PPLA Participations Ltd.
In addition to the matter described in the "Material uncertainty related to going concern" section, we
have determined the matters described below to be the key audit matters to be communicated in
our report.
We planned and performed our audit for the year then ended December 31, 2023 taking into
consideration that the operations of the Company had not changed significantly in relation to the
previous year. In this respect, the Key Audit Matters, as well as our audit approach, have remained
substantially in line with those in the prior year.
Why it is a Key Audit Matter
How the matter was addressed in the audit
Fair value measurement of financial
instruments Level III
As disclosed in Notes 3(e) and (f), 6 and 7, the
Company has a investment in the subsidiary
PPLA Investments LP., which, as of
December 31, 2023, invested in financial
instruments as shares and quotas of privately-
held companies, classified as Level III, with
operations in different industries and locations.
These shares and quotas of privately held
Our main audit procedures considered, among
others, our understanding of the main processes
involving the fair value measurement of financial
instruments Level III.
With the support of our specialists, we had
meetings with those in the Management
responsible for the preparation and approval of
companies, with no stock exchange quoted prices, calculation of valuation of shares and quotas, in
which are, as a result, valued at fair value
estimated by Management, in accordance with
the Company's assumptions and internal pricing work is consistent with the valuation techniques
order to establish, based on our experience and
judgment, whether the Company's measurement
models, that are based mainly on cash flow,
and/or recent price negotiations transactions.
usually applied in the market.
We also tested the valuation methodology as
well as the assumptions used by Management
through the following: (i) understanding
We consider this a focus area in our audit as the
use of different valuation techniques and
assumptions may produce significantly different of the methodology used in the assessment;
fair value estimates and also due to the (ii) comparison of assumptions observable
materiality of the financial instruments, classified in the market, when applicable; (iii) review of the
as Level III, in the context of the financial
statements.
movements occurred during the year;
(iv) comparison with the information and
fair value obtained by the Company and
(v) comparison of the spreadsheets used for the
share and quotas valuation with the accounting
records and with the disclosures made in the
notes to the financial statements.
We believe that the criteria adopted by
management in the fair value measurement of the
derivative financial instruments are consistent
with the information analyzed in our audit.
Responsibilities of management and those charged with governance for the
financial statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB) (currently described as "IFRS Accounting Standards" by the IFRS
Foundation), and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
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