recognized, according to IFRS 9, as financial assets at fair value through profit or loss. For the years ended December 31, 2019 , 2018 and 2017 the Company recognized a gain of 383 , 594 and a loss of 421 , respectively. These futures contracts have daily settlements, in which the futures value changes daily. Sistemas Globales S.A. and IAFH Global S.A. recognize daily variations in SBS primary accounts, and the gains or losses generated by each daily position through profit or loss. Thus, at the closing of each day, according to the future price of the exchange rate U.S. Dollar – Argentine peso, the companies perceive a gain or loss for the difference. As future contracts have daily settlements, hence fair value as of December 31, 2019 , 2018 and 2017 was zero . Pursuant to these contracts, Sistemas Globales S.A. and IAFH Global S.A. are required to maintain collaterals in an amount equal to a percentage of the notional amounts purchased until settlement of the contracts. As of December 31, 2018 , IAFH Global S.A. held a 10% of the value of those collaterals in LETEs and LEBACs, respectively, in SBS primary account. This ensures minimal funding, in case SBS has to transfer funds to "Mercado a Término de Rosario S.A" (ROFEX) if losses are generated by daily settlements. This amount must also remain restricted during the term of the contracts. As of December 31, 2018 , both collaterals regarding the transactions are restricted assets for an amount of 975 in LETEs included as investments. As of December 31, 2019 the Company does not maintain any collaterals for futures contracts. During the year ended December 31, 2017 , the subsidiary Globant LLC, acquired foreign exchange forward contracts with Bridge Bank in rupees currency, with the purpose of hedging the risk of exposure to fluctuations in that currency within the Group. Those contracts were recognized as financial assets at fair value through profit or loss. For the year ended December 31, 2017 the Company recognized a gain of 118 . During 2019 and 2018 , the subsidiaries, Sistemas Globales S.A., IAFH Global S.A., Sistemas Colombia S.A., Sistemas Globales Chile Asesorías Ltda., Globant India Pvt. Ltd. and Sistemas Globales Uruguay S.A., acquired foreign exchange forward contracts with certain banks in U.S. dollars, with the purpose of hedging the possible decrease of assets' value held in Argentine Pesos, Colombian Pesos, Chilean pesos, Uruguayan pesos and Indian rupee, due to the risk of exposure to fluctuations in those foreign currencies. Those contracts were recognized, according to IFRS 9, as financial assets at fair value through profit or loss. For the years ended December 31, 2019 and 2018 , the Company recognized a gain of 117 and 1,714 , respectively. During 2017 , the Argentine subsidiary, Sistemas Globales, entered into foreign exchange forward contracts with HSBC in U.S. dollars at a specified price with the purpose of reducing the risk of exposure to fluctuations in foreign currency. As of December 31, 2019 and 2018 , the foreign exchange forward contracts that were recognized as financial assets and liabilities at fair value through profit or loss were as follows: Currency Foreign currency Notional foreign Fair value assets / Settlement date from contracts rate from contracts currency rate (liabilities) January 27, 2020 Indian Rupee 72.36 71.56 11 January 31, 2020 Chilean Peso 747.68 751.57 5 January 31, 2020 Colombian Peso 3,323.65 3,281.28 39 January 31, 2020 Colombian Peso 3,515.42 3,281.94 356 January 31, 2020 Colombian Peso 3,512.66 3,281.93 422 January 31, 2020 Uruguayan Peso 38.09 37.73 29 February 25, 2020 Indian Rupee 71.45 71.77 7 February 28, 2020 Colombian Peso 3,518.27 3,288.08 351 Fair value as of December 31, 2019 1,220 Currency Foreign currency Notional foreign Fair value assets / Settlement date from contracts rate from contracts currency rate (liabilities) January 31, 2019 Argentine Peso 40.06 39.67 26 February 28, 2019 Argentine Peso 41.54 41.17 15 April 30, 2019 Argentine Peso 44.44 44.30 3 Fair value as of December 31, 2018 44 April 30, 2019 Argentine Peso 44.26 44.3 (1 ) May 31, 2019 Argentine Peso 45.74 45.92 (5 ) May 31, 2019 Argentine Peso 45.69 45.92 (6 ) Fair value as of December 31, 2018 (12 ) The most frequently applied valuation techniques include forward pricing models. The models incorporate various inputs including: foreign exchange spot, interest rates curves of the respective currencies and the term of the contract. 28.11 Hedge accounting During 2019 , the Argentine subsidiaries, Sistemas Globales S.A. and IAFH Global S.A., and the Colombian subsidiary, Sistemas Colombia SAS, have entered into foreign exchange forward and future contracts to manage the foreign currency risk associated with the salaries payable in Argentine and Colombian pesos. The Company designated those derivatives as hedging instruments in respect of foreign currency risk in cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the ‘finance income’ or ‘finance expense’ line items. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item (i.e. Salaries, employee benefits and social security taxes). As of December 31, 2019 , the Company has recognized a net gain of 54 included in Salaries, employee benefits and social security taxes and a gain of 352 included in other comprehensive income. Foreign currency forward contract assets and liabilities are presented in the line ‘Other financial assets’ and ‘Other financial liabilities’ within the statement of financial position. As future contracts have daily settlements, hence fair value as of December 31, 2019 was zero . The following table detail the foreign currency forward contracts outstanding as of December 31, 2019 : Hedging instruments - Outstanding contracts Currency Foreign currency Notional foreign Fair value assets Settlement date from contracts rate from contracts currency rate January 31, 2020 Argentine Peso 66.45 62.2 71 Fair value as of December 31, 2019 71 |
CAPITAL AND RESERVES
CAPITAL AND RESERVES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Share Capital, Reserves and Other Equity Interest [Abstract] | |
CAPITAL AND RESERVES | NOTE 29 — CAPITAL AND RESERVES 29.1 Issuance of common shares During the year ended December 31, 2019 , 717,240 common shares were issued after vested options arising from the 2012 and 2014 share-based compensation plan were exercised by certain employees. Options were exercised at an average price of 22.06 per share amounting to a total of 15,822 . During the year ended December 31, 2019 , 309,539 Restricted Stock Units (RSU) were granted to certain employees and directors of the Company. During 2019 , 181,860 RSUs were vested at an average price of 37.00 per share amounting to a total of 6,732 (non-cash transaction) . On August 9, 2019, the Company issued 51,471 common shares for a total amount of 5,000 as part of the subscription agreement stated in the stock purchase agreement signed with Belatrix´s seller. On April 5, 2019, the Company issued 7,654 common shares for a total amount of 400 as part of the subscription agreement stated in the stock purchase agreement signed with Clarice´s sellers. On March 21 and March 18, 2019, the Company issued 7,517 common shares for a total amount of 449 as part of the subscription agreement stated in the stock purchase agreement signed with Ratio´s sellers. On March 18, 2019, the Company issued 13,895 common shares for a total amount of 868 as part of the subscription agreement stated in the stock purchase agreement signed with Small Footprint´s sellers. On February 20 and February 1, 2019, the Company issued 14,778 common shares for a total amount of 845 as part of the subscription agreement stated in the stock purchase agreement signed with Avanxo´s sellers. On February 15, 2019, the Company issued 3,542 common shares for a total amount of 208 as part of the subscription agreement stated in the stock purchase agreement signed with Pointsource´s sellers. During the year ended December 31, 2018 , 511,668 common shares were issued after vested options arising from the 2012 and 2014 share-based compensation plan were exercised by some employees. Options were exercised at an average price of 13.76 per share amounting to a total of 7,040 . During the year ended December 31, 2018 , 564,995 Restricted Stock Units (RSU) were granted to certain employees and directors of the Company. During 2018 , 163,233 RSUs were vested at an average price of 43.13 per share amounting to a total of 7,040 (non-cash transaction). A total amount of 4,995 of such vested RSUs corresponds to a provision for bonus given to employees that was payable in RSUs and was included in the opening balance of additional paid in capital. On October 16, 2018, the Company issued 16,315 common shares for a total amount of 960 as part of the subscription agreement with Small Footprint's sellers signed on October 15, 2018, pursuant to which the Company agreed to issue to the subscribers and the subscribers agreed to subscribe from the Company a certain amount of shares. For the second tranche due on March 1, 2019, the Company may require the subscribers to apply up to an amount of 25% of the first-earn out payment. On July 20, 2018, the Company issued 18,692 common shares for a total amount of 982 as part of the subscription agreement with WAE's sellers signed on May, 23, 2016, pursuant to which the Company agreed to issue to the subscribers and the subscribers agreed to subscribe from the Company restricted common stock up to an amount of 30% of the Purchase Price. On June 12, 2018, the Company issued 9,120 common shares for a total amount of 400 a s part of the subscription agreement stated in the stock purchase agreement signed with Clarice´s sellers, explained in note 25.1. On February 22, 2018, the Company issued 12,265 common shares for a total amount of 541 as part of the subscription agreement stated in the stock purchase agreement signed with Pointsource´s sellers, as part of the business combination explained in note 25.6. On February 16, 2018, the Company issued 7,605 common shares for an amount of 334 as part of the subscription agreement signed with Ratio´s sellers, as part of the business combination explained in note 25.5. During the year December 31, 2017, 338,709 common shares were issued after vested options arising from the 2012 and 2014 share-based compensation plan were exercised by some employees. Options were exercised at an average price of 15.63 per share amounting to a total of 5,296 . During the year December 31, 2017, 254,328 Restricted Stock Units (RSU) were granted to certain employees and director for the Company. During 2017 , 86,931 RSUs were vested at an average price of 36.11 per share amounting to a total of 3,141 (non-cash transaction). On August 17, 2017, the Company issued 34,219 common shares for a total amount of 1,435 as part of the subscription agreement stated in the stock purchase agreement signed with WAE´s sellers, as part of the business combination explained in note 25.3. On June 1, 2017, the Company issued 84,953 common shares for a total amount of 3,100 as part of the subscription agreement stated in the stock purchase agreement signed with PointSource´s sellers, as part of the business combination explained in note 25.6. On March 1, 2017, the Company issued 34,309 common shares for a total amount of 1,160 as part of the subscription agreement stated in the stock purchase agreement signed with Ratio´s sellers, as part of the business combination explained in note 25.5. 29.2 Public offerings & agreements On August 2, 2016, the Company applied to the Luxembourg Stock Exchange for listing on the Official List of the Luxembourg Stock Exchange and for the admission to trading on its regulated market, on August 11, 2016, the Company applied to the Luxembourg Financial Sector Supervisory Authority (Commission de Surveillance du Secteur Financier) (the “CSSF”) in its capacity as competent authority, for the approval of the Company’s prospectus, which was approved in that same date. On June 20, 2018, the Company and WPP Luxembourg Gamma Three S.à r.l. (the “Selling Shareholder”) entered into an underwriting agreement with Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC relating to the offer and sale of an aggregate of 5,815,259 common shares of the Company, nominal value $ 1.20 per share, plus, at the option of the Underwriters, an additional 872,289 common shares pursuant to an option, at a public offering price of $ 52.00 per common share. On June 21, 2018, the Underwriters exercised their option to purchase an additional 872,289 common shares. On July 31, 2019 the Luxembourg Stock Exchange approved the Company´s voluntarily request to delist the Company´s common shares from the Official List of the Luxembourg Stock Exchange ("Lux SE"), effective July 31, 2019. Following the Lux SE delisting, the Company´s common shares will continue to trade on the New York Stock Exchange (the "NYSE") in the United States under the symbol "GLOB". As of December 31, 2019 , 35,669,330 common shares of the Company's share capital are registered with the SEC and quoted in the New York Stock Exchange. 29.3 Cash flow hedge reserve The movements in the cash flow hedge reserve were as follows: Foreign currency risk Balance at January 1, 2019 — Gain/(loss) arising on changes in fair value of hedging instruments during the period 298 (Gain)/loss reclassified to profit or loss – hedged item has affected profit or loss 54 Balance at December 31, 2019 352 |
APPROPRIATION OF RETAINED EARNI
APPROPRIATION OF RETAINED EARNINGS UNDER SUBSIDIARIES´ LOCAL LAW AND RESTRICTIONS ON DISTRIBUTION OF DIVIDENDS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Share Capital, Reserves and Other Equity Interest [Abstract] | |
APPROPRIATION OF RETAINED EARNINGS UNDER SUBSIDIARIES´ LOCAL LAW AND RESTRICTIONS ON DISTRIBUTION OF DIVIDENDS | NOTE 30 — APPROPRIATION OF RETAINED EARNINGS UNDER SUBSIDIARIES´ LOCAL LAWS AND RESTRICTIONS ON DISTRIBUTION OF DIVIDENDS In accordance with Argentine and Uruguayan Law, the Argentine and Uruguayan subsidiaries of the Company must appropriate at least 5% of net income for the year to a legal reserve, until such reserve equals 20% of their respective share capital amounts. On December 29, 2017, Argentine Law No. 27,430 amending the income tax law was enacted. According to the amendments, for fiscal years beginning on or after January 1, 2018 the distribution of dividends is now subject to a 7% withholding for 2018 and 2019 and 13% withholding for 2020 onwards. The Equalization Tax, which levied distributions made out of previously untaxed income, was eliminated. On December 23, 2013, the Argentine government adopted a new double taxation treaty with Spain, which applied retroactively from January 1, 2013. According to this treaty, the tax applicable on dividends distributed by our Argentine Subsidiaries to the Spain Holdco, is limited to 10% on the gross amount of dividends distributed. As of December 31, 2019 , the legal reserve amounted to 772 for the Company´s Argentine subsidiaries, Sistemas Globales S.A, IAFH Global S.A, BSF S.A and Globers S.A, and as of that date was fully constituted. Dynaflows S.A, Globant Ventures S.A.S and Avanxo S.A, did not have a legal reserve as of December 31,2019. As of December 31, 2019 , the legal reserve amounted to 42 for Sistemas Globales Uruguay S.A and as of that date was fully constituted. The Company´s Uruguayan subsidiary, Difier S.A, did no t have a legal reserve as of December 31, 2019. According to the ByLaws of Sistemas Colombia S.A.S. and Belatrix Colombia, the Colombian subsidiaries of the Company must appropriate at least 10% of the net income of the year to a legal reserve until such reserve equal 50% of its share capital. As of December 31, 2019 , there was a legal reserve of 296 that was fully constituted by Sistemas Colombia S.A.S and there was a legal reserve of 3 constituted by Belatrix Colombia S.A.S. Regarding Avanxo Colombia, the Colombian branch of Avanxo (Bermuda) Limited, there is no requirement for the Colombian branch to allocate profits for the creation of a legal reserve and, therefore, as of December 31, 2019, there was no legal reserve constituted . Colombia Law No 1,819, published on December 29, 2016, introduced a withholding tax of 5% on dividend distributions to non-resident. This new fiscal obligation is not applicable to our shareholder due to the tax treaty agreement between Colombia and Spain, entered in force on October 28, 2008. Under Spanish law, the Spanish subsidiaries of the Company must appropriate 10% of its standalone profit to a legal reserve until such reserve equals to 20% of their respective share capital amount. As of December 31, 2019 , the legal reserve was partially constituted and amounted to 8,157 for all Spanish subsidiaries. In accordance with Brazilian Law, there is no requirement for limited liability companies to allocate profits for the creation of a legal reserve. The Company's Brazilian subsidiaries, Globant Brasil Consultorias Ltda and Orizonta Consutoria de Negocios e Tecnologia Da Informacao Ltda did not have a legal reserve as of December 31, 2019 . On the other hand, for Avanxo Brasil Tecnologia Da Informacao Ltda there was a legal reserve of 63 constituted as of December 31, 2019 . Under Luxembourg law, at least 5% of our net profit per year must be allocated to the creation of a legal reserve until such reserve has reached an amount equal to 10% of our issued share capital. If the legal reserve subsequently falls below the 10% threshold, at least 5% of net profit must be allocated toward the reserve. If the legal reserve exceeds 10% of our issued share capital, the legal reserve may be reduced in proportion so that it does not exceed 10% of our issued share capital. The legal reserve is not available for distribution. As of December 31, 2019 , the legal reserve amounted to 496 . As for the restrictions on the distribution of dividends paid by the Company to the holders of our common shares are as a rule subject to a 15% withholding tax in Luxembourg, unless a reduced withholding tax rate applies pursuant to an applicable double tax treaty or an exemption pursuant to the application of the participation exemption, and, to the extent withholding tax applies, we are responsible for withholding amounts corresponding to such taxation at its source. In accordance with Peru corporate law, the Peruvian subsidiaries of the Company must reserve at least 10% of its net income of the year to a legal reserve, until such reserve equals 20% of its respective amount capital stock. As of December 31, 2019 , the legal reserve amounted to 116 for Belatrix Peru SAC which is fully constituted and 47 for Globant Peru SAC that is partially constituted . Regarding Avanxo Sucursal del Peru, the Peruvian branch of Avanxo (Bermuda) Limited, there is no requirement for the Peruvian branch to allocate profits for the creation of a legal reserve and, therefore, as of December 31, 2019, there was no legal reserve constituted. In Bermuda there is no requirement for the Bermuda subsidiary of the Company to allocate profits for the creation of a legal reserve. As of December 31, 2019, there was no legal reserve constituted. According to Mexican Law, the Mexican subsidiaries of the Company must appropriate at least 5% of net income of the year to a legal reserve, until such reserve equals the fifth portion of their respective share capital amounts. As of December 31, 2019 , the legal reserve amounted to 139 for the Company's Mexican subsidiaries Global Systems Outsourcing S. de R.L. de C.V. and 37 for Avanxo Mexico S.A.P.I de C.V , regarding Avanxo Servicios S.A. de C.V. there was no legal reserve constituted as of December 31, 2019. Regarding India Law, the Companies Act, 2013 does not mandate any fixed quantum of profits to be transferred or allocated to the reserves of a company. Despite there is no mandatory provision, as of December 31, 2019 , the Indian subsidiary's general reserve amounted to 17 for the Company's Indian subsidiary. In accordance with Indian law, our Indian subsidiary must set off all losses incurred by it (including carried over losses from the previous financial year) and make a provision for depreciation (including depreciation for the previous year if it was not already provided for) against the profits earned by it prior to declaring any dividends. Since the declaration of dividends under Indian law is discretionary, our Indian subsidiary is not required to allocate a specific portion of its annual profits to a designated legal reserve for purposes of declaring dividends. In the United Kingdom there is no requirement for the UK´s subsidiaries to allocate profits for the creation of a legal reserve. As of December 31, 2019 , there was no legal reserve constituted by the UK´s subsidiaries. In Chile there is no requirement for the Chilean subsidiary of the Company to allocate profits for the creation of a legal reserve. As of December 31, 2019 , there was no legal reserve constituted. According to French law, a minimum of 5% of the profit of the year must be allocated to a reserve account named "legal reserve", until such reserve amounts 10% of the share capital of the French subsidiary of the Company. As of December 31, 2019 , there was no legal reserve constituted. In accordance with the law of Belarus, the Belorussian subsidiary of the Company must allocate an amount up to 25% of annual payroll to a reserve fund for salaries. The source for creating this fund is the profit remaining at the disposal of the subsidiary after paying taxes and other obligatory payments. As of December 31, 2019 , there was no legal reserve constituted. In the United States there is no requirement for the Company's U.S. subsidiaries to allocate profits for the creation of a legal reserve. As of December 31, 2019 , there was no legal reserve constituted. According to Romanian Companies Law, the Romanian subsidiary of the Company has the obligation to allocate each year at least 5% of its profit to a reserve fund, until the value of the fund is at least 20% of the Romanian Company's share capital. As of December 31, 2019 , the reserve fund of the company was of Romanian Leu ("RON") 58 . In Canada there is no requirement for the Canada's Company subsidiary to allocate profits for the creation of a legal reserve. As of December 31, 2019 , there was no legal reserve constituted. I n the United Arab Emirates there is no requirement for the Software Product Creation´s branch office in Dubai to allocate profits for the creation of a legal reserve. As of December 31, 2019 , there was no legal reserve constituted. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | NOTE 31 – SUBSEQUENT EVENTS The Company has evaluated subsequent events until February 19, 2020 , date of approval of these consolidated financial statements, to assess the need for potential adjustments or disclosures in these consolidated financial statements in accordance with IAS 10 "Events after the reporting period". 31.1 Second Amended and Restated Credit Agreement On February 6, 2020, Globant, LLC, our US subsidiary (the "Borrower"), entered into a Second Amended and Restated Credit Agreement (the “Second A&R Credit Agreement”), by and among certain financial institutions listed therein, as lenders, and HSBC Bank USA, National Association, as administrative agent, issuing bank and swingline lender. Under the Second A&R Credit Agreement, which amends and restates the existing A&R Credit Agreement dated as of November 1, 2018, the Borrower may borrow (i) up to $ 100 million in up to four borrowings on or prior to August 6, 2021 under a delayed-draw term loan facility and (ii) up to $ 250 million under a revolving credit facility. In addition, the Borrower may request increases of the maximum amount available under the revolving facility in an aggregate amount not to exceed $ 100 million. The maturity date of each of the facilities is February 5, 2025. Pursuant to the terms of the Second A&R Credit Agreement, interest on the loans extended thereunder shall accrue at a rate per annum equal to either (i) LIBOR plus 1.50 %, or (ii) LIBOR plus 1.75 %, determined based on the Borrower’s Maximum Total Leverage Ratio (as defined in the Second A&R Credit Agreement). The Borrower’s obligations under the Second A&R Credit Agreement are guaranteed by the Company and its subsidiary Globant España S.A., and are secured by substantially all of the Borrower’s now owned and after-acquired assets. The Second A&R Credit Agreement also contains certain customary negative and affirmative covenants, which compliance may limit our flexibility in operating our business and our ability to take actions that might be advantageous to us and our shareholders. Based on this evaluation, it was determined that there were no subsequent events requiring recognition or disclosure in the financial statements, except for the ones included above. |
APPROVAL OF CONSOLIDATED FINANC
APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of notes and other explanatory information [Abstract] | |
APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS | NOTE 32 – APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Financial Statements were approved by the Board of Directors on February 19, 2020 . Martín Migoya President |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Business combinations | Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets transferred to the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity interests issued by the Company in exchange for control of the acquiree. Acquisition-related charges are recognized in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: • deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively ; and • liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Company entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquired business, and the fair value of the acquirer's previously held equity interest in the acquired business (if any) over the net of the acquisition date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquired business and the fair value of the acquirer's previously held equity interest in the acquired business (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests' proportionate share of the recognized amounts of the acquired business identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. When the consideration transferred by the Company in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the 'measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IFRS 3 and IFRS 13, as appropriate, with the corresponding gain or loss being recognized in profit or loss. When a business combination is achieved in stages, the Company's previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of. Arrangements that include remuneration of former owners of the acquiree for future services are excluded of the business combinations and will be recognized in expense during the required service period. |
Goodwill | Goodwill Goodwill arising in a business combination is carried at cost as established at the acquisition date of the business less accumulated impairment losses, if any. For the purpose of impairment testing, goodwill is allocated to a unique cash generating unit (CGU). Goodwill is not amortised and is reviewed for impairment at least annually or more frequently when there is an indication that the business may be impaired. If the recoverable amount of the business is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the business and then to the other assets of the business pro-rata on the basis of the carrying amount of each asset in the business. Any impairment loss for goodwill is recognized directly in profit or loss in the consolidated statement of income and other comprehensive income. An impairment loss recognized for goodwill is not reversed in a subsequent period. The Company has not recognized any impairment loss in the years ended December 31, 2019 , 2018 and 2017 . |
Revenue recognition | Revenue recognition The Company generates revenue primarily from the provision of software development, testing, infrastructure management, application maintenance, outsourcing services, consultancy and Services over Platforms (SoP). SoP is a new concept for the services industry that aims to deliver digital journeys in more rapid manner providing specific platforms as a starting point and then customizing them to the specific need of the customers. Revenue is measured at the fair value of the consideration received or receivable. The Company’s services are performed under both time-and-material and fixed-price contracts. For revenues generated under time-and-material contracts, revenues are recognized as a performance obligation satisfied over time, using an input method based on hours incurred. The majority of such revenues are billed on an hourly, daily or monthly basis whereby actual time is charged directly to the client. The Company recognizes revenues from fixed-price contracts applying the input or output methods depending on the nature of the project and the agreement with the customer, recognizing revenue on the basis of the Company’s efforts to the satisfaction of the performance obligation relative to the total expected inputs to the satisfaction of the performance obligation, or recognizing revenue on the basis of direct measurements of the value to the customer of the services transferred to date relative to the remaining services promised under the contract, respectively. Each method is applied according to the characteristics of each contract and client. The inputs and outputs are selected based on how faithfully they depict the Company's performance towards complete satisfaction of the performance obligation. The Company also provides hosted access to software applications for a subscription-based fee. The revenue from these subscription resales contracts is recognised at a point in time, given that the performance obligation is satisfied when the contract is signed by the customer and the Company. The Company acts as an agent because the performance obligation is to arrange for the service to be provided to the customer by another party (the owner of the software applications). Consequently, the revenue is measured as the amount of the commission, which is the net amount of consideration that the Company retains after paying the other party the consideration received in exchange for the services to be provided by that party. |
Leases | Leases During 2018, the Company applied IAS 17 for leases recognition, where leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Finance leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the consolidated statement of profit or loss and other comprehensive income. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term. Operating lease payments are recognized as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognized as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentives is recognized as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. As of January 1, 2019, the Company applied IFRS 16 where t he Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (leases with a lease term of 12 months or less) and leases of low value assets (assets with a value of 5 or less when new). For these leases, the Company recognizes the lease payments as an operating expense on a straightline basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • fixed payments, less any lease incentives receivable; • variable lease payments that are based on an index or a rate; • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. The Company remeasures the lease liability (and makes a corresponding adjustment to the related right–of–use asset) whenever: 1. the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. 2. the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used). 3. a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The Company made adjustments related to leases that are subject to changes in the consumer price index. As of December 31, 2019 , such adjustments amounted to 126 . Right-of-use asset are measured at cost comprising the following: • the amount of the initial measurement of lease liability; • any lease payments made at or before the commencement date less any lease incentives received; • any initial direct costs. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses. Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. The costs are included in the related right–of-use asset. The right-of-use assets are presented as a separate line in the consolidated statement of financial position. The Company applies IAS 36 Impairment of Assets to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 3.10 . Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets are assets with a value of 5 or less when new. In determining the lease term, management considers all fact and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options and periods after termination options are only included in the lease term if the lease is reasonably certain to be extended or not terminated. The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the lessee. |
Foreign currencies | Foreign currencies The functional currency of the Company and most of its subsidiaries is the U.S. dollar, except for: • Globant Brasil Consultoría Ltda.: the functional currency is the Brazilian Real. • Globers S.A.: the functional currency is the Argentine Peso. • We are London Limited: the functional currency is the Great Britain Pound • Avanxo Servicios S.A. de C.V.: the functional currency is the Mexican Peso. • Avanxo Mexico S.A.P.I de C.V.: the functional currency is the Mexican Peso. • Avanxo Brasil Tecnología da Informacao LTDA: the functional currency is the Brazilian Real. • Orizonta Consutoria De Negocios E Tecnologia LTDA: the functional currency is the Brazilian Real. • Avanxo S.A.: the functional currency is the Argentine Peso. • Avanxo - Sucursal del Perú: the functional currency is the Peruvian Sol. • Avanxo Colombia: the functional currency is the Colombian Peso. In preparing these consolidated financial statements, transactions in currencies other than the U.S. dollar (“foreign currencies”) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are kept at the original translated cost. Exchange differences are recognized in profit and loss in the period in which they arise. In the case of the subsidiaries with a functional currency other than the U.S. dollar, assets and liabilities are translated at current exchange rates, while income and expense are translated at the date of the transaction rate. The resulting foreign currency translation adjustment is recorded as a separate component of accumulated other comprehensive income (loss) in equity. Accounting standards are applied on the assumption that the value of money (the unit of measurement) is constant over time. However, when the rate of inflation is no longer negligible, a number of issues arise impacting the true and fair nature of the accounts of entities that prepare their financial statements on a historical cost basis. To address such issues, entities apply IAS 29 Financial Reporting in Hyperinflationary Economies from the beginning of the period in which the existence of hyperinflation is identified. Based on the statistics published on July 17, 2018, the 3-year cumulative rate of inflation for consumer prices and wholesale prices in Argentina reached a level of about 123% and 119%, respectively. On that basis, Argentina was considered an hyperinflationary economy since July 1, 2018. As of December 31, 2019, the Company has recognized the effects of inflation in their financial statements, it also has evaluated this situation and concluded that it has no significant impact considering that the most significant Argentine subsidiaries have the U.S. dollars as their functional currency, except for Globers S.A. and Avanxo S.A as explained above. |
Borrowing costs | Borrowing costs The Company does not have borrowings attributable to the construction or production of assets. All borrowing costs are recognized in profit and loss under finance loss. |
Taxation | Taxation 3.7.1 – Income taxes – current and deferred Income tax expense represents the estimated sum of income tax payable and deferred tax. 3.7.1.1 – Current income tax The current income tax payable is the sum of the income tax determined in each taxable jurisdiction, in accordance with their respective income tax regimes. Taxable profit differs from profit as reported in the consolidated statement of profit or loss and other comprehensive income because taxable profit excludes items of income or expense that are taxable or deductible in future years and it further excludes items that are never taxable or deductible. The Company's liability for current income tax is calculated using tax rates that have been enacted or substantively enacted as of the balance sheet dates. The current income tax charge is calculated on the basis of the tax laws in force in the countries in which the consolidated entities operate. For the fiscal year 2019, Globant S.A, is subject to a corporate income tax rate of 17% on taxable income exceeding EUR 200 , the rate is 15% if annual taxable income does not exceed EUR 175 . For amounts between EUR 175 and EUR 200 , corporate income tax is calculated based on a formula, adding EUR 26.2 (i.e. EUR 175 x 15%) and 31% of the income amount exceeding EUR 175 . For fiscal year 2018, the rate was 18% for a company whose taxable income exceeds EUR 30 and 15% if annual taxable income does not exceed EUR 25 . The corporate income tax is increased by a contribution of 7% to the unemployment fund. A municipal business tax also may be imposed at rates ranging from 6% to 12% depending on where the undertaking is located. In 2008, Globant España S.A. elected to be included in the Spanish special tax regime for entities having substantially all of their operations outside of Spain, known as “ Empresas Tenedoras de Valores en el Exterior ” (“ETVE”), on which dividends distributed from its foreign subsidiaries as well as any gain resulting from disposal are tax free. In order to be entitled to the tax exemption, among other requirements, the main activity of Globant España S.A. must be the administration and management of equity instruments from non-Spanish entities and such entities must be subject to a tax regime similar to that applicable in Spain for non-ETVEs companies. The subsidiaries did not distribute dividends during 2017. During 2018 the Company’s Uruguayan and Argentinian subsidiaries distributed dividends to Globant España S.A. for a total amount of 27,462 . As of December 31, 2019 the Uruguayan subsidiary distributed dividends for a total amount of 11,000 to Globant España S.A and BSF S.A distributed dividends for a total amount of 310 to Belatrix Global Corporation S.A. If this tax exemption would not apply, the applicable tax rate should be 25% . The Company´s Spanish subsidiary Software Product Creation S.L. is subject to a 25% corporate income tax rate. Also, Belatrix Global Corporation S.A. is an ETVE company located in Spain, subject to the benefits of the regime. The company was registered as ETVE on December, 2013. Argentine companies are subject to a 30% corporate income tax rate. In May 2008, IAFH Global S.A. and Sistemas Globales S.A. were notified by the Argentine Government through the Ministry of Economy and Public Finance that they had been included within the promotional regime for the software industry established under Law No. 25,922 (the “Software Promotion Regime”). BSF S.A is benefited by the promotional regimen as well. The incorporation was notified on April 2008. Under Argentina’s Software Promotion Law No. 25,922 (Ley de Promoción de la Industria de Software), as amended by Law No. 26,692 and Decree No. 95/2018 (the "Software Promotion Law"), the Company's operating subsidiaries in Argentina benefit from a 60% reduction in their corporate income tax rate (as applied to income from promoted software activities) and a tax credit of up to 70% of amounts paid for certain social security taxes (contributions) that may be offset against value-added tax liabilities. Law No. 26,692, the 2011 amendment to the Software Promotion Law (“Law No. 26,692”), also allows such tax credits to be applied to reduce the Company's Argentine subsidiaries’ corporate income tax liability by a percentage not higher than the subsidiaries’ declared percentage of exports and extends the tax benefits under the Software Promotion Law until December 31, 2019. The Software Promotion Law remains in effect until December 31, 2019. On May 22, 2019 the Argentine Congress approved Law No. 27,506 that creates a promotion regime for knowledge economy-related business (the "Knowledge based economy law") which is applicable to IAFH Global S.A., Sistemas Globales S.A. and BSF S.A. The Law is valid from January 1, 2020 until December 31, 2029. The beneficiaries of the regime will enjoy the following benefits: • Fiscal stability as of the moment of the registration and for the term of validity of the Regime.This benefit may be also extended to provincial and municipal taxes, as long as such jurisdictions adhere to this Knowledge based Economy Law. • Beneficiaries are not subject to any value-added tax withholding or collection regimes. • A reduced corporate income tax rate of 15% to the extent that the beneficiaries maintain their payroll in accordance with the conditions described in the regulations. • Beneficiaries will be allowed to deduct a tax credit derived from any payment or withholding of foreign taxes, if the taxed income constitutes an Argentine source of income. • A reduction from their employer social security contributions, in relation to each employee, of an amount equal to 7,003 ARS per employee for year 2020. • A tax credit equal to 1.6 times the amount of the employer’s social security contributions applicable to the detraction. This tax credit, which is onetime transferable, can be used to offset the beneficiary's income tax liability and/or value added tax liability with no restriction. The beneficiaries of the Software Promotion Law must declare their intention to be transferred to the Knowledge Economy Regime until December 31, 2019. Sistemas Globales S.A. and IAFH S.A. have been incorporated in the National Registry of Beneficiaries of the Regime for the Promotion of the Knowledge Economy on November 12, 2019 and BSF S.A. was included on December 3, 2019. Both registrations are treated as provisional and the companies must fill a final declaration before June 30, 2020. Additionally, Ministry of Production and Labor issued on October 10, 2019, the Resolution No. 1084/2019, which appointed the Secretariat of Entrepreneurs and Small and Medium-Sized Enterprises as enforcement authority of the Regime and authorized the Secretariat to issue complementary regulations. Consequently, the Secretariat issued Resolution No. 449/2019, establishing the details of the procedure to be followed and the conditions to be met to enjoy the benefits of the Regime. Also, the Secretariat will be in charge of analyzing the information submitted and verifying compliance with all the relevant requirements. On January 20, 2020, Ministry of Productive Development issued Resolution No. 30/2020, revoking Resolution No. 1,084/2019 and Resolution No. 449/2019. Also, under the new administrative structure, Ministry of Productive Development appointed the Secretariat of Industry, Knowledge Economy and External Commercial Management of the Ministry of Productive Development as enforcement authority of the New Regime and authorized that Secretariat to issue complementary regulations. Finally, the review and processing of applications filed so far have been suspended until new complementary regulations are issued by such new enforcement authority. Therefore, the Law and the Decree are currently in force, and have not been repealed, suspended or modified. According to the New Regime – currently in force – beneficiaries of the Regime for the Promotion of the Software Industry (Law 25,922) have the right to enjoy the benefits established as long as they are registered in the Registry for which it is necessary to: (i) have submitted the application for the provisional incorporation into the New Regime until December 31, 2019 (which allows the definitive registration to have effects as from January 1st, 2020), and (ii) prove the compliance of the requirements provided in the Law and complementary regulations before June 30, 2020. The Argentine Executive Power is considering a bill to modify the Knowledge based Economy Law to include the following:: • a 60% reduction in the total amount of corporate income tax applied to income from the promoted activities. • a tax credit equal to the 70% of the social security contribution paid. The social security contribution benefit would apply only to a portion of the beneficiary’s payroll. On December 29, 2017, Argentina enacted a comprehensive tax reform (Law No. 27,430) through publication in the Official Gazette. The Law is effective from January 1, 2018. Specifically, introduces amendments to income tax (both at corporate and individual levels), value added tax (VAT), tax procedural law, criminal tax law, social security contributions, excise tax, tax on fuels, and tax on the transfer of real estate. At a corporate level, the law decreases the corporate income tax rate from 35% to 30% for fiscal years starting January 1, 2018 to December 31, 2019, and to 25% for fiscal years starting January 1, 2020 and onwards. The Law also establishes dividend withholding tax rates of 7% for profits accrued during fiscal years starting January 1, 2018 to December 31, 2019, and 13% for profits accrued in fiscal years starting January 1, 2020 and onwards. The new withholding rates apply to distributions made to shareholders qualifying as resident individuals or nonresidents. Even though the combined effective rate for shareholders on distributed income (corporate income tax rates plus dividend withholding rates on the after tax profit) will be close to the prior 35% rate, this change is aimed at promoting the reinvestment of profits. Additionally, the Law repeals the “equalization tax” (i.e., 35% withholding applicable to dividends distributed in excess of the accumulated taxable income) for income accrued from January 1, 2018. On December 23, 2019, the Argentine Government enacted the Ley de Solidaridad Social y Reactivación Productiva No. 27,541 (the "Law on Social Solidarity and Productive Reactivation " or the "Social Solidarity Law") which declared a public emergency in economic, financial, fiscal, administrative, social security, tariff, energy, health and social matters, and also delegated legislative powers to the National Executive Power, until December 31, 2020. According to the Social Solidarity Law, the corporate income tax for years starting January 1, 2020 is 30%, and the tax rate applicable to dividends is 7%, delaying the effectiveness of the 25% and 13% rates until tax years starting on January 1, 2021. The Social Solidarity Law also introduced amendments to the income tax, personal assets tax, excise tax on certain goods, tax on debits and credits in local bank accounts and social security rules. It also establishes a new tax on certain purchases of foreign currency, a new tax debt settlement plan for certain taxpayers, and establish new rates on export of goods and services . According to the Social Solidarity Law, the corporate income tax for years starting January 1, 2020 is 30%, extending the enforcement of the 25% to tax year starting January 1, 2021. The Company’s Argentine subsidiaries, Globers Travel, Dynaflows, Globant Ventures SAS and Avanxo S.A. are subject to a corporate income tax rate of 30% as they are not in included within the Software Promotion Regime nor Knowledge Economy Regime. The Company’s Uruguayan subsidiary Sistemas Globales Uruguay S.A. is domiciled in a tax free zone and has an indefinite tax relief of 100% of the income tax rate and an exemption from VAT. Aggregate income tax relief arising under Sistemas Globales Uruguay S.A. for years ended December 31, 2019 , 2018 and 2017 were 21,224 , 11,095 , 2,488 , respectively. The Company’s Uruguayan subsidiary Difier S.A. is located outside tax-free zone and according to Article 163 bis of Decree No. 150/007 the software development services performed are exempt from income tax and value-added tax applicable as long as they are exported and utilized abroad, except for the financial results that are taxable at a rate of 25%. Difier S.A is 100% export-oriented. The Colombian subsidiaries are subject to federal corporate income tax at the rate of 33% . Until December 31, 2018 the Company's Colombian subsidiary Sistemas Colombia S.A.S. was subject to federal corporate income tax at the rate of 33% and a surcharge at the rate of 4% calculated on net income before income tax. Law N°1,943 gradually reduces the corporate tax rates from 33% to 30% from fiscal years 2020 to 2022. The Company’s U.S. subsidiaries are subject to U.S. federal income tax at the rate of 21% . Fiscal years beginning before January 1, 2018 were subject to corporate tax at the rate of 35% . On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“Tax Act”) that instituted fundamental changes to the taxation of multinational corporations. The Tax Act includes significant changes to the U.S. corporate income tax system, including a federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, changes regarding net operating loss carryforwards, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. Furthermore, as part of the transition to the new tax system, a one-time transition tax is imposed on a U.S. shareholder's historical undistributed earnings of foreign affiliates. The Tax Act introduces various other changes to the Internal Revenue Code. The reform also introduces base erosion provisions for U.S corporations that are part of multinational group. For fiscal years beginning after December 31, 2017, a U.S corporation is potentially subject to tax under the Base Erosion Anti-Abuse Tax provision (“BEAT”), if the controlled group of which it is a part has sufficient gross receipts and derives a sufficient level of “base erosion tax benefits”. On December 13, 2018, the Internal Revenue Service (“IRS”) published a proposed regulation that provide guidance regarding the BEAT application for public comments. The final document was published in the Federal Register on December 2, 2019. The Company’s English subsidiaries Sistemas UK Limited and We are London Limited are subject to corporate income tax at the rate of 19% , the same rate was applied for the years 2018 and 2017. The rate is reduced to 17% a s from April 1, 2020. The Company’s Chilean subsidiary Sistemas Globales Chile Ases. Ltda. is subject to corporate income tax at the rate of 27% . For the years 2018 and 2017, the corporate income tax rates were 27% and 25.5% , respectively. The Company’s Brazilian subsidiaries apply the taxable income method called “Lucro real”. Under this method, taxable income is based upon a percentage of profit accrued by the Company, adjusted according to the add-backs and exclusions provided in the relevant tax law. The rate applicable to the taxable income derived from the subsidiary’s activity is 24% plus 10% if the net income before income tax is higher than 240 Brazilian real for the years 2017 and onwards. The Company’s Peruvian subsidiaries are subject to corporate income tax at the rate of 29.5% . For the years 2018 and 2017, the corporate income tax rate was 29.5% . The Company’s Mexican subsidiaries are subject to corporate income tax at the rate of 30% . The Company's Indian subsidiary Globant India Private Limited is primarily export-oriented and is eligible for certain income tax holiday benefits granted by the government of India for export activities conducted within Special Economic Zones, or SEZs. The services provided by our Pune development center are eligible for a deduction of 100% of the profits or gains derived from the export of services for the first five years from the financial year in which the center commenced the provision of services, which occurred on August 3, 2017, and 50% of such profits or gains for the five years thereafter. Certain tax benefits are also available for a further five years subject to the center meeting defined conditions. Indian profits ineligible for SEZ benefits are subject to corporate income tax at the rate of 34.61% . In addition, all Indian profits, including those generated within SEZs, are subject to the Minimum Alternative Tax (MAT), at the current rate of approximately 21.34% , including surcharges. On February 1, 2018, the Finance Minister presented the Union Budget 2018-19. A reduction in the corporate tax rate was proposed for companies with an annual turnover of up to Rupees (Rs) 2.5 billion. In such case, the tax rate is 25% plus surcharge. Globant India Private Limited is eligible for the lower corporate tax rate. The Indian Government introduced on September, 2019, a slew of measures through the Taxation Laws (Amendment) Ordinance, to make certain amendments in the Income-tax Act 1961 and the Finance (No.2) Act 2019. Under the new measures, any domestic company will be able to choose to be taxed at the rate of 22% if, among other things, reject the SEZ tax holidays. Thus, the effective tax rate for these companies shall be 25.17% inclusive of surcharge & cess. The option must be exercised before the filing of the Income Tax Return for FY19-20 (due date November 2020), and once the option is made it cannot be withdrawn for any subsequent year. Also, such companies shall not be required to pay Minimum Alternate Tax (‘MAT’) . The Company is still analyzing the future impact of the benefit. The Company's subsidiary located in Belarus is resident of the High Technology Park (“HTP”). HTP residents are exempted from corporate income tax and VAT. On December 21, 2017 the President of the Republic of Belarus published the Decree N° 8 that extends the duration of the HTP’s tax incentives and the special legal regime until January 1, 2049. The Company will be benefited by the exemption as long as the regime is valid. The Company's subsidiary located in Romania is subject to income tax at the rate of 16% . The Company´s subsidiary located in Canada is subject to federal income tax at the rate of 15% . The rate is increased by the state income tax rate which is 11% in the case of the state of British Columbia where the subsidiary is incorporated. The corporate tax rate in France for most companies is 33% . The Finance Bill for 2017 contains provisions for the progressive reduction of the corporate income tax rate from 33% to 28% over the period 2017 to 2020. Also, there is a reduced tax rate of 15% for companies whose turnover does not exceed EUR 7,63 million, but only for the first EUR 38,120 of taxable income. In 2019 the reduced rate will be applicable to small and medium-size enterprises. To qualified as a small and medium-size enterprise, a company must employ less than 250 employees and have an annual turnover not exceeding EUR 50 million. According to the Finance Bill, the Company´s subsidiary located in France is subject to tax at a rate of 28% during 2019. The rate applies for the first EUR 500 . The company located in United Arab Emirates is not subject to Income tax. Under the Emirate-based tax decrees, Corporate Income Tax may be imposed on all companies (including branches and permanent establishments) at rates of up to 55%. However, in practice, the taxation is currently only enforced in respect of corporate entities engaged in the production of oil and gas or extraction of other natural resources in the United Arab Emirates. 3.7.1.2 – Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets including tax loss carry forwards are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the entities are able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. The Company has not recorded any current or deferred income tax in other comprehensive income or equity in any each of the years presented, except for deferred income tax arising from the share-based compensation plan and for the translation of deferred tax assets and liabilities arising from subsidiaries with functional currencies other than U.S. dollar. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. Under IFRS, deferred income tax assets (liabilities) are classified as non-current assets (liabilities). 3.7.1.3 – Uncertain tax treatments The Company determines the accounting for tax position when there is uncertainty over income tax treatments as follows. First, the Company determine whether uncertain tax positions are assessed separately or as a group; and then, the Company assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings. If yes, the Company determine its accounting tax position consistently with the tax treatment used or planned to be used in its income tax filings. If no, the Company reflect the effect of uncertainty in determining its accounting tax position using either the most likely amount or the expected value method. The Company discloses in note to the consolidated financial statements certain matters related to the interpretation of income tax laws for which there is a possibility that a loss may have been incurred. As of December 31, 2019 , there are certain matters related to the interpretation of income tax laws for which there is a possibility that a loss may have been incurred, as of the date of the financial statements in accordance with IFRIC 23 in an amount of 1,768 , related to assessments for the fiscal years 2014 to 2019. No formal claim has been made for fiscal years within the statute of limitation by Tax authorities in any of the mentioned matters, however those years are still subject to audit and claims may be asserted in the future. |
Property and equipment | Property and equipment Fixed assets are valued at acquisition cost, net of the related accumulated depreciation and accumulated impairment losses, if any. Depreciation is recognized so as to write off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Lands and properties under construction are carried at cost, less any recognized impairment loss. Properties under construction are classified to the appropriate categories of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Land is not depreciated. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. The value of fixed assets, taken as a whole, does not exceed their recoverable value. |
Intangible assets | Intangible assets Intangible assets include licenses, customer relationships, customer contracts and non-compete agreements. The accounting policies for the recognition and measurement of these intangible assets are described below. 3.9.1 – Intangible assets acquired separately Intangible assets with finite useful life that are acquired separately (licenses) are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over the intangible assets estimated useful lives. The estimated useful lives and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimates being accounted for on a prospective basis. 3.9.2 – Intangible assets acquired in a business combination Intangible assets acquired in a business combination (trademarks, customer relationships, customer contracts and non-compete agreements) are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets acquired separately. 3.9.3 – Internally-generated intangible assets Intangible assets arising from development are recognized if, and only if, all the following have been demonstrated: - the technical feasibility of completing the intangible asset so that it will be available for use or sale; - the intention to complete the intangible asset and use or sell it; - the ability to use or sell the intangible asset; - how the intangible asset will generate probable future economic benefits; - the ability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and - the ability to measure reliably the expenditure attributable to the intangible asset during its development. The amount initially recognized for internally-generated assets is the sum of expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognized, development expenditure is recognized in profit or loss in the period in which it is incurred. Subsequent to initial recognition, intangible assets are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately. 3.9.4 – Derecognition of intangible assets An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized in profit or loss when the asset is derecognized. As of December 31, 2019 , the Company has derecognized intangible assets for an amount of 24 . No intangible asset has been derecognized as of December 31, 2018 . |
Impairment of tangible and intangible assets excluding goodwill | Impairment of tangible and intangible assets excluding goodwill At each balance sheet date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit or the business, as the case may be. The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognized immediately in the statement of profit or loss and other comprehensive income for the year. As of December 31, 2019 and 2018 the Company recorded an impairment loss of 720 and 306 , respectively, related to internally-generated intangible assets . In 2017 the Company recorded an impairment loss of 4,708 related to the intangible assets acquired in business combinations. |
Provisions for contingencies | Provisions for contingencies The Company has existing or potential claims, lawsuits and other proceedings. Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation, and the advice of the Company’s legal advisers. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The amount of the recognized receivable does not exceed the amount of the provision recorded. |
Financial assets | Financial assets On initial recognition, a financial asset is classified as measured at: (i) amortised cost (ii) fair value through other comprehensive income (FVOCI) or (iii) fair value through profit or loss (FVTPL). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. 3.12.1 – Amortised cost and effective interest method A financial asset is measured at amortised cost if both of the following conditions are met, and is not designated as at FVPL: - It is held within a business model whose objective is to hold financial assets to collect contractual cash flow; - Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The effective interest method is a method of calculating the amortised cost of an instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the instrument, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. 3.12.2 – Financial assets measured at FVOCI A financial asset is measured at FVOCI if both of the following conditions are met, and is not designated as at FVPL: - It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets - Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding The change in fair value of financial assets measured at FVOCI is accumulated in the investment revaluation reserve until they are derecognised. When a financial asset measured at FVOCI is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment. 3.12.3 – Financial assets measured at FVPL All financial assets not classified as measured at amortised cost or FVOCI as described above, are measured at FVPL. Financial assets at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘Finance income or Finance expense’ line. 3.12.4 - Derivative financial instruments The Company enters into foreign exchange forward contracts. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as a financial liability. Derivatives are not offset in the financial statements unless the Company has both a legally enforceable right and intention to offset. The impact of the futures and forward contracts on the Company’s financial position is disclosed in note 28. A derivative is presented as a non–current asset or a non–current liability if the remaining maturity of the instrument is more than 12 months and it is not due to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities. The Company designates certain derivatives as hedging instruments in respect of foreign currency risk in cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging relationships meet all of the following hedge effectiveness requirements: - there is an economic relationship between the hedged item and the hedging instrument; - the effect of credit risk does not dominate the value changes that result from that economic relationship; and - the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Company actually hedges and the quantity of the hedging instrument that the Company actually uses to hedge that quantity of hedged item. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the Company adjusts the hedge ratio of the hedging relationship (i.e. rebalances the hedge) so that it meets the qualifying criteria again. The Company designates the full change in the fair value of a forward contract (i.e. including the forward elements) as the hedging instrument for all of its hedging relationships involving forward contracts. Movements in the hedging reserve in equity are detailed in note 29.3 . The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the ‘other gains and losses’ line item. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item. The Company discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying criteria (after rebalancing, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. Any gain or loss recognized in other comprehensive income and accumulated in cash flow hedge reserve at that time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in cash flow hedge reserve is reclassified immediately to profit or loss . 3.12.5 - Investment in associates An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Under the equity method, an investment in associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. 3.12.6 – Other Financial Assets Call option over non-controlling interest in subsidiary On October 22, 2015, the Company was granted with a call option to acquire the remaining 33.27% interest in Dynaflows S.A, which can be exercised from October 22, 2020 till October 21, 2021. At the same moment, the Company has also agreed on a put option with the non-controlling shareholders which gives them the right to sell its remaining 33.27% interest on October 22, 2018 or October 22, 2020. During the year ended December 31, 2018 , the sellers exercised the put option, as explained in note 25.2 , and the Company derecognized the call option. Clarice Subscription agreement On May 14, 2015, the Company signed a subscription agreement as described in note 25 .1. According to this agreement, the Company will receive a fix amount of money in exchange of a variable number of shares of the Company. According to IAS 32:11, a financial asset has been recognized in order to reflect the contractual right to receive cash. As of December 31, 2018 , the Company has recorded 400 as current financial assets. As of December 31, 2019 the financial asset and the financial liability were fully settled. 3.12.7 – Impairment of financial assets The Company recognises a loss allowance for expected credit losses on financial assets, other than those at FVTPL. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company always recognises lifetime expected credit losses ("ECL") for trade receivables, using a simplified approach. The expected credit losses on these financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific to debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date. For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. Significant increase in credit risk since initial recognition In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Company compares the risk of a default occurring on the financial instrument at the reporting date with such risk at the date of initial recognition. In making this assessment, the Company considers both quantitative and qualitative information that is reasonable and supportable, including forward-looking information that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition : • internal credit rating • external credit rating (as far as available) • significant deterioration in external market indicators of credit risk for a particular financial instrument • actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor's ability to meet its debt obligations • actual or expected significant changes in the operating results of the debtor • significant increases in credit risk on other financial instruments of the same debtor • actual or expected significant adverse changes in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor's ability to meet its debt obligations. Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days past due in making a contractual payment, unless the Company has reasonable and supportable information that demonstrates otherwise. Despite the foregoing, the Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial asset is determined to have low credit risk if the financial instrument has a low risk of default, the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flow obligations. The Company considers a financial asset to have low credit risk when the asset has external credit rating of 'investment grade' in accordance with the globally understood definition, or if an external rating is not available, if the counterparty has a strong financial position and there is no past due amounts. All of the Company's current and non current investments are considered to have low credit risk. Definition of default A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when they fall due, unless an entity has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. Credit-impaired financial assets A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired include observable data about the following events: a. significant financial difficulty of the issuer or the borrower; b. a breach of contract, such as a default or past due event; c. the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider; d. it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; e. the disappearance of an active market for that financial asset because of financial difficulties; or f. the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses. It may not be possible to identify a single discrete event-instead, the combined effect of several events may have caused financial assets to become credit-impaired. Write-off policy Financial assets' carrying amounts are reduced through the use of an allowance account on a case-by-case basis. When a financial asset is considered uncollectable, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profit and loss. Measurement and recognition of expected credit losses The measurement of expected credit losses is a function of the probability of default, loss given default and the exposure at default. The assessment of the probability of default and loss given default is based on historical data, adjusted by forward-looking information as described above. The exposure of default is represented by the asset's gross carrying amount at the reporting date. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. Financial assets other than trade receivables, have been grouped at the lowest levels for which there are separately identifiable cash flows. No significant changes to estimation techniques or assumptions were made during the reporting period, except for the changes in the expected credit loss rate used for the calculation of allowance for doubtful accounts as of December 31,2019, as disclosed in note 12. 3.12.8 – Derecognition of financial assets The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralised borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts. As of December 31, 2019, the Company incurred in a singular factoring agreement arranged with Banco Santander, pursuant to which Globant, LLC transferred receivables for a total amount of 3,510 . The Company considers that it has substantially transferred the risks and rewards intrinsic to these receivables to the bank and therefore they were derecognized. 3.12.9 – Convertible Notes The Company recognizes convertible notes measured at their fair value using the market approach which consist in using prince and relevant information generated by market transactions involving identical or comparable assets, liabilities or group of assets and liabilities, such as a business. 3.12.9.1 Convertible note - Collokia On May, 5, 2017, the Company and Collokia LLC, signed a loan agreement whereby the Company provides a financing facility of 100 . Interest on the entire outstanding principal balance is computed at an annual rate of 2.8% . Collokia shall repay the loan in full within 18 months from the date that this agreement has been signed off. The Company has the right to convert any portion of the outstanding principal into preferred units of Collokia. As of December 31, 2019 and 2018 , the fair value of the loan agreement amounted to 115 and 106 , respectively, and is disclosed as other financial assets current. The Company expects to collect the convertible note in a foreseeable future and hence it has concluded that the convertible note is recoverable. 3.12.9.2 Convertible note - Wolox On January 21, 2019 ("issuance date"), Globant España S.A. and Wolox, LLC (Wolox), agreed into a convertible promissory note purchase agreement whereby Globant España S.A. provides financing facility for 1,800 . Interest on the entire outstanding principal balance is computed at an annual rate equal to LIBOR plus 2% . Wolox shall repay the loan in full within 18 months from the date as of the issuance date. Globant España S.A has the right to convert any portion of the outstanding principal into fully paid and nonassessable membership interest of Wolox. As of December 31, 2019 , the fair value of the loan agreement amounted to 1,841 and is disclosed as other financial assets current. 3.12.9.3 Convertible note - Singularity On July 8, 2019 ("issuance date"), Globant España S.A. and Singularity Education Group, agreed into a note purchase agreement whereby Globant España S.A. provides financing facility for 1,250 . Interest on the entire outstanding principal balance is computed at an annual rate of 5% . Singularity Education Group shall repay the loan in full within 1 year from the effective date. Globant España S.A has the right to convert any portion of the outstanding principal into Conversion Shares of Singularity Education Group. As of December 31, 2019 , the fair value of the loan agreement amounted to 1,280 and is disclosed as other financial assets current. 3.12.9.4 Convertible notes - Globant Ventures During the year ended December 31, 2019 , Globant Venture SAS entered into 4 note purchase agreements with Interactive Mobile Media S.A. (CamonApp), AvanCargo Corp., TheEye S.A.S. and Robin (the "startups"), pursuant to which Globant Ventures provides financing facility for a total amount of 300 . Interest on the entire outstanding principal balance is computed at annual rates ranging from 5% to 12% for Interactive Mobile Media S.A. (CamonApp), AvanCargo Corp., TheEye S.A.S and Robin. Globant Venture SAS has the right to convert any portion of the outstanding principal into equity interest of the startups. As of December 31, 2019 , the fair value of the loan agreement amounted to 300 , and is disclosed as other financial assets non-current. |
Financial liabilities and equity instruments | Financial liabilities and equity instruments 3.13.1 – Classification as debt or equity Debt and equity instruments issued by the Company and its subsidiaries are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 3.13.2 – Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments. 3.13.3 – Financial liabilities Financial liabilities, including trade payables, other liabilities and borrowings, are initially measured at fair value, net of transaction costs. Financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognized on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. 3.13.4 – Derecognition of financial liabilities The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. |
Cash and cash equivalents | Cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks and short-term highly liquid investments (original maturity of less than 90 days). In the consolidated statements of financial position, bank overdrafts are included in borrowings within current liabilities. Cash and cash equivalents as shown in the statement of cash flows only includes cash and bank balances and time deposits as disclosed in note 10. |
Reimbursable expenses | Reimbursable expenses Out-of-pocket and travel expenses are recognized as expense in the statements of income for the year. Reimbursable expenses are billed to customers and presented within the line item "Revenues" in the statements of income for the year. |
Share-based compensation plan | Share-based compensation plan The Company has a share-based compensation plan for executives and employees of the Company and its subsidiaries. Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set forth in note 24 . The fair value determined at the grant date of the equity-settled share-based payments is recognised to spread the fair value of each award over the vesting period on a straight-line basis, based on the Company’s estimate of equity instruments that will potentially vest, with a corresponding increase in equity. |
Components of other comprehensive income | Components of other comprehensive income Components of other comprehensive income are items of income and expense that are not recognized in profit or loss as required or permitted by other IFRSs. The Company included gains and losses arising from translating the financial statements of a foreign operation, the gains and losses related to the valuation of the financial assets measured at fair value through other comprehensive income and the effective portion of changes in the fair value of derivatives hedging instruments that are designated and qualify as cash flow hedges. |
Gain on transactions with bonds | Gain on transactions with bonds During the year ended December 31, 2019 , the Company's Argentine subsidiaries, through cash received from repayments of intercompany loans, acquired Argentine sovereign bonds in the U.S. market denominated in U.S. dollars. After acquiring these bonds, the Company's Argentine subsidiaries sold those bonds in the Argentine market. The fair value of these bonds in the Argentine market (in Argentine pesos) during the year ended December 31, 2019 was higher than its quoted price in the U.S. market (in U.S dollars) converted at the official exchange rate prevailing in Argentina, which is the rate used to convert these transactions in foreign currency into the Company's Argentine subsidiaries' functional currency, thus, as a result, the Company recognized a gain when remeasuring the fair value of the bonds in Argentine pesos into U.S. dollars at the official exchange rate prevailing in Argentina. During the year ended December 31, 2019 , the Company recorded a gain amounting to 1,569 due to the above mentioned transactions that were disclosed under the caption "Gain on transaction with bonds" in the consolidated statements of profit or loss. During the year ended December 31, 2018 , the Company did not engage in the above described transaction. |
BASIS OF PREPARATION OF THESE_2
BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Summary of Lease Liabilities Recognised | Operating lease commitments disclosed as at December 31, 2018 55,222 Discounted using the lessee's incremental borrowing rate of at the date of initial application 46,887 Lease liability recognised as at January 1, 2019 46,887 Lease liabilities January 1, 2019 46,887 Additions (1) 23,590 Additions from business combinations (note 25.12) 3,347 Foreign exchange difference (1) (92 ) Interest expense (1) 3,464 Payments (2) (15,833 ) December 31, 2019 61,363 (1) Non-cash transactions. (2) Cash transactions . |
Disclosure of effect of adoption of IFRS 16 | The effect of adoption IFRS 16 as at January 1, 2019 (increase/(decrease)) is as follows: Assets Right-of-use assets 46,567 Prepayments (1,652 ) Liabilities Lease liabilities 46,887 Total adjustment on equity: Retained earnings (1,972 ) |
Disclosure of subsidiaries | Detailed below are the subsidiaries of the Company whose financial statement line items have been included in these consolidated financial statements. Company Country Main Percentage ownership of Activity As of December 31, incorporation 2019 2018 2017 Sistemas UK Limited United Kingdom Customer referral services and software development support and consultancy 100.00 % 100.00 % 100.00 % Globant, LLC United States of America Customer referral services and software development support and consultancy 100.00 % 100.00 % 100.00 % Sistemas Colombia S.A.S. Colombia Software development and consultancy 100.00 % 100.00 % 100.00 % Global Systems Outsourcing S. de R.L. de C.V. Mexico Software development and consultancy 100.00 % 100.00 % 100.00 % Software Product Creation S.L. Spain Holding, investment, software development and consultancy 100.00 % 100.00 % 100.00 % Globant España S.A. (sociedad unipersonal) Spain Holding and investment activities 100.00 % 100.00 % 100.00 % Sistemas Globales Uruguay S.A. Uruguay Software development and consultancy 100.00 % 100.00 % 100.00 % Sistemas Globales S.A. Argentina Software development and consultancy 100.00 % 100.00 % 100.00 % IAFH Global S.A. Argentina Software development and consultancy 100.00 % 100.00 % 100.00 % Sistemas Globales Chile Asesorías Limitada Chile Software development and consultancy 100.00 % 100.00 % 100.00 % Globers S.A. Argentina Travel organization services 100.00 % 100.00 % 100.00 % Globant Brasil Consultoria Ltda. Brazil Software development and consultancy 100.00 % 100.00 % 100.00 % Huddle Group S.A. (1) Argentina Software development and consultancy - - 100.00 % Globant Peru S.A.C. Peru Software development and consultancy 100.00 % 100.00 % 100.00 % Globant India Private Limited India Software development and consultancy 100.00 % 100.00 % 100.00 % Dynaflows S.A. (2) Argentina Software development and consultancy 100.00 % 100.00 % 66.73 % We Are London Limited United Kingdom Service design consultancy 100.00 % 100.00 % 100.00 % Company Country Main Percentage ownership of Activity As of December 31, incorporation 2019 2018 2017 Difier S.A. Uruguay Software development and consultancy 100.00 % 100.00 % 100.00 % Globant Bel LLC Belarus Software development and consultancy 100.00 % 100.00 % - Globant Canada Corp. Canada Software development and consultancy 100.00 % 100.00 % 100.00 % Globant France S.A.S. France Software development and consultancy 100.00 % 100.00 % - Small Footprint S.R.L. Romania Software development and consultancy 100.00 % 100.00 % - Globant Ventures S.A.S. (3) Argentina Holding and investment activities 100.00 % 100.00 % - Software Product Creation SL Dubai Branch (4) United Arab Emirates Software development and consultancy 100.00 % - - Avanxo (Bermuda) Limited (5) Bermuda Holding, investment activities and software development 100.00 % - - Avanxo México Sociedad Anónima Promotora de inversión de Capital Variable (5) Mexico Cloud consulting and implementation services 100.00 % - - Avanxo Servicios S.A. de C.V. (5) Mexico Cloud consulting and implementation services 100.00 % - - Avanxo Brasil Tecnología da Informacao LTDA (5) Brasil Cloud consulting and implementation services 100.00 % - - Orizonta Consutoria De Negocios E Tecnologia LTDA (5) Brasil Cloud consulting and implementation services 100.00 % - - Avanxo S.A. (5) Argentina Cloud consulting and implementation services 100.00 % - - Avanxo - Sucursal del Perú (5) Perú Cloud consulting and implementation services 100.00 % - - Avanxo Colombia (5) Colombia Cloud consulting and implementation services 100.00 % - - Belatrix Global Corporation S.A. (6) Spain Holding and investment activities 100.00 % - - BSF S.A. (6) Argentina Agile product development services 100.00 % - - Belatrix Peru SAC (6) Peru Agile product development services 100.00 % - - Belatrix Colombia SAS (6) Colombia Agile product development services 100.00 % - - Belatrix Service Corp (6) United States Of America Agile product development services 100.00 % - - (1) On December 31, 2017, Huddle Group S.A. was merged into Sistemas Globales S.A. (currently under registration). (2) On October 26, 2018, the sellers exercised the put option on the non-controlling interest of Dynaflows (see note 25.2). (3) Globant Ventures S.A.S was registered on January 17, 2019. (4) Software Product Creation SL Dubai Branch obtained its definitive professional license on February 21, 2019 . (5) Avanxo (Bermuda) Limited along with its subsidiaries in Brazil, Mexico, Colombia, Peru, Argentina and the United States ("Avanxo Group") were acquired on February 1, 2019 (see note 25.8). (6) Belatrix Global Corporation S.A along with its subsidiaries in Peru, Colombia, Spain, the United States and Argentina ("Belatrix Group") were acquired on August 9, 2019 (see note 25.9). |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of revenue from contracts with customers [Abstract] | |
Disclosure of disaggregation of revenue | The following tables present the Company’s revenues disaggregated by type of contracts, by revenue source regarding the industry vertical of the client and by currency. The Company provides technology services to enterprises in a range of industry verticals including media and entertainment, travel and hospitality, professional services, technology and telecommunications, banks, financial services and insurance and consumer, retail and manufacturing, among others. The Company understands that disaggregating revenues into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenues may be affected by economic factors. However, this information is not considered by the chief operating decision-maker to allocate resources and in assessing financial performance of the Company. As noted in the business segment reporting information in note 26, the Company operates in a single operating and reportable segment. For the year ended December 31, By Industry vertical 2019 2018 2017 Media and Entertainment 156,292 133,093 99,640 Travel & Hospitality 92,773 89,212 68,400 Banks, Financial Services and Insurance 143,788 114,439 94,994 Technology & Telecommunications 88,183 67,310 60,648 Professional Services 73,282 52,318 40,660 Consumer, Retail & Manufacturing 85,698 54,087 36,025 Other Verticals 19,309 11,851 13,072 TOTAL 659,325 522,310 413,439 For the year ended December 31, By Currency 2019 2018 2017 United States dollar (USD) 563,747 447,314 354,824 European euro (EUR) 28,237 30,087 23,518 Pound sterling (GBP) 3,012 6,550 4,107 Argentine peso (ARS) 26,948 20,651 12,856 Mexican peso (MXN) 19,939 11,711 6,942 Colombian peso (COP) 6,831 4,068 2,341 Brazilian real (BRL) 8,030 46 126 Others 2,581 1,883 8,725 TOTAL 659,325 522,310 413,439 For the year ended December 31, By Contract Type 2019 2018 2017 Time and material contracts 544,131 431,295 376,718 Fixed-price contracts 106,386 90,980 36,687 Subscription resales 8,525 — — Others 283 35 34 TOTAL 659,325 522,310 413,439 |
COST OF REVENUES AND SELLING,_2
COST OF REVENUES AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Cost of revenues | Cost of revenues For the year ended December 31, 2019 2018 2017 Salaries, employee benefits and social security taxes (366,594 ) (293,171 ) (239,013 ) Shared-based compensation expense (4,976 ) (4,248 ) (5,666 ) Depreciation and amortization expense (7,350 ) (4,022 ) (4,339 ) Travel and housing (17,115 ) (6,623 ) (6,631 ) Office expenses (2,583 ) (2,082 ) (1,692 ) Professional services (4,440 ) (5,248 ) (5,005 ) Promotional and marketing expenses (252 ) (1,575 ) (244 ) Recruiting, training and other employee expenses (1,854 ) (1,382 ) (415 ) Taxes — (203 ) (166 ) TOTAL (405,164 ) (318,554 ) (263,171 ) |
Selling, general and administrative expense | Selling, general and administrative expenses For the year ended December 31, 2019 2018 2017 Salaries, employee benefits and social security taxes (69,056 ) (47,805 ) (41,956 ) Share-based compensation expense (14,912 ) (8,665 ) (8,798 ) Rental expenses (1) (5,260 ) (17,185 ) (13,739 ) Office expenses (10,733 ) (11,602 ) (11,800 ) Professional services (13,167 ) (13,754 ) (9,885 ) Travel and housing (7,259 ) (6,259 ) (4,460 ) Taxes (16,201 ) (6,126 ) (6,140 ) Depreciation and amortization expense (16,905 ) (16,521 ) (11,789 ) Depreciation expense of right-of-use assets (14,584 ) — — Recruiting, training and other employee expenses (2,299 ) (1,507 ) (941 ) Promotional and marketing expenses (2,102 ) (3,763 ) (1,305 ) TOTAL (172,478 ) (133,187 ) (110,813 ) (1) Includes rental expenses from short–term leases and leases of low–value assets due to the impact of the adoption of IFRS 16 since January 1, 2019. |
FINANCE INCOME _ EXPENSE (Table
FINANCE INCOME / EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Schedule of Finance Income and Cost | For the year ended December 31, 2019 2018 2017 Finance income Interest gain 958 407 479 Gain arising from financial assets measured at fair value through PL 4,977 3,869 923 Gain arising from financial assets measured at fair value through OCI (*) 72 258 240 Gain arising from financial assets measured at amortised cost 120 — — Foreign exchange gain 7,516 6,884 6,314 Subtotal 13,643 11,418 7,956 Finance expense Interest expense on borrowings (1,226 ) (152 ) (95 ) Interest expense on lease liabilities (3,464 ) — — Loss arising from financial assets measured at fair value through PL (3,770 ) (1,106 ) (620 ) Loss arising from financial assets measured at amortised cost (21 ) — — Foreign exchange loss (16,357 ) (14,321 ) (9,043 ) Other interest (419 ) (525 ) (788 ) Other (1,544 ) (864 ) (490 ) Subtotal (26,801 ) (16,968 ) (11,036 ) TOTAL (13,158 ) (5,550 ) (3,080 ) (*) As of December 31, 2019 , 2018 and 2017 includes 373 , 12 and 27 , respectively, related to the gain recognized as Other comprehensive income . |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Components of tax expense | For the year ended December 31, 2019 2018 2017 Tax expense: Current tax expense (19,327 ) (23,324 ) (14,053 ) Deferred tax gain (1) 4,310 7,456 5,972 TOTAL INCOME TAX EXPENSE (15,017 ) (15,868 ) (8,081 ) (1) As of December 31, 2017, includes 1,004 of deferred tax gain related to changes in tax rates. |
Reconciliation of the statutory tax rate to the effective tax rate | The following table provides a reconciliation of the statutory tax rate to the effective tax rate. As the operations of the Argentine subsidiaries are the most significant source of net taxable income of the Company, the following reconciliation has been prepared using the Argentine tax rate: For the year ended December 31, 2019 2018 2017 Profit before income tax 69,032 67,464 38,544 Tax rate (note 3.7.1.1) 30 % 30 % 35 % Income tax expense (20,710 ) (20,239 ) (13,490 ) Permanent differences Argentine Software Promotion Regime (note 3.7.1.1) 3,256 6,844 3,541 Effect of different tax rates of subsidiaries operating in countries other than Argentina 7,996 4,352 2,019 Non-deductible expenses 925 1,130 1,187 Tax loss carry forward not recognized (2,402 ) (1,462 ) (374 ) Exchange difference (4,365 ) (8,777 ) (860 ) Other 283 2,284 (104 ) INCOME TAX EXPENSE RECOGNIZED IN PROFIT AND LOSS (15,017 ) (15,868 ) (8,081 ) |
Deferred tax assets | The roll forward of the deferred tax assets/(liabilities) presented in the consolidated financial position is as follows: 2019 Opening Recognised in Recognised in Recognised Acquisitions/ Additions from Closing balance profit or loss (*) other comprehensive directly in equity disposals business combinations balance income Deferred tax assets/(liabilities) in relation to: Share-based compensation plan 4,731 718 — 9,864 (3,726 ) — 11,587 Provision for vacation and bonus 6,624 (275 ) — — — 184 6,533 Intercompany trade payables 2,207 1,346 — — — — 3,553 Property and equipment 716 447 — — — — 1,163 Goodwill (1,005 ) (747 ) — — — — (1,752 ) Contingencies 546 168 — — — — 714 Other assets — (389 ) — — — (639 ) (1,028 ) Others 1,236 1,795 — — — — 3,031 Subtotal 15,055 3,063 — 9,864 (3,726 ) (455 ) 23,801 Loss carryforward 1,861 876 (698 ) — — — 2,039 TOTAL 16,916 3,939 (698 ) 9,864 (3,726 ) (455 ) 25,840 (*) Includes foreign exchange loss o f 371 . 2018 Opening Recognised in Recognised in Recognised Acquisitions/ Closing balance profit or loss (*) other comprehensive directly in equity disposals balance income Deferred tax assets/(liabilities) in relation to: Share-based compensation plan 5,772 915 — 2,367 (4,323 ) 4,731 Provision for vacation and bonus 1,309 5,315 — — — 6,624 Intercompany trade payables 3,126 (919 ) — — — 2,207 Property and equipment 756 (40 ) — — — 716 Goodwill (479 ) (526 ) — — — (1,005 ) Contingencies — 546 — — — 546 Others 297 939 — — — 1,236 Subtotal 10,781 6,230 — 2,367 (4,323 ) 15,055 Loss carryforward 2,405 321 (165 ) — (700 ) 1,861 TOTAL 13,186 6,551 (165 ) 2,367 (5,023 ) 16,916 (*) Includes foreign exchange loss o f 905 . As of December 31, 2019 2018 Share-based compensation plan 11,587 4,731 Provision for vacation and bonus 6,533 6,624 Intercompany trade payables 3,553 2,207 Property and equipment 1,163 716 Goodwill (1,752 ) (1,005 ) Contingencies 714 546 Others 3,031 1,236 Loss carryforward (1) 2,039 1,861 TOTAL DEFERRED TAX ASSETS 26,868 16,916 As of December 31, 2019 2018 Other Assets (1,028 ) — TOTAL DEFERRED TAX LIABILITIES (1,028 ) — (1) As of December 31, 2019 and 2018 , the detail of the loss carryforward is as follows: 2019 2018 Company Loss carryforward Expiration date Loss carryforward Expiration date Globant S.A. — 547 does not expire Dynaflows S.A. 138 2024 96 2020 Dynaflows S.A. 53 2023 — Dynaflows S.A. 4 2022 — IAFH Global S.A 594 2024 — Globant Brasil Consultoría Ltda. (2) 767 does not expire 887 does not expire Sistemas UK Limited — — 116 does not expire We Are London Limited 163 does not expire 215 does not expire Difier S.A 3 does not expire — Sistemas Globales S.A. 25 2023 — Avanxo S.A. 129 2024 — BSF S.A. 140 2024 — Avanxo - Sucursal del Perú 20 2022 — Globant France S.A.S. 3 does not expire — 2,039 1,861 (2) The amount of the carryforward that can be utilized for Globant Brasil Consultoría Ltda. is limited to 30% of taxable income in each carryforward year. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Earnings and weighted average number of shares used in the calculation of basic and diluted earnings per share | The earnings and weighted average number of shares used in the calculation of basic and diluted earnings per share are as follows: For the year ended December 31, 2019 2018 2017 Net income for the year attributable to owners of the Company 54,015 51,677 30,539 Weighted average number of shares (in thousands) for the purpose of basic earnings per share 36,586 35,746 34,919 Weighted average number of shares (in thousands) for the purpose of diluted earnings per share 37,674 36,685 36,094 BASIC EARNINGS PER SHARE $1.48 $1.45 $0.87 DILUTED EARNINGS PER SHARE $1.43 $1.41 $0.84 |
Potentially anti-dilutive ordinary shares excluded from the weight average number of ordinary shares for diluted earnings per share | The following potential ordinary shares are anti-dilutive and are therefore excluded from the weight average number of ordinary shares for the purpose of diluted earnings per share: For the year ended December 31, 2019 2018 2017 Shares deemed to be issued in respect of employee options 4,470 205,940 603,159 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of cash and cash equivalents | As of December 31, 2019 2018 Cash and bank balances 62,426 63,574 Time deposits 295 14,032 TOTAL 62,721 77,606 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of current investments | As of December 31, Current 2019 2018 Mutual funds (1) 19,384 4,050 Bills issued by the Treasury of the Argentine Republic ("LETEs") (2) 396 1,015 Bills issued by the Treasury Department of the U.S. ("T-Bills") (2) — 3,493 Capitalizable bills issued by the Treasury of the Argentine Republic ("LECAPs") (2) — 77 TOTAL 19,780 8,635 (1) Measured at fair value through profit or loss. (2) Measured at fair value through other comprehensive income. As of December 31, Non current 2019 2018 Contribution to risk funds (3) 418 527 TOTAL 418 527 (3) On December 27, 2018, the Company signed an agreement pursuant to which the Company made a contribution to the risk fund of a Mutual Guarantee Company. Such contribution accrues an interest which is collectible on a quarterly basis. As of December 31, 2019 and 2018, the Company has recorded 418 and 527 , respectively, as a non current investment, measured at amortised cost. |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade receivables | As of December 31, 2019 2018 Accounts receivable (1) 146,382 101,754 Unbilled revenue 13,970 13,101 Subtotal 160,352 114,855 Less: Allowance for doubtful accounts (3,676 ) (3,957 ) TOTAL 156,676 110,898 (1) Includes amounts due from related parties of 91 and 993 as of December 31, 2019 and 2018 (see note 23.1 ). |
Analysis of age of financial assets that are past due but not impaired | The following tables detail the risk profile of trade receivables based on the Company's provision matrix as of December 31, 2019 and 2018 . December 31, 2019 Trade receivables - days past due < 30 31 - 60 61 - 90 91-120 121-180 > 180 Total Expected credit loss rate 0.80% 2.00% 3.50% 7.80% 20.30% 79.50% Estimated total gross carrying amount at default 21,165 8,852 3,091 829 410 3,867 38,214 Lifetime ECL 169 177 108 65 83 3,074 3,676 December 31, 2018 Trade receivables - days past due < 30 31 - 60 61 - 90 91-120 > 120 Total Expected credit loss rate 0.06% 1.90% 4.40% 11.90% 85.90% Estimated total gross carrying amount at default 17,815 6,843 2,814 2,778 3,801 34,051 Lifetime ECL 107 130 124 331 3,265 3,957 |
Rollforward of the Allowance for Doubtful Accounts | The following table shows the movement in ECL that has been recognised for trade receivables in accordance with the simplified approach: As of December 31, 2019 2018 2017 Balance at beginning of year (3,957 ) (609 ) (617 ) Additions, net of recoveries (note 4.4) (275 ) (3,421 ) 5 Write-off of receivables 556 73 3 Balance at end of year (3,676 ) (3,957 ) (609 ) |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Other Receivables | As of December 31, 2019 2018 Other receivables Current Tax credit - VAT 2,592 5,202 Tax credit - Software Promotion Regime (note 3.7.1.1) 4,504 3,555 Income tax credits 4,534 1,410 Other tax credits 577 276 Advances to suppliers 1,666 611 Prepaid expenses 4,268 3,982 Loans granted to employees 211 49 Other 956 256 TOTAL 19,308 15,341 As of December 31, 2019 2018 Non-current Advances to suppliers (1) 3,579 28,799 Tax credit - VAT 1,004 1,031 Income tax credits 1,516 1,259 Tax credit - Software Promotion Regime (note 3.7.1.1) — 749 Other tax credits 209 170 Guarantee deposits 2,683 1,681 Loans granted to employees 152 208 Prepaid expenses 45 475 Other — 500 Subtotal 9,188 34,872 Allowance for impairment of tax credits (378 ) (675 ) TOTAL 8,810 34,197 (1) Includes advances to acquire buildings as of December 31, 2018 (Note 22). |
Schedule of Allowance for Impairment of Tax Credits | Roll forward of the allowance for impairment of tax credits As of December 31, 2019 2018 2017 Balance at beginning of year 675 1,300 — (Recovery) additions (note 4.4) (47 ) 48 1,586 Foreign exchange (250 ) (673 ) (286 ) Balance at end of year 378 675 1,300 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | Property and equipment as of December 31, 2019 included the following: Computer equipment and software Furniture and office supplies Office fixtures Vehicles Buildings Lands Properties under construction Total Useful life (years) 3 5 3 5 50 Cost Values at beginning of year 30,053 7,142 41,904 37 13,401 2,354 4,365 99,256 Additions related to business combinations (note 25.12) 878 727 1,585 71 420 — — 3,681 Additions 8,397 570 1,055 — — — 37,015 47,037 Transfers 48 1,369 5,787 — — — (7,204 ) — Disposals (268 ) (42 ) — — — — (5 ) (315 ) Translation (169 ) (167 ) 26 — — — — (310 ) Values at end of year 38,939 9,599 50,357 108 13,821 2,354 34,171 149,349 Depreciation Accumulated at beginning of year 18,873 4,296 23,997 21 609 — — 47,796 Additions 6,759 1,225 6,283 7 268 — — 14,542 Disposals (191 ) (46 ) — — — — — (237 ) Translation (164 ) (131 ) 10 — — — — (285 ) Accumulated at end of year 25,277 5,344 30,290 28 877 — — 61,816 Carrying amount 13,662 4,255 20,067 80 12,944 2,354 34,171 87,533 Property and equipment as of December 31, 2018 included the following: Computer equipment and software Furniture and office supplies Office fixtures Vehicles Buildings Lands Properties under construction Total Useful life (years) 3 5 3 5 50 Cost Values at beginning of year 23,381 5,810 33,275 37 6,981 2,354 11,167 83,005 Additions related to business combinations (note 25.12) — 5 43 — — — — 48 Additions 7,055 719 1,083 — — — 10,065 18,922 Transfers 6 845 9,596 — 6,420 — (16,867 ) — Disposals (353 ) (229 ) (2,005 ) — — — — (2,587 ) Translation (36 ) (8 ) (88 ) — — — — (132 ) Values at end of year 30,053 7,142 41,904 37 13,401 2,354 4,365 99,256 Depreciation Accumulated at beginning of year 14,609 3,694 20,421 13 389 — — 39,126 Additions 4,641 832 5,529 8 220 — — 11,230 Disposals (346 ) (224 ) (1,868 ) — — — — (2,438 ) Translation (31 ) (6 ) (85 ) — — — — (122 ) Accumulated at end of year 18,873 4,296 23,997 21 609 — — 47,796 Carrying amount 11,180 2,846 17,907 16 12,792 2,354 4,365 51,460 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Disclosure of intangible assets | Intangible assets as of December 31, 2019 included the following: Licenses and internal developments Customer relationships and contracts Non-compete agreement Total Useful life (years) 5 1 - 4 3 Cost Values at beginning of year 36,957 10,896 586 48,439 Additions related to business combinations (note 25.12) — 14,389 — 14,389 Additions from separate acquisitions 4,188 — — 4,188 Additions from internal development 7,212 — — 7,212 Disposals (26 ) — — (26 ) Translation (13 ) — — (13 ) Values at end of year 48,318 25,285 586 74,189 Amortization and impairment Accumulated at beginning of year 26,179 9,896 586 36,661 Additions 8,589 1,124 — 9,713 Impairment loss recognised in profit or loss (note 4.6) 720 — — 720 Disposals (2 ) — — (2 ) Translation (13 ) — — (13 ) Accumulated at end of year 35,473 11,020 586 47,079 Carrying amount 12,845 14,265 — 27,110 Intangible assets as of December 31, 2018 included the following: Licenses and internal developments Customer relationships and contracts Non-compete agreement Total Useful life (years) 5 1 - 4 3 Cost Values at beginning of year 27,381 10,153 586 38,120 Additions related to business combinations (note 25.12) — 173 — 173 Additions from separate acquisitions 3,480 — — 3,480 Additions from internal development 6,104 — — 6,104 Translation (8 ) 570 — 562 Values at end of year 36,957 10,896 586 48,439 Amortization and impairment Accumulated at beginning of year 17,325 8,844 586 26,755 Additions 8,556 757 — 9,313 Impairment loss recognised in profit or loss (note 4.6) 306 — — 306 Translation (8 ) 295 — 287 Accumulated at end of year 26,179 9,896 586 36,661 Carrying amount 10,778 1,000 — 11,778 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Other Assets | The outstanding balance of other assets as of December 31, 2019 and 2018 is as follows: As of December 31, 2019 2018 Other assets Current 13,439 — Non-current 7,796 — TOTAL 21,235 — |
TRADE PAYABLES (Tables)
TRADE PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure Of Trade Payables | As of December 31, 2019 2018 Current Suppliers 10,623 6,137 Advanced payments from customers — 291 Expenses accrual 20,864 11,150 TOTAL 31,487 17,578 As of December 31, 2019 2018 Non current Expenses accrual 5,500 — TOTAL 5,500 — |
PAYROLL AND SOCIAL SECURITY T_2
PAYROLL AND SOCIAL SECURITY TAXES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of Payroll and Social Security Taxes Payable | As of December 31, 2019 2018 Salaries 8,376 4,434 Social security tax 13,564 7,548 Provision for vacation, bonus and others 49,909 46,181 Directors fees 281 315 Other 122 57 TOTAL 72,252 58,535 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of borrowings | The principal balances of outstanding borrowings under lines of credit with banks and financial institutions were as follows: As of December 31, 2019 2018 HSBC Bank and Citibank - Syndicated loan (United States) 50,363 — Banco Santander (Colombia) 549 — Banco Supervielle (Argentina) 309 — Banco ICBC (Argentina) 96 — Others 69 — TOTAL 51,386 — Such balances were included as current and non-current borrowings in the consolidated statement of financial position as follows: As of December 31, 2019 2018 Current borrowings 1,198 — Non-current borrowings 50,188 — TOTAL 51,386 — Movements in borrowings are analyzed as follows: As of December 31, 2019 2018 2017 Balance at the beginning of year — 6,011 217 Borrowings related to business combination (note 25.12) (1) (4) 1,290 — — Proceeds from new borrowings (2) (5) 90,523 — 22,000 Payment of borrowings (3) (5) (41,570 ) (6,163 ) (16,293 ) Accrued interest (4) 1,226 152 95 Foreign exchange (4) (83 ) — (8 ) TOTAL 51,386 — 6,011 (1) Corresponds to borrowings with Banco de Bogotá and BBVA, with maturity date in September 2019, ICBC with maturity date November 2020 and Supervielle with maturity date in July 2022. These borrowings do not have covenants. (2) On April 12, 2019, August 6, 2019, August 8, 2019 and October 28, 2019 Globant LLC borrowed 25,000 , 30,000 , 10,000 and 25,000 , respectively under the Amended and Restated Credit Agreement. From the loans mentioned, 50,000 will mature on October 31, 2023 and 40,000 before December 31, 2019. On September 26, 2019, Avanxo borrowed 523 from Banco Santander with maturity date on March 26, 2020. During 2017, Sistemas Globales S.A. and IAFH Global S.A., entered into 6 loan agreements with Santander Rio for a total amount o f 16,000 . These loans matured before December 31, 2017. On December 19, 2017, Globant LLC has borrowed 6,000 under the credit facility mentioned above. This loan matured on July 23, 2018 . (3) During the year ended on December 31, 2019, the principal payments were as follows, Globant LLC paid 40,301 of the 40,000 borrowed under the Amended and Restated Credit Agreement. In September 2019, Avanxo Colombia paid 520 related to the borrowing with BBVA and paid 37 in interests regarding the borrowing with Santander in November 2019. During the year ended in December 31, 2019, BSF, S.A paid 52 and 39 regarding the borrowings with Supervielle and ICBC, respectively. On July 23, 2018, Globant LLC paid 6,163 borrowed in December 2017, under de A&R Credit Agreement. During December 2017, the Company through its Argentine subsidiary, Sistemas Globales S.A and IAFH Global S.A., paid 16,293 of the loan agreements acquired with Santander Rio in 2017. (4) Non-cash transactions. (5) Cash transactions. |
TAX LIABILITIES (Tables)
TAX LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Tax Liabilities | As of December 31, 2019 2018 Income tax 4,612 4,526 Periodic payment plan 17 28 Software Promotion Law - Annual and monthly rates 366 523 VAT payable 2,558 1,208 Wage withholding taxes 1,266 558 Sales taxes payable 1,576 — Other 2,115 556 TOTAL 12,510 7,399 |
PROVISIONS FOR CONTINGENCIES (T
PROVISIONS FOR CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Breakdown of reserves for lawsuits claims and other disputed matters | Breakdown of reserves for lawsuits claims and other disputed matters include the following: As of December 31, 2019 2018 Reserve for labor claims 91 678 Reserve for commercial claims 1,000 — Reserve for regulatory claims 1,511 2,184 TOTAL 2,602 2,862 |
Roll forward of other provisions | Roll forward is as follows: As of December 31, Reserve for labor claims 2019 2018 2017 Balance at beginning of year 678 49 1,138 Additions 907 926 187 Recovery (1,247 ) — — Utilization of provision for contingencies (99 ) (222 ) (1,288 ) Foreign exchange (148 ) (75 ) 12 Balance at end of year 91 678 49 As of December 31, Reserve for regulatory claims 2019 2018 2017 Balance at beginning of year 2,184 1,130 807 Additions (1) 219 1,144 340 Recovery (879 ) — — Utilization of provision for contingencies (95 ) — (32 ) Foreign exchange 82 (90 ) 15 Balance at end of year 1,511 2,184 1,130 As of December 31, Reserve for commercial claims 2019 2018 2017 Balance at beginning of year — — — Additions (2) 1,000 — — Balance at end of year 1,000 — — (1) As of December 31, 2019, the Company's Colombian subsidiary is currently under examination by the Unidad de Gestión Pensional y Parafiscales ("UGPP") regarding social contribution payments for the year 2016. On November 6, 2019, the UGPP issued a demand letter to the Company's Colombian subsidiary proposing a preliminary assessment of $ 2.1 million plus penalties and interest for social contribution payments during such year and requesting to revert with its own assessment. The response letter was presented on February 5, 2019, after which the UGPP will have six months to issue its final determination. Also, certain of the Company's non-U.S. subsidiaries are currently under examination by the U.S. Internal Revenue Service (“IRS”) regarding payroll and employment taxes primarily in connection with services performed by employees of the Company's subsidiaries in the United States from 2013 to 2015. On May 1, 2018, the IRS issued 30-day letters to those subsidiaries proposing total assessments of $ 1.4 million plus penalties and interest for employment taxes for those years. The Company's subsidiaries filed protests of these proposed assessments with the IRS on July 16, 2018 and as of December 31, 2019 the Company has not received an answer. (2) On August 8, 2019, Certified Collectibles Group, LLC (“CCG”) and its affiliates filed a complaint in the U.S. District Court for the Middle District of Florida, Tampa Division, (Civil Action No. 19-CV-1962) against Globant S.A. and Globant, LLC. The complaint, arising from a dispute relating to a service contract, alleges nine causes of action against Globant, LLC: (1) fraudulent inducement of contract; (2) fraud; (3) fraudulent concealment; (4) negligent misrepresentation; (5) breach of contract and breach of express warranty; (6) violation of Florida’s Deceptive and Unfair Trade Practices Act; (7) professional negligence; (8) declaratory judgment; and (9) unjust enrichment. The complaint names Globant S.A. as a defendant with respect to several of these causes of action (counts 2-4, 6-7, and 9), on the alleged theory that Globant S.A. was an “alter ego” or agent of Globant, LLC. Globant, LLC has filed a motion to dismiss the complaint for failure to state a claim, and Globant S.A. has filed a motion to dismiss for lack of personal jurisdiction. CCG has opposed these filings. The court has not yet ruled on the motions to dismiss. |
RELATED PARTIES BALANCES AND _2
RELATED PARTIES BALANCES AND TRANSCATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Disclosure of transactions between related parties | The Company also provides software services to Morgan Stanley, which holds a share over 5% on the Company. Outstanding receivable balances as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 2018 Mercado Libre S.R.L. — 440 TNS — 56 Morgan Stanley Investment Management Inc. 91 497 Total 91 993 During the year ended December 31, 2019 , 2018 and 2017 , the Company recognized revenues for 1,419 , 5,937 and 5,590 , respectively, as follows: For the year ended December 31, 2019 2018 2017 Added Value — — 13 Grey Global Group Inc. (*) — 472 1,238 Group M Worldwide Inc (*) — 102 521 JWT (*) — 204 1,043 Kantar Group (*) — 216 791 Kantar Retail (*) — 39 93 Ogilvy & Mather Brasil Comunication (*) — 82 1,677 JP Morgan Chase & Co. (*) — 1,784 — JP Morgan Chase S.A. (*) — 48 — JP Morgan Services Argentina S.R.L. (*) — 1,503 — TNS (*) — 8 30 Morgan Stanley Investment Management Inc. 1,257 964 — Mercado Libre S.R.L. 162 515 143 Mirum Inc. — — 41 Total 1,419 5,937 5,590 ( *) WPP and JP Morgan subsidiaries were no longer considered related parties as of December 31, 2019. The remuneration of directors and other members of key management personnel during each of the three years are as follows: For the year ended December 31, 2019 2018 2017 Salaries and bonuses 6,914 5,140 4,507 Total 6,914 5,140 4,507 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Evolution of share options outstanding | The following tables summarizes the RSU vested during the years 2019 and 2018 : December 31, 2019 December 31, 2018 Number of RSUs vested Grant price Number of RSUs vested Grant price Granted in 2017 500 36.30 500 36.30 Granted in 2017 45,283 37.00 45,906 37.00 Granted in 2017 — 38.21 2,671 38.21 Granted in 2017 2,250 42.00 2,250 42.00 Granted in 2018 — 45.50 107,463 45.50 Granted in 2018 — 53.29 4,443 53.29 Granted in 2018 100,206 46.00 — 46.00 Granted in 2018 1,000 55.07 — 55.07 Granted in 2018 436 57.39 — 57.39 Granted in 2018 1,000 52.74 — 52.74 Granted in 2018 2,500 50.92 — 50.92 Granted in 2018 1,500 56.87 — 56.87 Granted in 2019 27,185 69.77 — 69.77 Balance at end of the year 181,860 163,233 The following shows the evolution of the share options for the years ended at December 31, 2019 and 2018 : As of December 31, 2019 As of December 31, 2018 Number of options Weig hted average exercise price Number of options Weighted average exercise price Balance at the beginning of year 1,786,467 27.96 2,155,851 23.02 Options granted during the year 4,000 52.10 221,000 46.45 Forfeited during the year (21,625 ) 31.77 (78,716 ) 36.89 Exercised during the year (717,240 ) 22.06 (511,668 ) 13.76 Balance at end of year 1,051,602 31.82 1,786,467 27.96 24.2 - Share options exercised and RSU vested during the year: As of December 31, 2019 As of December 31, 2018 Number of options exercised Exercise Number of options exercised Exercise Granted in 2006 — 0.95 9,900 0.95 Granted in 2007 — 0.71 200,000 0.71 Granted in 2007 — 1.40 616 1.40 Granted in 2010 — 2.48 1,793 2.48 Granted in 2010 — 3.38 19,732 3.38 Granted in 2011 — 2.71 6,031 2.71 Granted in 2012 22,170 6.77 — 6.77 Granted in 2012 1,103 0.95 — 0.95 Granted in 2012 1,304 2.48 — 2.48 Granted in 2012 13,223 3.38 — 3.38 Granted in 2012 22,170 10.00 — 10.00 Granted in 2012 47,169 12.22 — 12.22 Granted in 2014 173,211 10.00 66,146 10.00 Granted in 2014 — 13.20 3,769 13.20 Granted in 2015 163,834 28.31 111,843 28.31 Granted in 2015 8,000 34.20 3,000 34.20 Granted in 2015 12,097 29.34 1,200 29.34 Granted in 2015 30,000 22.77 — 22.77 Granted in 2016 105,020 29.01 18,750 29.01 Granted in 2016 98,939 32.36 68,888 32.36 Granted in 2018 5,000 44.97 — 44.97 Granted in 2018 10,000 46.00 — 46.00 Granted in 2018 1,500 50.92 — 50.92 Granted in 2018 2,500 55.07 — 55.07 Balance at end of the year 717,240 511,668 The following shows the evolution of the RSUs for the years ended at December 31, 2019 and 2018 : As of December 31, 2019 As of December 31, 2018 Number of RSU Weighted average grant price Number of RSU Weighted average grant price Balance at the beginning of year 535,838 44.70 164,859 37.58 RSU granted during the year 309,539 85.80 564,995 46.29 Forfeited during the year (38,621 ) 47.69 (30,783 ) 44.14 Issued during the year (181,860 ) 37.00 (163,233 ) 43.13 Balance at end of year 624,896 64.05 535,838 44.70 |
Share-based compensation plan at the end of the year | The following tables summarizes the RSU at the end of the year: Grant date Grant price ($) Number of Restricted Stock Units Fair value at grant date ($) Expense as of December 31, 2019 ($) (*) 2017 36.30 1,000 36 18 37.00 45,242 1,674 2,217 42.00 3,250 137 77 2018 46.00 281,180 12,934 5,221 50.92 7,500 382 129 52.74 3,000 158 54 55.07 3,000 165 56 56.87 — — 67 2019 52.10 2,400 125 61 87.44 268,750 23,500 6,450 94.93 4,000 380 116 69.77 — — 446 103.75 3,000 311 20 Subtotal 622,322 39,802 14,932 Non employees RSU 2018 46.00 — — 35 57.39 — — 18 2019 87.44 2,574 225 126 Subtotal 2,574 225 179 Total 624,896 40,027 15,111 The following tables summarizes the share options at the end of the year: Grant date Exercise price ($) Number of stock options Number of stock options vested as of December 31, 2019 Fair value at grant date ($) Fair value vested ($) Expense as of December 31, 2019 (*) 2012 0.95 — — — — 5 2.48 — — — — 9 3.38 — — — — 85 12.22 — — — — — 2014 10.00 107,826 107,826 359 359 500 2015 22.77 — — — — — 28.31 205,748 205,748 1,426 1,426 1,422 29.34 3,875 3,875 26 26 — 34.20 5,500 5,500 47 47 39 2016 29.01 117,480 52,480 810 362 888 32.36 338,173 211,798 2,740 1,716 1,487 2017 38.16 30,000 20,000 273 182 91 36.30 15,000 7,500 127 64 32 2018 44.97 15,000 — 268 — 118 46.00 170,000 36,250 3,434 732 1,349 55.07 7,500 — 181 — 97 50.92 4,500 — 101 — 61 2019 52.10 4,000 — 89 — 43 Subtotal 1,024,602 650,977 9,881 4,914 6,226 Non employees stock options 2016 39.37 27,000 20,250 248 186 62 Subtotal 27,000 20,250 248 186 62 Total 1,051,602 671,227 10,129 5,100 6,288 ( *) Includes social security taxes. |
Fair value of share-based compensation granted | The Company estimated the following assumptions for the calculation of the fair value of the share options: Assumptions Granted in Granted in Granted in Stock price 52.10 46.45 39.69 Expected option life 6 years 6 years 6 years Volatility 40% 40% 19% Risk-free interest rate 3.10% 3.00% 2.00% |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
Disclosure of detailed information about business combinations | The fair value of the consideration transferred for PointSource acquisition was calculated as follows: Purchase price at acquisition date Amount Down payment 15,500 Working capital adjustment 3,756 Contingent consideration 9,373 (a) Total consideration 28,629 (a) As of December 31, 2019 included 1,086 as Other financial liabilities current. As of December 31, 2018 , included 746 and 1,040 as Other financial liabilities current and non-current, respectively. The consideration transferred for Dynaflows acquisition was calculated as follows: Purchase price Amount Down payment 1,402 Installment payment 414 Total consideration 1,816 (a) (a) As of December 31, 2019 and 2018 the consideration was fully settled. The fair value of the consideration transferred for L4 acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 11,000 Working capital adjustment 817 (a) Contingent consideration 8,571 (a) Total consideration 20,388 (a) As of December 31, 2019 and 2018 the fair value of the contingent consideration was zero . The fair value of the consideration transferred for Small Footprint acquisition at the acquisition date was calculated as follows: Purchase price at acquisition date Amount Down payment 3,840 Working capital adjustment 488 Contingent consideration 3,029 (a) Total consideration 7,357 (a) As of December 31, 2018 , included 3,070 as other financial liabilities current. As of December 31, 2019 and 2018, the fair values of the assets acquired, liabilities assumed and goodwill, and the preliminary fair values of the assets acquired and goodwill of BI Live determined at the date of acquisition in the business combinations are as follows: 2019 acquisitions 2018 acquisitions Avanxo Belatrix BI Live Small Footprint Current Assets Cash and cash equivalents 2,749 3,929 — 191 Investments 948 86 — — Trade receivables 6,931 6,125 56 1,066 Other receivables 3,624 1,119 — 45 Other assets 11,015 — — — Non current assets Other receivables — 206 — — Property and equipment 500 3,181 — 48 Intangibles 6,104 8,285 — 173 Right-of-use asset — 3,272 — — Deferred tax — 184 — — Goodwill (1) 32,068 50,816 822 6,244 Current liabilities Trade and other payables (14,123 ) (3,195 ) — — Lease liabilities — (3,347 ) — — Tax liabilities (2,649 ) (1,138 ) — — Payroll and social security (1,582 ) (3,224 ) — — Other liabilities — (20 ) — (410 ) Borrowings (644 ) (646 ) — — Deferred tax liabilities (639 ) — — — Total consideration 44,302 65,633 878 7,357 (1) As of December 31, 2019 and 2018, 83,706 and 6,244 , are not deductible for tax purposes, respectively . The fair value of the consideration transferred for Belatrix acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 61,468 Contingent consideration 4,165 (a) Total consideration 65,633 (a) As of December 31, 2019 included 4,221 as Other financial liabilities current. The fair value of the consideration transferred for WAE acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 8,500 Working capital adjustment 1,352 Installment payment 551 (a) Contingent consideration 9,448 (a) Total consideration 19,851 (a) As of December 31, 2019 and 2018 , the consideration was fully settled. The consideration transferred for Globant India acquisition was calculated as follows: Purchase price Amount Down payment 9,324 Installment payment 2,483 (a) Contingent consideration 8,377 (a) Total consideration 20,184 (a) As of December 31, 2019 and 2018 included 1,580 and 3,127 as Other financial liabilities current, respectively, and as of December 31, 2018 included 1,527 as Other financial liabilities non-current. The fair value of the consideration transferred for Ratio acquisition was calculated as follows: Purchase price at acquisition date Amount Down payment 5,800 Working capital adjustment (97 ) Contingent consideration 3,826 (a) Total consideration 9,529 (a) As of December 31, 2019 includes 903 as Other financial liabilities current. As of December 31, 2018 included 1,992 and 851 as Other financial liabilities current and non-current, respectively . The fair value of the consideration transferred for Avanxo acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 42,144 Contingent consideration 2,158 (a) Total consideration 44,302 (a) As of December 31, 2019 included as 1,147 and 1,102 as Other financial liabilities current and non-current, respectively. The preliminary fair value of the consideration transfer for BI Live acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 366 Contingent consideration 512 (a) Total consideration 878 (a) As of December 31, 2019 includes 515 as Other financial liabilities non-current. |
Disclosure of financial liabilities | Outstanding balances of financial liabilities related to the above mentioned acquisitions as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 As of December 31, 2018 Other financial liabilities - current Other financial liabilities - non current Other financial liabilities - current Other financial liabilities - non current Clarice 1,580 — 3,127 1,527 Subscription agreement — — 400 — Ratio 903 — 1,992 851 PointSource 1,086 — 746 1,040 Small Footprint — — 3,070 — Avanxo 1,147 1,102 — — Belatrix 4,221 — — — BI Live — 515 — — Total 8,937 1,617 9,335 3,418 As of December 31, 2019 FVTPL FVTOCI Amortised cost Financial assets Cash and cash equivalents — — 62,721 Investments Mutual funds 19,384 — — LETEs — 396 — Contribution to risk funds — — 418 Trade receivables — — 156,676 Other assets — — 21,235 Other receivables — — 28,118 Other financial assets Convertible notes 3,536 — — Foreign exchange forward contracts 1,220 71 — Guarantee payments related to the future lease of a property under construction — — 1,383 As of December 31, 2019 FVTPL FVTOCI Amortised cost Financial liabilities Trade payables — — 36,987 Payroll and social security taxes payable — — 72,252 Borrowings — — 51,386 Other financial liabilities Other financial liabilities related to business combinations 10,554 — — Lease liabilities 61,363 — — Tax liabilities — — 12,510 Other liabilities — — 368 As of December 31, 2018 FVTPL FVTOCI Amortised cost Financial assets Cash and cash equivalents — — 77,606 Investments Mutual funds 4,050 — — LETEs — 1,015 — T-Bills — 3,493 — LECAPs — 77 — Contribution to risk funds — — 527 Trade receivables — — 110,898 Other receivables — — 49,538 Other financial assets Convertible notes 106 — — Foreign exchange forward contracts 44 — — Other financial asset related to the acquisition of Clarice 400 — — Guarantee payments related to the future lease of a property under construction — — 345 Financial liabilities Trade payables — — 17,578 Payroll and social security taxes payable — — 58,535 Other financial liabilities Foreign exchange forward contracts 12 — — Other financial liabilities related to business combinations 12,753 — — Tax liabilities — — 7,399 Other liabilities — — 44 |
Disclosure of reconciliation of changes in goodwill | A reconciliation of the goodwill from opening to closing balances is as follows: As of December 31, 2019 2018 Cost Balance at beginning of year 104,846 98,926 Additions related to new acquisitions (note 25.12) 83,706 6,244 Translation (14 ) (324 ) Balance at end of year 188,538 104,846 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Disclosure of geographical areas | The following table summarizes revenues by geography, based on the customers' location: For the year ended December 31, 2019 2018 2017 North America United States of America 483,228 400,029 322,658 Canada 13,125 7,061 2,956 Subtotal North America 496,353 407,090 325,614 Europe Spain 26,134 30,298 23,831 Netherlands 2,723 1,023 69 United Kingdom 15,672 12,970 9,996 Luxembourg 937 1,109 1,000 Germany 437 623 1,540 Sweden — — 1,317 Others 881 217 731 Subtotal Europe 46,784 46,240 38,484 Asia India 2,157 1,063 673 Indonesia 1,157 1,686 — Japan 1,062 — — Others 277 318 27 Subtotal Asia 4,653 3,067 700 Latin America and others Argentina 32,295 24,241 14,886 Brazil 7,964 238 358 Colombia 14,355 5,362 3,553 Chile 29,547 21,246 19,243 Uruguay 17 529 231 Mexico 20,623 11,949 7,418 Perú 6,251 1,718 2,627 Others 483 630 325 Subtotal Latin America and others 111,535 65,913 48,641 TOTAL 659,325 522,310 413,439 The following table summarizes non-current assets other than deferred taxes as stated in IFRS 8, paragraph 33.b, by jurisdiction: As of December 31, 2019 2018 Argentina 85,346 70,349 Spain 144,882 46,803 United States of America 70,054 58,083 Brazil 1,775 1,512 Uruguay 1,808 781 Luxembourg 4,289 4,353 Colombia 42,589 12,942 México 14,814 6,121 India 9,817 4,159 Chile 2,883 874 Peru 4,686 458 Other countries 1,502 718 TOTAL 384,445 207,153 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of leases [Abstract] | |
Summary of Right-of-Use Assets | Movements in right-of-use assets and lease liabilities as of December 31, 2019 were as follow : Right-of-use assets Office spaces Office equipments Total January 1, 2019 46,567 — 46,567 Additions 16,778 6,812 23,590 Additions from business combinations (note 25.12) 2,863 409 3,272 Depreciation (note 6) (14,519 ) (65 ) (14,584 ) Translation (64 ) — (64 ) December 31, 2019 51,625 7,156 58,781 |
Summary of Lease Liabilities Recognised | Operating lease commitments disclosed as at December 31, 2018 55,222 Discounted using the lessee's incremental borrowing rate of at the date of initial application 46,887 Lease liability recognised as at January 1, 2019 46,887 Lease liabilities January 1, 2019 46,887 Additions (1) 23,590 Additions from business combinations (note 25.12) 3,347 Foreign exchange difference (1) (92 ) Interest expense (1) 3,464 Payments (2) (15,833 ) December 31, 2019 61,363 (1) Non-cash transactions. (2) Cash transactions . |
Disclosure of additional information about leasing activities for lessee | The outstanding balance of the lease liabilities as of December 31, 2019 is as follows : Lease liabilities Current 19,439 Non-current 41,924 TOTAL 61,363 |
Summary of Lease Contracts Not Yet Commenced | The Company has some lease contracts that have not yet commenced as of December 31, 2019 . The future lease payments for these lease contracts are disclosed as follows: Year Amount 2020 1,413 2021 2,468 2022 2,731 2023 2,775 2024 2,855 2025 478 |
Disclosure of maturity analysis of operating lease payments | As required by the IAS 17, the undiscounted amounts of future fixed minimum annual lease commitments are as follows at December 31, 2018: Year Amount 2019 16,051 2020 14,097 2021 8,356 2022 6,500 2023 onwards 10,218 Total 55,222 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of financial assets | Except as detailed in the following table, the carrying amounts of financial assets and liabilities included in the consolidated statement of financial position as of December 31, 2019 and 2018 , are a reasonable approximation of fair value due to the short time of realization. As of December 31, 2019 As of December 31, 2018 Carrying amount Fair value Carrying amount Fair value Non-current assets Other receivables Guarantee deposits 2,683 2,571 1,681 1,539 Tax credit - VAT 626 (*) 600 356 (*) 326 Income tax credits 1,515 1,453 1,259 1,153 Tax credit - Software Promotion Regime — — 749 (*) 686 Other tax credits 210 200 170 157 Other assets 7,796 7,140 — — Non-current liabilities Trade payables 5,500 5,101 — — Borrowings 50,188 51,070 — — (*) As of December 31, 2019 and 2018 , is presented net of allowance for impairment of tax credit - VAT of 378 and 600 , respectively. As of December 31, 2018 is presented net of 74 related to allowance of Tax credit - Software Promotion Regime. As of December 31, 2019 and 2018 , the foreign exchange forward contracts that were recognized as financial assets and liabilities at fair value through profit or loss were as follows: Currency Foreign currency Notional foreign Fair value assets / Settlement date from contracts rate from contracts currency rate (liabilities) January 27, 2020 Indian Rupee 72.36 71.56 11 January 31, 2020 Chilean Peso 747.68 751.57 5 January 31, 2020 Colombian Peso 3,323.65 3,281.28 39 January 31, 2020 Colombian Peso 3,515.42 3,281.94 356 January 31, 2020 Colombian Peso 3,512.66 3,281.93 422 January 31, 2020 Uruguayan Peso 38.09 37.73 29 February 25, 2020 Indian Rupee 71.45 71.77 7 February 28, 2020 Colombian Peso 3,518.27 3,288.08 351 Fair value as of December 31, 2019 1,220 Currency Foreign currency Notional foreign Fair value assets / Settlement date from contracts rate from contracts currency rate (liabilities) January 31, 2019 Argentine Peso 40.06 39.67 26 February 28, 2019 Argentine Peso 41.54 41.17 15 April 30, 2019 Argentine Peso 44.44 44.30 3 Fair value as of December 31, 2018 44 April 30, 2019 Argentine Peso 44.26 44.3 (1 ) May 31, 2019 Argentine Peso 45.74 45.92 (5 ) May 31, 2019 Argentine Peso 45.69 45.92 (6 ) Fair value as of December 31, 2018 (12 ) As of December 31, 2019 FVTPL FVTOCI Amortised cost Financial assets Cash and cash equivalents — — 62,721 Investments Mutual funds 19,384 — — LETEs — 396 — Contribution to risk funds — — 418 Trade receivables — — 156,676 Other assets — — 21,235 Other receivables — — 28,118 Other financial assets Convertible notes 3,536 — — Foreign exchange forward contracts 1,220 71 — Guarantee payments related to the future lease of a property under construction — — 1,383 As of December 31, 2019 FVTPL FVTOCI Amortised cost Financial liabilities Trade payables — — 36,987 Payroll and social security taxes payable — — 72,252 Borrowings — — 51,386 Other financial liabilities Other financial liabilities related to business combinations 10,554 — — Lease liabilities 61,363 — — Tax liabilities — — 12,510 Other liabilities — — 368 As of December 31, 2018 FVTPL FVTOCI Amortised cost Financial assets Cash and cash equivalents — — 77,606 Investments Mutual funds 4,050 — — LETEs — 1,015 — T-Bills — 3,493 — LECAPs — 77 — Contribution to risk funds — — 527 Trade receivables — — 110,898 Other receivables — — 49,538 Other financial assets Convertible notes 106 — — Foreign exchange forward contracts 44 — — Other financial asset related to the acquisition of Clarice 400 — — Guarantee payments related to the future lease of a property under construction — — 345 Financial liabilities Trade payables — — 17,578 Payroll and social security taxes payable — — 58,535 Other financial liabilities Foreign exchange forward contracts 12 — — Other financial liabilities related to business combinations 12,753 — — Tax liabilities — — 7,399 Other liabilities — — 44 |
Disclosure of financial liabilities | Outstanding balances of financial liabilities related to the above mentioned acquisitions as of December 31, 2019 and 2018 are as follows: As of December 31, 2019 As of December 31, 2018 Other financial liabilities - current Other financial liabilities - non current Other financial liabilities - current Other financial liabilities - non current Clarice 1,580 — 3,127 1,527 Subscription agreement — — 400 — Ratio 903 — 1,992 851 PointSource 1,086 — 746 1,040 Small Footprint — — 3,070 — Avanxo 1,147 1,102 — — Belatrix 4,221 — — — BI Live — 515 — — Total 8,937 1,617 9,335 3,418 As of December 31, 2019 FVTPL FVTOCI Amortised cost Financial assets Cash and cash equivalents — — 62,721 Investments Mutual funds 19,384 — — LETEs — 396 — Contribution to risk funds — — 418 Trade receivables — — 156,676 Other assets — — 21,235 Other receivables — — 28,118 Other financial assets Convertible notes 3,536 — — Foreign exchange forward contracts 1,220 71 — Guarantee payments related to the future lease of a property under construction — — 1,383 As of December 31, 2019 FVTPL FVTOCI Amortised cost Financial liabilities Trade payables — — 36,987 Payroll and social security taxes payable — — 72,252 Borrowings — — 51,386 Other financial liabilities Other financial liabilities related to business combinations 10,554 — — Lease liabilities 61,363 — — Tax liabilities — — 12,510 Other liabilities — — 368 As of December 31, 2018 FVTPL FVTOCI Amortised cost Financial assets Cash and cash equivalents — — 77,606 Investments Mutual funds 4,050 — — LETEs — 1,015 — T-Bills — 3,493 — LECAPs — 77 — Contribution to risk funds — — 527 Trade receivables — — 110,898 Other receivables — — 49,538 Other financial assets Convertible notes 106 — — Foreign exchange forward contracts 44 — — Other financial asset related to the acquisition of Clarice 400 — — Guarantee payments related to the future lease of a property under construction — — 345 Financial liabilities Trade payables — — 17,578 Payroll and social security taxes payable — — 58,535 Other financial liabilities Foreign exchange forward contracts 12 — — Other financial liabilities related to business combinations 12,753 — — Tax liabilities — — 7,399 Other liabilities — — 44 |
Sensitivity analysis for types of market risk | The following tables illustrate the Company's sensitivity to increases and decreases in the U.S. dollar against the relevant foreign currency. The following sensitivity analysis includes outstanding foreign currency denominated monetary items at December 31, 2019 and adjusts their translation at the year-end for changes in U.S. dollars against the relevant foreign currency. Gain/(loss) Account Currency Amount % Increase Amount % Decrease Amount Net balances Argentine pesos 8,023 40 % (2,292 ) 10 % 891 Chilean pesos (2,789 ) 10 % 254 10 % (310 ) Colombian pesos (7,770 ) 10 % 706 10 % (863 ) Indian rupees (252 ) 10 % 23 10 % (28 ) Uruguayan pesos (4,034 ) 10 % 363 10 % (443 ) Total (6,822 ) (946 ) (753 ) |
Disclosure of maturity analysis for non-derivative financial liabilities | The table below analyzes financial liabilities into relevant maturity groups based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Expected Maturity Date 2020 2021 2022 Thereafter Total Borrowings 1,198 — 188 50,000 51,386 Lease liabilities 20,002 15,263 11,552 28,164 74,981 Other financial liabilities 8,937 1,617 — — 10,554 TOTAL 30,137 16,880 11,740 78,164 136,921 |
Disclosure of fair value measurement of assets | The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into a three-level fair value hierarchy as mandated by IFRS 13, as follows: Level 1 fair value measurements are those derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3 fair value measurements are those derived from unobservable inputs for the assets or liabilities. As of December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets Mutual funds — 19,384 — 19,384 LETEs — 396 — 396 Foreign exchange forward contracts — 1,291 — 1,291 Convertibles notes — 111 3,425 3,536 Financial liabilities Contingent consideration — — 9,252 9,252 As of December 31, 2018 Level 1 Level 2 Level 3 Total Financial assets Mutual funds — 4,050 — 4,050 LETEs — 1,015 — 1,015 T-Bills — 3,493 — 3,493 LECAPs — 77 — 77 Foreign exchange forward contracts — 44 — 44 Convertibles notes — 106 — 106 Financial liabilities Contingent consideration — — 9,767 9,767 Foreign exchange forward contracts — 12 — 12 |
Disclosure of fair value measurement of liabilities | The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into a three-level fair value hierarchy as mandated by IFRS 13, as follows: Level 1 fair value measurements are those derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3 fair value measurements are those derived from unobservable inputs for the assets or liabilities. As of December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets Mutual funds — 19,384 — 19,384 LETEs — 396 — 396 Foreign exchange forward contracts — 1,291 — 1,291 Convertibles notes — 111 3,425 3,536 Financial liabilities Contingent consideration — — 9,252 9,252 As of December 31, 2018 Level 1 Level 2 Level 3 Total Financial assets Mutual funds — 4,050 — 4,050 LETEs — 1,015 — 1,015 T-Bills — 3,493 — 3,493 LECAPs — 77 — 77 Foreign exchange forward contracts — 44 — 44 Convertibles notes — 106 — 106 Financial liabilities Contingent consideration — — 9,767 9,767 Foreign exchange forward contracts — 12 — 12 |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | The following table shows the results from remeasurement of the contingent considerations described above: For the year ended December 31, 2019 2018 2017 (Loss) gain on remeasurement of the contingent consideration of PointSource (16 ) 5,506 — Loss on remeasurement of the contingent consideration of Avanxo (4 ) — — Loss on remeasurement of the contingent consideration of Clarice (3 ) — (1,173 ) Gain on remeasurement of the contingent consideration of L4 — 1,848 4,058 Gain on remeasurement of the contingent consideration of WAE — — 3,850 Loss on remeasurement of the contingent consideration of Ratio (62 ) (654 ) — TOTAL (85 ) 6,700 6,735 The following table shows the reconciliation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy: Financial Assets Financial liabilities Call option on minority interest Contingent consideration Put option on minority interest December 31, 2017 455 23,905 2,797 Fair value remeasurement (1) — (6,700 ) (1,611 ) Reclassification to amortised cost (1) — (1,778 ) — Derecognition of call option (1) (455 ) — — Acquisition of business (1) — 3,029 — Payments (2) — (8,947 ) (1,186 ) Interests (1) — 258 — December 31, 2018 — 9,767 — Financial Assets Financial liabilities Convertible notes Contingent consideration December 31, 2018 — 9,767 Fair value remeasurement (1) — 85 Acquisition of business (1) — 6,835 Payments (2) 3,350 (7,695 ) Interests (1) 75 260 December 31, 2019 3,425 9,252 ( 1) Non-cash transactions. (2) Cash transactions included in investing activities in the Consolidated Statement of Cash Flows. |
Disclosure of detailed information about hedging instruments | The following table detail the foreign currency forward contracts outstanding as of December 31, 2019 : Hedging instruments - Outstanding contracts Currency Foreign currency Notional foreign Fair value assets Settlement date from contracts rate from contracts currency rate January 31, 2020 Argentine Peso 66.45 62.2 71 Fair value as of December 31, 2019 71 |
CAPITAL AND RESERVES - (Tables)
CAPITAL AND RESERVES - (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Share Capital, Reserves and Other Equity Interest [Abstract] | |
Disclosure of detailed information about hedged items | The movements in the cash flow hedge reserve were as follows: Foreign currency risk Balance at January 1, 2019 — Gain/(loss) arising on changes in fair value of hedging instruments during the period 298 (Gain)/loss reclassified to profit or loss – hedged item has affected profit or loss 54 Balance at December 31, 2019 352 |
BASIS OF PREPARATION OF THESE_3
BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS - Narrative (Details) - USD ($) $ in Thousands | 72 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised (as a percentage) | 614.00% | ||
Retained earnings | $ 239,378 | $ 187,335 | |
Uncertain tax loss | $ 1,768 | ||
Adjustment on initial application of IFRS 16 (note 2.1) | Retained earnings | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Adjustment on initial application of IFRS 16 | $ 1,972 |
BASIS OF PREPARATION OF THESE_4
BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS - Summary of Lease Liabilities Recognised (Details) $ in Thousands | Jan. 01, 2019USD ($) |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Lease liabilities | $ 46,887 |
Discounted using the lessee's incremental borrowing rate of at the date of initial application | 46,887 |
Lease liabilities | 46,887 |
Restated Balance | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Lease liabilities | $ 55,222 |
BASIS OF PREPARATION OF THESE_5
BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS - Effect of Adoption of IFRS 16 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of initial application of standards or interpretations [line items] | |||
Right-of-use asset | $ 58,781 | ||
Lease liabilities | 61,363 | $ 46,887 | $ 46,887 |
Retained earnings | $ 239,378 | $ 187,335 | |
IFRS 16 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Right-of-use asset | 46,567 | ||
Prepayments | (1,652) | ||
Lease liabilities | 46,887 | ||
Retained earnings | $ (1,972) |
BASIS OF PREPARATION OF THESE_6
BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS - Subsidiaries (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sistemas UK Limited | United Kingdom | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Globant, LLC | United States of America | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Sistemas Colombia S.A.S. | Colombia | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Global Systems Outsourcing S. de R.L. de C.V. | Mexico | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Software Product Creation S.L. | Spain | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Globant España S.A. (sociedad unipersonal) | Spain | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Sistemas Globales Uruguay S.A. | Uruguay | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Sistemas Globales S.A. | Argentina | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
IAFH Global S.A. | Argentina | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Sistemas Globales Chile Asesorías Limitada | Chile | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Globers S.A. | Argentina | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Globant Brasil Consultoria Ltda. | Brazil | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Huddle Group S.A. | Argentina | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Globant Peru S.A.C. | Peru | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Globant India Private Limited | India | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Dynaflows S.A. | Argentina | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 66.73% |
We Are London Limited | United Kingdom | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Difier S.A. | Uruguay | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Globant Bel LLC | Belarus | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | |
Globant Canada Corp. | Canada | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | 100.00% |
Globant France S.A.S. | France | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | |
Small Footprint S.R.L. | Romania | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | |
Globant Ventures S.A.S | Argentina | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | 100.00% | |
Software Product Creation SL Dubai Branch | United Arab Emirates | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Avanxo (Bermuda) Limited | Bermuda | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Avanxo Mexico S.A.P.I. de C.V. | Mexico | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Avanxo Servicios S.A. de C.V. | Mexico | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Avanxo Brasil Tecnologia Da Informacao Ltda | Brazil | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Orizonta Consutoria De Negocios E Tecnologia LTDA | Brazil | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Avanxo S.A. | Argentina | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Avanxo - Sucursal del Perú | Peru | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Avanxo Colombia | Colombia | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Belatrix Global Corporation S.A. | Spain | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
BSF S.A. | Argentina | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Belatrix Peru SAC | Peru | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Belatrix Colombia SAS | Colombia | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% | ||
Belatrix Service Corp | United States of America | |||
Disclosure of subsidiaries [line items] | |||
Percentage ownership | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |||
Impairment loss recognised in profit or loss, goodwill | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Adjustments to leases | $ 126 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Taxation (Details) R$ in Thousands, $ in Thousands | Apr. 01, 2020 | Feb. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019EUR (€) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate for unemployment funds | 7.00% | 7.00% | 7.00% | |||||||
Applicable tax rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 35.00% | ||||
Recovery | $ 47 | $ (48) | $ (1,586) | |||||||
Uncertain tax loss | $ 1,768 | |||||||||
Globant España S.A. (sociedad unipersonal) | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 25.00% | 25.00% | 25.00% | |||||||
Dividends received from associates, classified as investing activities | $ 11,000 | 27,462 | ||||||||
Belatrix | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Dividends received from associates, classified as investing activities | $ 310 | |||||||||
Software Product Creation S.L. | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 25.00% | 25.00% | 25.00% | |||||||
Globers S.A. And Dynaflows S.A. | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 30.00% | 30.00% | 30.00% | |||||||
Sistemas Globales Uruguay S.A. | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Tax expense (income) at applicable tax rate | $ 21,224 | $ 11,095 | $ 2,488 | |||||||
Sistemas Colombia S.A.S. | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 33.00% | 33.00% | 33.00% | 4.00% | 4.00% | |||||
CREE tax rate | 30.00% | 33.00% | 33.00% | 33.00% | ||||||
Globant LLC and L4 Mobile LLC | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 21.00% | 21.00% | 21.00% | 35.00% | 35.00% | |||||
Sistemas UK Limited | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 17.00% | 19.00% | 19.00% | 19.00% | ||||||
Sistemas Globales Chile Asesorías Limitada | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 27.00% | 27.00% | 27.00% | 27.00% | 27.00% | 25.50% | ||||
Globant Brasil Consultoria Ltda. | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 24.00% | 24.00% | 24.00% | |||||||
Additional applicable tax rate | 10.00% | 10.00% | 10.00% | |||||||
Minimum net income before income tax for additional 10% tax rate | R$ | R$ 240 | |||||||||
Globant Peru S.A.C. | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 29.50% | 29.50% | 29.50% | 29.50% | 29.50% | |||||
Global Systems Outsourcing S. de R.L. de C.V. | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 30.00% | 30.00% | 30.00% | |||||||
Globant India Private Limited | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 25.00% | 34.61% | 34.61% | 34.61% | ||||||
Alternative minimum tax rate | 21.34% | 21.34% | 21.34% | |||||||
Romanian Subsidiary | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 16.00% | 16.00% | 16.00% | |||||||
Canadian Subsidiary | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 15.00% | 15.00% | 15.00% | |||||||
British Columbia Subsidiary | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 11.00% | 11.00% | 11.00% | |||||||
France Subsidiaries | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 28.00% | 28.00% | 28.00% | |||||||
Argentina | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate | 25.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 35.00% | |||
Tax law reform applicable dividend tax rate | 13.00% | 7.00% | 7.00% | 7.00% | ||||||
Tax rate effect of foreign tax rates | 60.00% | 60.00% | 60.00% | |||||||
Tax credit percentage, social security taxes | 70.00% | 70.00% | 70.00% | |||||||
Minimum | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Average effective tax rate | 6.00% | 6.00% | 6.00% | |||||||
Maximum | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Average effective tax rate | 12.00% | 12.00% | 12.00% | |||||||
Globant S.A. the Luxembourg Company | ||||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||||
Applicable tax rate, if taxable income is exceeds threshold | 17.00% | 17.00% | 17.00% | 18.00% | 18.00% | |||||
Maximum taxable income for 15% tax rate | € | € 175,000 | € 25,000 | ||||||||
Maximum taxable income for 17%/18% tax rate | € | 200,000 | € 30,000 | ||||||||
Taxable base amount if taxable income is between thresholds | € | € 26,200 | |||||||||
Applicable tax rate, if taxable income is between thresholds | 31.00% | 31.00% | 31.00% | |||||||
Applicable tax rate, if lower than threshold | 15.00% | 15.00% | 15.00% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | ||
Disposals, intangible assets | $ 24,000 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of tangible and intangible assets (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment loss recognised in profit or loss (note 4.6) | $ 720,000 | $ 306,000 | $ 4,708,000 | |
Other operating income (expense) | [1] | (720,000) | (306,000) | (4,708,000) |
Licenses and internal developments | Internally generated | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment loss recognised in profit or loss (note 4.6) | $ 720,000 | $ 306,000 | $ 0 | |
[1] | Includes an impairment of intangibles assets of 720, 306 (note 4.6) and 4,708 (note 4.10) for 2019, 2018 and 2017, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial Assets (Details) | Jul. 08, 2019USD ($) | Jan. 21, 2019USD ($) | Oct. 22, 2015 | Dec. 31, 2019USD ($)loan_agreement | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 05, 2017USD ($) | Dec. 31, 2016USD ($) |
Disclosure of subsidiaries [line items] | ||||||||
Borrowings | $ 51,386,000 | $ 0 | $ 6,011,000 | $ 217,000 | ||||
Factoring of receivables | Banco Santander | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Receivables transferred under factoring agreement | 3,510,000 | |||||||
Dynaflows S.A. | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Proportion of ownership interests held by non-controlling interests | 33.27% | |||||||
Clarice | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Financial assets, at fair value | 400,000 | |||||||
Subsidiaries | Collokia investment | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Financial assets, at fair value | 115,000 | $ 106,000 | ||||||
Borrowings | 300,000 | $ 100,000 | ||||||
Borrowings, interest rate | 2.80% | |||||||
Subsidiaries | Wolox | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Financial assets, at fair value | 1,841,000 | |||||||
Borrowings | $ 1,800,000 | |||||||
Borrowings, interest rate | 2.00% | |||||||
Borrowing term | 18 months | |||||||
Subsidiaries | Singularity Education Group | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Financial assets, at fair value | 1,280,000 | |||||||
Borrowings | $ 1,250,000 | |||||||
Borrowings, interest rate | 5.00% | |||||||
Borrowing term | 1 year | |||||||
Subsidiaries | The Startups | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Financial assets, at fair value | 300,000 | |||||||
Borrowings | $ 300,000 | |||||||
Number of purchase agreements | loan_agreement | 4 | |||||||
Minimum | Subsidiaries | The Startups | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Borrowings, interest rate | 5.00% | |||||||
Maximum | Subsidiaries | The Startups | ||||||||
Disclosure of subsidiaries [line items] | ||||||||
Borrowings, interest rate | 12.00% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Gain on transactions with bonds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |||
Gain on transactions with bonds | $ 1,569 | $ 0 | $ 0 |
CRITICAL ACCOUNTING JUDGEMENT_2
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (Details) - USD ($) | Oct. 22, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Corporate Information And Statement Of IFRS Compliance [Abstract] | ||||
Impairment loss recognised in profit or loss, goodwill | $ 0 | $ 0 | $ 0 | |
Allowance for impairment of tax credits, net of recoveries | $ (47,000) | 48,000 | 1,586,000 | |
Disclosure of subsidiaries [line items] | ||||
Growth rate used to extrapolate cash flow projections | 3.00% | |||
Intangible assets | $ 27,110,000 | 11,778,000 | ||
Impairment loss recognised in profit or loss (note 4.6) | 720,000 | 306,000 | 4,708,000 | |
Dynaflows S.A. | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interests held by non-controlling interests | 33.27% | |||
Internally generated | ||||
Disclosure of subsidiaries [line items] | ||||
Intangible assets | $ 9,388,000 | 7,855,000 | ||
Goodwill | ||||
Disclosure of subsidiaries [line items] | ||||
Explanation of period over which management has projected cash flows | 5 years | |||
Growth rate used to extrapolate cash flow projections | 22.00% | |||
Discount rate applied to cash flow projections | 9.50% | |||
Trade receivables | ||||
Disclosure of subsidiaries [line items] | ||||
Additional allowance (recoveries) | $ 275,000 | 3,421,000 | (5,000) | |
Customer relationships and contracts | ||||
Disclosure of subsidiaries [line items] | ||||
Intangible assets | 14,265,000 | 1,000,000 | ||
Impairment loss recognised in profit or loss (note 4.6) | 0 | |||
Licenses and internal developments | ||||
Disclosure of subsidiaries [line items] | ||||
Intangible assets | 12,845,000 | 10,778,000 | ||
Licenses and internal developments | Internally generated | ||||
Disclosure of subsidiaries [line items] | ||||
Impairment loss recognised in profit or loss (note 4.6) | 720,000 | 306,000 | 0 | |
Cost | ||||
Disclosure of subsidiaries [line items] | ||||
Intangible assets | 74,189,000 | 48,439,000 | 38,120,000 | |
Cost | Customer relationships and contracts | ||||
Disclosure of subsidiaries [line items] | ||||
Intangible assets | 25,285,000 | 10,896,000 | 10,153,000 | |
Cost | Licenses and internal developments | ||||
Disclosure of subsidiaries [line items] | ||||
Intangible assets | $ 48,318,000 | $ 36,957,000 | $ 27,381,000 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue by Industry Vertical (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 659,325 | $ 522,310 | $ 413,439 |
Media and Entertainment | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 156,292 | 133,093 | 99,640 |
Travel & Hospitality | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 92,773 | 89,212 | 68,400 |
Banks, Financial Services and Insurance | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 143,788 | 114,439 | 94,994 |
Technology & Telecommunications | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 88,183 | 67,310 | 60,648 |
Professional Services | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 73,282 | 52,318 | 40,660 |
Consumer, Retail & Manufacturing | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 85,698 | 54,087 | 36,025 |
Other Verticals | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 19,309 | $ 11,851 | $ 13,072 |
REVENUE - Disaggregation of R_2
REVENUE - Disaggregation of Revenue by Currency (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 659,325 | $ 522,310 | $ 413,439 |
United States dollar (USD) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 563,747 | 447,314 | 354,824 |
European euro (EUR) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 28,237 | 30,087 | 23,518 |
Pound sterling (GBP) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 3,012 | 6,550 | 4,107 |
Argentine peso (ARS) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 26,948 | 20,651 | 12,856 |
Mexican peso (MXN) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 19,939 | 11,711 | 6,942 |
Colombian peso (COP) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 6,831 | 4,068 | 2,341 |
Brazilian real (BRL) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 8,030 | 46 | 126 |
Others | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 2,581 | $ 1,883 | $ 8,725 |
REVENUE - Disaggregation of R_3
REVENUE - Disaggregation of Revenue by Contract Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 659,325 | $ 522,310 | $ 413,439 |
Time and material contracts | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 544,131 | 431,295 | 376,718 |
Fixed-price contracts | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 106,386 | 90,980 | 36,687 |
Subscription resales | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 8,525 | 0 | 0 |
Others | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 283 | $ 35 | $ 34 |
COST OF REVENUES AND SELLING,_3
COST OF REVENUES AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES - Cost of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Analysis of income and expense [abstract] | ||||
Salaries, employee benefits and social security taxes | $ (366,594) | $ (293,171) | $ (239,013) | |
Shared-based compensation expense | (4,976) | (4,248) | (5,666) | |
Depreciation and amortization expense | (7,350) | (4,022) | (4,339) | |
Travel and housing | (17,115) | (6,623) | (6,631) | |
Office expenses | (2,583) | (2,082) | (1,692) | |
Professional services | (4,440) | (5,248) | (5,005) | |
Promotional and marketing expenses | (252) | (1,575) | (244) | |
Recruiting, training and other employee expenses | (1,854) | (1,382) | (415) | |
Taxes | 0 | (203) | (166) | |
Cost of sales | [1],[2] | $ (405,164) | $ (318,554) | $ (263,171) |
[1] | Includes depreciation and amortization expense of 7,350, 4,022 and 4,339 for 2019, 2018 and 2017, respectively. See note 6.1. | |||
[2] | Includes share-based compensation expense of 4,976, 4,248 and 5,666 under cost of revenues; and 14,912, 8,665 and 8,798 under selling, general and administrative expenses for 2019, 2018 and 2017, respectively. See note 6. |
COST OF REVENUES AND SELLING,_4
COST OF REVENUES AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES - Selling, General and Administrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Analysis of income and expense [abstract] | ||||
Salaries, employee benefits and social security taxes | $ (69,056) | $ (47,805) | $ (41,956) | |
Share-based compensation expense | (14,912) | (8,665) | (8,798) | |
Rental expenses | (5,260) | (17,185) | (13,739) | |
Office expenses | (10,733) | (11,602) | (11,800) | |
Professional services | (13,167) | (13,754) | (9,885) | |
Travel and housing | (7,259) | (6,259) | (4,460) | |
Taxes | (16,201) | (6,126) | (6,140) | |
Depreciation and amortization expense | (16,905) | (16,521) | (11,789) | |
Depreciation expense of right-of-use assets | 14,584 | 0 | 0 | |
Recruiting, training and other employee expenses | (2,299) | (1,507) | (941) | |
Promotional and marketing expenses | (2,102) | (3,763) | (1,305) | |
Selling, general and administrative expense | [1],[2] | $ (172,478) | $ (133,187) | $ (110,813) |
[1] | Includes depreciation and amortization expense of 16,905, 16,521 and 11,789 for 2019, 2018 and 2017, respectively. See note 6.2. | |||
[2] | Includes share-based compensation expense of 4,976, 4,248 and 5,666 under cost of revenues; and 14,912, 8,665 and 8,798 under selling, general and administrative expenses for 2019, 2018 and 2017, respectively. See note 6. |
FINANCE INCOME _ EXPENSE (Detai
FINANCE INCOME / EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance income | |||
Interest gain | $ 958 | $ 407 | $ 479 |
Gain arising from financial assets measured at fair value through PL | 4,977 | 3,869 | 923 |
Gain arising from financial assets measured at fair value through OCI | 72 | 258 | 240 |
Gain arising from financial assets measured at amortised cost | 120 | 0 | 0 |
Foreign exchange gain | 7,516 | 6,884 | 6,314 |
Subtotal | 13,643 | 11,418 | 7,956 |
Finance expense | |||
Interest expense on borrowings | (1,226) | (152) | (95) |
Interest expense on lease liabilities | (3,464) | 0 | 0 |
Loss arising from financial assets measured at fair value through PL | (3,770) | (1,106) | (620) |
Loss arising from financial assets measured at amortised cost | (21) | 0 | 0 |
Foreign exchange loss | (16,357) | (14,321) | (9,043) |
Other interest | (419) | (525) | (788) |
Other | (1,544) | (864) | (490) |
Subtotal | (26,801) | (16,968) | (11,036) |
Finance expense, net | (13,158) | (5,550) | (3,080) |
- Net change in fair value on financial assets measured at FVOCI | $ 373 | $ 12 | $ 27 |
INCOME TAXES - Components of Ta
INCOME TAXES - Components of Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Current tax expense | $ (19,327) | $ (23,324) | $ (14,053) |
Deferred tax gain | 4,310 | 7,456 | 5,972 |
TOTAL INCOME TAX EXPENSE | $ (15,017) | $ (15,868) | (8,081) |
Changes in tax rates or tax laws enacted or announced | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax gain | $ 1,004 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of The Statutory Tax Rate to The Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Profit before income tax | $ 69,032 | $ 67,464 | $ 38,544 |
Tax rate | 30.00% | 30.00% | 35.00% |
Income tax expense | $ (20,710) | $ (20,239) | $ (13,490) |
Permanent differences | |||
Argentine Software Promotion Regime | 3,256 | 6,844 | 3,541 |
Effect of different tax rates of subsidiaries operating in countries other than Argentina | 7,996 | 4,352 | 2,019 |
Non-deductible expenses | 925 | 1,130 | 1,187 |
Tax loss carry forward not recognized | (2,402) | (1,462) | (374) |
Exchange difference | (4,365) | (8,777) | (860) |
Other | 283 | 2,284 | (104) |
TOTAL INCOME TAX EXPENSE | $ (15,017) | $ (15,868) | $ (8,081) |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets/Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 26,868 | $ 16,916 |
Operating loss carryforwards | 2,039 | 1,861 |
Deferred tax liabilities | (1,028) | 0 |
Share-based compensation plan | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 11,587 | 4,731 |
Provision for vacation and bonus | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 6,533 | 6,624 |
Intercompany trade payables | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 3,553 | 2,207 |
Property and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 1,163 | 716 |
Goodwill | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | (1,752) | (1,005) |
Contingencies | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 714 | 546 |
Others | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 3,031 | 1,236 |
Deferred tax liabilities | $ (1,028) | $ 0 |
INCOME TAXES - DTA Loss Carryfo
INCOME TAXES - DTA Loss Carryforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | $ 2,039 | $ 1,861 |
Globant S.A. the Luxembourg Company | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 0 | 547 |
IAFH Global S.A. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 594 | 0 |
Globant Brasil Consultoria Ltda. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | $ 767 | 887 |
Amount of carryforward that can be utilized as a percent of taxable income | 30.00% | |
We Are London Limited | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | $ 0 | 116 |
Sistemas UK Limited | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 163 | 215 |
Difier S.A. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 3 | 0 |
Sistemas Globales S.A. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 25 | 0 |
Avanxo S.A. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 129 | 0 |
BSF S.A. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 140 | 0 |
Avanxo - Sucursal del Perú | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 20 | 0 |
Globant France S.A.S. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 3 | 0 |
2024 | Dynaflows S.A. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 138 | 96 |
2023 | Dynaflows S.A. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | 53 | 0 |
2022 | Dynaflows S.A. | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Operating loss carryforwards | $ 4 | $ 0 |
INCOME TAXES - Deferred Tax A_2
INCOME TAXES - Deferred Tax Asset/Liability Presented in Financial Position (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | $ 16,916 | $ 13,186 |
Deferred tax expense (income) recognised in profit or loss | 3,939 | 6,551 |
Deferred tax recognised in other comprehensive income | (698) | (165) |
Deferred tax relating to items credited (charged) directly to equity | 9,864 | 2,367 |
Increase (decrease) in deferred tax liability (asset) | (3,726) | (5,023) |
Increase (decrease) through business combinations, deferred tax liability (asset) | (455) | |
Closing Balance - Deferred tax liability (asset) | 25,840 | 16,916 |
Foreign exchange loss, DTA | 371 | 905 |
Share-based compensation plan | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 4,731 | 5,772 |
Deferred tax expense (income) recognised in profit or loss | 718 | 915 |
Deferred tax recognised in other comprehensive income | 0 | 0 |
Deferred tax relating to items credited (charged) directly to equity | 9,864 | 2,367 |
Increase (decrease) in deferred tax liability (asset) | (3,726) | (4,323) |
Increase (decrease) through business combinations, deferred tax liability (asset) | 0 | |
Closing Balance - Deferred tax liability (asset) | 11,587 | 4,731 |
Provision for vacation and bonus | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 6,624 | 1,309 |
Deferred tax expense (income) recognised in profit or loss | (275) | 5,315 |
Deferred tax recognised in other comprehensive income | 0 | 0 |
Deferred tax relating to items credited (charged) directly to equity | 0 | 0 |
Increase (decrease) in deferred tax liability (asset) | 0 | 0 |
Increase (decrease) through business combinations, deferred tax liability (asset) | 184 | |
Closing Balance - Deferred tax liability (asset) | 6,533 | 6,624 |
Intercompany trade payables | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 2,207 | 3,126 |
Deferred tax expense (income) recognised in profit or loss | 1,346 | (919) |
Deferred tax recognised in other comprehensive income | 0 | 0 |
Deferred tax relating to items credited (charged) directly to equity | 0 | 0 |
Increase (decrease) in deferred tax liability (asset) | 0 | 0 |
Increase (decrease) through business combinations, deferred tax liability (asset) | 0 | |
Closing Balance - Deferred tax liability (asset) | 3,553 | 2,207 |
Property and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 716 | 756 |
Deferred tax expense (income) recognised in profit or loss | 447 | (40) |
Deferred tax recognised in other comprehensive income | 0 | 0 |
Deferred tax relating to items credited (charged) directly to equity | 0 | 0 |
Increase (decrease) in deferred tax liability (asset) | 0 | 0 |
Increase (decrease) through business combinations, deferred tax liability (asset) | 0 | |
Closing Balance - Deferred tax liability (asset) | 1,163 | 716 |
Goodwill | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | (1,005) | (479) |
Deferred tax expense (income) recognised in profit or loss | (747) | (526) |
Deferred tax recognised in other comprehensive income | 0 | 0 |
Deferred tax relating to items credited (charged) directly to equity | 0 | 0 |
Increase (decrease) in deferred tax liability (asset) | 0 | 0 |
Increase (decrease) through business combinations, deferred tax liability (asset) | 0 | |
Closing Balance - Deferred tax liability (asset) | (1,752) | (1,005) |
Contingencies | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 546 | 0 |
Deferred tax expense (income) recognised in profit or loss | 168 | 546 |
Deferred tax recognised in other comprehensive income | 0 | 0 |
Deferred tax relating to items credited (charged) directly to equity | 0 | 0 |
Increase (decrease) in deferred tax liability (asset) | 0 | 0 |
Increase (decrease) through business combinations, deferred tax liability (asset) | 0 | |
Closing Balance - Deferred tax liability (asset) | 714 | 546 |
Other assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 0 | |
Deferred tax expense (income) recognised in profit or loss | (389) | |
Deferred tax recognised in other comprehensive income | 0 | |
Deferred tax relating to items credited (charged) directly to equity | 0 | |
Increase (decrease) in deferred tax liability (asset) | 0 | |
Increase (decrease) through business combinations, deferred tax liability (asset) | (639) | |
Closing Balance - Deferred tax liability (asset) | (1,028) | 0 |
Others | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 1,236 | 297 |
Deferred tax expense (income) recognised in profit or loss | 1,795 | 939 |
Deferred tax recognised in other comprehensive income | 0 | 0 |
Deferred tax relating to items credited (charged) directly to equity | 0 | 0 |
Increase (decrease) in deferred tax liability (asset) | 0 | 0 |
Increase (decrease) through business combinations, deferred tax liability (asset) | 0 | |
Closing Balance - Deferred tax liability (asset) | 3,031 | 1,236 |
Subtotal | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 15,055 | 10,781 |
Deferred tax expense (income) recognised in profit or loss | 3,063 | 6,230 |
Deferred tax recognised in other comprehensive income | 0 | 0 |
Deferred tax relating to items credited (charged) directly to equity | 9,864 | 2,367 |
Increase (decrease) in deferred tax liability (asset) | (3,726) | (4,323) |
Increase (decrease) through business combinations, deferred tax liability (asset) | (455) | |
Closing Balance - Deferred tax liability (asset) | 23,801 | 15,055 |
Loss Carryforward | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening Balance - Deferred tax liability (asset) | 1,861 | 2,405 |
Deferred tax expense (income) recognised in profit or loss | 876 | 321 |
Deferred tax recognised in other comprehensive income | (698) | (165) |
Deferred tax relating to items credited (charged) directly to equity | 0 | 0 |
Increase (decrease) in deferred tax liability (asset) | 0 | (700) |
Increase (decrease) through business combinations, deferred tax liability (asset) | 0 | |
Closing Balance - Deferred tax liability (asset) | $ 2,039 | $ 1,861 |
EARNINGS PER SHARE - Earnings a
EARNINGS PER SHARE - Earnings and Weighted Average Number of Shares Used in Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Net income for the year attributable to owners of the Company | $ 54,015 | $ 51,677 | $ 30,539 |
Weighted average number of shares for the purpose of basic earnings per share (in shares) | 36,586 | 35,746 | 34,919 |
Weighted average number of shares for the purpose of diluted earnings per share (in shares) | 37,674 | 36,685 | 36,094 |
BASIC EARNINGS PER SHARE (in usd per share) | $ 1.48 | $ 1.45 | $ 0.87 |
DILUTED EARNINGS PER SHARE (in usd per share) | $ 1.43 | $ 1.41 | $ 0.84 |
EARNINGS PER SHARE - Potentiall
EARNINGS PER SHARE - Potentially Anti-Dilutive Ordinary Shares Excluded from the Weight Average Number of Ordinary Shares for Diluted Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Shares deemed to be issued in respect of employee options excluded from calculation of EPS (in shares) | 4,470 | 205,940 | 603,159 |
CASH AND CASH EQUIVALENTS - Sum
CASH AND CASH EQUIVALENTS - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||||
Cash and bank balances | $ 62,426 | $ 63,574 | ||
Time deposits | 295 | 14,032 | ||
TOTAL | $ 62,721 | $ 77,606 | $ 52,525 | $ 50,532 |
INVESTMENTS - Current and Noncu
INVESTMENTS - Current and Noncurrent Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Current investments | $ 19,780 | $ 8,635 |
Financial assets, classified as held for trading | 418 | 527 |
Noncurrent investments | 418 | 527 |
Mutual funds | ||
Disclosure of financial assets [line items] | ||
Held for trading investment | 19,384 | 4,050 |
Financial assets, classified as held for trading | 527 | |
LETEs | ||
Disclosure of financial assets [line items] | ||
Current financial assets available-for-sale | 396 | 1,015 |
T-Bills | ||
Disclosure of financial assets [line items] | ||
Current financial assets available-for-sale | 0 | 3,493 |
LECAPs | ||
Disclosure of financial assets [line items] | ||
Current financial assets available-for-sale | $ 0 | $ 77 |
INVESTMENTS - Investments In As
INVESTMENTS - Investments In Associates (Details) $ / shares in Units, $ in Thousands, $ in Thousands | Jan. 15, 2019USD ($) | Jan. 15, 2019ARS ($) | Jan. 03, 2017USD ($) | Feb. 25, 2016USD ($)$ / sharesshares | Jan. 26, 2016 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 17, 2018USD ($) |
Disclosure of associates [line items] | |||||||||
Investment in associates | $ 3,776 | $ 4,000 | |||||||
Impairment of investments in associates (note 11.2) | 0 | 800 | $ 0 | ||||||
Purchase of interests in associates | 0 | 3,250 | 469 | ||||||
Share of results of investment in associates | $ (224) | $ 0 | $ 0 | ||||||
CHVG investment | |||||||||
Disclosure of associates [line items] | |||||||||
Proportion of ownership interest in associate | 40.00% | ||||||||
Proceeds from sales of interests in associates | $ 10 | $ 390 | |||||||
Collokia investment | |||||||||
Disclosure of associates [line items] | |||||||||
Proportion of ownership interest in associate | 19.50% | 19.50% | |||||||
Investment in associates | $ 800 | ||||||||
Impairment of investments in associates (note 11.2) | $ 800 | ||||||||
Investment in associates, shares issued | shares | 55,645 | ||||||||
Purchase of interest in associate, shares | shares | 20,998 | ||||||||
Purchase of interest in associate, price per share (In dollars per share) | $ / shares | $ 23.81 | ||||||||
Purchase of interests in associates | $ 500 | ||||||||
Share of results of investment in associates | $ (224) | ||||||||
Acamica Group Companies | |||||||||
Disclosure of associates [line items] | |||||||||
Proportion of ownership interest in associate | 100.00% | ||||||||
Acamica US | |||||||||
Disclosure of associates [line items] | |||||||||
Proportion of ownership interest in associate | 100.00% | ||||||||
Acamica Argentina | |||||||||
Disclosure of associates [line items] | |||||||||
Proportion of ownership interest in associate | 97.00% | ||||||||
Acamica Investment | |||||||||
Disclosure of associates [line items] | |||||||||
Proportion of ownership interest in associate | 20.00% | 47.50% | |||||||
Investment in associates | $ 750 | $ 3,250 |
TRADE RECEIVABLES - Trade Recei
TRADE RECEIVABLES - Trade Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of financial assets [line items] | ||||
Trade receivables | [1] | $ 156,676 | $ 110,898 | |
Balances due from related parties | 91 | 993 | ||
Cost | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 160,352 | 114,855 | ||
Allowance for doubtful accounts | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 3,676 | 3,957 | ||
Accounts receivable | Cost | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 146,382 | 101,754 | ||
Unbilled revenue | Cost | ||||
Disclosure of financial assets [line items] | ||||
Trade receivables | 13,970 | 13,101 | ||
Trade receivables | ||||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Balance at beginning of year | (3,957) | (609) | $ (617) | |
Additions | (275) | (3,421) | 5 | |
Write-off of receivables | 556 | 73 | 3 | |
Balance at end of year | $ (3,676) | $ (3,957) | $ (609) | |
[1] | Includes balances due from related parties of 91 and 993 as of December 31, 2019 and 2018, respectively. See note 23.1. |
TRADE RECEIVABLES - Schedule of
TRADE RECEIVABLES - Schedule of Aging of Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | [1] | $ 156,676 | $ 110,898 |
Cost | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | $ 160,352 | $ 114,855 | |
Cost | 30 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Expected credit loss rate | 0.80% | 0.06% | |
Trade receivables | $ 21,165 | $ 17,815 | |
Cost | 31 - 60 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Expected credit loss rate | 2.00% | 1.90% | |
Trade receivables | $ 8,852 | $ 6,843 | |
Cost | 61 - 90 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Expected credit loss rate | 3.50% | 4.40% | |
Trade receivables | $ 3,091 | $ 2,814 | |
Cost | 91-120 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Expected credit loss rate | 7.80% | 11.90% | |
Trade receivables | $ 829 | $ 2,778 | |
Cost | 121-180 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Expected credit loss rate | 20.30% | ||
Trade receivables | $ 410 | ||
Cost | 180 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Expected credit loss rate | 79.50% | ||
Trade receivables | $ 3,867 | ||
Cost | 120 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Expected credit loss rate | 85.90% | ||
Trade receivables | $ 3,801 | ||
Cost | Total Past Due | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 38,214 | 34,051 | |
Allowance for doubtful accounts | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 3,676 | 3,957 | |
Allowance for doubtful accounts | 30 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 169 | 107 | |
Allowance for doubtful accounts | 31 - 60 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 177 | 130 | |
Allowance for doubtful accounts | 61 - 90 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 108 | 124 | |
Allowance for doubtful accounts | 91-120 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 65 | 331 | |
Allowance for doubtful accounts | 121-180 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | 83 | ||
Allowance for doubtful accounts | 180 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | $ 3,074 | ||
Allowance for doubtful accounts | 120 | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables | $ 3,265 | ||
[1] | Includes balances due from related parties of 91 and 993 as of December 31, 2019 and 2018, respectively. See note 23.1. |
TRADE RECEIVABLES - Narrative (
TRADE RECEIVABLES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Average credit period on sales (in days) | 78 days |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Current Receivables | ||||
Tax credit - VAT | $ 2,592 | $ 5,202 | ||
Tax credit - Software Promotion Regime | 4,504 | 3,555 | ||
Income tax credits | 4,534 | 1,410 | ||
Other tax credits | 577 | 276 | ||
Advances to suppliers | 1,666 | 611 | ||
Prepaid expenses | 4,268 | 3,982 | ||
Loans granted to employees | 211 | 49 | ||
Other | 956 | 256 | ||
TOTAL | 19,308 | 15,341 | ||
Other Non-current Receivables | ||||
Advances to suppliers (note 20) | 3,579 | 28,799 | ||
Tax credit - VAT | 1,004 | 1,031 | ||
Income tax credits | 1,516 | 1,259 | ||
Tax credit - Software Promotion Regime (note 3.7.1.1) | 0 | 749 | ||
Other tax credits | 209 | 170 | ||
Guarantee deposits | 2,683 | 1,681 | ||
Loans granted to employees | 152 | 208 | ||
Prepaid expenses | 45 | 475 | ||
Other | 0 | 500 | ||
Subtotal | 9,188 | 34,872 | ||
Allowance for impairment of tax credits | (378) | (675) | $ (1,300) | $ 0 |
TOTAL | $ 8,810 | $ 34,197 |
OTHER RECEIVABLES - Allowance f
OTHER RECEIVABLES - Allowance for Impairment of tax Credits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Balance at beginning of year | $ 675 | $ 1,300 | $ 0 |
Additions | (47) | 48 | 1,586 |
Foreign exchange | (250) | (673) | (286) |
Balance at end of year | $ 378 | $ 675 | $ 1,300 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | $ 51,460 | |
Values at end of year | 87,533 | $ 51,460 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 99,256 | 83,005 |
Additions related to business combinations (note 25.12) | 3,681 | 48 |
Additions | 47,037 | 18,922 |
Transfers | 0 | 0 |
Disposals | (315) | (2,587) |
Translation | (310) | (132) |
Values at end of year | 149,349 | 99,256 |
Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 47,796 | 39,126 |
Additions | 14,542 | 11,230 |
Disposals | (237) | (2,438) |
Translation | (285) | (122) |
Values at end of year | $ 61,816 | $ 47,796 |
Computer equipment and software | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life (years) | 3 years | 3 years |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | $ 11,180 | |
Values at end of year | 13,662 | $ 11,180 |
Computer equipment and software | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 30,053 | 23,381 |
Additions related to business combinations (note 25.12) | 878 | 0 |
Additions | 8,397 | 7,055 |
Transfers | 48 | 6 |
Disposals | (268) | (353) |
Translation | (169) | (36) |
Values at end of year | 38,939 | 30,053 |
Computer equipment and software | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 18,873 | 14,609 |
Additions | 6,759 | 4,641 |
Disposals | (191) | (346) |
Translation | (164) | (31) |
Values at end of year | $ 25,277 | $ 18,873 |
Furniture and office supplies | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life (years) | 5 years | 5 years |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | $ 2,846 | |
Values at end of year | 4,255 | $ 2,846 |
Furniture and office supplies | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 7,142 | 5,810 |
Additions related to business combinations (note 25.12) | 727 | 5 |
Additions | 570 | 719 |
Transfers | 1,369 | 845 |
Disposals | (42) | (229) |
Translation | (167) | (8) |
Values at end of year | 9,599 | 7,142 |
Furniture and office supplies | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 4,296 | 3,694 |
Additions | 1,225 | 832 |
Disposals | (46) | (224) |
Translation | (131) | (6) |
Values at end of year | $ 5,344 | $ 4,296 |
Office fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life (years) | 3 years | 3 years |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | $ 17,907 | |
Values at end of year | 20,067 | $ 17,907 |
Office fixtures | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 41,904 | 33,275 |
Additions related to business combinations (note 25.12) | 1,585 | 43 |
Additions | 1,055 | 1,083 |
Transfers | 5,787 | 9,596 |
Disposals | 0 | (2,005) |
Translation | 26 | (88) |
Values at end of year | 50,357 | 41,904 |
Office fixtures | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 23,997 | 20,421 |
Additions | 6,283 | 5,529 |
Disposals | 0 | (1,868) |
Translation | 10 | (85) |
Values at end of year | $ 30,290 | $ 23,997 |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life (years) | 5 years | 5 years |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | $ 16 | |
Values at end of year | 80 | $ 16 |
Vehicles | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 37 | 37 |
Additions related to business combinations (note 25.12) | 71 | 0 |
Additions | 0 | 0 |
Transfers | 0 | 0 |
Disposals | 0 | 0 |
Translation | 0 | 0 |
Values at end of year | 108 | 37 |
Vehicles | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 21 | 13 |
Additions | 7 | 8 |
Disposals | 0 | 0 |
Translation | 0 | 0 |
Values at end of year | $ 28 | $ 21 |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life (years) | 50 years | 50 years |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | $ 12,792 | |
Values at end of year | 12,944 | $ 12,792 |
Buildings | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 13,401 | 6,981 |
Additions related to business combinations (note 25.12) | 420 | 0 |
Additions | 0 | 0 |
Transfers | 0 | 6,420 |
Disposals | 0 | 0 |
Translation | 0 | 0 |
Values at end of year | 13,821 | 13,401 |
Buildings | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 609 | 389 |
Additions | 268 | 220 |
Disposals | 0 | 0 |
Translation | 0 | 0 |
Values at end of year | 877 | 609 |
Lands | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 2,354 | |
Values at end of year | 2,354 | 2,354 |
Lands | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 2,354 | 2,354 |
Additions related to business combinations (note 25.12) | 0 | 0 |
Additions | 0 | 0 |
Transfers | 0 | 0 |
Disposals | 0 | 0 |
Translation | 0 | 0 |
Values at end of year | 2,354 | 2,354 |
Lands | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 0 | 0 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Translation | 0 | 0 |
Values at end of year | 0 | 0 |
Properties under construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 4,365 | |
Values at end of year | 34,171 | 4,365 |
Properties under construction | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 4,365 | 11,167 |
Additions related to business combinations (note 25.12) | 0 | 0 |
Additions | 37,015 | 10,065 |
Transfers | (7,204) | (16,867) |
Disposals | (5) | 0 |
Translation | 0 | 0 |
Values at end of year | 34,171 | 4,365 |
Properties under construction | Depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Values at beginning of year | 0 | 0 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Translation | 0 | 0 |
Values at end of year | $ 0 | $ 0 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | $ 11,778,000 | ||
Impairment loss recognised in profit or loss (note 4.6) | 720,000 | $ 306,000 | $ 4,708,000 |
Values at end of year | 27,110,000 | 11,778,000 | |
Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | 48,439,000 | 38,120,000 | |
Additions related to business combinations (note 25.12) | 14,389,000 | 173,000 | |
Additions from separate acquisitions | 4,188,000 | 3,480,000 | |
Additions from internal development | 7,212,000 | 6,104,000 | |
Disposals | (26,000) | ||
Translation | (13,000) | 562,000 | |
Values at end of year | 74,189,000 | 48,439,000 | 38,120,000 |
Accumulated at beginning of year | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | 36,661,000 | 26,755,000 | |
Additions related to business combinations (note 25.12) | 9,713,000 | ||
Impairment loss recognised in profit or loss (note 4.6) | 720,000 | 306,000 | |
Additions from separate acquisitions | 9,313,000 | ||
Disposals | (2,000) | ||
Translation | (13,000) | 287,000 | |
Values at end of year | $ 47,079,000 | $ 36,661,000 | 26,755,000 |
Licenses and internal developments | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life | 5 years | 5 years | |
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | $ 10,778,000 | ||
Values at end of year | 12,845,000 | $ 10,778,000 | |
Licenses and internal developments | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | 36,957,000 | 27,381,000 | |
Additions related to business combinations (note 25.12) | 0 | 0 | |
Additions from separate acquisitions | 4,188,000 | 3,480,000 | |
Additions from internal development | 7,212,000 | 6,104,000 | |
Disposals | (26,000) | ||
Translation | (13,000) | (8,000) | |
Values at end of year | 48,318,000 | 36,957,000 | 27,381,000 |
Licenses and internal developments | Accumulated at beginning of year | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | 26,179,000 | 17,325,000 | |
Additions related to business combinations (note 25.12) | 8,589,000 | ||
Impairment loss recognised in profit or loss (note 4.6) | 720,000 | 306,000 | |
Additions from separate acquisitions | 8,556,000 | ||
Disposals | (2,000) | ||
Translation | (13,000) | (8,000) | |
Values at end of year | 35,473,000 | 26,179,000 | 17,325,000 |
Customer relationships and contracts | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | 1,000,000 | ||
Impairment loss recognised in profit or loss (note 4.6) | 0 | ||
Values at end of year | $ 14,265,000 | $ 1,000,000 | |
Customer relationships and contracts | Minimum | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life | 1 year | 1 year | |
Customer relationships and contracts | Maximum | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life | 4 years | 4 years | |
Customer relationships and contracts | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | $ 10,896,000 | $ 10,153,000 | |
Additions related to business combinations (note 25.12) | 14,389,000 | 173,000 | |
Additions from separate acquisitions | 0 | 0 | |
Additions from internal development | 0 | 0 | |
Disposals | 0 | ||
Translation | 0 | 570,000 | |
Values at end of year | 25,285,000 | 10,896,000 | 10,153,000 |
Customer relationships and contracts | Accumulated at beginning of year | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | 9,896,000 | 8,844,000 | |
Additions related to business combinations (note 25.12) | 1,124,000 | ||
Impairment loss recognised in profit or loss (note 4.6) | 0 | 0 | |
Additions from separate acquisitions | 757,000 | ||
Disposals | 0 | ||
Translation | 0 | 295,000 | |
Values at end of year | $ 11,020,000 | $ 9,896,000 | 8,844,000 |
Non-compete agreement | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life | 3 years | 3 years | |
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | $ 0 | ||
Values at end of year | 0 | $ 0 | |
Non-compete agreement | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | 586,000 | 586,000 | |
Additions related to business combinations (note 25.12) | 0 | 0 | |
Additions from separate acquisitions | 0 | 0 | |
Additions from internal development | 0 | 0 | |
Disposals | 0 | ||
Translation | 0 | 0 | |
Values at end of year | 586,000 | 586,000 | 586,000 |
Non-compete agreement | Accumulated at beginning of year | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Values at beginning of year | 586,000 | 586,000 | |
Additions related to business combinations (note 25.12) | 0 | ||
Impairment loss recognised in profit or loss (note 4.6) | 0 | 0 | |
Additions from separate acquisitions | 0 | ||
Disposals | 0 | ||
Translation | 0 | 0 | |
Values at end of year | $ 586,000 | $ 586,000 | $ 586,000 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Current | $ 13,439 | $ 0 |
Non-current | 7,796 | 0 |
TOTAL | $ 21,235 | $ 0 |
TRADE PAYABLES (Details)
TRADE PAYABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Suppliers | $ 10,623 | $ 6,137 |
Advanced payments from customers | 0 | 291 |
Expenses accrual | 20,864 | 11,150 |
Current trade payables | 31,487 | 17,578 |
Expenses accrual | 5,500 | 0 |
Non-current trade payables | $ 5,500 | $ 0 |
PAYROLL AND SOCIAL SECURITY T_3
PAYROLL AND SOCIAL SECURITY TAXES PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Salaries | $ 8,376 | $ 4,434 |
Social security tax | 13,564 | 7,548 |
Provision for vacation, bonus and others | 49,909 | 46,181 |
Directors fees | 281 | 315 |
Other | 122 | 57 |
TOTAL | $ 72,252 | $ 58,535 |
BORROWINGS - Summary of Borrowi
BORROWINGS - Summary of Borrowings (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||||
Current borrowings | $ 1,198,000 | $ 0 | ||
Non-current borrowings | 50,188,000 | 0 | ||
Borrowings | 51,386,000 | 0 | $ 6,011,000 | $ 217,000 |
HSBC Bank and Citibank - Syndicated loan (United States) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 50,363,000 | 0 | ||
Banco Santander (Colombia) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 549,000 | 0 | ||
Banco Supervielle (Argentina) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 309,000 | 0 | ||
Banco ICBC (Argentina) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 96,000 | 0 | ||
Others | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 69,000 | $ 0 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) - USD ($) | Nov. 01, 2018 | Nov. 08, 2018 | Aug. 03, 2017 |
HSBC Bank and Citibank - Syndicated loan (United States) | |||
Disclosure of detailed information about borrowings [line items] | |||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | ||
Amended and Restated Credit Agreement | |||
Disclosure of detailed information about borrowings [line items] | |||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Revolving Credit Facility | Amended and Restated Credit Agreement | |||
Disclosure of detailed information about borrowings [line items] | |||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | ||
Line of credit facility, additional borrowing capacity | $ 100,000,000 | ||
Coverage ratio | 125.00% | ||
Leverage ratio | 250.00% | ||
Maximum amount of restricted payments | $ 10,000,000 | ||
Maximum of advances outstanding | $ 50,000 | ||
Payables maximum over average monthly billings | 5 | ||
Period preceding average monthly amount of affiliates’ billings | 12 months | ||
Capital expenditures, limited percentage of net revenues | 10.00% | ||
Percentage of capital expenditures over annual consolidated revenue | 60.00% | ||
Revolving Credit Facility | LIBOR | Amended and Restated Credit Agreement | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 1.75% |
BORROWINGS - Movements in Borro
BORROWINGS - Movements in Borrowings (Details) | Oct. 28, 2019USD ($) | Aug. 30, 2019USD ($) | Aug. 08, 2019USD ($) | Aug. 06, 2019USD ($) | Apr. 12, 2019USD ($) | Jul. 23, 2018USD ($) | Nov. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)loan_agreement | Dec. 31, 2019USD ($) | Sep. 26, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 01, 2018USD ($) | Dec. 19, 2017USD ($) | Aug. 03, 2017USD ($) |
Financial Instruments [Abstract] | ||||||||||||||||||
Borrowings | $ 0 | $ 6,011,000 | $ 217,000 | |||||||||||||||
Borrowings related to business combination (note 24) | 1,290,000 | 0 | 0 | |||||||||||||||
Proceeds from borrowings | (90,523,000) | 0 | (22,000,000) | |||||||||||||||
Repayments of current borrowings | (41,570,000) | (6,163,000) | (16,293,000) | |||||||||||||||
Accrued interest | 1,226,000 | 152,000 | 95,000 | |||||||||||||||
Foreign exchange | (83,000) | 0 | (8,000) | |||||||||||||||
Borrowings | $ 6,011,000 | 51,386,000 | 0 | 6,011,000 | ||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings | 6,011,000 | 51,386,000 | 0 | 6,011,000 | $ 51,386,000 | $ 0 | ||||||||||||
Borrowings | 50,188,000 | 0 | ||||||||||||||||
Borrowings | 1,198,000 | 0 | ||||||||||||||||
Repayments of borrowings | 40,806,000 | 6,004,000 | $ 16,198,000 | |||||||||||||||
Banco Santander Rio (Argentina) | ||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||
Borrowings | 0 | |||||||||||||||||
Borrowings | 96,000 | 0 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings | 96,000 | 0 | 96,000 | 0 | ||||||||||||||
Banco Supervielle | ||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||
Borrowings | 0 | |||||||||||||||||
Borrowings | 309,000 | 0 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings | 309,000 | 0 | 309,000 | 0 | ||||||||||||||
HSBC Bank and Citibank - Syndicated loan (United States) | ||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||
Borrowings | 0 | |||||||||||||||||
Borrowings | 50,363,000 | 0 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings | 50,363,000 | 0 | 50,363,000 | 0 | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | |||||||||||||||||
Amended and Restated Credit Agreement | ||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||
Proceeds from borrowings | $ (25,000,000) | $ (40,000,000) | $ (10,000,000) | $ (30,000,000) | $ (25,000,000) | |||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Amount paid | $ 6,163,000 | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||||||||||||||||
Borrowings | 50,000,000 | |||||||||||||||||
Borrowings | 40,000,000 | |||||||||||||||||
Repayments of borrowings | 40,301,000 | |||||||||||||||||
Banco Santander (Colombia) | ||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||
Borrowings | 0 | |||||||||||||||||
Borrowings | 549,000 | 0 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings | 549,000 | 0 | $ 549,000 | $ 0 | ||||||||||||||
Avanxo S.A. | Banco Santander (Colombia) | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings | $ 523,000 | |||||||||||||||||
Sistemas Globales S.A. and IAFH Global S.A. | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Number of loan agreements | loan_agreement | 6 | |||||||||||||||||
Sistemas Globales S.A. and IAFH Global S.A. | Banco Santander Rio (Argentina) | ||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||
Borrowings | 16,000,000 | |||||||||||||||||
Borrowings | 16,000,000 | $ 16,000,000 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings | 16,000,000 | $ 16,000,000 | $ 16,000,000 | |||||||||||||||
Amount paid | $ 16,293,000 | |||||||||||||||||
Avanxo Colombia | Banco Santander Rio (Argentina) | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayments of borrowings | $ 37,000 | |||||||||||||||||
Avanxo Colombia | BBVA Loan | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayments of borrowings | $ 520,000 | |||||||||||||||||
BSF S.A. | Banco Supervielle | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayments of borrowings | 52,000 | |||||||||||||||||
BSF S.A. | Banco ICBC | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayments of borrowings | $ 39,000 | |||||||||||||||||
Cost | HSBC Bank and Citibank - Syndicated loan (United States) | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Current borrowings | $ 6,000,000 |
TAX LIABILITIES (Details)
TAX LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Income tax | $ 4,612 | $ 4,526 |
Periodic payment plan | 17 | 28 |
Software Promotion Law - Annual and monthly rates | 366 | 523 |
VAT payable | 2,558 | 1,208 |
Wage withholding taxes | 1,266 | 558 |
Sales taxes payable | 1,576 | 0 |
Other | 2,115 | 556 |
TOTAL | $ 12,510 | $ 7,399 |
PROVISIONS FOR CONTINGENCIES -
PROVISIONS FOR CONTINGENCIES - Reserve for Lawsuit Claims (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of contingent liabilities [line items] | ||||
Provisions for contingencies | $ 2,602 | $ 2,862 | ||
Reserve for labor claims | ||||
Disclosure of contingent liabilities [line items] | ||||
Provisions for contingencies | 91 | 678 | $ 49 | $ 1,138 |
Reserve for commercial claims | ||||
Disclosure of contingent liabilities [line items] | ||||
Provisions for contingencies | 1,000 | 0 | 0 | 0 |
Reserve for regulatory claims | ||||
Disclosure of contingent liabilities [line items] | ||||
Provisions for contingencies | $ 1,511 | $ 2,184 | $ 1,130 | $ 807 |
PROVISIONS FOR CONTINGENCIES _2
PROVISIONS FOR CONTINGENCIES - Reserve Roll Forward (Details) - USD ($) $ in Thousands | Nov. 06, 2019 | May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reconciliation of changes in other provisions [abstract] | |||||
Balance at beginning of year | $ 2,862 | ||||
Balance at end of year | 2,602 | $ 2,862 | |||
Reserve for labor claims | |||||
Reconciliation of changes in other provisions [abstract] | |||||
Balance at beginning of year | 678 | 49 | $ 1,138 | ||
Additions | 907 | 926 | 187 | ||
Recovery | (1,247) | 0 | 0 | ||
Utilization of provision for contingencies | (99) | (222) | (1,288) | ||
Foreign exchange | (148) | (75) | 12 | ||
Balance at end of year | 91 | 678 | 49 | ||
Reserve for regulatory claims | |||||
Reconciliation of changes in other provisions [abstract] | |||||
Balance at beginning of year | 2,184 | 1,130 | 807 | ||
Additions | 219 | 1,144 | 340 | ||
Recovery | (879) | 0 | 0 | ||
Utilization of provision for contingencies | (95) | 0 | (32) | ||
Foreign exchange | 82 | (90) | 15 | ||
Balance at end of year | 1,511 | 2,184 | 1,130 | ||
Reserve for commercial claims | |||||
Reconciliation of changes in other provisions [abstract] | |||||
Balance at beginning of year | 0 | 0 | 0 | ||
Additions | 1,000 | 0 | 0 | ||
Balance at end of year | $ 1,000 | $ 0 | $ 0 | ||
Reserve for commercial claims | Sistemas Colombia S.A.S. | |||||
Reconciliation of changes in other provisions [abstract] | |||||
Additions | $ 2,100 | $ 1,400 |
ADVANCES TO ACQUIRE BUILDINGS (
ADVANCES TO ACQUIRE BUILDINGS (Details) $ in Thousands, $ in Thousands | Dec. 04, 2015USD ($)square_meterfloor | Dec. 04, 2015ARS ($)square_meterfloor | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Disclosure of transactions between related parties [line items] | ||||
Advances to suppliers | $ 1,666 | $ 611 | ||
Advances to suppliers (note 20) | 3,579 | 28,799 | ||
Property advances reclassified from receivables to property and equipment | 30,661 | |||
Inversiones y Representaciones Sociedad Anonima IRSA | ||||
Disclosure of transactions between related parties [line items] | ||||
Advances to suppliers | $ 70 | $ 363 | ||
Subsidiaries | Sistemas Globales S.A. and IAFH Global S.A. | ||||
Disclosure of transactions between related parties [line items] | ||||
Area of real estate property | square_meter | 4,896 | 4,896 | ||
Number of floors | floor | 4 | 4 | ||
Purchases of property and other assets, related party transactions | $ 180,279 | |||
Purchase agreement, payment one | $ 18,779 | |||
Purchase agreement, payment two | 8,567 | |||
Purchase agreement, payment three | $ 3,672 |
RELATED PARTIES BALANCES AND _3
RELATED PARTIES BALANCES AND TRANSCATIONS - WPP and Other Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Balances due from related parties | $ 91 | $ 993 | |
Revenue from rendering of services, related party transactions | 1,419 | 5,937 | $ 5,590 |
Added Value | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 0 | 13 |
Grey Global Group Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 472 | 1,238 |
Group M Worldwide Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 102 | 521 |
JWT | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 204 | 1,043 |
Kantar Group | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 216 | 791 |
Kantar Retail | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 39 | 93 |
Ogilvy & Mather Brasil Comunication | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 82 | 1,677 |
JP Morgan Chase & Co. | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 1,784 | 0 |
JP Morgan Chase S.A. | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 48 | 0 |
JP Morgan Services Argentina S.R.L. | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | 0 | 1,503 | 0 |
TNS | |||
Disclosure of transactions between related parties [line items] | |||
Balances due from related parties | 0 | 56 | |
Revenue from rendering of services, related party transactions | 0 | 8 | 30 |
Morgan Stanley Investment Management Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Balances due from related parties | 91 | 497 | |
Revenue from rendering of services, related party transactions | 1,257 | 964 | 0 |
Mercado Libre S.R.L. | |||
Disclosure of transactions between related parties [line items] | |||
Balances due from related parties | 0 | 440 | |
Revenue from rendering of services, related party transactions | 162 | 515 | 143 |
Mirum Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services, related party transactions | $ 0 | $ 0 | $ 41 |
Morgan Stanley Investment Management Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Percentage of entity's share capital | 5.00% |
RELATED PARTIES BALANCES AND _4
RELATED PARTIES BALANCES AND TRANSCATIONS - Compensation of Key Management Personnel (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)shares$ / shares | Dec. 31, 2018USD ($)shares$ / shares | Dec. 31, 2017USD ($)shares$ / shares | |
Disclosure of transactions between related parties [line items] | |||
Amount incurred by entity for provision of key management personnel services provided by separate management entity | $ | $ 6,914 | $ 5,140 | $ 4,507 |
Key management personnel compensation | $ | $ 6,914 | $ 5,140 | $ 4,507 |
Number of share options granted in share-based payment arrangement (in shares) | shares | 4,000 | 221,000 | |
Options granted during the year (in usd per share) | $ / shares | $ 52.10 | $ 46.45 | |
Grant One | |||
Disclosure of transactions between related parties [line items] | |||
Number of share options granted in share-based payment arrangement (in shares) | shares | 115,000 | ||
Options granted during the year (in usd per share) | $ / shares | $ 46 | ||
Grant Two | |||
Disclosure of transactions between related parties [line items] | |||
Number of share options granted in share-based payment arrangement (in shares) | shares | 6,000 | ||
Options granted during the year (in usd per share) | $ / shares | $ 50.92 | ||
Restricted Stock Units | Grant One | |||
Disclosure of transactions between related parties [line items] | |||
Number of share options granted in share-based payment arrangement (in shares) | shares | 82,800 | 93,000 | 12,836 |
Options granted during the year (in usd per share) | $ / shares | $ 87.44 | $ 46 | $ 34.96 |
Restricted Stock Units | Grant Two | |||
Disclosure of transactions between related parties [line items] | |||
Number of share options granted in share-based payment arrangement (in shares) | shares | 2,400 | 10,000 | 62,162 |
Options granted during the year (in usd per share) | $ / shares | $ 52.10 | $ 50.92 | $ 37 |
Restricted Stock Units | Grant Three | |||
Disclosure of transactions between related parties [line items] | |||
Number of share options granted in share-based payment arrangement (in shares) | shares | 2,390 | 4,054 | |
Options granted during the year (in usd per share) | $ / shares | $ 69.77 | $ 45.50 |
EMPLOYEE BENEFITS - Evolution o
EMPLOYEE BENEFITS - Evolution of share options outstanding (Details) | Jul. 18, 2014 | Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2017shares$ / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Par value per share (in dollars per share) | $ / shares | $ 1.20 | |||
Number of options (in shares) | ||||
Balance at the beginning of year (in shares) | shares | 1,786,467 | 2,155,851 | ||
Options granted during the year (in shares) | shares | 4,000 | 221,000 | ||
Forfeited during the year (in shares) | shares | (21,625) | (78,716) | ||
Exercised during the year (in shares) | shares | (717,240) | (511,668) | (338,709) | |
Balance at end of year (in shares) | shares | 1,051,602 | 1,786,467 | 2,155,851 | |
Weighted average exercise price (in usd per share) | ||||
Balance at the beginning of year (in usd per share) | $ / shares | $ 27.96 | $ 23.02 | ||
Options granted during the year (in usd per share) | $ / shares | 52.10 | 46.45 | ||
Forfeited during the year (in usd per share) | $ / shares | 31.77 | 36.89 | ||
Exercised during the year (in usd per share) | $ / shares | 22.06 | 13.76 | $ 15.63 | |
Balance at the end of year (in usd per share) | $ / shares | $ 31.82 | $ 27.96 | $ 23.02 | |
Restricted Stock Units | ||||
Number of RSU (in shares) | ||||
Issued during the year (in shares) | shares | (181,860) | (163,233) | ||
Balance at end of year (in shares) | shares | 622,322 | |||
Employee and Non Employee Restricted Stock Units | ||||
Number of RSU (in shares) | ||||
Balance at the beginning of year (in shares) | shares | 535,838 | 164,859 | ||
RSU granted during the year (in shares) | shares | 309,539 | 564,995 | 254,328 | |
Forfeited during the year (in shares) | shares | (38,621) | (30,783) | ||
Issued during the year (in shares) | shares | (181,860) | (163,233) | (86,931) | |
Balance at end of year (in shares) | shares | 624,896 | 535,838 | 164,859 | |
Weighted average grant price (in usd per share) | ||||
Balance at the beginning of year (in usd per share) | $ / shares | $ 44.70 | $ 37.58 | ||
RSU granted during the year (in usd per share) | $ / shares | 85.80 | 46.29 | ||
Forfeited during the year (in usd per share) | $ / shares | 47.69 | 44.14 | ||
Issued during the year (in usd per share) | $ / shares | 37 | 43.13 | $ 36.11 | |
Balance at the end of year (in usd per share) | $ / shares | $ 64.05 | $ 44.70 | $ 37.58 | |
2012 Plan | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Maximum term | 7 years | |||
2014 Plan | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Maximum term | 10 years | |||
2014 Plan | Stock Options | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting term | 4 years | |||
2014 Plan | Stock Options | Tranche One | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting percentage | 25.00% | |||
2014 Plan | Stock Options | Tranche Two | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting percentage | 25.00% | |||
2014 Plan | Stock Options | Tranche Three | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting percentage | 25.00% | |||
2014 Plan | Stock Options | Tranche Four | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting percentage | 25.00% | |||
2014 Plan | Restricted Stock Units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Par value per share (in dollars per share) | $ / shares | $ 1.20 |
EMPLOYEE BENEFITS - Summary of
EMPLOYEE BENEFITS - Summary of the share-based compensation plan (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)shares$ / shares | Dec. 31, 2018USD ($)shares$ / shares | Dec. 31, 2017shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | $ 10,129 | ||
Expense | $ 6,288 | ||
Number of stock options (in shares) | shares | 1,051,602 | 1,786,467 | 2,155,851 |
Number of stock options vested (in shares) | shares | 671,227 | ||
Fair value vested ($) | $ 5,100 | ||
Deferred tax assets | 26,868 | $ 16,916 | |
Share-based compensation plan | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Deferred tax assets | $ 11,587 | $ 4,731 | |
Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of Restricted Stock Units (in shares) | shares | 622,322 | ||
Fair value at grant date ($) | $ 39,802 | ||
Expense | $ 14,932 | ||
Non-Employees Restricted Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of Restricted Stock Units (in shares) | shares | 2,574 | ||
Fair value at grant date ($) | $ 225 | ||
Expense | $ 179 | ||
Employee and Non Employee Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 85.80 | $ 46.29 | |
Number of Restricted Stock Units (in shares) | shares | 624,896 | 535,838 | 164,859 |
Fair value at grant date ($) | $ 40,027 | ||
Expense | 15,111 | ||
Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 9,881 | ||
Expense | $ 6,226 | ||
Number of stock options (in shares) | shares | 1,024,602 | ||
Number of stock options vested (in shares) | shares | 650,977 | ||
Fair value vested ($) | $ 4,914 | ||
Non-Employees Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 248 | ||
Expense | $ 62 | ||
Number of stock options (in shares) | shares | 27,000 | ||
Number of stock options vested (in shares) | shares | 20,250 | ||
Fair value vested ($) | $ 186 | ||
Exercise Price, $0.95 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 0 | ||
Expense | $ 5 | ||
Exercise price ($ per share) | $ / shares | $ 0.95 | ||
Number of stock options (in shares) | shares | 0 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $2.48 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 0 | ||
Expense | $ 9 | ||
Exercise price ($ per share) | $ / shares | $ 2.48 | ||
Number of stock options (in shares) | shares | 0 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $3.38 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 0 | ||
Expense | $ 85 | ||
Exercise price ($ per share) | $ / shares | $ 3.38 | ||
Number of stock options (in shares) | shares | 0 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $12.22 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 0 | ||
Expense | $ 0 | ||
Exercise price ($ per share) | $ / shares | $ 12.22 | ||
Number of stock options (in shares) | shares | 0 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $10.00 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 359 | ||
Expense | $ 500 | ||
Exercise price ($ per share) | $ / shares | $ 10 | ||
Number of stock options (in shares) | shares | 107,826 | ||
Number of stock options vested (in shares) | shares | 107,826 | ||
Fair value vested ($) | $ 359 | ||
Exercise Price, $22.77 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 0 | ||
Expense | $ 0 | ||
Exercise price ($ per share) | $ / shares | $ 22.77 | ||
Number of stock options (in shares) | shares | 0 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $28.31 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 1,426 | ||
Expense | $ 1,422 | ||
Exercise price ($ per share) | $ / shares | $ 28.31 | ||
Number of stock options (in shares) | shares | 205,748 | ||
Number of stock options vested (in shares) | shares | 205,748 | ||
Fair value vested ($) | $ 1,426 | ||
Exercise Price, $29.34 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 26 | ||
Expense | $ 0 | ||
Exercise price ($ per share) | $ / shares | $ 29.34 | ||
Number of stock options (in shares) | shares | 3,875 | ||
Number of stock options vested (in shares) | shares | 3,875 | ||
Fair value vested ($) | $ 26 | ||
Exercise Price, $34.20 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 47 | ||
Expense | $ 39 | ||
Exercise price ($ per share) | $ / shares | $ 34.20 | ||
Number of stock options (in shares) | shares | 5,500 | ||
Number of stock options vested (in shares) | shares | 5,500 | ||
Fair value vested ($) | $ 47 | ||
Exercise Price, $29.01 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 810 | ||
Expense | $ 888 | ||
Exercise price ($ per share) | $ / shares | $ 29.01 | ||
Number of stock options (in shares) | shares | 117,480 | ||
Number of stock options vested (in shares) | shares | 52,480 | ||
Fair value vested ($) | $ 362 | ||
Exercise Price, $32.36 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 2,740 | ||
Expense | $ 1,487 | ||
Exercise price ($ per share) | $ / shares | $ 32.36 | ||
Number of stock options (in shares) | shares | 338,173 | ||
Number of stock options vested (in shares) | shares | 211,798 | ||
Fair value vested ($) | $ 1,716 | ||
Exercise Price, $38.16 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 273 | ||
Expense | $ 91 | ||
Exercise price ($ per share) | $ / shares | $ 38.16 | ||
Number of stock options (in shares) | shares | 30,000 | ||
Number of stock options vested (in shares) | shares | 20,000 | ||
Fair value vested ($) | $ 182 | ||
Exercise Price, $36.30 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 127 | ||
Expense | $ 32 | ||
Exercise price ($ per share) | $ / shares | $ 36.30 | ||
Number of stock options (in shares) | shares | 15,000 | ||
Number of stock options vested (in shares) | shares | 7,500 | ||
Fair value vested ($) | $ 64 | ||
Exercise Price, $44.97 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 268 | ||
Expense | $ 118 | ||
Exercise price ($ per share) | $ / shares | $ 44.97 | ||
Number of stock options (in shares) | shares | 15,000 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $46.00 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 3,434 | ||
Expense | $ 1,349 | ||
Exercise price ($ per share) | $ / shares | $ 46 | ||
Number of stock options (in shares) | shares | 170,000 | ||
Number of stock options vested (in shares) | shares | 36,250 | ||
Fair value vested ($) | $ 732 | ||
Exercise Price, $55.07 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 181 | ||
Expense | $ 97 | ||
Exercise price ($ per share) | $ / shares | $ 55.07 | ||
Number of stock options (in shares) | shares | 7,500 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $50.92 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 101 | ||
Expense | $ 61 | ||
Exercise price ($ per share) | $ / shares | $ 50.92 | ||
Number of stock options (in shares) | shares | 4,500 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $52.10 | Employee Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 89 | ||
Expense | $ 43 | ||
Exercise price ($ per share) | $ / shares | $ 52.10 | ||
Number of stock options (in shares) | shares | 4,000 | ||
Number of stock options vested (in shares) | shares | 0 | ||
Fair value vested ($) | $ 0 | ||
Exercise Price, $39.37 | Non-Employees Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Fair value at grant date ($) | 248 | ||
Expense | $ 62 | ||
Exercise price ($ per share) | $ / shares | $ 39.37 | ||
Number of stock options (in shares) | shares | 27,000 | ||
Number of stock options vested (in shares) | shares | 20,250 | ||
Fair value vested ($) | $ 186 | ||
Grant Price, $36.30 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 36.30 | ||
Number of Restricted Stock Units (in shares) | shares | 1,000 | ||
Fair value at grant date ($) | $ 36 | ||
Expense | $ 18 | ||
Grant Price, $37.00 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 37 | ||
Number of Restricted Stock Units (in shares) | shares | 45,242 | ||
Fair value at grant date ($) | $ 1,674 | ||
Expense | $ 2,217 | ||
Grant Price, $42.00 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 42 | ||
Number of Restricted Stock Units (in shares) | shares | 3,250 | ||
Fair value at grant date ($) | $ 137 | ||
Expense | $ 77 | ||
Grant Price, $46.00 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 46 | ||
Number of Restricted Stock Units (in shares) | shares | 281,180 | ||
Fair value at grant date ($) | $ 12,934 | ||
Expense | $ 5,221 | ||
Grant Price, $46.00 | Non-Employees Restricted Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 46 | ||
Number of Restricted Stock Units (in shares) | shares | 0 | ||
Fair value at grant date ($) | $ 0 | ||
Expense | $ 35 | ||
Grant Price, $50.92 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 50.92 | ||
Number of Restricted Stock Units (in shares) | shares | 7,500 | ||
Fair value at grant date ($) | $ 382 | ||
Expense | $ 129 | ||
Grant Price, $52.74 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 52.74 | ||
Number of Restricted Stock Units (in shares) | shares | 3,000 | ||
Fair value at grant date ($) | $ 158 | ||
Expense | $ 54 | ||
Grant Price, $55.07 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 55.07 | ||
Number of Restricted Stock Units (in shares) | shares | 3,000 | ||
Fair value at grant date ($) | $ 165 | ||
Expense | $ 56 | ||
Grant Price, $56.87 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 56.87 | ||
Number of Restricted Stock Units (in shares) | shares | 0 | ||
Fair value at grant date ($) | $ 0 | ||
Expense | $ 67 | ||
Grant Price, $52.10 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 52.10 | ||
Number of Restricted Stock Units (in shares) | shares | 2,400 | ||
Fair value at grant date ($) | $ 125 | ||
Expense | $ 61 | ||
Grant Price, $87.44 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 87.44 | ||
Number of Restricted Stock Units (in shares) | shares | 268,750 | ||
Fair value at grant date ($) | $ 23,500 | ||
Expense | $ 6,450 | ||
Grant Price, $94.93 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 94.93 | ||
Number of Restricted Stock Units (in shares) | shares | 4,000 | ||
Fair value at grant date ($) | $ 380 | ||
Expense | $ 116 | ||
Grant Price, $69.77 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 69.77 | ||
Number of Restricted Stock Units (in shares) | shares | 0 | ||
Fair value at grant date ($) | $ 0 | ||
Expense | $ 446 | ||
Grant Price, $103.75 | Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 103.75 | ||
Number of Restricted Stock Units (in shares) | shares | 3,000 | ||
Fair value at grant date ($) | $ 311 | ||
Expense | $ 20 | ||
Grant Price, $57.39 | Non-Employees Restricted Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 57.39 | ||
Number of Restricted Stock Units (in shares) | shares | 0 | ||
Fair value at grant date ($) | $ 0 | ||
Expense | $ 18 | ||
Grant Price, $87.44 | Non-Employees Restricted Stock Options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Grant price (in usd per share) | $ / shares | $ 87.44 | ||
Number of Restricted Stock Units (in shares) | shares | 2,574 | ||
Fair value at grant date ($) | $ 225 | ||
Expense | $ 126 |
EMPLOYEE BENEFITS - Share optio
EMPLOYEE BENEFITS - Share options exercised during the year (Details) | 12 Months Ended | ||
Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2017shares$ / shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 717,240 | 511,668 | 338,709 |
Exercised during the year (in usd per share) | $ / shares | $ 22.06 | $ 13.76 | $ 15.63 |
Weighted average share price (in usd per share) | $ / shares | $ 88.51 | $ 52.82 | |
Employee Stock Options | Exercise Price, $.95 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 0 | 9,900 | |
Exercised during the year (in usd per share) | $ / shares | $ 0.95 | $ 0.95 | |
Employee Stock Options | Exercise Price, $.71 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 0 | 200,000 | |
Exercised during the year (in usd per share) | $ / shares | $ 0.71 | $ 0.71 | |
Employee Stock Options | Exercise Price, $1.40 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 0 | 616 | |
Exercised during the year (in usd per share) | $ / shares | $ 1.40 | $ 1.40 | |
Employee Stock Options | Exercise Price, $2.48 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 0 | 1,793 | |
Exercised during the year (in usd per share) | $ / shares | $ 2.48 | $ 2.48 | |
Employee Stock Options | Exercise Price, $3.38 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 0 | 19,732 | |
Exercised during the year (in usd per share) | $ / shares | $ 3.38 | $ 3.38 | |
Employee Stock Options | Exercise Price, $2.71 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 0 | 6,031 | |
Exercised during the year (in usd per share) | $ / shares | $ 2.71 | $ 2.71 | |
Employee Stock Options | Exercise Price, $6.77 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 22,170 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 6.77 | $ 6.77 | |
Employee Stock Options | Exercise Price, $0.95 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 1,103 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 0.95 | $ 0.95 | |
Employee Stock Options | Exercise Price, $2.48 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 1,304 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 2.48 | $ 2.48 | |
Employee Stock Options | Exercise Price, $3.38 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 13,223 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 3.38 | $ 3.38 | |
Employee Stock Options | Exercise Price, $10.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 22,170 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 10 | $ 10 | |
Employee Stock Options | Exercise Price, $12.22 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 47,169 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 12.22 | $ 12.22 | |
Employee Stock Options | Exercise Price, $10.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 173,211 | 66,146 | |
Exercised during the year (in usd per share) | $ / shares | $ 10 | $ 10 | |
Employee Stock Options | Exercise Price, $13.20 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 0 | 3,769 | |
Exercised during the year (in usd per share) | $ / shares | $ 13.20 | $ 13.20 | |
Employee Stock Options | Exercise Price, $28.31 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 163,834 | 111,843 | |
Exercised during the year (in usd per share) | $ / shares | $ 28.31 | $ 28.31 | |
Employee Stock Options | Exercise Price, $34.20 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 8,000 | 3,000 | |
Exercised during the year (in usd per share) | $ / shares | $ 34.20 | $ 34.20 | |
Employee Stock Options | Exercise Price, $29.34 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 12,097 | 1,200 | |
Exercised during the year (in usd per share) | $ / shares | $ 29.34 | $ 29.34 | |
Employee Stock Options | Exercise Price, $22.77 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 30,000 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 22.77 | $ 22.77 | |
Employee Stock Options | Exercise Price, $29.01 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 105,020 | 18,750 | |
Exercised during the year (in usd per share) | $ / shares | $ 29.01 | $ 29.01 | |
Employee Stock Options | Exercise Price, $32.36 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 98,939 | 68,888 | |
Exercised during the year (in usd per share) | $ / shares | $ 32.36 | $ 32.36 | |
Employee Stock Options | Exercise Price, $44.97 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 5,000 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 44.97 | $ 44.97 | |
Employee Stock Options | Exercise Price, $46.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 10,000 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 46 | $ 46 | |
Employee Stock Options | Exercise Price $50.92 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 1,500 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 50.92 | $ 50.92 | |
Employee Stock Options | Exercise Price $55.07 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options exercised in share-based payment arrangement (in shares) | shares | 2,500 | 0 | |
Exercised during the year (in usd per share) | $ / shares | $ 55.07 | $ 55.07 | |
Restricted Stock Units | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 181,860 | 163,233 | |
Restricted Stock Units | Grant Price, $36.30 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 500 | 500 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 36.30 | $ 36.30 | |
Restricted Stock Units | Grant Price, $37.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 45,283 | 45,906 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 37 | $ 37 | |
Restricted Stock Units | Grant Price, $38.21 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 0 | 2,671 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 38.21 | $ 38.21 | |
Restricted Stock Units | Grant Price, $42.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 2,250 | 2,250 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 42 | $ 42 | |
Restricted Stock Units | Grant Price, $45.50 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 0 | 107,463 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 45.50 | $ 45.50 | |
Restricted Stock Units | Grant Price, $53.29 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 0 | 4,443 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 53.29 | $ 53.29 | |
Restricted Stock Units | Grant Price, $46.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 100,206 | 0 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 46 | $ 46 | |
Restricted Stock Units | Grant Price, $55.07 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 1,000 | 0 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 55.07 | $ 55.07 | |
Restricted Stock Units | Grant Price, $57.39 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 436 | 0 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 57.39 | $ 57.39 | |
Restricted Stock Units | Grant Price, $52.74 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 1,000 | 0 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 52.74 | $ 52.74 | |
Restricted Stock Units | Grant Price, $50.92 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 2,500 | 0 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 50.92 | $ 50.92 | |
Restricted Stock Units | Grant Price, $56.87 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 1,500 | 0 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 56.87 | $ 56.87 | |
Restricted Stock Units | Grant Price, $69.77 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | shares | 27,185 | 0 | |
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in usd per share) | $ / shares | $ 69.77 | $ 69.77 |
EMPLOYEE BENEFITS - Fair value
EMPLOYEE BENEFITS - Fair value of share-based compensation granted (Details) | 12 Months Ended | ||
Dec. 31, 2019year$ / shares | Dec. 31, 2018year$ / shares | Dec. 31, 2017year$ / shares | |
Share-Based Payment Arrangements [Abstract] | |||
Stock price (in usd per share) | $ / shares | $ 52.10 | $ 46.45 | $ 39.69 |
Expected option life | year | 6 | 6 | 6 |
Volatility (as a percent) | 40.00% | 40.00% | 19.00% |
Risk-free interest rate | 3.10% | 3.00% | 2.00% |
BUSINESS COMBINATIONS - Acquisi
BUSINESS COMBINATIONS - Acquisition of Clarice Technologies (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 14, 2019USD ($)shares | Mar. 31, 2018USD ($)shares | Feb. 23, 2017USD ($) | Jul. 15, 2016USD ($)shares | May 23, 2016 | May 14, 2015USD ($)shares | |
Disclosure of detailed information about business combination [line items] | |||||||||||
Number of employees | 40 | ||||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | ||||||||
Cash transferred | 103,978 | 4,328 | 21,300 | ||||||||
Loss on remeasurement of contingent consideration | 85 | (6,700) | (6,735) | ||||||||
Clarice | |||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||
Number of employees | 337 | ||||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 20,184 | ||||||||||
Business acquisition, number of shares acquired (in shares) | shares | 550 | 920 | 1,249 | 10,200 | |||||||
Percentage of voting equity interests acquired | 4.11% | 6.87% | 9.32% | 76.13% | |||||||
Cash transferred | $ 3,135 | $ 3,128 | $ 4,208 | $ 9,324 | |||||||
Business combination, percentage of voting interest acquired, staggered | 23.87% | ||||||||||
Business combination, gain (loss) on remeasurement of purchase price | $ 418 | ||||||||||
Contingent consideration | $ 8,377 | ||||||||||
Business combination, percentage of voting interest acquired, total | 100.00% | ||||||||||
Loss on remeasurement of contingent consideration | $ 3 | $ 0 | $ 1,173 | ||||||||
Clarice | Acquiree Employee | |||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||
Cash transferred | $ 600 | ||||||||||
Clarice | Scenario, Forecast | |||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||
Business acquisition, number of shares acquired (in shares) | shares | 277 | ||||||||||
Percentage of voting equity interests acquired | 2.07% | ||||||||||
Contingent consideration | $ 1,316 | ||||||||||
Business combination, share price | $ / shares | $ 971 |
BUSINESS COMBINATIONS - Conside
BUSINESS COMBINATIONS - Consideration Transferred for Clarice Acquisition (Details) - USD ($) $ in Thousands | May 14, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | |||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | ||
Other financial liabilities - current | [1] | 8,937 | 9,347 | ||
Other financial liabilities - non current | 1,617 | 3,418 | |||
Clarice | |||||
Disclosure of detailed information about business combination [line items] | |||||
Down payment | $ 9,324 | ||||
Installment payment | 2,483 | ||||
Contingent consideration | 8,377 | ||||
Total consideration paid net of cash and cash equivalents acquired | $ 20,184 | ||||
Other financial liabilities - current | 1,580 | 3,127 | |||
Other financial liabilities - non current | $ 0 | $ 1,527 | |||
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
BUSINESS COMBINATIONS - Clarice
BUSINESS COMBINATIONS - Clarice Sellers' Subscription Agreement (Details) $ in Thousands | Jun. 12, 2018shares | Dec. 31, 2019USD ($) | Apr. 05, 2019USD ($)shares | Dec. 31, 2018USD ($) | Feb. 23, 2017shares | Jul. 25, 2016USD ($)shares | May 23, 2016 | May 14, 2015USD ($)subscription_agreementshares | |
Disclosure of detailed information about business combination [line items] | |||||||||
Number of employees | 40 | ||||||||
Other current financial liabilities | [1] | $ 8,937 | $ 9,347 | ||||||
Clarice | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Number of subscription agreements | subscription_agreement | 2 | ||||||||
Number of employees | 337 | ||||||||
Other current financial liabilities | 1,580 | 3,127 | |||||||
Subscription agreement | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Other current financial liabilities | $ 0 | $ 400 | |||||||
Agreement 1, Tranche 1 | Clarice | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Common stock, shares subscribed (in shares) | shares | 38,984 | ||||||||
Number of employees | 2 | ||||||||
Common stock, value, subscriptions | $ 800 | ||||||||
Agreement 1, Tranche 2 | Clarice | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Common stock, shares subscribed (in shares) | shares | 20,896 | ||||||||
Common stock, value, subscriptions | $ 800 | ||||||||
Agreement 1, Tranche 3 | Clarice | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Common stock, shares subscribed (in shares) | shares | 7,654 | ||||||||
Common stock, value, subscriptions | $ 400 | ||||||||
Agreement 2, Tranche 1 | Clarice | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Common stock, shares subscribed (in shares) | shares | 4,873 | ||||||||
Number of employees | 1 | ||||||||
Common stock, value, subscriptions | $ 100 | ||||||||
Agreement 2, Tranche 2 | Clarice | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Common stock, shares subscribed (in shares) | shares | 2,612 | ||||||||
Common stock, value, subscriptions | $ 100 | ||||||||
Options granted during the year (in shares) | shares | 9,120 | ||||||||
Agreement 2, Tranche 3 | Clarice | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Common stock, shares subscribed (in shares) | shares | 0 | ||||||||
Agreement 2, Tranche 4 | Clarice | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Common stock, shares subscribed (in shares) | shares | 7,654 | ||||||||
Common stock, value, subscriptions | $ 400 | ||||||||
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
BUSINESS COMBINATIONS - Acqui_2
BUSINESS COMBINATIONS - Acquisition of Dynaflows (Details) $ in Thousands | Oct. 22, 2015USD ($)shares | Oct. 21, 2015 | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Apr. 22, 2016USD ($)installment |
Disclosure of detailed information about business combination [line items] | ||||||
Cash paid | $ 103,978 | $ 21,300 | $ 4,328 | |||
Dynaflows S.A. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Business acquisition, number of shares acquired (in shares) | shares | 9,014 | |||||
Cash paid | $ 1,402 | $ 414 | ||||
Number of installments | installment | 2 | |||||
Common stock, value, issued | $ 868 | |||||
Common stock, shares, issued | shares | 9,190 | |||||
Business combination, percentage of voting interest acquired, total | 66.73% | |||||
Dynaflows S.A. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Proportion of ownership interest in associate | 22.70% | 22.70% | ||||
Gain recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination | $ 625 | |||||
Dynaflows S.A. | Dynaflows S.A. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Percentage ownership | 38.50% | |||||
Argentine peso (ARS) | Dynaflows S.A. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Cash paid | $ 13,316 | |||||
Common stock, value, issued | $ 8,250 |
BUSINESS COMBINATIONS - Consi_2
BUSINESS COMBINATIONS - Consideration Transferred for Dynaflows Acquisition (Details) - USD ($) $ in Thousands | Oct. 22, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | |
Dynaflows S.A. | ||||
Disclosure of detailed information about business combination [line items] | ||||
Down payment | $ 1,402 | |||
Installment payment | 414 | |||
Total consideration paid net of cash and cash equivalents acquired | $ 1,816 |
BUSINESS COMBINATIONS - Minorit
BUSINESS COMBINATIONS - Minority Interest Purchase Agreement (Dynaflows) (Details) - USD ($) $ in Thousands | Oct. 26, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Oct. 22, 2015 |
Disclosure of detailed information about business combination [line items] | |||||
Gain on remeasurement of valuation of call and put option over non-controlling interest | $ 1,611 | $ 1,726 | |||
Other financial liabilities | 3,418 | $ 1,617 | |||
Derecognition of call option over non-controlling interest | $ 455 | ||||
Dynaflows S.A. | |||||
Disclosure of detailed information about business combination [line items] | |||||
Value of share options exercised in share-based payment arrangement | $ 1,186 | ||||
Other financial liabilities | $ 2,797 | ||||
Financial liabilities, discounted interest rate | 3.50% | ||||
Major business combination | Dynaflows S.A. | |||||
Disclosure of detailed information about business combination [line items] | |||||
Put option contract written, percentage of ownership interest | 33.27% | 33.27% |
BUSINESS COMBINATIONS - Acqui_3
BUSINESS COMBINATIONS - Acquisition of WAE (Details) $ in Thousands | May 23, 2016USD ($) | Oct. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 20, 2018USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 16, 2017USD ($) |
Disclosure of detailed information about business combination [line items] | ||||||||
Number of employees | 40 | |||||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | |||||
We Are Experience, Inc. (WAE US) | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||
We Are London Limited (WAE UK) | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||
Additional consideration paid | $ 436 | |||||||
WAE | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 19,851 | |||||||
Down payment | 8,500 | |||||||
Contingent consideration | 9,448 | $ 5,000 | $ 1,867 | $ 5,000 | ||||
Loss recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination | $ 1,038 | |||||||
Cash payable due to corporate tax savings | 575 | |||||||
Working capital adjustment | 1,352 | 1,357 | ||||||
Business combination, transaction costs | $ 515 | |||||||
We Are London Limited | WAE | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Total consideration paid net of cash and cash equivalents acquired | 12,131 | |||||||
We Are Experience, Inc. (WAE US) | WAE | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 7,720 |
BUSINESS COMBINATIONS - Consi_3
BUSINESS COMBINATIONS - Consideration Transferred for WAE Acquisition (Details) - USD ($) $ in Thousands | May 23, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 20, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Aug. 16, 2017 |
Disclosure of detailed information about business combination [line items] | |||||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | ||||
WAE | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Down payment | $ 8,500 | ||||||
Working capital adjustment | 1,352 | $ 1,357 | |||||
Installment payment | 551 | ||||||
Contingent consideration | 9,448 | $ 5,000 | $ 1,867 | $ 5,000 | |||
Total consideration paid net of cash and cash equivalents acquired | $ 19,851 |
BUSINESS COMBINATIONS - Acqui_4
BUSINESS COMBINATIONS - Acquisition of L4 (Details) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 15, 2020USD ($) | Feb. 15, 2019USD ($) | Feb. 15, 2018USD ($) | Feb. 15, 2017USD ($) | Nov. 14, 2016USD ($) | May 23, 2016 | |
Disclosure of detailed information about business combination [line items] | |||||||||
Number of employees | 40 | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | ||||||
Cash transferred | 103,978 | 4,328 | 21,300 | ||||||
(Loss) gain on remeasurement of contingent consideration | (85) | 6,700 | 6,735 | ||||||
L4 | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||
Number of employees | 90 | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 20,388 | ||||||||
Cash transferred | $ 1,850 | $ 990 | 11,000 | ||||||
Contingent consideration | $ 8,571 | ||||||||
(Loss) gain on remeasurement of contingent consideration | $ 0 | $ 1,848 | $ 4,058 | ||||||
Major business combination | L4 | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Contingent consideration | $ 1,160 | $ 1,160 |
BUSINESS COMBINATIONS - Consi_4
BUSINESS COMBINATIONS - Consideration Transferred for L4 Acquisition (Details) - USD ($) | Nov. 14, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 15, 2018 | Dec. 31, 2017 | Feb. 15, 2017 |
Disclosure of detailed information about business combination [line items] | ||||||
Cash paid | $ 103,978,000 | $ 4,328,000 | $ 21,300,000 | |||
Total consideration paid net of cash and cash equivalents acquired | 97,300,000 | 4,137,000 | $ 19,149,000 | |||
Contingent consideration | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Fair value of contingent consideration | 9,252,000 | 9,767,000 | ||||
L4 | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Cash paid | $ 11,000,000 | $ 1,850,000 | $ 990,000 | |||
Working capital adjustment | 817,000 | |||||
Contingent consideration | 8,571,000 | |||||
Total consideration paid net of cash and cash equivalents acquired | $ 20,388,000 | |||||
L4 | Contingent consideration | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Fair value of contingent consideration | $ 0 | $ 0 |
BUSINESS COMBINATIONS - Acqui_5
BUSINESS COMBINATIONS - Acquisition of Ratio (Details) $ in Thousands | Feb. 18, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 15, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 02, 2018USD ($) | Feb. 15, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 28, 2017USD ($) | May 23, 2016 |
Disclosure of detailed information about business combination [line items] | |||||||||
Number of employees | 40 | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | ||||||
Cash transferred | $ 103,978 | $ 4,328 | $ 21,300 | ||||||
Ratio | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||
Number of employees | 45 | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 9,529 | $ 9,529 | |||||||
Cash transferred | $ 2,019 | $ 1,669 | $ 5,800 | ||||||
Major business combination | Ratio | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Payment for contingent consideration | $ 1,783 |
BUSINESS COMBINATIONS - Consi_5
BUSINESS COMBINATIONS - Consideration Transferred for Ratio Acquisition (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Dec. 31, 2019 | Feb. 15, 2019 | Dec. 31, 2018 | Mar. 02, 2018 | Feb. 15, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | ||||||||
Cash transferred | $ 103,978 | $ 4,328 | $ 21,300 | |||||
Total consideration paid net of cash and cash equivalents acquired | 97,300 | 4,137 | $ 19,149 | |||||
Other financial liabilities - current | [1] | 8,937 | 9,347 | |||||
Other financial liabilities - non current | 1,617 | 3,418 | ||||||
Ratio | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Cash transferred | $ 5,800 | $ 2,019 | $ 1,669 | |||||
Working capital adjustment | (97) | |||||||
Liabilities incurred | 3,826 | |||||||
Total consideration paid net of cash and cash equivalents acquired | $ 9,529 | $ 9,529 | ||||||
Other financial liabilities - current | 903 | 1,992 | ||||||
Other financial liabilities - non current | $ 0 | $ 851 | ||||||
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
BUSINESS COMBINATIONS - Acqui_6
BUSINESS COMBINATIONS - Acquisition of PointSource (Details) $ in Thousands | Jun. 01, 2017USD ($)installment | Feb. 29, 2020USD ($) | Feb. 28, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 22, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 07, 2017USD ($) | Jun. 02, 2017USD ($) | May 23, 2016 |
Disclosure of detailed information about business combination [line items] | |||||||||||
Number of employees | 40 | ||||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | ||||||||
Cash transferred | $ 103,978 | $ 4,328 | $ 21,300 | ||||||||
PointSource | |||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||||
Number of employees | 97 | ||||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 28,629 | ||||||||||
Cash transferred | $ 15,500 | $ 750 | $ 2,206 | $ 12,400 | $ 3,100 | ||||||
Number of installments | installment | 2 | ||||||||||
Contingent consideration | $ 9,373 | ||||||||||
Working capital adjustment | $ 3,756 | ||||||||||
Major business combination | PointSource | |||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||
Contingent consideration | $ 1,450 | $ 1,198 |
BUSINESS COMBINATIONS - Consi_6
BUSINESS COMBINATIONS - Consideration Transferred For PointSource (Details) - USD ($) $ in Thousands | Jun. 01, 2017 | Dec. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Feb. 22, 2018 | Dec. 31, 2017 | Jun. 07, 2017 | Jun. 02, 2017 | |
Disclosure of detailed information about business combination [line items] | |||||||||
Cash transferred | $ 103,978 | $ 4,328 | $ 21,300 | ||||||
Total consideration paid net of cash and cash equivalents acquired | 97,300 | 4,137 | $ 19,149 | ||||||
Other financial liabilities - current | [1] | 8,937 | 9,347 | ||||||
Other financial liabilities - non current | 1,617 | 3,418 | |||||||
PointSource | |||||||||
Disclosure of detailed information about business combination [line items] | |||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||
Cash transferred | $ 15,500 | $ 750 | $ 2,206 | $ 12,400 | $ 3,100 | ||||
Working capital adjustment | 3,756 | ||||||||
Contingent consideration | 9,373 | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 28,629 | ||||||||
Other financial liabilities - current | 1,086 | 746 | |||||||
Other financial liabilities - non current | $ 0 | $ 1,040 | |||||||
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
BUSINESS COMBINATIONS - Acqui_7
BUSINESS COMBINATIONS - Acquisition of Small Footprint (Details) - USD ($) $ in Thousands | Feb. 13, 2020 | Feb. 15, 2021 | Dec. 31, 2019 | Mar. 01, 2019 | Dec. 31, 2018 | Oct. 15, 2018 | Aug. 20, 2018 | Dec. 31, 2017 |
Disclosure of contingent liabilities in business combination [line items] | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | |||||
Cash transferred | $ 103,978 | 4,328 | $ 21,300 | |||||
Small Footprint | ||||||||
Disclosure of contingent liabilities in business combination [line items] | ||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||
Total consideration paid net of cash and cash equivalents acquired | $ 7,357 | $ 7,397 | $ 7,357 | |||||
Cash transferred | $ 3,066 | $ 4,331 | 3,840 | |||||
Contingent liabilities recognised as of acquisition date | $ 1,610 | $ 3,029 | ||||||
Small Footprint | Major business combination | ||||||||
Disclosure of contingent liabilities in business combination [line items] | ||||||||
Payment for contingent consideration | $ 2,140 |
BUSINESS COMBINATIONS - Consi_7
BUSINESS COMBINATIONS - Consideration Transfered Small Footprint (Details) - USD ($) $ in Thousands | Aug. 20, 2018 | Feb. 15, 2021 | Dec. 31, 2019 | Mar. 01, 2019 | Dec. 31, 2018 | Oct. 15, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | ||||||||
Cash transferred | $ 103,978 | $ 4,328 | $ 21,300 | |||||
Total consideration paid net of cash and cash equivalents acquired | 97,300 | 4,137 | $ 19,149 | |||||
Other financial liabilities - current | [1] | 8,937 | 9,347 | |||||
Small Footprint | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Cash transferred | $ 3,840 | $ 3,066 | $ 4,331 | |||||
Working capital adjustment | 488 | |||||||
Contingent consideration | 3,029 | $ 1,610 | ||||||
Total consideration paid net of cash and cash equivalents acquired | $ 7,357 | 7,357 | $ 7,397 | |||||
Other financial liabilities - current | $ 0 | $ 3,070 | ||||||
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
BUSINESS COMBINATIONS - Acqui_8
BUSINESS COMBINATIONS - Acquisition of Avanxo (Details) $ in Thousands | Feb. 01, 2019USD ($)shares | Jan. 17, 2019USD ($)installment | Dec. 31, 2019USD ($) | May 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Disclosure of detailed information about business combination [line items] | ||||||
Total consideration paid net of cash and cash equivalents acquired | $ 97,300 | $ 4,137 | $ 19,149 | |||
Cash paid | 103,978 | $ 4,328 | $ 21,300 | |||
Avanxo | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Total consideration paid net of cash and cash equivalents acquired | $ 44,302 | $ 44,460 | $ 44,302 | |||
Cash paid | 42,144 | $ 1,205 | ||||
Down payment | 40,939 | |||||
Contingent consideration | 2,158 | |||||
Number of installments | installment | 2 | |||||
Total consideration paid through issuance and delivery of common shares | $ 865 | |||||
Earn-out payment, percentage | 25.00% | |||||
Contingent liabilities recognised in business combination | $ 2,318 | |||||
Consideration payment to be expensed | $ 5,300 | |||||
Period prior to closing of each share subscription | 60 days | |||||
Lock-up period of common share issued pursuant to exercise option | 12 months | |||||
Common stock, shares subscribed (in shares) | shares | 14,778 | |||||
Common stock, value, subscriptions | $ 845 | |||||
Major business combination | Avanxo | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Contingent consideration | $ 7,618 |
BUSINESS COMBINATIONS - Consi_8
BUSINESS COMBINATIONS - Consideration Transferred For Avanxo (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 31, 2019 | Feb. 01, 2019 | Jan. 17, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | |||||||
Cash paid | $ 103,978 | $ 4,328 | $ 21,300 | ||||
Total consideration paid net of cash and cash equivalents acquired | 97,300 | 4,137 | $ 19,149 | ||||
Other financial liabilities | 1,617 | 3,418 | |||||
Other current financial liabilities | [1] | 8,937 | 9,347 | ||||
Avanxo | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash paid | $ 1,205 | $ 42,144 | |||||
Contingent consideration | 2,158 | ||||||
Total consideration paid net of cash and cash equivalents acquired | 44,302 | $ 44,302 | $ 44,460 | ||||
Other financial liabilities | 1,102 | 0 | |||||
Other current financial liabilities | $ 1,147 | $ 0 | |||||
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
BUSINESS COMBINATIONS - Acqui_9
BUSINESS COMBINATIONS - Acquisition of Belatrix (Details) - USD ($) shares in Thousands, $ in Thousands | Aug. 09, 2019 | Dec. 31, 2019 | Aug. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | |||||
Cash paid | $ 103,978 | $ 4,328 | $ 21,300 | ||
Belatrix | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash paid | $ 61,468 | ||||
Business acquisition, number of shares acquired (in shares) | 5,000 | ||||
Period prior to closing of each share subscription | 60 days | ||||
Period prior to closing date | 2 days | ||||
Earn out payment | 3,000 | ||||
Contingent liabilities recognised in business combination | $ 4,097 | $ 2,091 | |||
Consideration payment to be expensed | $ 909 |
BUSINESS COMBINATIONS - Consi_9
BUSINESS COMBINATIONS - Consideration Transferred For Belatrix (Details) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2019 | Aug. 09, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | |||||
Cash paid | $ 103,978 | $ 4,328 | $ 21,300 | ||
Total consideration paid net of cash and cash equivalents acquired | 97,300 | 4,137 | $ 19,149 | ||
Other current financial liabilities | [1] | 8,937 | 9,347 | ||
Belatrix | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash paid | $ 61,468 | ||||
Contingent consideration | 4,165 | ||||
Total consideration paid net of cash and cash equivalents acquired | 65,633 | $ 65,633 | |||
Other current financial liabilities | $ 4,221 | $ 0 | |||
Business acquisition, number of shares acquired (in shares) | 5,000 | ||||
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
BUSINESS COMBINATIONS - Acqu_10
BUSINESS COMBINATIONS - Acquisition of BI Live (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 11, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||||
Cash paid | $ 103,978 | $ 4,328 | $ 21,300 | |
BI Live | ||||
Disclosure of detailed information about business combination [line items] | ||||
Cash paid | $ 366 | |||
Contingent liabilities recognised in business combination | $ 559 | $ 3,000 |
BUSINESS COMBINATIONS - Cons_10
BUSINESS COMBINATIONS - Consideration Transferred For BI Live (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 11, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||||
Cash paid | $ 103,978 | $ 4,328 | $ 21,300 | |
Total consideration paid net of cash and cash equivalents acquired | 97,300 | 4,137 | $ 19,149 | |
Other financial liabilities | 1,617 | 3,418 | ||
Contingent consideration | ||||
Disclosure of detailed information about business combination [line items] | ||||
Fair value of contingent consideration | 9,252 | 9,767 | ||
BI Live | ||||
Disclosure of detailed information about business combination [line items] | ||||
Cash paid | $ 366 | |||
Contingent consideration | 512 | |||
Total consideration paid net of cash and cash equivalents acquired | 878 | $ 878 | ||
Other financial liabilities | 515 | $ 0 | ||
BI Live | Contingent consideration | ||||
Disclosure of detailed information about business combination [line items] | ||||
Fair value of contingent consideration | $ 512 |
BUSINESS COMBINATIONS - Outstan
BUSINESS COMBINATIONS - Outstanding Balances Of Financial Liabilities Related To Acquisitions (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | [1] | $ 8,937 | $ 9,347 |
Other financial liabilities - current | 8,937 | 9,335 | |
Other financial liabilities - non current | 1,617 | 3,418 | |
Clarice | |||
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | 1,580 | 3,127 | |
Other financial liabilities - non current | 0 | 1,527 | |
Subscription agreement | |||
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | 0 | 400 | |
Other financial liabilities - non current | 0 | 0 | |
Ratio | |||
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | 903 | 1,992 | |
Other financial liabilities - non current | 0 | 851 | |
PointSource | |||
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | 1,086 | 746 | |
Other financial liabilities - non current | 0 | 1,040 | |
Small Footprint | |||
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | 0 | 3,070 | |
Other financial liabilities - non current | 0 | 0 | |
Avanxo | |||
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | 1,147 | 0 | |
Other financial liabilities - non current | 1,102 | 0 | |
Belatrix | |||
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | 4,221 | 0 | |
Other financial liabilities - non current | 0 | 0 | |
BI Live | |||
Disclosure of financial liabilities [line items] | |||
Other financial liabilities - current | 0 | 0 | |
Other financial liabilities - non current | $ 515 | $ 0 | |
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
BUSINESS COMBINATIONS - Purchas
BUSINESS COMBINATIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 11, 2019 | Aug. 09, 2019 | Feb. 01, 2019 | Jan. 17, 2019 | Dec. 31, 2018 | Oct. 15, 2018 | Aug. 20, 2018 | Dec. 31, 2017 |
Non-current assets | |||||||||
Goodwill | $ 188,538 | $ 104,846 | $ 98,926 | ||||||
Current liabilities | |||||||||
Total consideration paid net of cash and cash equivalents acquired | (97,300) | (4,137) | $ (19,149) | ||||||
Goodwill expected to not be tax deductible | 83,706 | 6,244 | |||||||
Avanxo | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 2,749 | ||||||||
Investments | 948 | ||||||||
Trade receivables | 6,931 | ||||||||
Other receivables | 3,624 | ||||||||
Other assets | 11,015 | ||||||||
Non-current assets | |||||||||
Other receivables | 0 | ||||||||
Property and equipment | 500 | ||||||||
Intangibles | 6,104 | ||||||||
Right-of-use asset | 0 | ||||||||
Deferred tax | 0 | ||||||||
Goodwill | 32,068 | ||||||||
Current liabilities | |||||||||
Trade and other payables | (14,123) | ||||||||
Lease liabilities | 0 | ||||||||
Tax liabilities | (2,649) | ||||||||
Payroll and social security | (1,582) | ||||||||
Other liabilities | 0 | ||||||||
Borrowings | (644) | ||||||||
Deferred tax liabilities | (639) | ||||||||
Total consideration paid net of cash and cash equivalents acquired | (44,302) | $ (44,302) | $ (44,460) | ||||||
Belatrix | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 3,929 | ||||||||
Investments | 86 | ||||||||
Trade receivables | 6,125 | ||||||||
Other receivables | 1,119 | ||||||||
Other assets | 0 | ||||||||
Non-current assets | |||||||||
Other receivables | 206 | ||||||||
Property and equipment | 3,181 | ||||||||
Intangibles | 8,285 | ||||||||
Right-of-use asset | 3,272 | ||||||||
Deferred tax | 184 | ||||||||
Goodwill | 50,816 | ||||||||
Current liabilities | |||||||||
Trade and other payables | (3,195) | ||||||||
Lease liabilities | (3,347) | ||||||||
Tax liabilities | (1,138) | ||||||||
Payroll and social security | (3,224) | ||||||||
Other liabilities | (20) | ||||||||
Borrowings | (646) | ||||||||
Deferred tax liabilities | 0 | ||||||||
Total consideration paid net of cash and cash equivalents acquired | (65,633) | $ (65,633) | |||||||
BI Live | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 0 | ||||||||
Investments | 0 | ||||||||
Trade receivables | 56 | ||||||||
Other receivables | 0 | ||||||||
Other assets | 0 | ||||||||
Non-current assets | |||||||||
Other receivables | 0 | ||||||||
Property and equipment | 0 | ||||||||
Intangibles | 0 | ||||||||
Right-of-use asset | 0 | ||||||||
Deferred tax | 0 | ||||||||
Goodwill | 822 | ||||||||
Current liabilities | |||||||||
Trade and other payables | 0 | ||||||||
Lease liabilities | 0 | ||||||||
Tax liabilities | 0 | ||||||||
Payroll and social security | 0 | ||||||||
Other liabilities | 0 | ||||||||
Borrowings | 0 | ||||||||
Deferred tax liabilities | 0 | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ (878) | $ (878) | |||||||
Small Footprint | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 191 | ||||||||
Investments | 0 | ||||||||
Trade receivables | 1,066 | ||||||||
Other receivables | 45 | ||||||||
Other assets | 0 | ||||||||
Non-current assets | |||||||||
Other receivables | 0 | ||||||||
Property and equipment | 48 | ||||||||
Intangibles | 173 | ||||||||
Right-of-use asset | 0 | ||||||||
Deferred tax | 0 | ||||||||
Goodwill | 6,244 | ||||||||
Current liabilities | |||||||||
Trade and other payables | 0 | ||||||||
Lease liabilities | 0 | ||||||||
Tax liabilities | 0 | ||||||||
Payroll and social security | 0 | ||||||||
Other liabilities | (410) | ||||||||
Borrowings | 0 | ||||||||
Deferred tax liabilities | 0 | ||||||||
Total consideration paid net of cash and cash equivalents acquired | $ (7,357) | $ (7,397) | $ (7,357) |
BUSINESS COMBINATIONS - Impact
BUSINESS COMBINATIONS - Impact of Acquisitions on the Results of the Company (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)business_combination | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disclosure of detailed information about business combination [line items] | |||
Revenue of combined entity as if combination occurred at beginning of period | $ 52,421 | ||
Profit (loss) of combined entity as if combination occurred at beginning of period | $ 682,770 | ||
Number of combinations | business_combination | 2 | ||
Ratio | |||
Disclosure of detailed information about business combination [line items] | |||
Profit (loss) of acquiree since acquisition date | $ 812 | ||
Revenue of acquiree since acquisition date | 4,188 | ||
PointSource | |||
Disclosure of detailed information about business combination [line items] | |||
Profit (loss) of acquiree since acquisition date | 383 | ||
Revenue of acquiree since acquisition date | $ 2,108 | ||
Small Footprint | |||
Disclosure of detailed information about business combination [line items] | |||
Revenue of combined entity as if combination occurred at beginning of period | $ 523,114 | ||
Profit (loss) of combined entity as if combination occurred at beginning of period | $ 52,910 | ||
Avanxo S.A. | |||
Disclosure of detailed information about business combination [line items] | |||
Profit (loss) of acquiree since acquisition date | $ 2,023 | ||
Revenue of acquiree since acquisition date | 23,971 | ||
Revenue of combined entity as if combination occurred at beginning of period | 661,777 | ||
Profit (loss) of combined entity as if combination occurred at beginning of period | 56,105 | ||
Belatrix | |||
Disclosure of detailed information about business combination [line items] | |||
Profit (loss) of acquiree since acquisition date | 2,481 | ||
Revenue of acquiree since acquisition date | 15,572 | ||
Revenue of combined entity as if combination occurred at beginning of period | 680,318 | ||
Profit (loss) of combined entity as if combination occurred at beginning of period | $ 50,331 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Goodwill Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in goodwill [abstract] | ||
Balance at beginning of year | $ 104,846 | $ 98,926 |
Additions related to new acquisitions | 83,706 | 6,244 |
Translation | (14) | (324) |
Balance at end of year | $ 188,538 | $ 104,846 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Disclosure of geographical areas [line items] | ||||
Number of operating segments | segment | 1 | |||
Number of reportable segments | segment | 1 | |||
Revenue | [1] | $ 659,325 | $ 522,310 | $ 413,439 |
Percentage of entity's revenue | 86.30% | |||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | $ 384,445 | 207,153 | ||
North America | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 496,353 | 407,090 | 325,614 | |
United States of America | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | $ 483,228 | 400,029 | 322,658 | |
Percentage of entity's revenue | 73.30% | |||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | $ 70,054 | 58,083 | ||
Canada | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 13,125 | 7,061 | 2,956 | |
Europe | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 46,784 | 46,240 | 38,484 | |
Spain | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 26,134 | 30,298 | 23,831 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 144,882 | 46,803 | ||
Netherlands | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 2,723 | 1,023 | 69 | |
United Kingdom | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 15,672 | 12,970 | 9,996 | |
Luxembourg | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 937 | 1,109 | 1,000 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 4,289 | 4,353 | ||
Germany | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 437 | 623 | 1,540 | |
Sweden | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 0 | 0 | 1,317 | |
Others | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 881 | 217 | 731 | |
Asia | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 4,653 | 3,067 | 700 | |
India | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 2,157 | 1,063 | 673 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 9,817 | 4,159 | ||
Indonesia | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 1,157 | 1,686 | 0 | |
Japan | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 1,062 | 0 | 0 | |
Others | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 277 | 318 | 27 | |
Latin America and others | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 111,535 | 65,913 | 48,641 | |
Argentina | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 32,295 | 24,241 | 14,886 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 85,346 | 70,349 | ||
Brazil | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 7,964 | 238 | 358 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 1,775 | 1,512 | ||
Colombia | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 14,355 | 5,362 | 3,553 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 42,589 | 12,942 | ||
Chile | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 29,547 | 21,246 | 19,243 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 2,883 | 874 | ||
Uruguay | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 17 | 529 | 231 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 1,808 | 781 | ||
Mexico | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 20,623 | 11,949 | 7,418 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 14,814 | 6,121 | ||
Peru | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 6,251 | 1,718 | 2,627 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 4,686 | 458 | ||
Others | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 483 | 630 | $ 325 | |
Other countries | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | $ 1,502 | $ 718 | ||
One Customer | ||||
Disclosure of geographical areas [line items] | ||||
Percentage of entity's revenue | 11.20% | 11.30% | 10.20% | |
[1] | Includes transactions with related parties of 1,419, 5,937 and 5,590 for 2019, 2018 and 2017, respectively. See note 23.1. |
LEASES - Summary of Right-of-Us
LEASES - Summary of Right-of-Use Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
January 1, 2019 | $ 46,567 | ||
Additions | 23,590 | ||
Additions from business combinations | 3,272 | ||
Depreciation | (14,584) | $ 0 | $ 0 |
Translation | (64) | ||
December 31, 2019 | 58,781 | 46,567 | |
Office spaces | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
January 1, 2019 | 46,567 | ||
Additions | 16,778 | ||
Additions from business combinations | 2,863 | ||
Depreciation | (14,519) | ||
Translation | (64) | ||
December 31, 2019 | 51,625 | 46,567 | |
Office equipments | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
January 1, 2019 | 0 | ||
Additions | 6,812 | ||
Additions from business combinations | 409 | ||
Depreciation | (65) | ||
Translation | 0 | ||
December 31, 2019 | $ 7,156 | $ 0 |
LEASES - Summary of Lease Liabi
LEASES - Summary of Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of leases [Abstract] | |||
Lease liabilities | $ 46,887 | ||
Additions | 23,590 | ||
Additions from business combinations | 3,347 | ||
Foreign exchange difference | (92) | ||
Interest expense | 3,464 | $ 0 | $ 0 |
Payments | (15,833) | ||
Lease liabilities | $ 61,363 | $ 46,887 |
LEASES - Summary of Lease Lia_2
LEASES - Summary of Lease Liabilities Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of leases [Abstract] | |||
Current | $ 19,439 | ||
Non-current | 41,924 | ||
TOTAL | $ 61,363 | $ 46,887 | $ 46,887 |
LEASES - Summary of Leases Not
LEASES - Summary of Leases Not Yet Commenced (Details) $ in Thousands | Dec. 31, 2019USD ($) |
2020 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases not yet commenced | $ 1,413 |
2021 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases not yet commenced | 2,468 |
2022 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases not yet commenced | 2,731 |
2023 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases not yet commenced | 2,775 |
2024 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases not yet commenced | 2,855 |
2025 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases not yet commenced | $ 478 |
LEASES - Summary of Maturity An
LEASES - Summary of Maturity Analysis (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | $ 55,222 |
2019 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 16,051 |
2020 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 14,097 |
2021 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 8,356 |
2022 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 6,500 |
2023 onwards | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | $ 10,218 |
FINANCIAL INSTRUMENTS - Categor
FINANCIAL INSTRUMENTS - Categories of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | $ 136,921 | |
FVTPL | Foreign exchange forward contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | $ 12 | |
FVTPL | Other financial liabilities related to business combinations | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 10,554 | 12,753 |
FVTPL | Lease liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 61,363 | |
Amortised cost | Trade payables | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 36,987 | 17,578 |
Amortised cost | Payroll and social security taxes payable | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 72,252 | 58,535 |
Amortised cost | Borrowings | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 51,386 | |
Amortised cost | Tax liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 12,510 | 7,399 |
Amortised cost | Other liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities | 368 | 44 |
FVTPL | Mutual funds | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 19,384 | 4,050 |
FVTPL | Convertible notes | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 3,536 | 106 |
FVTPL | Foreign exchange forward contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 44 | |
FVTPL | Foreign exchange forward contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 1,220 | |
FVTPL | Other financial asset related to the acquisition of Clarice | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 400 | |
FVTOCI | LETEs | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 396 | 1,015 |
FVTOCI | T-Bills | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 3,493 | |
FVTOCI | LECAPs | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 77 | |
FVTOCI | Foreign exchange forward contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 71 | |
Amortised cost | Cash and cash equivalents | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 62,721 | 77,606 |
Amortised cost | Contribution to risk funds | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 418 | 527 |
Amortised cost | Trade receivables | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 156,676 | 110,898 |
Amortised cost | Other assets | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 21,235 | |
Amortised cost | Other receivables | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | 28,118 | 49,538 |
Amortised cost | Guarantee payments related to the future lease of a property under construction | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets | $ 1,383 | $ 345 |
FINANCIAL INSTRUMENTS - Foreign
FINANCIAL INSTRUMENTS - Foreign currency risk management (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2018$ / $ | Dec. 31, 2017$ / $ | |
Financial Instruments [Abstract] | |||
Percentage of entity's revenue | 86.30% | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Devaluation of foreign exchange, percent | 59.02% | 102.20% | |
Average foreign exchange rate | $ / $ | 59.79 | 37.60 | 18.60 |
Currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Amount | $ (6,822) | ||
% Increase, Amount | (946) | ||
% Decrease, Amount | (753) | ||
Argentine peso (ARS) | Currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Amount | $ 8,023 | ||
% Increase | 40.00% | ||
% Increase, Amount | $ (2,292) | ||
% Decrease | 10.00% | ||
% Decrease, Amount | $ 891 | ||
Chilean pesos | Currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Amount | $ (2,789) | ||
% Increase | 10.00% | ||
% Increase, Amount | $ 254 | ||
% Decrease | 10.00% | ||
% Decrease, Amount | $ (310) | ||
Colombian peso (COP) | Currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Amount | $ (7,770) | ||
% Increase | 10.00% | ||
% Increase, Amount | $ 706 | ||
% Decrease | 10.00% | ||
% Decrease, Amount | $ (863) | ||
Indian rupees | Currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Amount | $ (252) | ||
% Increase | 10.00% | ||
% Increase, Amount | $ 23 | ||
% Decrease | 10.00% | ||
% Decrease, Amount | $ (28) | ||
Uruguayan pesos | Currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Amount | $ (4,034) | ||
% Increase | 10.00% | ||
% Increase, Amount | $ 363 | ||
% Decrease | 10.00% | ||
% Decrease, Amount | $ (443) |
FINANCIAL INSTRUMENTS - Interes
FINANCIAL INSTRUMENTS - Interest rate risk management (Details) | Dec. 31, 2019 |
Argentina | Fixed interest rate | |
Disclosure of financial instruments by type of interest rate [line items] | |
Borrowings, interest rate | 1.75% |
FINANCIAL INSTRUMENTS - Liquidi
FINANCIAL INSTRUMENTS - Liquidity risk management (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||||
Borrowings | $ 51,386 | $ 0 | $ 6,011 | $ 217 |
Lease liabilities | 74,981 | |||
Other financial liabilities | 10,554 | |||
TOTAL | 136,921 | |||
2020 | ||||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||||
Borrowings | 1,198 | |||
Lease liabilities | 20,002 | |||
Other financial liabilities | 8,937 | |||
TOTAL | 30,137 | |||
2021 | ||||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||||
Borrowings | 0 | |||
Lease liabilities | 15,263 | |||
Other financial liabilities | 1,617 | |||
TOTAL | 16,880 | |||
2022 | ||||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||||
Borrowings | 188 | |||
Lease liabilities | 11,552 | |||
Other financial liabilities | 0 | |||
TOTAL | 11,740 | |||
Thereafter | ||||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||||
Borrowings | 50,000 | |||
Lease liabilities | 28,164 | |||
Other financial liabilities | 0 | |||
TOTAL | $ 78,164 |
FINANCIAL INSTRUMENTS - Concent
FINANCIAL INSTRUMENTS - Concentration of credit risk (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of entity's revenue | 86.30% | ||
Concentration risk, percentage | 26.10% | 32.00% | 28.90% |
United States of America | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of entity's revenue | 73.30% | ||
One Customer | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of entity's revenue | 11.20% | 11.30% | 10.20% |
FINANCIAL INSTRUMENTS - Fair va
FINANCIAL INSTRUMENTS - Fair value of financial instruments that are not measured at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other assets | ||
Non-current assets | ||
Carrying amount | $ 7,796 | $ 0 |
Guarantee deposits | Other receivables | ||
Non-current assets | ||
Carrying amount | 2,683 | 1,681 |
Tax credit - VAT | Other receivables | ||
Non-current assets | ||
Carrying amount | 626 | 356 |
Non-current liabilities | ||
Allowance account for credit losses of financial assets | 378 | 600 |
Income tax credits | Other receivables | ||
Non-current assets | ||
Carrying amount | 1,515 | 1,259 |
Tax credit - Software Promotion Regime | Other receivables | ||
Non-current assets | ||
Carrying amount | 0 | 749 |
Non-current liabilities | ||
Allowance account for credit losses of financial assets | 74 | |
Other tax credits | Other receivables | ||
Non-current assets | ||
Carrying amount | 210 | 170 |
Trade payables | ||
Non-current liabilities | ||
Carrying amount | 5,500 | 0 |
Borrowings | ||
Non-current liabilities | ||
Carrying amount | 50,188 | 0 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other assets | ||
Non-current assets | ||
Carrying amount | 7,140 | 0 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Guarantee deposits | Other receivables | ||
Non-current assets | ||
Carrying amount | 2,571 | 1,539 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Tax credit - VAT | Other receivables | ||
Non-current assets | ||
Carrying amount | 600 | 326 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Income tax credits | Other receivables | ||
Non-current assets | ||
Carrying amount | 1,453 | 1,153 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Tax credit - Software Promotion Regime | Other receivables | ||
Non-current assets | ||
Carrying amount | 0 | 686 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other tax credits | Other receivables | ||
Non-current assets | ||
Carrying amount | 200 | 157 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Trade payables | ||
Non-current liabilities | ||
Carrying amount | 5,101 | 0 |
Not measured at fair value in statement of financial position but for which fair value is disclosed | Borrowings | ||
Non-current liabilities | ||
Carrying amount | $ 51,070 | $ 0 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair value measurement recognized in the consolidated statement of financial position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other financial liabilities related to business combinations | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | $ 9,252 | $ 9,767 |
Other financial liabilities related to business combinations | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Other financial liabilities related to business combinations | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Other financial liabilities related to business combinations | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | 9,252 | 9,767 |
Foreign exchange forward contracts | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | 12 | |
Foreign exchange forward contracts | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | 0 | |
Foreign exchange forward contracts | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | 12 | |
Foreign exchange forward contracts | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | 0 | |
Mutual funds | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 19,384 | 4,050 |
Mutual funds | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | 0 |
Mutual funds | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 19,384 | 4,050 |
Mutual funds | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | 0 |
LETEs | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 396 | 1,015 |
LETEs | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | 0 |
LETEs | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 396 | 1,015 |
LETEs | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | 0 |
T-Bills | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 3,493 | |
T-Bills | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | |
T-Bills | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 3,493 | |
T-Bills | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | |
LECAPs | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 77 | |
LECAPs | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | |
LECAPs | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 77 | |
LECAPs | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | |
Foreign exchange forward contracts | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 1,291 | 44 |
Foreign exchange forward contracts | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | 0 |
Foreign exchange forward contracts | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 1,291 | 44 |
Foreign exchange forward contracts | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | 0 |
Convertible notes | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 3,536 | 106 |
Convertible notes | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 0 | 0 |
Convertible notes | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | 111 | 106 |
Convertible notes | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial assets, at fair value | $ 3,425 | $ 0 |
FINANCIAL INSTRUMENTS - Conting
FINANCIAL INSTRUMENTS - Contingent consideration (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 11, 2019 | Aug. 01, 2019 | ||
Disclosure of contingent liabilities in business combination [line items] | |||||||
(Loss) gain on remeasurement of contingent consideration | $ (85) | $ 6,700 | $ 6,735 | ||||
Financial liabilities | 136,921 | ||||||
Other financial liabilities - current | [1] | 8,937 | 9,347 | ||||
Other financial liabilities | 1,617 | 3,418 | |||||
Clarice | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
(Loss) gain on remeasurement of contingent consideration | (3) | 0 | (1,173) | ||||
Loss arising from change in fair value of contingent consideration | 1,401 | ||||||
Contingent liabilities recognised in business combination | 1,316 | 3,947 | |||||
Other financial liabilities - current | 1,580 | 3,127 | |||||
Other financial liabilities | 0 | 1,527 | |||||
WAE | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
(Loss) gain on remeasurement of contingent consideration | 0 | 0 | 3,850 | ||||
Loss recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination | 1,038 | ||||||
Payment for contingent consideration | $ 1,867 | ||||||
L4 Mobile LLC | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
(Loss) gain on remeasurement of contingent consideration | 0 | 1,848 | 4,058 | ||||
Ratio | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
(Loss) gain on remeasurement of contingent consideration | (62) | (654) | 0 | ||||
Contingent liabilities recognised in business combination | 750 | 2,860 | |||||
Other financial liabilities - current | 903 | 1,992 | |||||
Other financial liabilities | 0 | 851 | |||||
PointSource | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
(Loss) gain on remeasurement of contingent consideration | (16) | 5,506 | 0 | ||||
Other financial liabilities - current | 1,086 | 746 | |||||
Other financial liabilities | 0 | 1,040 | |||||
Small Footprint | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Contingent liabilities recognised in business combination | 3,066 | ||||||
Other financial liabilities - current | 0 | 3,070 | |||||
Other financial liabilities | 0 | 0 | |||||
Avanxo S.A. | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
(Loss) gain on remeasurement of contingent consideration | (4) | 0 | $ 0 | ||||
Contingent liabilities recognised in business combination | 2,318 | ||||||
Other financial liabilities - current | 2,249 | ||||||
Belatrix | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Contingent liabilities recognised in business combination | 4,097 | $ 2,091 | |||||
Other financial liabilities - current | 4,221 | 0 | |||||
Other financial liabilities | 0 | 0 | |||||
BI Live | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Contingent liabilities recognised in business combination | 559 | $ 3,000 | |||||
Other financial liabilities - current | 0 | 0 | |||||
Other financial liabilities | 515 | 0 | |||||
Other liabilities | Amortised cost | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Financial liabilities | 368 | 44 | |||||
Other liabilities | Clarice | Amortised cost | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Financial liabilities | 1,310 | 3,873 | |||||
Other liabilities | Ratio | Amortised cost | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Financial liabilities | 903 | 2,844 | |||||
Other liabilities | PointSource | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Financial liabilities | 1,086 | 1,786 | |||||
Other liabilities | Small Footprint | Amortised cost | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Other financial liabilities - current | 3,070 | ||||||
Minimum | Clarice | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Estimated financial effect, contingent liabilities in business combination | 439 | 1,316 | |||||
Minimum | Ratio | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Estimated financial effect, contingent liabilities in business combination | 525 | 2,570 | |||||
Minimum | Avanxo S.A. | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Estimated financial effect, contingent liabilities in business combination | 370 | ||||||
Minimum | Belatrix | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Estimated financial effect, contingent liabilities in business combination | 4,097 | ||||||
Minimum | BI Live | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Estimated financial effect, contingent liabilities in business combination | 515 | ||||||
Maximum | Clarice | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Estimated financial effect, contingent liabilities in business combination | 1,316 | $ 3,947 | |||||
Maximum | BI Live | |||||||
Disclosure of contingent liabilities in business combination [line items] | |||||||
Estimated financial effect, contingent liabilities in business combination | $ 3,000 | ||||||
[1] | Includes other financial liabilities related to business combinations of 8,937 and 9,335 as of December 31, 2019 and 2018, respectively (note 25.11) and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018, respectively (notes 28.10 and 28.11). |
FINANCIAL INSTRUMENTS - Put and
FINANCIAL INSTRUMENTS - Put and call option on minority interest (Details) - USD ($) $ in Thousands | Oct. 26, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Oct. 22, 2015 |
Disclosure of contingent liabilities in business combination [line items] | |||||
Payment of call and put options | $ 1,186 | ||||
Gain on remeasurement of valuation of call and put option over non-controlling interest | $ 1,611 | $ 1,726 | |||
Derecognition of call option over non-controlling interest | $ 455 | ||||
Gain (loss) on remeasurement, reimbursement rights | $ 1,726 | ||||
Major business combination | Dynaflows S.A. | |||||
Disclosure of contingent liabilities in business combination [line items] | |||||
Put option contract written, percentage of ownership interest | 33.27% | 33.27% |
FINANCIAL INSTRUMENTS - Reconci
FINANCIAL INSTRUMENTS - Reconciliation of Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Assets, at beginning of period | $ 437,099 | |
Derecognition of call option | $ 455 | |
Assets, at end of period | 687,764 | 437,099 |
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Liabilities, at beginning of period | 99,183 | |
Liabilities, at end of period | 249,050 | 99,183 |
Other financial liabilities related to business combinations | Level 3 of fair value hierarchy | ||
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Liabilities, at beginning of period | 9,767 | 23,905 |
Fair value remeasurement | 85 | (6,700) |
Reclassification to amortized cost | (1,778) | |
Acquisition of business | 6,835 | 3,029 |
Payments | (7,695) | (8,947) |
Interests | 260 | 258 |
Liabilities, at end of period | 9,252 | 9,767 |
Foreign exchange forward contracts | Level 3 of fair value hierarchy | ||
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Liabilities, at beginning of period | 0 | 2,797 |
Fair value remeasurement | (1,611) | |
Reclassification to amortized cost | 0 | |
Acquisition of business | 0 | |
Payments | (1,186) | |
Interests | 0 | |
Liabilities, at end of period | 0 | |
Convertible notes | Level 3 of fair value hierarchy | ||
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Assets, at beginning of period | 0 | |
Fair value measurement | 0 | |
Acquisition of business | 0 | |
Payments | 3,350 | |
Interests | 75 | |
Assets, at end of period | 3,425 | 0 |
Call Options on Minority Interest | Level 3 of fair value hierarchy | ||
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Assets, at beginning of period | $ 0 | 455 |
Fair value measurement | 0 | |
Derecognition of call option | (455) | |
Acquisition of business | 0 | |
Payments | 0 | |
Interests | 0 | |
Assets, at end of period | $ 0 |
FINANCIAL INSTRUMENTS - Forei_2
FINANCIAL INSTRUMENTS - Foreign exchange futures contracts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |||
Gain arising from financial assets measured at fair value through PL | $ 4,977,000 | $ 3,869,000 | $ 923,000 |
LEBAC's | Argentina | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | $ 975,000 | ||
Globant, LLC | |||
Disclosure of detailed information about financial instruments [line items] | |||
Gain arising from financial assets measured at fair value through PL | 118,000 | ||
Sistemas Globales S.A., IAFH Global S.A., Sistemas Colombia S.A., Sistemas Globales Chile Asesorías Ltda. and Sistemas Globales Uruguay S.A | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of collateral held | 10.00% | ||
Gain arising from financial assets measured at fair value through PL | 117,000 | $ 1,714,000 | |
Future contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | 0 | 0 | 0 |
Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | 1,220,000 | 44,000 | |
Financial liabilities at fair value through profit or loss, forward contracts | (12,000) | ||
Forward contract | Argentina | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign exchange gain (loss) | $ 383,000 | $ 594,000 | $ (421,000) |
Settlement 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign currency rate from contracts | 72.36 | 40.06 | |
Notional foreign currency rate | $ 71.56 | $ 39.67 | |
Settlement 1 | Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | $ 11,000 | $ 26,000 | |
Settlement 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign currency rate from contracts | 747.68 | 41.54 | |
Notional foreign currency rate | $ 751.57 | $ 41.17 | |
Settlement 2 | Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | $ 5,000 | $ 15,000 | |
Settlement 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign currency rate from contracts | 3,323.65 | 44.44 | |
Notional foreign currency rate | $ 3,281.28 | $ 44.30 | |
Settlement 3 | Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | $ 39,000 | $ 3,000 | |
Settlement 4 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign currency rate from contracts | 3,515.42 | 44.26 | |
Notional foreign currency rate | $ 3,281.94 | $ 44.30 | |
Settlement 4 | Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | $ 356,000 | ||
Financial liabilities at fair value through profit or loss, forward contracts | $ (1,000) | ||
Settlement 5 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign currency rate from contracts | 3,512.66 | 45.74 | |
Notional foreign currency rate | $ 3,281.93 | $ 45.92 | |
Settlement 5 | Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | $ 422,000 | ||
Financial liabilities at fair value through profit or loss, forward contracts | $ (5,000) | ||
Settlement 6 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign currency rate from contracts | 38.09 | 45.69 | |
Notional foreign currency rate | $ 37.73 | $ 45.92 | |
Settlement 6 | Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | $ 29,000 | ||
Financial liabilities at fair value through profit or loss, forward contracts | $ (6,000) | ||
Settlement 7 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign currency rate from contracts | 71.45 | ||
Notional foreign currency rate | $ 71.77 | ||
Settlement 7 | Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | $ 7,000 | ||
Settlement 8 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Foreign currency rate from contracts | 3,518.27 | ||
Notional foreign currency rate | $ 3,288.08 | ||
Settlement 8 | Forward contract | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value through profit or loss, forward contracts | $ 351,000 |
FINANCIAL INSTRUMENTS - Hedge A
FINANCIAL INSTRUMENTS - Hedge Accounting (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2019ARS ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disclosure of detailed information about hedging instruments [line items] | ||||
Gains and losses on cash flow hedges | $ 352,000 | $ 0 | $ 0 | |
Cash flow hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Fair value assets | $ 71 | |||
Settlement 1 | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Foreign currency rate from contracts | 72.36 | 40.06 | ||
Notional foreign currency rate | $ 71.56 | $ 39.67 | ||
Settlement 1 | Cash flow hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Foreign currency rate from contracts | $ / $ | 66.45 | |||
Notional foreign currency rate | $ 62.2 | |||
Fair value assets | $ 71 | |||
Reserve of cash flow hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
(Gain)/loss reclassified to profit or loss – hedged item has affected profit or loss | 54,000 | |||
Future contract | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Fair value of contracts | 0 | $ 0 | $ 0 | |
Future contract | Cash flow hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Fair value of contracts | $ 0 |
CAPITAL AND RESERVES - Issuance
CAPITAL AND RESERVES - Issuance of Common Shares (Details) $ / shares in Units, $ in Thousands | Aug. 09, 2019USD ($)shares | Apr. 05, 2019USD ($)shares | Mar. 21, 2019USD ($)shares | Mar. 18, 2019USD ($)shares | Feb. 15, 2019USD ($)shares | Oct. 16, 2018USD ($)shares | Jul. 20, 2018USD ($)shares | Jun. 12, 2018USD ($)shares | Feb. 22, 2018USD ($)shares | Feb. 16, 2018USD ($)shares | Aug. 17, 2017USD ($)shares | Jun. 01, 2017USD ($)shares | Mar. 01, 2017USD ($)shares | Feb. 20, 2019shares | Dec. 31, 2019USD ($)shares$ / shares | Dec. 31, 2018USD ($)shares$ / shares | Dec. 31, 2017USD ($)shares$ / shares |
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options exercised in share-based payment arrangement (in shares) | 717,240 | 511,668 | 338,709 | ||||||||||||||
Exercised during the year (in usd per share) | $ / shares | $ 22.06 | $ 13.76 | $ 15.63 | ||||||||||||||
Number of share options granted in share-based payment arrangement (in shares) | 4,000 | 221,000 | |||||||||||||||
Belatrix | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options exercised in share-based payment arrangement (in shares) | 51,471 | ||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 5,000 | ||||||||||||||||
Small Footprint | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options exercised in share-based payment arrangement (in shares) | 13,895 | ||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 868 | $ 960 | |||||||||||||||
Number of share options granted in share-based payment arrangement (in shares) | 16,315 | ||||||||||||||||
Earn-out payment, percentage | 25.00% | ||||||||||||||||
Avanxo S.A. | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options exercised in share-based payment arrangement (in shares) | 14,778 | ||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 845 | ||||||||||||||||
WAE | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 982 | $ 1,435 | |||||||||||||||
Number of share options granted in share-based payment arrangement (in shares) | 18,692 | 34,219 | |||||||||||||||
Percent of purchase price | 30.00% | ||||||||||||||||
PointSource | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options exercised in share-based payment arrangement (in shares) | 3,542 | ||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 208 | $ 541 | $ 3,100 | ||||||||||||||
Number of share options granted in share-based payment arrangement (in shares) | 12,265 | 84,953 | |||||||||||||||
Ratio | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options exercised in share-based payment arrangement (in shares) | 7,517 | ||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 449 | $ 334 | $ 1,160 | ||||||||||||||
Number of share options granted in share-based payment arrangement (in shares) | 7,605 | 34,309 | |||||||||||||||
Clarice | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options exercised in share-based payment arrangement (in shares) | 7,654 | ||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 400 | $ 400 | |||||||||||||||
Restricted Stock Units | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 6,732 | $ 7,040 | $ 3,141 | ||||||||||||||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | 181,860 | 163,233 | |||||||||||||||
Employee Restricted Stock Units Paid as Bonus | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | 4,995,000 | ||||||||||||||||
Employee and Non Employee Restricted Stock Units | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 309,539 | 564,995 | 254,328 | ||||||||||||||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | 181,860 | 163,233 | 86,931 | ||||||||||||||
Issued during the year (in usd per share) | $ / shares | $ 37 | $ 43.13 | $ 36.11 | ||||||||||||||
2012 and 2014 Plan Name | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Value of share options exercised in share-based payment arrangement | $ | $ 15,822 | $ 7,040 | $ 5,296 | ||||||||||||||
Agreement 2, Tranche 2 | Clarice | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Options granted during the year (in shares) | 9,120 |
CAPITAL AND RESERVES - Public O
CAPITAL AND RESERVES - Public Offering (Details) - $ / shares | Jun. 21, 2018 | Dec. 31, 2019 | Jun. 20, 2018 |
Disclosure of classes of share capital [line items] | |||
Par value per share (in dollars per share) | $ 1.20 | ||
Entity common stock, shares outstanding (in shares) | 35,669,330 | ||
Luxembourg | |||
Disclosure of classes of share capital [line items] | |||
Par value per share (in dollars per share) | $ 1.20 | ||
Sale of stock, price per share (in dollars per share) | $ 52 | ||
Luxembourg | Ordinary shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares reserved for issue under options and contracts for sale of shares | 5,815,259 | ||
Number of additional shares authorized (in shares) | 872,289 | ||
Stock options issued (in shares) | 872,289 |
CAPITAL AND RESERVES - Hedging
CAPITAL AND RESERVES - Hedging Reserve Rollforward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of reserves within equity [line items] | |
Equity at beginning of period | $ 337,916 |
Equity at end of period | 438,714 |
Reserve of cash flow hedges | |
Disclosure of reserves within equity [line items] | |
Equity at beginning of period | 0 |
Gain/(loss) arising on changes in fair value of hedging instruments during the period | 298 |
(Gain)/loss reclassified to profit or loss – hedged item has affected profit or loss | 54 |
Equity at end of period | $ 352 |
APPROPRIATION OF RETAINED EAR_2
APPROPRIATION OF RETAINED EARNINGS UNDER SUBSIDIARIES´ LOCAL LAW AND RESTRICTIONS ON DISTRIBUTION OF DIVIDENDS (Details) in Thousands | Dec. 29, 2016 | Jan. 01, 2013 | Dec. 31, 2019USD ($) | Dec. 31, 2019RON ( ) |
Argentina and Uruguay | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Percentage of entity's profit and loss | 5.00% | |||
Percentage of entity's share capital | 20.00% | |||
Argentina | ||||
Disclosure of reserves within equity [line items] | ||||
Dividend, tax withholding percentage | 10.00% | |||
Argentina | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 772,000 | |||
Uruguay | Sistemas Globales Uruguay S.A. | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | 42,000 | |||
Uruguay | Difier S.A. | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 0 | |||
Colombia | ||||
Disclosure of reserves within equity [line items] | ||||
Dividend, tax withholding percentage | 5.00% | |||
Colombia | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Percentage of entity's profit and loss | 10.00% | |||
Percentage of entity's share capital | 50.00% | |||
Legal proceedings provision | $ 0 | |||
Colombia | Sistemas Colombia S.A.S. | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 296,000 | |||
Spain | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Percentage of entity's profit and loss | 10.00% | |||
Percentage of entity's share capital | 20.00% | |||
Legal proceedings provision | $ 8,157,000 | |||
Brazil | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | 0 | |||
Brazil | Avanxo Brasil Tecnologia Da Informacao Ltda | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 63,000 | |||
Luxembourg | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Percentage of entity's profit and loss | 5.00% | |||
Percentage of entity's share capital | 10.00% | |||
Legal proceedings provision | $ 496,000 | |||
Dividend, tax withholding percentage | 15.00% | |||
Peru | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Percentage of entity's profit and loss | 10.00% | |||
Percentage of entity's share capital | 20.00% | |||
Legal proceedings provision | $ 0 | |||
Peru | Legal Reserve Partially Constituted | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | 47,000 | |||
Peru | Belatrix Peru SAC | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | 116,000 | |||
Bermuda | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 0 | |||
Mexico | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Percentage of entity's profit and loss | 5.00% | |||
Mexico | Global Systems Outsourcing S. de R.L. de C.V. | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 139,000 | |||
Mexico | Avanxo Mexico S.A.P.I. de C.V. | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | 37,000 | |||
Mexico | Avanxo Servicios S.A. de C.V. | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | 0 | |||
India | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | 17,000 | |||
United Kingdom | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | 0 | |||
Chile | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 0 | |||
France | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Percentage of entity's profit and loss | 5.00% | |||
Percentage of entity's share capital | 10.00% | |||
Legal proceedings provision | $ 0 | |||
Belarus | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 0 | |||
Percentage of entity's annual payroll reserve funds for salaries | 25.00% | |||
United States | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 0 | |||
Romania | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Percentage of entity's profit and loss | 5.00% | |||
Percentage of entity's share capital | 20.00% | |||
Legal proceedings provision | | 58 | |||
Canada | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 0 | |||
United Arab Emirates | Legal Reserve | ||||
Disclosure of reserves within equity [line items] | ||||
Legal proceedings provision | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Amended and Restated Credit Agreement | Feb. 06, 2020USD ($)borrowing | Nov. 08, 2018USD ($) | Nov. 01, 2018USD ($) |
Disclosure of non-adjusting events after reporting period [line items] | |||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Borrowings | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||
Number of borrowings | borrowing | 4 | ||
Line of credit facility, additional borrowing capacity | $ 100,000,000 | ||
Revolving Credit Facility | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | ||
Line of credit facility, additional borrowing capacity | $ 100,000,000 | ||
Revolving Credit Facility | Borrowings | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | ||
LIBOR | Revolving Credit Facility | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Borrowings, adjustment to interest rate basis | 1.75% | ||
Maximum | LIBOR | Revolving Credit Facility | Borrowings | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Borrowings, adjustment to interest rate basis | 1.75% | ||
Minimum | LIBOR | Revolving Credit Facility | Borrowings | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Borrowings, adjustment to interest rate basis | 1.50% |