20-F/A

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Amendment No. 2 to

FORM 20-F/A

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

 OR

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended June 30, 2018 

 OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 OR

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

Date of event requiring this shell company report ___

For the transition period from ____ to ____

Commission file number 000-30982

IRSA Propiedades Comerciales S.A.

 (Exact name of Registrant as specified in its charter)

IRSA Commercial Properties Inc.

(Translation of registrant’s name into English)

Republic of Argentina

(Jurisdiction of incorporation or organization)

Moreno 877, 22nd Floor

Ciudad Autónoma de Buenos Aires, Argentina

(Address of principal executive offices)

Matias Ivan Gaivironsky - Chief Financial and Administrative Officer

Tel (+ 54 11) 4323 7449 ; ir@irsacp.com.ar

Moreno 877, 24th Floor, (C1091AAQ) Ciudad Autónoma de Buenos Aires, Argentina

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
American Depositary Shares (ADSs), each representing four shares of Common Stock	Nasdaq National Market of the Nasdaq Stock Market
Common Stock, par value Ps.1.00 per share	Nasdaq National Market of the Nasdaq Stock Market*

* Not for trading, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the Securities and Exchange Commission. 

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of the issuer’s common stock as of June 30, 2018: 126,014,050

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act:

☐ Yes ☒ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934.

 ☒Yes ☐No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

☐Yes ☒ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of †œaccelerated filer and large accelerated filer† in Rule 12b-2 of the Exchange Act. (check one):

Large accelerated filer             ☐ Accelerated filer ☒           Non-accelerated filer ☐

Emerging growth company ☐        

 If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards†  provided pursuant to Section 13(a) of the Exchange Act. ☐ 

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued
by the International Accounting Standards Board Other ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

☐ Item 17 ☐ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 23 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the court.

Yes ☐ No ☐

Please send copies of notices and communications from the Securities and Exchange Commission to:

Carolina Zang	David Williams
	Jaime Mercado
Zang Vergel & Viñes Abogados	Simpson Thacher & Bartlett LLP
Florida 537 piso 18º C1005AAK Buenos Aires, Argentina.	425 Lexington Avenue New York, NY 10019

Explanatory Note

IRSA Propiedades Comerciales S.A. (the “Company” ), is filing this Amendment No. 2 (“Amendment No. 2” ) to its Annual Report on Form 20-F for the fiscal year ended  June 30, 2018 (the “Form 20-F” ), which was originally filed with the Securities and Exchange Commission (the “SEC” ) on October 23, 2018, to submit the Interactive Data File (as defined in Rule 11 of Regulation S-T) with respect to the audited consolidated financial statements of the Company for that fiscal year as Exhibit 101 to the Form 20-F in accordance with Rule 405 of Regulation S-T. 

Except as set forth above, this Amendment No. 2 does not modify or update any of the disclosures in the Form 20-F. This  Amendment No. 2 speaks as of the time of filing of the Form 20-F, does not reflect events that may have occurred subsequent to such filing, and does not modify or update in any way disclosures made in the Form 20-F.

Item 19. Exhibits 

Documents filed as exhibits to this Amendment No.2 to Form 20-F:

Exhibit No.	Description of Exhibit
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Linkbase Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F/A and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

	IRSA Propiedades Comerciales S.A.
Date: November 21, 2018	By:	/s/ Matias I. Gaivironsky
		Name Matias I. Gaivironsky
		Title Chief Financial and Administrative Officer

XML

Document and Entity Information	12 Months Ended
	Jun. 30, 2018 shares
Document And Entity Information
Entity Registrant Name	IRSA PROPIEDADES COMERCIALES S.A.
Entity Central Index Key	0001128173
Document Type	20-F
Trading Symbol	IRCP
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	Yes
Entity's Reporting Status Current	Yes
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	126,014,050
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

XML

Consolidated statements of financial position - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Non-current assets
Investment properties	$ 54,054,811	$ 35,916,882
Property, plant and equipment	109,437	120,536
Trading properties	61,362	61,600
Intangible assets	213,051	111,560
Investments in associates and joint ventures	1,433,522	791,626
Deferred income tax assets	60,734	59,455
Income tax and minimum presumed income tax credits	156,152	29
Trade and other receivables	955,509	777,818
Investments in financial assets	29,139	66,717
Total non-current assets	57,073,717	37,906,223
Current Assets
Trading properties	206
Inventories	24,882	22,722
Restricted assets		49,525
Income tax and minimum presumed income tax credits	43,269	1,933
Trade and other receivables	1,766,075	1,453,312
Investments in financial assets	5,145,463	1,180,249
Derivative financial instruments	47,360
Cash and cash equivalents	3,643,131	1,807,544
Total current assets	10,670,386	4,515,285
TOTAL ASSETS	67,744,103	42,421,508
SHAREHOLDERS' EQUITY
Total capital and reserves attributable to equity holders of the parent	36,565,015	22,145,079
Non-controlling interest	1,397,872	871,169
TOTAL SHAREHOLDERS' EQUITY	37,962,887	23,016,248
Non-current liabilities
Trade and other payables	483,908	406,598
Borrowings	15,362,726	5,918,119
Deferred income tax liabilities	11,425,496	11,263,341
Provisions	12,258	16,509
Total non-current liabilities	27,284,388	17,604,567
Current liabilities
Trade and other payables	1,870,552	1,104,982
Income tax and minimum presumed income tax liabilities	46,061	268,957
Payroll and social security liabilities	184,196	147,095
Borrowings	305,481	249,868
Derivative financial instruments	46,711	4,950
Provisions	43,827	24,841
Total current liabilities	2,496,828	1,800,693
TOTAL LIABILITIES	29,781,216	19,405,260
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	$ 67,744,103	$ 42,421,508

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Consolidated statements of comprehensive income - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Profit or loss [abstract]
Income from sales, rentals and services	$ 4,232,206	$ 3,508,975	$ 2,674,873
Income from expenses and collective promotion fund	1,717,000	1,488,187	1,183,627
Operating costs	(2,139,447)	(1,899,786)	(1,460,204)
Gross profit	3,809,759	3,097,376	2,398,296
Net gain from fair value adjustments of investment properties	16,690,117	3,133,413	17,092,403
General and administrative expenses	(415,242)	(322,176)	(221,580)
Selling expenses	(294,865)	(236,528)	(162,221)
Other operating results, net	(4,906)	(51,219)	(68,552)
Profit from operations	19,784,863	5,620,866	19,038,346
Share of profit of associates and joint ventures	639,525	152,703	204,299
Profit from operations before financing and taxation	20,424,388	5,773,569	19,242,645
Finance income	688,153	242,438	512,555
Finance cost	(7,438,451)	(1,313,336)	(2,938,476)
Other financial results	2,268,439	284,024	1,714,702
Financial results, net	(4,481,859)	(786,874)	(711,219)
Profit before income tax	15,942,529	4,986,695	18,531,426
Income tax expense	(286,506)	(1,609,181)	(6,278,894)
Profit for the year	15,656,023	3,377,514	12,252,532
Total comprehensive income for the year	15,656,023	3,377,514	12,252,532
Attributable to:
Equity holders of the parent	15,099,936	3,260,476	11,821,280
Non-controlling interest	$ 556,087	$ 117,038	$ 431,252
Profit per share attributable to equity holders of the parent for the year (Note 28):
Basic (in pesos per share)	$ 119.83	$ 25.87	$ 93.81
Diluted (in pesos per share)	$ 119.83	$ 25.87	$ 93.81

XML

Consolidated statements of changes in shareholders' equity - ARS ($) $ in Thousands		Share Capital [Member]	Inflation Adjustment of Share Capital [Member]	Share Premium [Member]	Legal Reserves [Member]	Reserve For Future Dividends [Member]	Special Reserve Cnv 609/12 [Member]	Special Reserve [Member]	Changes In Non-Controlling Interests [Member]	Retained Earnings [Member]	Subtotal [Member]	Non-Controlling Interests [Member]	Total
Beginning of the year at Jun. 30, 2015		$ 126,014	$ 69,381	$ 444,226	$ 39,078		$ 2,700,192		$ (19,770)	$ 4,757,796	$ 8,116,917	$ 443,500	$ 8,560,417
Changes In Equity [Roll Forward]
Comprehensive income for the year										11,821,280	11,821,280	431,252	12,252,532
Assignment of results - Shareholders' meeting	[1]									(283,580)	(283,580)		(283,580)
Dividends distribution to non-controlling interest												(99,027)	(99,027)
Reduction of capital contribution of non-controlling interest												(123)	(123)
Ending of the year at Jun. 30, 2016		126,014	69,381	444,226	39,078		2,700,192		(19,770)	16,295,496	19,654,617	775,602	20,430,219
Changes In Equity [Roll Forward]
Comprehensive income for the year										3,260,476	3,260,476	117,038	3,377,514
Assignment of results - Shareholders' meeting	[1]					356,598				(816,598)	(460,000)		(460,000)
Assignment of results - Shareholders' meeting of April5, 2017	[1]									(310,000)	(310,000)		(310,000)
Changes in non-controlling interest									(14)		(14)	(851)	(865)
Incorporation as result of business combination												40,004	40,004
Dividends distribution to non-controlling interest												(60,622)	(60,622)
Ending of the year at Jun. 30, 2017		126,014	69,381	444,226	39,078	356,598	2,700,192		(19,784)	18,429,374	22,145,079	871,169	23,016,248
Changes In Equity [Roll Forward]
Comprehensive income for the year										15,099,936	15,099,936	556,087	15,656,023
Equity contributions of the non-controling interest												253	253
Assignment of results - Shareholders' meeting	[1]					(356,598)		2,627,076		(2,950,478)	(680,000)		(680,000)
Incorporation as result of business combination												6,763	6,763
Dividends distribution to non-controlling interest												(36,400)	(36,400)
Ending of the year at Jun. 30, 2018		$ 126,014	$ 69,381	$ 444,226	$ 39,078		$ 2,700,192	$ 2,627,076	$ (19,784)	$ 30,578,832	$ 36,565,015	$ 1,397,872	$ 37,962,887

[1] See Note 16.

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Consolidated statements of cash flows - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Operating activities:
Cash generated from operations	$ 4,183,288	$ 3,139,928	$ 1,589,228
Income tax paid	(559,281)	(264,721)	(575,855)
Net cash generated from operating activities	3,624,007	2,875,207	1,013,373
Investing activities:
Capital contributions in associates		(10,390)
Capital contributions in joint ventures	(41,412)	(329)	(73,000)
Acquisition of investment properties	(1,231,932)	(703,865)	(167,665)
Proceeds from sale of investment properties	29,482	138,342	357,243
Acquisition of property, plant and equipment	(15,774)	(23,866)	(13,747)
Advance payments	(90,451)	(169,647)	(6,596)
Acquisition of intangible assets	(41,915)	(35,786)	(1,583)
Acquisitions of investments in financial assets	(11,330,046)	(2,517,631)	(9,916,383)
Proceeds from investments in financial assets	8,535,468	3,282,471	8,453,545
Loans granted, net	(7,626)	(8,953)
Loans granted to related parties	(1,458)	(279,042)	(533,525)
Loans repayment received from related parties		168,846
Proceeds from sale of property plant and equipment	12,379
Collection of financial assets interests	336,537	57,922	37,156
Acquisition of subsidiaries, net of cash acquired	(46,345)	(46,146)
Dividends received	31,880
Net cash used in investing activities	(3,861,213)	(148,074)	(1,864,555)
Financing activities:
Issuance of non-convertible notes	2,365,003		5,411,199
Borrowings obtained	715,421	104,205	729,299
Borrowings obtained from related parties	4,000	3,500
Payment of borrowings	(77,338)	(72,164)	(1,328,439)
Payment of borrowings with related parties			(3,715,480)
Payments of financial leasing	(4,192)	(1,338)	(2,678)
Payment of non-convertible notes		(407,260)	(1,139,936)
Dividends paid	(680,000)	(48,926)	(37,019)
Dividends to non-controlling interest		(60,622)	(77,587)
Payment of derivative financial instruments	(416,264)	(47,797)	(580,828)
Proceeds from derivative financial instruments	638,044	130,993	1,831,621
Interest paid	(724,730)	(544,280)	(278,279)
Contributions of the non-controling shareholders	253
Short-term loans, net	(19,766)	(14,065)	(232,203)
Net cash generated / (used in) from financing activities	1,800,431	(957,754)	579,670
Net increase (decrease) in cash and cash equivalents	1,563,225	1,769,379	(271,512)
Cash and cash equivalents at beginning of year	1,807,544	33,049	303,499
Foreign exchange gain on cash and fair value result on cash equivalents	272,362	5,116	1,062
Cash and cash equivalents at end of the year	$ 3,643,131	$ 1,807,544	$ 33,049

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Group's business and general information

12 Months Ended

Jun. 30, 2018

Groups Business And General Information

Group's business and general information

1. Group’s business and general information

IRSA PROPIEDADES COMERCIALES S.A. (“IRSA Propiedades Comerciales” or “the Company”) is an Argentine real estate company mainly engaged in holding, leasing, managing, developing, operating and acquiring shopping malls and office buildings and holds a predominant position within the Argentine market. IRSA Propiedades Comerciales was incorporated in 1889 under the name Sociedad Anonima Mercado de Abasto Proveedores (SAMAP) and until 1984 operated the main fresh product market in the Autonomous City of Buenos Aires. SAMAP’s core asset was the historical building of Mercado de Abasto, which served as site of the market from 1889 until 1984, when a sizable part of its operations was interrupted.

Since the Company was acquired by IRSA Inversiones y Representaciones Sociedad Anónima (hereinafter, IRSA) in 1994, it has grown through a series of acquisitions and development projects that resulted in a corporate reorganization pursuant to which the company was renamed Alto Palermo S.A. which was subrequentily changed to our current denomination

The Company holds 16 Shopping malls, operating 344,025 square meters (sqm) in 15 of them, 83,978 square meters in 7 premium offices and an extensive land reserve for future commercial developments;operates and holds a majority interest in a portfolio of 15 shopping malls in Argentina, seven of which are located in the Autonomous City of Buenos Aires (Abasto Shopping, Alcorta Shopping, Alto Palermo, Patio Bullrich, Buenos Aires Design, Dot Baires Shopping and Distrito Arcos), two in Buenos Aires province (Alto Avellaneda and Soleil Premium Outlet) and the rest are situated in different provinces (Alto Noa in the City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza in the City of Mendoza, Córdoba Shopping Villa Cabrera in the City of Córdoba, Alto Comahue in the City of Neuquén and La Ribera Shopping in the City of Santa Fe). The Company also owns the historic building where the Patio Olmos Shopping Mall is located, operated by a third party.

The Company’s shares are traded on the Buenos Aires Stock Exchange (BYMA: IRCP) and in United States of America on the NASDAQ (NASDAQ: IRCP).

IRSA Propiedades Comerciales and its subsidiaries are hereinafter referred to jointly as "the Group". See Notes 2.3 and 6 for further description of the Group’s companies and segments. Our main shareholder and parent company is IRSA and IFIS Limited is our ultimate parent company.

These consolidated financial statements (Financial Statements) have been approved by the Board of Directors to be issued on August 23, 2018.

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Summary of significant accounting policies

12 Months Ended

Jun. 30, 2018

Summary Of Significant Accounting Policies

Summary of significant accounting policies

2. Summary of significant accounting policies

2.1       Basis of preparation of the Consolidated Financial Statements

(a) Basis of preparation

These Consolidated Financial Statements have been prepared in accordance with IFRS, issued by the IASB and interpretations issued by the IFRIC. All IFRS applicable as of these date of the Consolidated Financial Statements have been applied.

IAS 29 “Financial Reporting in Hyperinflationary Economies”, requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation is produced from the date of acquisition or from the revaluation date, as applicable, must be calculated in the non-monetary items. This requirement also includes the comparative information of the financial statements.

In order to conclude on whether an economy is categorized as hyperinflationary in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of a cumulative inflation rate in three years that approximates or exceed 100%. Bearing in mind that the downward trend in inflation observed in the previous year has reversed, noticing a significant increase in inflation during 2018, that it is also expected that the accumulated inflation rate of the last three years will exceed 100% and that the rest of the indicators do not contradict the conclusion that Argentina should be considered a hyperinflationary economy for accounting purposes, the Management understands that there is sufficient evidence to conclude that Argentina is a hyperinflationary economy in the terms of IAS 29, starting with the year initiated on July 1, 2018. Consequently, the Group should restate its next financial statements to be presented after the aforementioned date. However, it must be taken into account that, as of the date of issuance of these financial statements, Decree PEN 664/03 is in force, and it does not allow the presentation of restated for inflation financial statements before the National Securities Commission (CNV) and other bodies of corporate control.

In an inflationary period, any entity that maintains an excess of monetary assets over monetary liabilities, will lose purchasing power, and any entity that maintains an excess of monetary liabilities over monetary assets, will gain purchasing power, provided that such items are not subject to an adjustment mechanism.

Briefly, the restatement method of IAS 29 establishes that monetary assets and liabilities must not be restated since they are already expressed in the current unit of measurement at the end of the reporting period. Assets and liabilities subject to adjustments based on specific agreements must be adjusted in accordance with such agreements. The non-monetary items measured at their current values at the end of the reporting period, such as the net realization value or others, do not need to be restated. The remaining non-monetary assets and liabilities must be restated by a general price index. The loss or gain from the net monetary position will be included in the net result of the reporting year / period, revealing this information in a separate line item.

As of June 30, 2018, the restatement criteria of financial information established in IAS 29 have not been applied. However, in recent years’ certain macroeconomic variables that affect the Company's businesses, such as wages and prices of inputs, have undergone annual variations of certain importance. This circumstance must be considered in the evaluation and interpretation of the financial situation and the results presented by the Company in these financial statements.

(b) Current and non-current classification

The Group presents current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position according with the operating cycle of each activity.

The operating cycle for activities related to the Group’s investment properties is 12 months. Therefore, current assets and current liabilities include the assets and liabilities that are either realized or settled within 12 months from the end of the fiscal year. The operating cycle of activities related to the Group’s investment properties for sale depends on each specific project, and thus cannot be clearly defined. In general, assets and liabilities classified as investment properties for sale are realized or discharged over many fiscal years, ranging between one and three years or, in exceptional cases, over a longer period. As a result, and for purposes of classification, the Group has assumed the operating cycle of investment properties for sale to be 12 months.

All other assets and liabilities are classified as non-current. Current and deferred tax assets and liabilities (income tax payable), are presented separately from each other and from other assets and liabilities as current and non-current, respectively.

(c) Presentation currency

The Consolidated Financial Statements are presented in thousands of Argentine Pesos. Unless otherwise stated or the context otherwise requires, references to ‘Peso amounts’ or ‘Ps.’, are to Argentine Pesos, and references to ‘USD’ or ‘US dollars’ are to United States dollars.

(d) End of the fiscal year

The fiscal year begins on July 1 and ends on June 30 each year.

(e) Accounting conventions

These Consolidated Financial Statements have been prepared under the deemed cost convention, except for investment properties, financial assets and financial liabilities (including derivative instruments) which have been prepared at fair value through profit or loss and share-based compensation at fair value.

(f) Cash flows

The Group reports cash flows from operating activities using the indirect method. Interest paid is presented within cash used in financing activities. Interest received is presented within cash generated by investing activities. The acquisitions and disposals of investment properties are disclosed as cash from investing activities because this most appropriately reflects the Group’s business activities. Cash flows in respect of trading properties are disclosed as cash from operating activities because these assets are sold in the ordinary course of business.

(g) Use of estimates

The preparation of financial statements at a certain date requires the Company’s Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of consolidated financial statements. The most significant judgments made by Management in applying the Group’s accounting policies and the major estimates and significant judgments are described in Note 3.

2.2. New accounting standards

The following standards, amendments and interpretations have been published by the IASB and by the IFRIC. Below we outline the standards, amendments and interpretations that may potentially have an impact on the Group at the time of application.

Standards and amendments adopted by the Group:

Standards and amendments	Description	Date of application by the Group
Cycle of annual improvements 2014-2016. IFRS 12 “Disclosure of Interests in other entities”.	Clarifies the standard scope.	06-30-2018
Amendments to IAS 7 "Disclosure about the statement of cash flows"	The entity shall disclose information so that users of the financial statements may assess the changes in liabilities resulting from financing activities, including both cash flow and non-cash-flow derivatives.	06-30-2018
Amendments to IAS 12 "Recognition of deferred tax assets for unrealized losses".	The amendments clarify the accounting of deferred income tax assets in the case of unrealized losses on instruments measured at fair value	06-30-2018

Standards and amendments not adopted yet by the Group

Standards and amendments	Description	Date of application by the Group
Amendments to IAS 40 "Transfers of investment properties"	The amendments clarify the conditions that should be met for an entity to transfer a property to, or from, investment properties.	06-30-2019
Cycle of annual improvements 2014-2016. IAS 28 “Investments in Associates and Joint ventures”.	It clarifies that the option to measure an associate or a joint venture at fair value for a qualifying entity is available upon initial recognition	06-30-2019
IFRS 16 "Leases".	The lessees are required to account for leases under one single model in the balance sheet that is similar to the one used to account for financial leases under IAS 17. There are two exceptions to this rule: to recognize the lease of low-cost assets and short-term leases. There is almost no change to lessor accounting.	06-30-2020
IFRS 9 “Financial Instruments”.	This version adds a new impairment model based on expected losses and introduces some minor amendments to the classification and measurement of financial assets.	06-30-2019
IFRS 15 “Revenue from contracts with customers”.	Provides the new revenue recognition model derived from contracts with customers. The core principle underlying the model is satisfaction of obligations assumed with customers. Applies to all contracts with customers, other than those covered by other IFRSs, such as leases, insurance and financial instruments contracts. The standard does not address recognition of interest or dividend income.	06-30-2019
Amendments to IFRS 2 "Share-based Payment".	The amendments clarify the scope of the standard in relation to: (i) accounting for the effects that the concession consolidation conditions have on cash settled share-based payments, (ii) the classification of the share-based payment transactions subject to net settlement, and (iii) accounting for the amendment of terms and conditions of the share-based payment transaction that reclassifies the transaction from cash settled to equity settled.	06-30-2019

The future adoption of these standards, amendments and interpretations adopted, will not have a material impact on the Group, except IFRS 9.

IFRS 9: Financial instruments

The new standard includes a new model of "expected credit loss" for credits or other assets not measured at fair value. The new model presents a dual measurement approach for impairment: if the credit risk of a financial asset has not increased significantly since its initial recognition, an impairment allowance will be recorded in the amount of expected credit losses resulting from the events of non-compliance that are possible within a certain period. If the credit risk has increased significantly, in most cases the allowance will increase and the amount of the expected loss will be recorded.

In accordance with the new standard, in cases where a change in terms or exchange of financial liabilities is immaterial and does not lead, at the time of analysis, to the reduction of the previous liability and recognition of the new, the new cash flows must be discounted at the original effective interest rate, with the difference between the present value of the financial liability that has the new terms and the present value of the original financial liability that is recognized in results. As a result of the application of the new standard, the amount of the liabilities, whose terms were modified and which a new effective interest rate was calculated at the time of the change in the terms in accordance with IAS 39, will be recalculated from the date of the change in terms using the original effective interest rate.

As of date of these financial statements, our estimate of the application of IFRS 9, would generate a decrease in retained earnings and in investment in associates and joint ventures of Ps. 18.4 million, due to the impact of the application of said standard on the calculation of the allowance for uncollectible debtors in our associate Tarshop S.A.. The methodology of this estimate may vary from that which is defined in the model at the moment of the effective application of the aforementioned standard.

2.3. Scope of consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its investment in with the entity and has the ability to effect such returns through its power over the entity. The Group also analyzes whether there is control when it does not hold more than 50% of the voting rights of an entity, but does have capacity to define its relevant activities because of de-facto control.

There may be de-facto control where the relative size of voting rights held by the Group in an entity in relation to the size and dilution of other shareholders gives the Group power to define the relevant activities of such entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date control ceases.

The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

IFRS 3 “Business Combination” allows up to 12 months to finalize the accounting for a business combination. Where the accounting for a business combination is not complete by the end of the reporting period in which the business combination occurred, the Group reports provisional amounts.

The Group has elected to recognize acquisition of assets or group of assets carried out between entities under common control who also qualify as “Business Combination” according to IFRS 3, using the acquisition method.

The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. The Group chooses the method to be used on case-by-case basis.

The amount by which the aggregate of the fair value of consideration transferred, the acquisition date fair value of the Company's previously held interest and any non-controlling interest exceeds the fair value of the assets and liabilities acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the consolidated statements of comprehensive income as "Bargain purchase gains".

Inter-company transactions, balances and unrealized gains on transactions between or among group companies are eliminated. Unrealized losses are also eliminated. Accounting policies of subsidiaries are changed where necessary to ensure consistency with the policies adopted by the Group. The majority of subsidiaries have the same year-end as the Group, however, a small number of subsidiaries have non-coterminous year-ends. In these circumstances, special-purpose financial statements prepared as of June 30 of each year are used for purposes of the Group consolidation.

The Group conducts its business through several operating and holding subsidiaries. Unless otherwise stated, the subsidiaries listed in Note 7 have share capital consisting solely of ordinary shares, which are held directly by the Group and the proportion of ownership interests held is equal to the voting rights held by the Group. The country of incorporation or registration is also their place of business.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in subsidiaries are considered significant. In quantitative terms, the Group considers significant those investments that individually represent at least 20% of the total equity attributable to non-controlling interest in subsidiaries at each year-end. Therefore, in qualitative terms, the Group considers, among other factors, the specific risks to which each company is exposed, their returns and the importance that each of them has for the Group.

Summarized financial information on subsidiaries with material non-controlling interests and other information are included in Note 7.

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions, that is to say as transactions with the owners in their capacity as owners. The amount recorded is the difference between the fair value of any consideration paid and/or collected and the relevant share acquired and/or transferred of the carrying value of net assets of the subsidiary.

(c) Disposal of subsidiaries with loss of control

When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

(d) Associates

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and less than 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income is reclassified to profit or loss where appropriate.

The Group’s share of post-acquisition profit or loss is recognized in the consolidated statements of comprehensive income, and its share of post acquisition movements is recognized in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of any impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the impairment loss within “share of profit of associates and joint ventures line item” in the Statements of comprehensive income.

Profits and losses resulting from upstream and downstream transactions between the Group and its associate are recognized in the Group’s financial statements only to the extent of any unrelated investor’s interests in the associates. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

For purposes of including the earnings of associates by applying the equity method, the Group uses financial statements of the associates as of the same date or a later date, provided the difference between the reporting date of the associate and that of the Group is no longer than three months. In these cases, the Group assesses and adjusts the results of such associates for material transactions or other material events occurred during the interim period.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in associates are considered significant. In quantitative terms, investments that individually represent at least 20% of equity in earnings of joint ventures in the consolidated statements of comprehensive income and, simultaneously, at least 20% of all investments in joint ventures total equity attributable to non-controlling interest in associates at each year-end are considered significant. Therefore, in qualitative terms, the Group considers, among other factors, the specific risks to which each company is exposed, their returns and the importance that each company has for the Group.

Summarized financial information and other information for associates is included in Note 8.

(e) Joint arrangements

Joint arrangements are arrangements of which the Group and other party or parties have joint control bound by a contractual arrangement. Under IFRS 11, investments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.

Investments in joint ventures are accounted for under the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition of profits or losses and movements in other comprehensive income in the consolidated statements of comprehensive income and in other comprehensive income, respectively.

When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint ventures), the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint ventures.

The Group determines at each reporting date whether there is any objective evidence that the investment in a joint venture is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value and recognizes the amount adjacent to share of profit of associates and joint ventures in the statements of comprehensive income.

Unrealized gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in joint ventures are considered significant. In quantitative terms, the investments that individually represent at least 20% of equity in earnings of joint ventures in the consolidated statements of comprehensive income and, simultaneously, at least 20% the total equity attributable to non-controlling interest in joint ventures at the each year-end are considered significant. Therefore, in qualitative terms the Group considers, among other factors, the specific risks to which each company is exposed to, their returns and the importance that each company has for the Group.

Summarized financial information and other information for significant joint ventures is included in Note 8.

2.4. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) the Group’s Executive Committee. This CODM is responsible for allocating resources and assessing performance of the operating segments. The operating segments are described in Note 6.

2.5. Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). These Financial Statements are presented in Argentine Pesos, which is the Group’s presentation currency.

(b) Transactions and balances in foreign currency

Foreign currency transactions are translated into Argentine Pesos using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the profit or loss for the year.

Foreign exchange gains and losses are presented in the statements of comprehensive income within finance income and finance costs, as appropriate, unless they are capitalized as explained in Note 2.19.

2.6. Investment properties

Investment properties are those properties owned by the Group that are held either to earn long-term rental income or for capital appreciation and that are not occupied by the Group for its own operations. Properties occupied by associates or joint ventures are accounted for as investment properties in these Consolidated Financial Statements.

Investment property also includes properties that are being constructed or developed for future use as investment property. The Group also classifies land whose future use has not been determined yet as investment property.

When a property is partially owner-occupied, with the rest being held for rental income or capital appreciation, the Group accounts for the portions separately. The portion that is owner-occupied is accounted for as property, plant and equipment under IAS 16 “Property, Plant and Equipment” and the portion that is held for rental income or capital appreciation, or both, is treated as investment property under IAS 40 “Investment Property”.

The Group’s investment properties primarily comprise the Group’s portfolio of shopping malls and offices, certain property under development and other undeveloped land.

Investment property is measured initially at cost. Cost comprises the purchase price and directly attributable expenditures, such as legal fees, certain direct taxes, commissions and in the case of properties under construction, the capitalization of financial costs.

For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and property is in conditions to start operating. Capitalized costs include mainly the part attributable to third-party service costs, as well as the materials necessary for construction. Capitalization of such costs ceases when the property reaches the operating conditions indicated above. 

Direct expenses related to lease contract negotiation (as well as payment to third parties for services rendered and certain specific taxes related to execution of such contracts) are capitalized as part of the book value of the relevant investment properties and amortized over the term of the lease.

Borrowing costs associated with properties under development or undergoing major refurbishment are capitalized. The finance cost capitalized is calculated using the Group’s weighted average cost of borrowings after adjusting for borrowings associated with specific developments. Where borrowings are associated with specific developments, the amount capitalized is the gross interest incurred on those borrowings less any investment income arising on their temporary investment. Finance cost is capitalized from the commencement of the development work until the date of practical completion. The capitalization of finance costs is suspended if there are prolonged periods when development activity is interrupted. Finance cost is also capitalized on the purchase cost of land or property acquired specifically for redevelopment in the short term but only when activities necessary to prepare the asset for redevelopment are in progress.

After initial recognition, investment property is carried at fair value. Investment property that is being redeveloped for continuing use as investment property or for which the market has become less active, continues to be measured at fair value. Investment properties under construction are measured at fair value if the fair value is considered to be reliably determinable. Investment properties under construction for which the fair value cannot be determined reliably, but for which the Group expects that the fair value of the property will be reliably determinable when construction is completed, are measured at cost less impairment until the fair value becomes reliably determinable or construction is completed, whichever is earlier.

Fair values are determined differently depending on the type of property being measured.

Generally, fair value of office buildings and land reserves is based on active market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset. If this information is not available, the Group uses alternative valuation methods, such as recent prices on less active markets or discounted cash flow projections (Level 2).

The fair value of the Group’s portfolio of Shopping Malls is based on discounted cash flow projections. This method of valuation is commonly used in the shopping mall industry in the region where the Group conducts its operations (Level 3).

As required by Resolution 576/10 of the CNV, valuations are performed as of the financial position date by accredited professional appraisers who have recognized and relevant professional qualifications and have recent experience in the location and category of the investment property being valued. These valuations form the basis for the carrying amounts in the consolidated Financial Statements. The fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions.

Subsequent expenditure is capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost of the asset can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized.

Changes in fair values are recognized in the consolidated statements of comprehensive income under the line item “Net gain from fair value adjustments of investment properties”.

Asset transfers, including assets classified as investments properties which are reclassified under other items or vice-versa, may only be carried out when there is a change of use evidenced by: a) commencement of occupation of real property by the Group, where investment property is transferred to property, plant and equipment; b) commencement of development activities for sale purposes, where investment property is transferred to property for sale; c) the end of Group occupation, where it is transferred from property, plant and equipment to investment properties; or d) commencement of an operating lease transaction with a third party, where properties for sale are transferred to investment property. The value of the transfer is the one that the property had at the time of the transfer and subsequently is valued in accordance with the accounting policy related to the item.

The Group may sell its investment property when it considers they are not core to its ongoing rental business activities. Where the Group disposes of a property at fair value in an arm’s length transaction, the carrying value immediately prior to the sale is adjusted to the transaction price, and the adjustment is recorded in the other comprehensive consolidated statements of comprehensive income in the line “Net gain from fair value adjustments of investment properties”.

Investment properties are derecognized when they are disposed of or when they are permanently withdrawn from use and no future economic benefits are expected to arise from their disposal. The disposal of properties is recognized when the significant risks and rewards have been transferred to the buyer. As for unconditional agreements, proceeds are recognized when legal title to property passes to the buyer and the buyer intends to make the respective payment therefor. In the case of conditional agreements, the disposal is accounted for where such conditions have been met. Where consideration receivable for the sale of the properties is deferred, it is discounted to present value.

The difference between the discounted amount and the amount receivable is treated as interest income and recognized over the period using the effective interest method. Direct expenses related to the sale are recognized in the line "other operating results, net" in the consolidated statements of comprehensive income at the time they are incurred.

2.7. Property, plant and equipment

This category primarily comprises buildings or portions of a building used for administrative purposes, machines, computers and other equipment, motor vehicles, furniture, fixtures and fittings and improvements to the Group’s corporate offices.

All property, plant and equipment (“PPE”) is stated at historical cost less depreciation and accumulated impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and property is in conditions to start operating. Capitalized costs include mainly the part attributable to third-party service costs, as well as the materials necessary for construction. Capitalization of such costs ceases when the property reaches the operating conditions indicated above. 

Borrowing costs are directly incurred for the purpose of acquiring, constructing or producing a qualifying PPE are capitalized as part of its cost. A qualifying PPE is an asset that necessarily takes a substantial period of time to get ready for its intended use. Borrowing costs are capitalized during the period of construction or production of the eligible asset; such capitalization ceases once the necessary activities for the asset to have the intended use have been completed, or else capitalization is suspended while construction activity is suspended.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Such costs may include the cost of improvements and replacement of parts as they meet the conditions to be capitalized the carrying amount of those parts that are replaced is derecognized. Repairs and maintenance are charged to the consolidated statements of comprehensive income during the financial period in which they are incurred. Depreciation, based on a component approach, is calculated using the straight-line method to allocate the cost over the assets’ estimated useful lives.

As of June 30, 2018 useful lives are as follows:

Other buildings and facilities	Between 1 and 22 years
Furniture and fixtures	Between 3 and 10 years
Machinery and equipment	Between 1 and 10 years
Vehicles	5 years
Other	3 years

As of each period-end, an evaluation is performed to determine the existence of indicators of any decrease in recoverable value or useful life of assets. If there are any indicators, the recoverable amount and/or residual useful life of impaired asset(s) is estimated, and an impairment adjustment is made, if applicable. As of each year-end, the residual useful life of assets is estimated and adjusted, if necessary.

An asset’s carrying amount is written down immediately to its recoverable amount if its carrying amount is greater than its estimated recoverable amount (see Note 2.10.).

Gains from the sale of these assets are recognized when the significant risks and rewards have been transferred to the buyer. This will normally take place on unconditional exchange, generally when legal title passes to the buyer and it is probable that the buyer will pay. For conditional exchanges, sales are recognized when these conditions are satisfied.

Gains and losses on disposals are determined by comparing the proceeds, net of direct expenses related to those proceeds, with carrying amount at the date of each transaction. Gains and losses from the disposal of property, plant and equipment items are recognized within “Other operating results, net” in the consolidated statements of comprehensive income.

2.8. Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement.

A Group company is the lessor: Operating lease – properties leased to tenants under operating leases are included in “Investment properties” in the statements of financial position. See Note 2.25 for the recognition of rental income.

Finance lease – the Group does not have any finance leases.

A Group company is the lessee: Operating lease – leases in which substantially all risks and rewards of ownership are retained by another party, as lessor, are classified as operating leases.

Payments, including prepayments, made under operating leases (net of any incentives received from the lessor) are charged to the consolidated statements of comprehensive income on a straight-line basis over the period of the lease. Significant leases where the Group acts as lessee under operating leases mainly include principal offices.

Finance lease - leases of assets where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the commencement of the lease at the lower of the fair value of the property and the present value of the minimum lease payments. Capitalized lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. The finance charges are charged over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Liabilities corresponding to finance leases, measured at discounted value, are included in current and non-current borrowings. Significant leases where the Group acts as lessee under finance leases include machinery and computer equipment.

2.9. Intangible assets

(a) Goodwill

Goodwill represents future economic benefits arising from assets that are not capable of being individually identified and separately recognized by the Group on an acquisition. Goodwill is initially measured as the difference between the fair value of the consideration transferred, plus the amount of non-controlling interest in the acquisition and, in business combinations achieved in stages, the acquisition-date fair value of the previously held equity interest in the acquisition; and the net fair value of the identifiable assets and liabilities assumed on the acquisition date.

At acquisition goodwill is allocated to those cash generating units expected to benefit from the acquisition for the purpose of impairment (see Note 2.10.). Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill arising on the acquisition of subsidiaries is included within “Intangible assets” in the statements of financial position.

Goodwill may also arise upon investments in associates and joint ventures, being the surplus of the cost of investment over the Group’s share of the fair value of the net identifiable assets. Such goodwill is recorded within investments in associates or joint ventures.

Goodwill is not amortized but tested for impairment at each fiscal year end, or more frequently if there is an indication of impairment.

(b) Software

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives between 3 and 5 years.

Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets when the following criteria are met: (i) it is technically feasible to complete the software product so that it will be available for use; (ii) management intends to complete the software product and use or sell it; (iii) there is an ability to use or sell the software product; (iv) it can be demonstrated how the software product will generate probable future economic benefits; (v) adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and (vi) the expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.

Computer software development costs recognized as assets are amortized over their estimated useful lives, which does not exceed 5 years.

(c) Rights of use

The Group acquired certain rights to develop a plot of land and facilities. These rights primarily comprise the right to develop the land and attached buildings and facilities known as Distrito Arcos (“Arcos”).

The Arcos land and attached facilities is owned by Administration of Railway Infrastructure (“ADIF”, as per its Spanish acronym), a governmental agency created for the management of certain State’s properties, particularly assets pertaining to the railway system. Arcos are the old warehouse and adjacent spaces below the tracks of the San Martin railway lines. The right was acquired as part of the Arcos acquisition and is carried at acquisition cost less accumulated amortization. Amortization is calculated using the straight-line method over the period in which the economic benefits of use accrue. The Group must pay ADIF a fee on a monthly basis.

(d) Right to receive future units under barter agreements

The Group also enters into barter transactions where the Group normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land. The Group generally receives monetary assets as part of the transactions and/or a right to receive future units to be constructed by developers. Such rights are initially recognized at cost (which is the fair value of the land assigned) and such rights are not adjusted later, unless there is any sign of impairment.

2.10. Impairment of assets

(a)Goodwill

For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows, referred to as cash-generating units. In order to determine whether any impairment loss should be recognized, the book value of cash-generating units or cash generating unit groups is compared against its recoverable value. Net book value of cash-generating units and cash generating unit groups include goodwill and assets with limited useful life (such as, investment properties, property, plant and equipment, intangible assets and working capital).

If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. Impairment losses recognized for goodwill are included in the statements of comprehensive income and are not reversed in a subsequent period.

The recoverable amount of a cash-generating unit is the higher of fair value less costs-to-sell and value-in-use. The fair value is the amount at which a cash-generating unit may be sold in a current transaction between unrelated, willing and duly informed parties. Value-in-use is the present value of all estimated future cash flows expected to be derived from cash-generating units or cash-generating unit groups.

(b)Properties, plant and equipment and defined-lived intangible assets

At the date of each statement of financial position, the Group reviews the carrying amounts of its property, plant and equipment, and limited-duration 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, if any, of the impairment loss.

When the asset does not generate cash flows independently of other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in the statements of comprehensive income.

Assets or cash-generating units that have suffered an impairment loss are revised as of each year-end date to assess a potential reversal of such impairment. The impairment loss recognized in prior fiscal years may only be reversed if there has been a change in the estimates used to assess the recoverable value of assets or the cash-generating unit since the recognition of the impairment loss.

Where an impairment loss subsequently reverses the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, not to exceed the carrying amount that would have been determined if no impairment loss had been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in the statements of comprehensive income.

2.11. Trading properties

Trading properties comprise those properties either intended for sale or in the process of construction for sale. Trading properties are carried at the lower of cost and net realizable value. Where there is a change in use of investment properties evidenced by the commencement of development with a view to sale, the properties are reclassified as trading properties at cost, which is the carrying value at the date of change in use. They are subsequently carried at the lower of cost and net realizable value.

Cost comprises all direct costs of purchase, costs of conversion and other costs incurred in bringing the trading properties to their present location and condition.

Borrowing costs incurred for the purpose of acquiring, constructing or producing a qualifying trading property are capitalized as part of its cost. A qualifying trading property is an asset that necessarily takes a substantial period of time to get ready for its intended use. Borrowing costs are capitalized while acquisition, construction or production is underway and cease once the asset is substantially complete or suspended if development of the asset is suspended.

Net realizable value is the estimated selling price of a property in the ordinary course of business less costs to complete and selling expenses. If the net realizable value is lower than the carrying amount, a write-down is recognized in the amount by which the carrying amount exceeds its net realizable value. Write-downs are reversed when circumstances that caused the write-down cease to exist, or when net realizable value increases.

2.12. Inventories

Inventories mainly include materials, supplies or other assets required to offer different services.

Supplies and other of materials and assets classified in this category are measured at the lower of cost or net realizable value. The cost of supplies, materials and other assets is determined using the weighted average cost method.

2.13. Financial instruments

Classification

The Group classifies financial assets in the following categories: those to be measured at fair value and those to be measured at amortized cost. This classification depends on whether the financial asset is a debt or equity instrument.

Debt instruments

A debt instrument is classified at amortized cost only if both of the following criteria are met: i) the objective of the Group’s business model is to hold the asset to collect the contractual cash flows; and (ii) the contractual terms give rise on specified dates to cash derived solely from payments of principal and interest due on the principal outstanding. The nature of any derivatives embedded in the debt instrument are considered in determining whether the cash flows of the instrument are derived solely from payment of principal and interest due on the principal outstanding and are not accounted for separately.

If either of the two criteria above is not met, the debt instrument is classified at “fair value through profit or loss”. The Group has not designated any debt investment as measured at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch. Changes in fair values and gains from disposal of financial assets at fair value through profit or loss are recorded within “Financial results, net” in the statements of comprehensive income.

Equity instruments

All equity instruments, which are neither subsidiaries, associate companies nor joint ventures of the Group, are measured at fair value. Equity investments that are held for trading are measured at fair value through profit or loss. For all other equity investments, the Group can make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Group decided to recognize changes in fair value of equity instruments through changes in profit or loss.

Changes in fair values and results from disposal of equity investments at fair value through profit or loss and dividends income are recorded within ”Financial results, net” in the statements of comprehensive income.

Regular purchases and sales of financial assets are recognized on the trade date–the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statements of comprehensive income.

Results on debt instruments measured at amortized cost and not identified for hedging purposes are charged to income where the financial assets are derecognized or an impairment loss is recognized and during the amortization process under the effective interest method.

All equity investments, which are neither subsidiary associate companies nor joint venture of the Group, are measured at fair value.

The Group is required to reclassify all affected investments in debt instruments when and only when its business model for managing those assets changes.

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets measured at amortized cost is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) can be reliably estimated.

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulties, defaults or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization, and where observable data indicate that there is a measurable decrease in the estimated future cash flows.

The amount of the impairment is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognized in the consolidated statements of comprehensive income. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in the consolidated statements of comprehensive income.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

2.14. Derivative financial instruments and hedging activities

Derivative financial instruments are initially recognized at fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Group manages exposures to various risks using hedging instruments that provide the appropriate economic outcome. The Group does not use derivative financial instruments for speculative purposes. To date, the Group has used future and forward contracts, as appropriate.

The Group’s policy is to apply hedge accounting to hedging relationships where it is permissible under IFRS 9, practical to do so and its application reduces volatility, but transactions that may be effective hedges in economic terms may not always qualify for hedge accounting under IFRS 9. To date the Group has not applied hedge accounting to any of its derivative financial instruments. Trading derivatives are classified as a current asset or liability on the statement of financial position. Gains and losses on other derivatives are classified in “Financial results, net”, in the statements of comprehensive income.

The fair values of financial instruments that are traded in active markets are computed by reference to market prices. The fair value of derivative financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

2.15. Trade and other receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

A provision of doubtful accounts is recorded when there is objective evidence that the Group may not be able to collect all receivables within their original payment term. Indicators of doubtful accounts include significant financial distress of the debtor, the debtor potentially filing a petition for reorganization or bankruptcy, or any event of default or past due account.

In the case of larger non-homogeneous receivables, the Group generally measures the impairment provision on an individual basis. When assessed individually, the Group records a provision for impairment which amounts to the difference between the value of the discounted expected future cash flows of the receivable and its carrying amount, taking into account the existing collateral, if any. This provision takes into consideration the financial situation of the debtor, the resources, payment track-record and, if applicable, the value of collateral.

The Group collectively evaluates for impairment smaller-balance homogeneous receivables, which are grouped on the basis of similar risk characteristics, taking into account asset type, collateral type, past-due status and other relevant factors. The Group applies allowance factors, which in the judgment of management represent the expected losses over the life of the receivables. In determining those factors, the Group considers the following: (i) delinquencies of the credits, (ii) loss history and the general behaviour of clients, (iii) trends in volume and terms of receivables, (iv) the experience and depth of the debtors’ management, (v) national and local economic trends, (vi) concentrations of credit by individual credit size and by class of receivable, and (vii) the effect of other external factors.

The amount of the provision for doubtful accounts is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the statements of comprehensive income within “Selling expenses”. Subsequent recoveries of amounts previously written off are credited against “Selling expenses” in the statements of comprehensive income.

2.16. Trade and other payables

Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method.

2.17. Tenant deposits

The Group generally obtains deposits from tenants as a guarantee for returning the property at the end of the lease term in a specified good condition or for the lease payments for a period of generally 3 years. The deposits are generally equivalent to one month of lease rentals. Such deposits are treated as both a financial asset and a financial liability in accordance with IFRS 9, and they are initially recognized at fair value. The difference between fair value and cash received is considered to be part of the minimum lease payments received for the operating lease (refer to Note 2.25. for the recognition of rental income). The deposits are subsequently measured at amortized cost.

2.18. Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized as finance cost over the period of the borrowings using the effective interest method.

2.19. Borrowing costs

General and specific borrowing costs (interest and foreign exchange differences) directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially completed.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

The Group capitalizes borrowing costs on qualifying investment properties, property, plant and equipment and trading properties.

2.20. Provisions

Provisions are recognized when: (i) the Group has a present legal or constructive obligation as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount of the obligation can be made. Provisions are not recognized for future operating losses.

The amount of its accruals is based on up-to-date developments, estimates of the outcomes of the matters and legal counsel’s experience in contesting, litigating and settling matters. As the scope of the liabilities becomes better defined or more information is available, the Group may be required to change its estimates of future costs, which could have a material adverse effect on its results of operations and financial condition or liquidity.

Provisions are measured at the present value of the cash flows expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in provisions due to passage of time is recognized in the statements of comprehensive income.

2.21. Employee benefits

(a) Pension plans obligations

The Group operates a defined contribution plan. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The contributions are recognized as employee benefit expense in the statement of comprehensive income when they are due.

(b) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy.

(c) Bonus plans

The Group recognizes a liability and an expense for bonuses based on a formula that takes into consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

2.22. Shared based payments

The Group operates an incentive plan, under which certain selected employees, directors and top management of IRSA Propiedades Comerciales S.A., IRSA and Cresud have a right to matching shares of IRSA and Cresud, although they must hold their purchased shares and remain with the employer entity for a specified period of time.

The fair value of the equity settled awards is measured at the date of grant. Management measures the fair value using the valuation technique that it considers to be the most appropriate to value each class of award. Methods used may include Black-Scholes calculations or other models as appropriate. The valuations take into account factors such as non-transferability, exercise restrictions and behavioural considerations.

The fair value of the share-based payment is recognized in the statements of comprehensive income under the straight-line method over the vesting period in which the right to receive shares of IRSA and Cresud becomes irrevocable (“vesting period”); such value is based on the best available estimate of the number of shares expected to vest.

Such estimate is revised if subsequent information becomes available indicating that the number of shares expected to vest differs from original estimates.

2.23. Current income tax, deferred income tax and minimum presumed income tax

Tax expense for the year comprises the charge for tax currently payable and deferred taxation. Tax is recognized in the statement of income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted at the date of the statement of financial position in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. The Group establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated Financial Statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the date of the statement of financial position and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Entities in Argentina are subject to the Minimum Presumed Income Tax (“MPIT”). Pursuant to this tax regime, an entity is required to pay the greater of the income tax or the MPIT. The MPIT provision is calculated on an individual entity basis at the statutory asset tax rate of 1% and is based upon the taxable assets of each company as of the end of the year, as defined by Argentine law. Any excess of the MPIT over the income tax may be carried forward and recognized as a tax credit against future income taxes payable over a 10-year period. When the Group assesses that it is probable that it will use the MPIT payment against future taxable income tax charges within the applicable 10-year period, the Group recognizes the MPIT as a current or non-current receivable, as applicable, within “Trade and other receivables” in the statements of financial position.

Minimum presumed income tax was repealed by the Law No. 27,260 in section 76 for the annual periods beginning on January 1, 2019.

In this respect, considering recent Instruction No. 2 issued by the Federal Administration of Public Revenue (AFIP), if the Company posts financial and tax losses, no provision for income tax would be recorded.

2.24. Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less. Cash equivalents do not include bank overdrafts.

2.25. Revenue recognition

Revenue from Group’s activities is principally derived from business activities carried out in shopping malls and in rental buildings and mainly include rental income from shopping mall properties and offices leased under operating leases, admission rights, commissions and revenue from several services provided to the Group’s lessees.

Revenue from the sale of properties is recognized when: (a) material risks and benefits derived from title to property have been transferred; (b) the Company does not retain any management function on the assets sold nor does it have any control whatsoever on such assets; (c) the amount of revenues and costs associated to the transaction may be measured on a reliable basis; and (d) the Company is expected to accrue the economic benefits associated to the transaction.

Revenue from the provision of services is recognized when: (a) the amount of revenue and costs associated to the services may be measured on a reliable basis; (b) the Company is expected to accrue the economic benefits associated to the transaction, and (c) the level of completion of services may be measured on a reliable basis.

· Shopping malls portfolio

Primarily comprises rental income from shopping mall properties lease out over operating leases, admission rights, commissions and revenue from several services provided to the Group’s lessees.

The Argentine Civil and Commercial Code section 1221 provides that tenants may rescind commercial lease within the initial six months by means of written notification. If option is used within the first year of the lease, the Tenant shall pay the Lessor, as compensation, the equivalent of one-and-a-half month’s rent, and one month’s rent if the tenant makes use of the option after that period. Given that the rule does not provide for advance notice, Lease Agreements include a provision whereby the lessee must give at least 60 days advance notice of its intention to terminate the lease. The exercise of such early termination could materially and adversely affect the Group.

The Group analyzed the definition of leasing term in IAS 17 wich provides that a non-cancellable lease is a lease that is cancellable only (a) upon the occurrence of some remote contingency, (b) with the permission of the lessor, (c) if the lessee enters into a new lease with the same lessor or (d) upon payment by the lessee of such an additional amount that, at inception of the lease, continuation of the lease is reasonably certain.

The Group has determined that, in all operating leases, the lease term for accounting purposes matches the term of the contract. The Group concluded that, even though a lease is cancellable under law, tenants would incur significant “economic penalties” if the leases are terminated prior to expiry. The Group considered that these economic penalties are of such amount that continuation of the lease contracts by tenants appears to be reasonably certain at the inception of the respective agreements. The Group reached this conclusion based on factors such as: (i) the strategic geographical location and accessibility to customers of the Group’s investment properties; (ii) the nature and tenure of tenants (mostly well-known local and international retail chains); (iii) limited availability of identical revenue-producing space in the areas where the Group’s investment properties are located; (iv) the tenants’ brand image and other competitive considerations; (v) tenants’ significant expenses incurred in renovation, maintenance and improvements on the leased space to fit their own image; (vi) the majority of the Group’s tenants only have stores in shopping malls with a few or none street stores. See datails in Note 24

Lessees of shopping malls are generally required to pay the higher of: (i) a base monthly rent (the “Base Rent”) and (ii) a specific percentage of gross monthly sales recorded by the Lessee (the “Contingent Rent”), which generally ranges between 2% and 10% of gross sales. Moreover, in accordance with agreements entered into for most locations, the Base Rent is subject to scheduled increases, typically between 10% on a semi-annually over the term of the lease.

In addition, some lease contracts include provisions that set forth variable rent based on specific volumes of sales and other types of ratios.

Rental income from shopping mall properties leased out under operating leases is recognized in the consolidated statements of comprehensive income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

Contingent rents, being lease payments that are not fixed at the inception of a lease, are recorded as income in the periods in which they are known and can be determined. Rent reviews are recognized when such reviews have been agreed with tenants.

Tenants in the Group’s shopping mall are also generally charged a non-refundable admission right upon entering a lease contract or renewing an existing one. Admission rights are treated as additional rental income and recognized in the statement of comprehensive income under a straight-line basis over the term of the respective lease agreement.

The Group acts as its own leasing agent for arranging and closing lease agreements in its shopping malls properties and consequently earns letting fees. Letting fees are paid by tenants upon the successful closing of an agreement. A transaction is considered successfully concluded when both parties have signed the related lease contract. Letting fees received by the Group are treated as additional rental income and are recognized in the statement of comprehensive income on a straight-line basis over the term of the lease agreements.

Lease contracts also provide that common area maintenance (“CAM”) of the Group’s shopping malls are borne by the corresponding lessees, generally on a prorrata basis. CAM include all such expenses convenient and necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The lessor is responsible for determining the need and suitability of incurring a common area service charge. The Group makes the original payment for such expenses, which are then reimbursed by the lessees. The Group considered that it acts as a principal in these cases.

Service charge income related to can is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

Under the lease contracts entered into, lessees also agree to participate in collective promotion funds (“CPF”) to be used in advertising and promoting the Group’s shopping malls. Each lessee’s participation is generally calculated as a percentage of the 15% monthly rent accrued.

Revenue so derived is also included under rental income and services segregated from advertising and promotion expenses. Such expenses are charged to income when incurred.

On the other hand, revenue includes income from managed operations and other services such as car parking lots. Those revenues are recognized on an accrual basis as services are provided.

· Office and other rental properties portfolio

Rental income from office and other rental properties include rental income from office leased out under operating leases, income for services and expenses recovery paid by tenant.

Rental income from office and other rental properties leased out under operating leases is recognized in the consolidated statements of comprehensive income on a straight-line basis over the term of the leases (‘rent averaging’). When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

Contingent rents, are recorded as income in the periods in which they are collected. Rent reviews are recognized when such reviews have been agreed with tenants.

Lease contracts also provide that common area service charges of the Group’s office and other rental properties are borne by the corresponding lessees, generally on a proportionally basis. These common area service charges include all such expenses convenient and necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The Group acts as the management of rental properties. The Group makes the original payment for such expenses, which are then reimbursed by the lessees. The Group considered that it acts as a principal in these cases. The Group accrues reimbursements from tenants for recoverable portions of all these expenses as service charge revenue in the period the applicable expenditures are incurred and is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

· Sales and Development activities

Revenue from sale and developments of real estate properties primarily comprises the results from the sale of trading properties. Results from the sale of properties are recognized only when the significant risks and rewards have been transferred to the buyer. This normally takes place on unconditional exchange of contracts (except where payment or completion is expected to occur significantly after exchange). For conditional exchanges, sales are recognized when these conditions are satisfied.

The Group applies IFRIC 15 “Agreements for the Construction of Real Estate”. IFRIC 15 gives guidance as to which standard applies when accounting for the construction of real estate; that is IAS 11 “Construction Contracts” or IAS 18 “Revenue”. IFRIC 15 interprets that an agreement meets the definition of a construction contract under IAS 11 when the buyer is able to specify the major structural elements of the design of the property either before or during construction. Furthermore, IFRIC 15 interprets that an agreement is for the sale of goods under IAS 18 when construction takes place independently of the agreement and the buyer has only a limited ability to influence the design. The Group has assessed the nature of its agreements and determined that they are within the scope of IAS 18. As a result, the Group recognizes revenue from the sale of open market private homes and commercial units entirely at the delivery in accordance with IAS 18.

The Group also enters into barter transactions where the Group normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land and on occasion, the Group also receives cash as part of the transactions. Legal title to the land together with all risks and rewards of ownership are transferred to the developer upon sale. The Group generally requires the developer to issue insurances or to mortgage the land in favor of the Group as performance guarantee. In the event the developer does not fulfil its obligations, the Group forecloses on the land through the execution of the mortgage or the surety insurances, together with a cash penalty.

The Group may sell the residential apartments to third-party homebuyers once they are finalized and transferred from the developer. In these circumstances, revenue is recognized when the significant risks and rewards are transferred to the buyer. This will normally take place when the deeds of title are transferred to the homebuyer.

However, the Group may market residential apartments during construction or even before construction commences. In these situations, buyers generally surrender a down payment to the Group with the remaining amount being paid when the developer completes the property and transfers it to the Group, and the Group in turn transfers it to the buyer. In these cases, revenue is not recognized until the apartments are completed and the transaction is legally completed, that is when the apartments are transferred to the homebuyers and deeds of title are executed. This is because in the event the residential apartments are not completed by the developer and consequently not delivered to the homebuyer, the Group is contractually obligated to return to the homebuyer any down payment received plus a penalty amount. The Group may then seek legal remedy against the developer for non-performance of its obligations under the agreement. The Group exercised judgment and considers that the most significant risk associated with the asset the Group holds (i.e. the right to receive the apartments) consisting of the unfulfillment of the developer's obligations (i.e. to complete the construction of the apartments) has not been transferred to the homebuyers upon reception of the down payment.

2.26. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

When any of Group’s subsidiaries purchase the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of tax) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. When such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and related income tax effects, is included in equity attributable to the Company’s equity holders.

Instruments issued by the Group that will be settled by the Company delivering a fixed number of its own equity instruments in exchange for a fixed amount of cash or another financial asset are classified as equity.

2.27. Earnings per share

Earnings per share is calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average of common shares outstanding during the year. Diluted earnings per share is computed by dividing the profit for the year by the weighted average of common shares outstanding, and when dilutive, adjusted for the effect of all potentially dilutive shares, including share options, on an as-if converted basis.

In computing diluted earnings per share, income available to common shareholders used in the basic earnings per share calculation is adjusted to add back the after-tax amount of interest recognized in the year with respect to any debt convertible to common stock. The weighted-average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Diluted earnings per share is based on the most advantageous conversion rate or exercise price over the entire term of the instrument from the standpoint of the security holder. The calculation of diluted earnings per share excludes potential common shares if their effect is anti-dilutive (Note 28).

2.28. Dividend distribution

Cash dividend distribution to the Group’s shareholders is recognized as a liability in the period in which the dividends are approved. Such amounts have been recorded either under Retained Earnings, if already forfeited or under Trade and Other Payables, if not forfeited.

2.29. Dividends income

Dividends earned are recorded when declared.

2.30. Comparative information

Balance items as of June 30, 2017 and 2016 shown in these Financial Statements for comparative purposes arise from Financial Statements then ended. Reclassifications have been made in the comparative information as of June 30, 2017 and 2016.

During the fiscal year ended June 30, 2018, 2017 and 2016, there was a devaluation of the Argentine peso in relation to the US Dollar that accounted for approximately 74%, 11% and 65%, respectively. This situation affects the comparability of figures disclosed in these Financial Statements, arising mainly from the impact of the exchange rate on our assets and liabilities in foreign currency.

2.31. Seasonal effects on operations

The operations of the Group’s shopping mall are subject to seasonal effects, which affect the level of sales recorded by tenants. During summer time (January and February), the tenants of shopping mall experience the lowest sales levels in comparison with the winter holidays (July) and during the period of Christmas’ Seasons (December) when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping mall sales. Sale discounts at the end of each season also impact in the business. As a consequence, a higher level of revenues is generally expected in shopping mall operations during the second half of the year rather than the first.

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Significant judgments, key assumptions and estimates

12 Months Ended

Jun. 30, 2018

Significant Judgments Key Assumptions And Estimates

Significant judgments, key assumptions and estimates

3. Significant judgments, key assumptions and estimates

Not all of these significant accounting policies require management to make subjective or complex judgments or estimates. The following is intended to provide an understanding of the policies that management considers critical because of the level of complexity, judgment or estimations involved in their application and their impact on the Consolidated Financial Statements. These judgments involve assumptions or estimates in respect of future events. Actual results may differ from these estimates.

Estimation	Main assumptions	Potential implications	Main references
Business combination - Allocation of acquisition prices	Assumptions regarding timing, amount of future revenues and expenses, revenue growth, expected rate of return, economic conditions, discount rate, among other.	If the assumptions made be inaccurate, the recognized combination may not be correct.	Note 4 – Acquisitions and dispositions
Recoverable amounts of cash-generating units (even those including goodwill), associates and assets.	The discount rate and the expected growth rate before taxes in connection with cash-generating units. The discount rate and the expected growth rate after taxes in connection with associates. Cash flows are determined based on past experiences with the asset or with similar assets and in accordance with the Group’s best factual assumption relative to the economic conditions expected to prevail. Business continuity of cash-generating units. Appraisals made by external appraisers and valuators with relation to the assets’ fair value, net of realization costs (including real estate assets).	If any of the assumptions made be inaccurate, this could lead to differences in the recoverable values of cash-generating units.	Note 10 – Property, plant and equipment Note 12 – Intangible assets
Estimated useful life of intangible assets and property, plant and equipment	Estimated useful life of assets based on their conditions.	Recognition of accelerated or decelerated depreciation by comparison against final actual earnings (losses).	Note 10 – Property, plant and equipment Note 12 – Intangible assets
Fair value valuation of investment properties	Fair value valuation made by external appraisers and valuators. See Note 9.	Incorrect valuation of investment property values	Note 9 – Investment properties
Income tax	The Group estimates the income tax amount payable for transactions where the Treasury’s Claim cannot be clearly determined. Additionally, the Group evaluates the recoverability of assets due to deferred taxes considering whether some or all of the assets will not be recoverable.	Upon the improper determination of the provision for income tax, the Group will be bound to pay additional taxes, including fines and compensatory and punitive interest.	Note 20 – Taxes
Allowance for doubtful accounts	A periodic review is conducted of receivables risks in the Group’s clients’ portfolios. Bad debts based on the expiration of account receivables and account receivables’ specific conditions.	Incorrect recognition of charges / reimbursements of the allowance for bad debt.	Note 14 – Trade and other receivables
Level 2 and 3 financial instruments	Main assumptions used by the Group are: ·      Discounted projected income by interest rate ·      Values determined in accordance with the shares in equity funds on the basis of its Financial Statements, based on fair value or investment assessments. ·      Comparable market multiple (EV/GMV ratio). ·      Underlying asset price (Market price); share price volatility (historical) and market interest-rate (Libor rate curve).	Incorrect recognition of a charge to income / (loss).	Note 13 – Financial instruments by category
Probability estimate of contingent liabilities.	Whether more economic resources may be spent in relation to litigation against the Group; such estimate is based on legal advisors’ opinions.	Charge / reversal of provision in relation to a claim.	Note 19 – Provisions

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Acquisitions and disposals

12 Months Ended

Jun. 30, 2018

Acquisitions And Disposals

Acquisitions and disposals

4. Acquisitions and disposals

Fiscal year ended as of June 30, 2018

Acquisition of La Arena

On February 20, 2018 IRSA Propiedades Comerciales, through its subsidiary Ogden Argentina S.A. ("OASA"), which the company controlled thorugh Entertainment Holdings S.A., acquired a 60% equity interest in La Arena, which developed and operates the stadium known as "DIRECTV ARENA", located in Tortuguitas, province of Buenos Aires.

The price set for the transaction amounted to USD 4.2 million, of which USD 1.9 million were outstanding as of the date of this annual report.

See in Note 15 the balances of business combination.

Acquisition of plot of land La Plata

On March 22, 2018 IRSA Propiedades Comerciales  acquired, directly and indirectly, 100% of a plot of land of 78,614 sqm of surface located in Camino General Belgrano, between 514th Av., 19th Av. and 511 Street, in the town of La Plata, province of Buenos Aires.  

The operation was made through the purchase of 100% of the shares of common stock of the company Centro de Entretenimientos La Plata SA ("CELAP"), owner of 61.85% of the property and the direct purchase of the remaining 38.15% share of common stock from non-related third parties.

The total price of the transaction was USD 7.5 million, which has been fully paid.

The purpose of this acquisition is the future development of a mixed-use project.

Acquisition of plot of land in Mendoza

On March 14, 2018 the Company acquired a 3,641 sqm of plot of land adjacent to Mendoza Shopping, for an amount of USD1.2 million. As of the date of these Financial Statements, USD 0.8 million were outstanding.

Sale of units in Intercontinental Building

IRSA Propiedades Comerciales sold 851,79 square meters corresponding to one floor of office and eight parking lots in the Intercontinental Plaza building The consideration was USD 3 million, which was fully paid.

Fiscal year ended as of June 30, 2017

Acquisition of control over Entertainment Holdings S.A. (EHSA)

In July 2016, IRSA Propiedades Comerciales, acquired 20% shareholding in EHSA, a company where it already owned 50%. It also acquired 1.25% interest in Entretenimiento Universal S.A. (“ENUSA”). The amount paid for the acquisition was Ps. 53 million. As a result, the Group now holds 70% of the voting stock of EHSA.

EHSA holds, both directly and indirectly, 100% of the shares of OGDEN Argentina S.A. (“OASA”) and 95% of the shares of ENUSA.

OASA holds 50% of the voting stock of La Rural S.A. (“LRSA”), a company that holds the right to commercially operate the emblematic “Predio Ferial de Palermo” in the Autonomous City of Buenos Aires, where the Sociedad Rural Argentina (“SRA”) holds the remaining 50%.

See in Note 15 the balances of business combination.

Purchase of Philips Building

On June 5, 2017, IRSA Propiedades Comerciales acquired the Philips Building located in Saavedra, Autonomous City of Buenos Aires, next to the DOT Shopping Mall. The building has a constructed area of 10,142 square meters and is intended for office development and lease. The acquisition price was USD 29 million, which was fully paid up as of June 30, 2017.

Furthermore, the Company has signed an agreement with the seller which allow them to remain leasing the building for a term of 7 months and 15 days, which expire on January 19, 2018.

Sale of units in Intercontinental Building

IRSA Propiedades Comerciales sold 2,432 square meters corresponding to three floors of office and 24 parking lots in the Intercontinental Plaza building. The Company still holds 3,876 square meters profitable of the building. The consideration was USD 9 million, which was fully paid by the purchaser as of June 30, 2017.

Catalinas Tower

On November 16, 2016, IRSA signed an agreement with DYCASA S.A., the primary building contractor for the development of Catalinas Tower who, on November 29, 2016, started the corresponding works. The execution term is 28 months and completion is scheduled for March 2019. On April 6, 2016, IRSA Propiedades Comerciales has purchased from IRSA a portion of the future units to be built.

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Financial risk management

12 Months Ended

Jun. 30, 2018

Financial Risk Management

Financial risk management

5. Financial risk management

Risk management principles and procedures

The risk management function within the Group is carried out in respect of financial risks. Financial risks are risks arising from financial instruments to which the Group is exposed during or at the end of the reporting period. Financial risk comprises market risk (including foreign currency risk, interest rate risk and other price risk), credit risk, liquidity risk and capital risk.

The Group’s diverse activities are exposed to a variety of financial risks in the normal course of business. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize the Group’s capital costs by using suitable means of financing and to manage and control the Group’s financial risks effectively. The Group uses financial instruments to hedge certain risk exposures when deemed appropriate based on its internal management risk policies.

The Group’s principal financial instruments comprise cash and cash equivalents, receivables, payables, interest bearing assets and liabilities, other financial liabilities, other investments and derivative financial instruments. The Group manages its exposure to key financial risks in accordance with the Group’s risk management policies.

The Group’s risk management policies are implemented at all its subsidiaries companies in order to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group’s management framework includes policies, procedures, limits and allowed types of derivative financial instruments.

The Group has established a Risk Committee, comprising Senior Management and a member of the Audit Committee of Cresud (IRSA’s parent company), which reviews and oversees management’s compliance with these policies, procedures and limits and has overall accountability for the identification and management of risk across the Group.

This section provides a description of the principal risks and uncertainties that could have a material adverse effect on the Group’s strategy, performance, results of operations and financial condition. The principal risks and uncertainties facing the businesses, set out below, do not appear in any particular order of potential materiality or probability of occurrence.

(a) Market risk management

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Group’s market risks arise from open positions in foreign currencies, interest-bearing assets and liabilities, and risk of market price of equity securities, to the extent that these are exposed to general and specific market movements. The Group sets limits on the exposure to these risks that may be accepted, which are monitored on a regular basis.

The examples of sensitivities to market risks included below are based on a change in one factor while holding all other factors constant. In practice this is unlikely to occur, and changes in some of the factors may be correlated – for example, changes in interest rate and changes in foreign currency rates.

Foreign exchange risk and associated derivative financial instruments

The Group publishes its consolidated Financial Statements in Argentine Pesos but conducts business in many foreign currencies. As a result, the Group is subject to foreign currency exchange risk due to exchange rate movements, which affect the Group’s transaction costs. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency, that is, Argentine Pesos.

The real estate activities of the Group’s subsidiaries are primarily located in Argentina where the Argentine Peso is the functional currency. A significant majority of the Group’s business activities is conducted in the respective functional currencies of the subsidiaries (the Argentine Peso), thus not exposing the Group to foreign exchange risk. However, in the ordinary course of business, the Group transacts in currencies other than the respective functional

currencies of the subsidiaries. These transactions are primarily denominated in US dollars. The Group’s net financial position exposure to the US dollar is managed on a case-by-case basis, by entering into different derivative instruments and/or by borrowing in foreign currencies. Exposure to other foreign currencies has not been significant to date.

Financial instruments are only considered sensitive to foreign exchange rates where they are not in the functional currency of the entity that holds them. The following table shows the US dollar-denominated net amounts of the financial instruments for the years ended June 30, 2018 and 2017. All amounts are presented in Argentine Pesos, the presentation currency of the Group:

	Net monetary position liability
	06.30.18	06.30.17
Borrowing position with third parties	(9,697,165)	(5,267,218)
Lending position with related parties	360,966	315,194
Net monetary position	(9,336,199)	(4,952,024)

The Group estimates that, other factors being constant, a 10% oscillation of the US dollar against the Argentine Peso at year-end would impact in the profit before income tax in an amount of Ps. 933,620 and Ps. 495,202 for the years ended June 30, 2018 and 2017, respectively.

This sensitivity analysis provides only a limited, point-in-time view of the sensitivity of the foreign exchange risk associated with Group’s financial instruments. The actual impact of the foreign exchange rate changes on the Group’s financial instruments may differ significantly from the impact shown in the sensitivity analysis.

Furthermore, the Group also uses derivative instruments, such as foreign currency forward contracts, to manage exposure to foreign exchange risk. As of June 30, 2018 and 2017 there were foreign-currency forward contracts in the amount of Ps. 47,360 (assets) and Ps. 4,950 (liabilities), respectively.

Interest rate risk

The Group is exposed to interest rate risk on its investments in debt instruments, short-term and long-term borrowings and derivative financial instruments.

The primary objective of the Group’s investment activities is to preserve principal while at the same time maximizing yields without significantly increasing risk. To achieve this objective, the Group diversifies its portfolio in accordance with the limits set by the Group. The Group maintains a portfolio of cash equivalents and short-term investments in a variety of securities, including both government and corporate obligations and money market funds and ETF funds.

As the Group’s investments in this type of financial instrument subject to this risk are not significant, changes in market interest rates do not have any significant direct effect on the Group’s income.

The Group’s interest rate risk principally arises from long-term borrowings (Note 18). Borrowings issued at floating rates expose the Group to the risk that the actual cash flows differ from those expected. Borrowings issued at fixed rates expose the Group to the risk that the fair values of these differ from those expected. The Group manages this risk by maintaining an appropriate mix between fixed and floating rate interest bearing liabilities. These activities are evaluated regularly to determine that the Group is not exposed to interest rate movements that could adversely impact its ability to meet its financial obligations and to comply with its borrowing covenants.

The Group’s interest rate risk policy is approved by its management. The Group analyzes its interest rate exposure on a dynamic basis. Various scenarios are simulated, taking into consideration refinancing, renewal of existing positions and alternative financing sources. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. The scenarios are run only for liabilities that represent the major interest-bearing positions. Trade payables are normally interest-free and have settlement dates within one year. The simulation is done on a regular basis to verify that the maximum potential loss is within the limits set by Management.

See in Note 18 the breakdown of the Group’s fixed-rate and floating-rate borrowings per currency denomination (excluding finance leases) for the years ended June 30, 2018 and 2017:

The Group estimates that, other factors being constant, a 1% oscillation in floating rates at year-end would impact the profit before income tax for the year ended June 30, 2018 and 2017 by Ps. 10.89 million and Ps. 0.96 million, respectively. Additionally, the variation of 1% in the swap rate would impact in the statement of comprehensive income before taxes in Ps. (16) million.

Other price risk

The Group is exposed to price risk inherent in equity investments, which are classified on the consolidated statement of financial position at fair value through profit or loss. The Group regularly reviews the prices evolution of these equity securities in order to identify significant movements. (Note 13)

As of June 30, 2018 and 2017, the total value of the investment in equity securities issued by other companies equals to Ps. 201.7 million and Ps. 157.7 million, respectively.

The Group estimates that, other factors being constant, a 10% oscillation in equity indexes at fiscal year-end would decrease profit before income tax for the years ended June 30, 2018 and 2017 by Ps. 20.2 million and Ps. 15.8, million respectively.

(b) Credit risk management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Group. Credit limits have been established to ensure that the Group deals only with approved counterparties and that counterparty concentration risk is addressed and the risk of loss is mitigated. Counterparty exposure is measured as the aggregate of all obligations of any single legal entity or economic entity to the Group.

The Group is subject to credit risk arising from deposits with banks and financial institutions, investments of surplus cash balances, the use of derivative financial instruments and from outstanding receivables. Credit risk is managed on a country-by-country basis.

The Group’s policy is to manage credit exposure from deposits, short-term investments and other financial instruments by maintaining diversified funding sources in various financial institutions. All the institutions that operate with the Group are well known because of their experience in the market and high credit quality. The Group places its cash and cash equivalents, investments, and other financial instruments with various high credit quality financial institutions, thus mitigating the amount of credit exposure to any one institution. The maximum exposure to credit risk is represented by the carrying amount of cash and cash equivalents and short-term investments in the statement of financial position.

The Group’s primary objective for holding derivative financial instruments is to manage currency exchange rate risk and interest rate risk. The Group generally enters into derivative transactions with high-credit-quality counterparties and, by policy, limits the amount of credit exposure to each counterparty. The amounts subject to credit risk related to derivative instruments are generally limited to the amounts, if any, by which counterparty’s obligations exceed the obligations that the Group has with that counterparty. The credit risk associated with derivative financial instruments is represented by the carrying value of the assets positions of these instruments.

The Group’s policy is to manage credit risks associated with trade and other receivables within defined trading limits. All Group’s significant counterparties have internal trading limits.

Trade receivables from investment and development property activities are primarily derived from leases and services from shopping malls, office and other rental properties; receivables from the sale of trading properties and investment properties (primarily undeveloped land and non-retail rental properties). The Group has a large customer base and is not dependent on any single customer.

The Group has specific policies to ensure that rental contracts are transacted with counterparties with appropriate credit quality. The majority of the Group’s shopping mall, office and other rental properties’ tenants are well-recognized retailers, diversified companies, professional organizations, and others. Owing to the long-term nature and diversity of its tenancy arrangements, the credit risk of this type of trade receivables is considered to be low. Generally, the Group has not experienced any significant losses resulting from the non-performance of any counterpart to the lease contracts. As a result, the allowance for doubtful accounts balance is low. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Group, as applicable. If customers are independently rated, these ratings are used. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its past experience, financial position, actual experience and other factors. Based on the Group’s analysis, the Group determines the amount of the deposit that is required from the tenant at inception of the lease. Management does not expect any losses from non-performance by these counterparties (Note 14).

(c) Liquidity risk management

The Group is exposed to liquidity risks, including risks associated with refinancing borrowings as they mature, the risk that borrowing facilities are not available to meet cash requirements, and the risk that financial assets cannot readily be converted to cash without loss of value. Failure to manage liquidity risks could have a material impact on the Group’s cash flow and statement of financial position. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility in funding its existing and prospective debt requirements by maintaining diversified funding sources with adequate committed funding lines from high quality lenders.

The Group monitors its current and projected financial position using several key internally generated reports: cash flow; debt maturity; and interest rate exposure. The Group also undertakes sensitivity analysis to assess the impact of proposed transactions, movements in interest rates and changes in property values on the key profitability, liquidity and balance sheet ratios.

The Group’s debt and derivative positions are continually reviewed to meet current and expected debt requirements. The Group maintains a balance between longer-term and shorter-term financings. Short-term financing is principally raised through bank facilities and overdraft positions. Medium- to longer-term financing comprises public and private bond issues, including private placements. Financing risk is spread by using a variety of types of debt. The maturity profile is managed by spreading the repayment dates and extending facilities.

The tables below analyze the Group’s non-derivative financial liabilities and derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in the tables are the contractual undiscounted cash flows and as a result, they do not reconcile to the amounts disclosed on the statement of financial position. However, undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in the statement of financial position, as the impact of discounting is not significant. The tables include both interest and principal flows.

Where the interest payable is not fixed, the amount disclosed has been determined by reference to the conditions existing at each reporting date.

At June 30, 2018	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	More than 4 years	Total
Trade and other payables	776,952	71,444	3,670	2,498	-	854,564
Borrowings (excluding finance lease liabilities)	1,138,838	1,387,782	5,374,580	1,235,747	11,381,419	20,518,366
Finance leases	6,945	6,498	1,803	-	-	15,246
Derivative financial instruments	264	-	-	-	46,447	46,711
Total	1,922,999	1,465,724	5,380,053	1,238,245	11,427,866	21,434,887

At June 30, 2017	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	More than 4 years	Total
Trade and other payables	480,612	5,940	4,570	1,497	1,489	494,108
Borrowings (excluding finance lease liabilities)	787,406	523,845	523,845	523,845	6,748,934	9,107,875
Finance leases	1,690	968	668	-	-	3,326
Derivative financial instruments	4,950	-	-	-	-	4,950
Total	1,274,658	530,753	529,083	525,342	6,750,423	9,610,259

(d)Capital risk management

The capital structure of the Group consists of shareholder’s equity and short-term to long-term net borrowings. The type and maturity of the Group’s borrowings are analyzed further in Note 18. The Group’s equity is analyzed into its components in the consolidated statement of changes in equity. Capital is managed so as to promote the long-term success of the business and to maintain sustainable returns for shareholders.

The Group seeks to manage its capital requirements to maximize value through the mix of debt and equity funding, while ensuring that Group entities continue to operate as going concerns, comply with applicable capital requirements and maintain strong credit ratings.

The Group assesses the adequacy of its capital requirements, cost of capital and gearing (i.e., debt/equity mix) as part of its broader strategic plan. The Group continuously reviews its capital structure to ensure that (i) sufficient funds and financing facilities are available to implement the Group’s property development and business acquisition strategies, (ii) adequate financing facilities for unforeseen contingencies are maintained, and (iii) distributions to shareholders are maintained within the Group’s dividend distribution policy. The Group also protects its equity in assets by contracting insurance.

The Group’s strategy is to maintain key financing metrics (namely, net debt to total equity ratio (gearing) and loan-to-value ratio (“LTV”) in order to ensure that asset level performance is translated into enhanced returns for shareholders while maintaining an appropriate risk reward balance to accommodate changing financial and operating market cycles.

The following table details a number of the Group’s key metrics in relation to managing its capital structure. The ratios are within the ranges previously established by the Group’s strategy.

	06.30.18	06.30.17
Gearing ratio (i)	29.21%	21.13%
Debt ratio (ii)	28.66%	16.94%

(i) Calculated as total current and non-current borrowings divided by total current and non-current borrowings plus equity.

(ii) Calculated as total current and non-current borrowings divided by total properties at fair value (including trading properties, property, plant and equipment, investment properties and units to be received under barter agreements).

5.1 Other non-financial risks

Property risk:

There are several risks affecting the Group’s property investments. The composition of the Group’s property portfolio including asset concentration and lot size may impact liquidity and relative property performance. The Group has a large multi-asset portfolio and monitors its concentration and the average size of its plots of land.

A change in trends and economic conditions causes shifts in customer demands for properties with impact on new lettings, renewal of existing leases and reduced rental growth. Also changes increase risk of tenant insolvencies. The Group conducts several actions to mitigate some of these risks whenever possible. The variety of asset types and geographical spread as well as a diversified tenant base, with monitoring of tenant concentration, helps mitigating these risks.

The development, administration and profitability of shopping malls are impacted by various factors including: the accessibility and the attractiveness of the area where the shopping mall is located, the intrinsic attractiveness of the shopping mall, the flow of people, the level of sales of each shopping mall rental unit, the increasing competition from internet sales, the amount of rent collected from each shopping mall rental unit and the fluctuations in their occupancy levels in the shopping malls. In the event that there is an increase in operational costs, caused by inflation or other factors, it could have a material adverse effect on the Group if its tenants are unable to pay their higher rent obligations due to the increase in expenses. The Argentine Civil and Commercial Code provides that tenants may rescind commercial lease agreements after the initial six months by means of reliable notification. If the resolutory option is used within the first year of the lease, the Tenant shall pay the Lessor, as compensation, the sum equivalent to one-and-a-half month’s rent, and one month’s rent if he makes use of the option after that period. Given that the rule does not provide for advance notice, Lease Agreements include a provision whereby the lessee should give at least sixty days advance notice of its intention to terminate the lease. The exercise of such rescission rights could materially and adversely affect the Group.

Risks associated with development of properties include the following: the potential abandonment of development opportunities; construction costs exceeding original estimates, possibly making a project uneconomical; occupancy rates and rents at newly completed projects may be insufficient to make the project profitable; the Group’s inability to obtain financing on favorable terms for the development of the project; construction and lease-up may not be completed on schedule, resulting in increased debt service expense and construction costs; the Group’s inability to obtain, or the delays in obtaining, all necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations; preconstruction buyers may default on their purchase contracts or units in new buildings may remain unsold upon completion of constructions; prices for residential units may be insufficient to cover development costs. The Group also takes several actions to monitor these risks and respond appropriately whenever it is under its control. The Group has in-house property market research capability and development teams that monitor development risks closely.

The Group generally adopts conservative assumptions on leasing and other variables and monitors the level of committed future capital expenditure on development programs relative to the level of undrawn facilities.

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Segment reporting

12 Months Ended

Jun. 30, 2018

Disclosure of operating segments [abstract]

Segment reporting

6. Segment reporting

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance, without prejudice of the powers and responsibilities of the Board of Directors. The CODM evaluates the business based on the differences in the nature of its products, operations and risks. The amount reported for each segment is the measure reported to the CODM for these purposes and later to the Board of Directors. In turn, the Board of Directors’ performance is assessed by the Shareholders’ Meeting, which is the Company’s governance body.

Operating segments identified are disclosed as reportable segments if they meet any of the following quantitative thresholds:

●

The operating segment’s reported revenue, including both sales to external customers and inter-segment sales or transfers, is 10% or more of the combined revenue, internal and external, of all operating segments. 

●

The absolute amount of its reported profit or loss is 10% or more of the greater, in absolute amount, of:

o

the combined reported profit of all operating segments that do not report a loss; and

o

the combined reported loss of all operating segments that report a loss.

●

Its assets are 10% or more of the combined assets of all operating segments. 

In addition, the operating segments that do not meet any of the quantitative thresholds could be considered as reportable segments if management estimates that this information could be useful for the users of the financial statements. 

If, after determining reportable segments in accordance with the preceding quantitative thresholds, the total external revenue attributable to those segments is less than 75% of the Group’s consolidated external revenue, additional segments are identified as reportable segments, even if they do not meet the thresholds described above, until at least 75% of the Group’s consolidated external revenue is included in reportable segments. Once 75% of the Group’s consolidated external revenue is included in reportable segments, the remaining operating segments are aggregated in “Other segments”. 

Segment information has been prepared and classified according to different types of businesses in which the Group conducts its activities. The Group’s Investment and Development Properties business is comprised of the following segments:

●

 “Shopping Malls” includes the operation and development of shopping malls, through which we generate rental income and fees charged for services related to the lease of retail stores and other spaces. Our Shopping Malls segment includes highly diversified, multi-format assets with a particular focus on retailers that cater to middle- to high-income consumers.

●

 “Offices” includes the lease of offices and other rental properties and services related to these properties.

●

 “Sales and Developments” includes the sales of undeveloped parcels of land and properties, and activities related to the development and maintenance of such properties.

●

 “Others” includes the financing activities developed through our associated company Tarshop S.A., our residual consumer financing transactions and the operations developed by our subsidiary Entertainment Holdings S.A. 

Group’s shopping malls, offices and other rental properties, and trading properties, are located in Argentina. 

The CODM evaluates performance of business segments based on segment profit, defined as profit or loss from operations before financing and taxation. The measurement principles for the segment reporting structure are based on the IFRS principles adopted in the consolidated Financial Statements, except for: 

●The operating income from the joint ventures Nuevo Puerto Santa Fe S.A. and Quality Invest S.A. are reported under the proportional consolidation method. Under this method, the income/loss generated by joint ventures is reported in the statements of comprehensive income line-by-line, rather than in a single item as required by IFRS. Management believes that the proportional consolidation method provides more useful information to understand the business return, because the assets and income/loss generated by consolidated operations are similar to the assets and income/loss booked under the equity method. This is due to the fact that under the proportional consolidation method, revenues and expenses are reported separately, instead of offsetting and reporting them as a single item in the statements of comprehensive income. Therefore, the proportional consolidation method is used by the CODM to assess and understand the return and the results of operations of these businesses as a whole. Operating results of La Rural S.A. joint venture is accounted for under the equity method. Management believes that, in this case, this method provides more adequate information for this type of investment. 

●Operating results does not include the amounts pertaining to building administration expenses and collective promotion funds, and excludes total recovered costs, whether by way of building administration expenses or other concepts included under financial results (for example default interest and other concepts) and not analyzed to assess the operating performance of the segment. The CODM examines the net amount from both concepts (total surplus or deficit between building administration expenses and collective promotion funds and recoverable expenses). 

Revenues generated and goods and services exchanged between segments are calculated on the basis of market prices. Intercompany transactions between segments, if any, are eliminated. 

These costs and income are presented now for reconciliation of all segments and their respective consolidating operating income. 

The Group introduced a change in the way the CODM evaluates performance for "offices and others" and "sales and developments" segments. For those investment properties sold in our offices and others segment, their change in fair value (or realized gain) is now shown as part of the sales and developments segment The changes have affected (1) “offices and others” and “sales and developments” segments in the fiscal year ended June 30, 2017, which are related to the allocation of the realized changes in fair value of investment properties in “sales and developments” segment; and (2) “offices and others” and “financial operations and others” in the period ended March 31, 2018, changing the name of the latter to “Others” and adding the operations developed by our subsidiary Entertainment Holdings S.A.. 

The following is a summary analysis of the Group's business segments, corresponding to the fiscal years ended June 30, 2018, 2017 and 2016. Additionally, a reconciliation between results of operations corresponding to segment information and the results of operations as per the statements of comprehensive income; and total assets by segment and total assets according to the statement of financial position. The information by segments has been prepared and classified according to the businesses in which the Group carries out its activities: 

	06.30.18
	Shopping Malls	Offices	Sales and developments	Others	Total segmet reporting	Adjustment for expenses and collective promotion funds	Adjustment for share in profit/ (loss) of joint ventures	Total as per Statement of Comprehensive Income
Revenue	3,664,651	492,096	105,525	9,326	4,271,598	1,717,000	(39,392)	5,949,206
Operating costs	(329,785)	(48,407)	(18,688)	(19,752)	(416,632)	(1,747,051)	24,236	(2,139,447)
Gross profit (loss)	3,334,866	443,689	86,837	(10,426)	3,854,966	(30,051)	(15,156)	3,809,759
Net gain from fair value adjustment of investment properties	11,340,085	5,042,427	1,000,147	45,580	17,428,239	-	(738,122)	16,690,117
General and administrative expenses	(320,234)	(39,438)	(38,566)	(18,100)	(416,338)	-	1,096	(415,242)
Selling expenses	(238,170)	(47,362)	(10,635)	(1,955)	(298,122)	-	3,257	(294,865)
Other operating results, net	(56,451)	348	33,569	13,684	(8,850)	-	3,945	(4,905)
Profit (Loss) from operations	14,060,096	5,399,664	1,071,352	28,783	20,559,895	(30,051)	(744,980)	19,784,864
Share in profit of associates and joint ventures	-	-	-	20,171	20,171	-	619,354	639,525
Segment profit (loss) before financing and Taxation	14,060,096	5,399,664	1,071,352	48,954	20,580,066	(30,051)	(125,626)	20,424,389
Investment properties	40,467,248	12,625,243	2,394,577	191,667	55,678,735	-	(1,623,924)	54,054,811
Property, plant and equipment	55,952	53,956	-	-	109,908	-	(471)	109,437
Trading properties	-	-	61,568	-	61,568	-	-	61,568
Goodwill	1,323	3,913	-	100,861	106,097	-	(5,236)	100,861
Rights to receive units (barter transactions)	-	-	26,596	-	26,596	-	-	26,596
Inventories	25,492	-	-	-	25,492	-	(610)	24,882
Investments in associates and joint ventures	-	-	-	189,815	189,815	-	1,243,343	1,433,158
Operating assets	40,550,015	12,835,487	2,482,741	329,968	56,198,211	-	(386,898)	55,811,313

	06.30.17
	Shopping Malls	Offices	Sales and developments	Others	Total segmet reporting	Adjustment for expenses and collective promotion funds	Adjustment for share in profit/ (loss) of joint ventures	Total as per Statement of Comprehensive Income
Revenue	3,046,588	401,767	99,136	891	3,548,382	1,488,187	(39,407)	4,997,162
Operating costs	(349,445)	(27,908)	(22,534)	(48)	(399,935)	(1,512,738)	12,887	(1,899,786)
Gross profit (loss)	2,697,143	373,859	76,602	843	3,148,447	(24,551)	(26,520)	3,097,376
Net gain from fair value adjustmentof investment properties	2,068,103	1,064,586	193,187	-	3,325,876	-	(192,463)	3,133,413
General and administrative expenses	(261,475)	(31,464)	(30,483)	(1,539)	(324,961)	-	2,785	(322,176)
Selling expenses	(188,081)	(33,871)	(13,740)	(2,982)	(238,674)	-	2,146	(236,528)
Other operating results, net	(57,712)	(6,731)	(4,062)	16,183	(52,322)	-	1,103	(51,219)
Profit (Loss) from operations	4,257,978	1,366,379	221,504	12,505	5,858,366	(24,551)	(212,949)	5,620,866
Share in profit of associates and joint ventures	-	-	-	13,677	13,677	-	139,026	152,703
Segment profit (loss) before Financing and Taxation	4,257,978	1,366,379	221,504	26,182	5,872,043	(24,551)	(73,923)	5,773,569
Investment properties	28,799,277	6,841,517	1,158,695	-	36,799,489	-	(882,607)	35,916,882
Property, plant and equipment	55,409	65,663	-	-	121,072	-	(536)	120,536
Trading properties	-	-	61,600	-	61,600	-	-	61,600
Goodwill	1,323	3,913	-	26,375	31,611	-	(5,236)	26,375
Rights to receive units (barter transactions)	-	-	27,560	-	27,560	-	-	27,560
Inventories	23,260	-	-	-	23,260	-	(538)	22,722
Investments in associates	-	-	-	197,605	197,605	-	593,815	791,420
Operating assets	28,879,269	6,911,093	1,247,855	223,980	37,262,197	-	(295,102)	36,967,095

	06.30.16
	Shopping Malls	Offices	Sales and developments	Others	Total segmet reporting	Adjustment for expenses and collective promotion funds	Adjustment for share in profit/ (loss) of joint ventures	Total as per Statement of Comprehensive Income
Revenue	2,409,082	284,137	2,679	1,013	2,696,911	1,183,627	(22,038)	3,858,500
Operating costs	(250,306)	(12,254)	(5,720)	(77)	(268,357)	(1,201,305)	9,458	(1,460,204)
Gross profit (loss)	2,158,776	271,883	(3,041)	936	2,428,554	(17,678)	(12,580)	2,398,296
Net gain from fair value adjustmentof investment properties	16,131,702	867,413	425,114	-	17,424,229	-	(331,826)	17,092,403
General and administrative expenses	(178,643)	(23,308)	(20,296)	-	(222,247)	-	667	(221,580)
Selling expenses	(145,278)	(12,824)	(4,264)	(1,835)	(164,201)	-	1,980	(162,221)
Other operating results, net	(61,556)	(1,377)	(7,831)	(18)	(70,782)	-	2,230	(68,552)
Profit (Loss) from operations	17,905,001	1,101,787	389,682	(917)	19,395,553	(17,678)	(339,529)	19,038,346
Share in profit of associates and joint ventures	-	-	-	(11,017)	(11,017)	-	215,316	204,299
Segment profit (loss) before Financing and Taxation	17,905,001	1,101,787	389,682	(11,934)	19,384,536	(17,678)	(124,213)	19,242,645
Investment properties	26,633,273	4,876,164	1,362,670	-	32,872,107	-	(638,011)	32,234,096
Property, plant and equipment	49,053	69,870	-	-	118,923	-	(598)	118,325
Trading properties	-	-	48,029	-	48,029	-	-	48,029
Goodwill	1,323	3,911	-	-	5,234	-	(5,234)	-
Rights to receive units (barter transactions)	-	-	38,281	-	38,281	-	-	38,281
Inventories	18,560	-	-	-	18,560	-	(358)	18,202
Investments in associates	-	-	-	134,527	134,527	-	463,232	597,759
Operating assets	26,702,209	4,949,945	1,448,980	134,527	33,235,661	-	(180,969)	33,054,692

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Information about subsidiaries

12 Months Ended

Jun. 30, 2018

Information About Subsidiaries

Information about subsidiaries

7. Information about subsidiaries

The Group conducts its business through several operating and holding subsidiaries.

The subsidiaries are shown by percentage of participation held by the Group:

			06.30.18		06.30.17
Name of the entity	Place of business / Country of incorporation	Main activity	% of ownership interest held	% of ownership interest held  by non-controlling interests	% of ownership interest held	% of ownership interest held  by non-controlling interests
Fibesa S.A.	Argentina	Mandatary	100.00%	-	100.00%	-
Centro de Entretenimientos La Plata S.A.	Argentina	Real estate	100.00%	-	-	-
Torodur S.A.	Uruguay	Investment	100.00%	-	100.00%	-
Shopping Neuquén S.A.	Argentina	Real estate	99.95%	0.05%	99.92%	0.08%
Arcos del Gourmet S.A.	Argentina	Real estate	90.00%	10.00%	90.00%	10.00%
Panamerican Mall S.A.	Argentina	Real estate	80.00%	20.00%	80.00%	20.00%
Entertainment Holdings S.A.	Argentina	Investment	70.00%	30.00%	70.00%	30.00%
Emprendimiento Recoleta S.A.	Argentina	Real estate	53.68%	46.32%	53.68%	46.32%

Restrictions, commitments and other matters in respect of subsidiaries

According to Law N° 19,550, 5% of the profit in each fiscal year must be separated to constitute a legal reserve until they reach legal capped amounts (20% of the nominal value of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses. The Group has not reached the legal limit of this reserve. Dividends are paid across the Group’s subsidiaries based on their individual accounting statements.

Arcos del Gourmet

Injuction order

In December 2013, the Judicial Branch confirmed an injunction order that suspended the opening of the Shopping Mall on the grounds that it did not have certain government permits in the context of two legal proceedings, where a final decision has been rendered for Arcos.

The plaintiff filed a petition for the continuation of the preliminary injunction by means of an extraordinary appeal of unconstitutionality which was denied by the lower and appellate courts; consequently, it filed an appeal with the Supreme Court of Justice of the Autonomous City of Buenos Aires, which referred the proceedings to the Court of Appeals for re-consideration of certain parameters related to green areas, as established by the lower court.

Nowadays, the Distrito Arcos is open to the public and operating normally.

Concession Status

In November 2008, Arcos del Gourmet S.A. signed a contract with the Agencia de Administración de Bienes del Estado (State Assets Administration Office, or AABE in Spanish) for which the Company had been granted the concession to use the properties located in the jurisdiction of Estación Palermo, ex Línea San Martín - Palermo loading deck (on Juan B. Justo Avenue from Santa Fe Avenue to Paraguay Street) until December 31, 2025 (the “Arcos concession agreement”).

Subsequently, in September 2011, a contract for the readjustment of this concession was entend in to with the Railway Infrastructure Administrator (ADIF in spanish) (to which the rail assets were transferred in the jurisdiction of AABE), puorsuant to the term of the Arcos concession agreement was extended until December 31, 2030. This new agreement provides for an automatic extension of 3 years and 4 months in the event that the Company complies with the agreement and ADIF so finds. Likewise, a new extension is established for an additional 3 years if the Company so declares and ADIF corroborates compliance with the obligations. This agreement established an initial monthly fee of Ps.200 (plus VAT) until December 31, 2025, and Ps.250 (plus VAT) as of January 1, 2026, these values being adjustable every 2 years until the end of the term of the concession.

The Argentine government issued Executive Order 1723/2012, whereby several plots of land located in prior rail yards of Palermo, Liniers and Caballito were designated for development and urbanization projects.

In this respect and as part of several measures related to other licensed persons and/or concessionaires, the Company was notified, of Resolution 170/2014 revoking of the Arcos of the Concession agreement.

It should further be pointed out that such measure:

(i) has not been adopted due to noncompliance of the company.

(ii) there is no the interruption of the commercial development or operation of the shopping mall, which continues to operate under normal conditions;

Notwithstanding the foregoing, Arcos del Gourmet S.A. has filed applicad the relevant administrative resources (appeal) and has also filed a judicial action requesting that the revocation of the Arcos Concession agreement be overruled. Likewise, the Company has concurrently brought an action of lease rental payments as a result of which it is making judicial deposits in time and form of the agreed monthly rental payments pursuant to the Concession to Agreement for that the Company interprets has been improperly revoked. To date, the administrative remedy has been waived (by operation of law since judicial proceedings have been commenced), the Argentine goverment answered the complaint in the case where the parties contest the admissibility of the order revoking the concession, and the complaint has already been served which was answered by Trenes Argentinos opposing exceptions, which have already been answered by the Company.

Emprendimiento Recoleta S.A

As a result of a public auction, in February 1991, the City of Buenos Aires granted to Emprendimiento Recoleta S.A (ERSA) a 20-year concession to use a plot of land in Centro Cultural Recoleta, which was set to expire in November 2013. In addition, pursuant to Resolution No. 1125/00 issued by the Secretariat of Economy and Finance of the Government of the City of Buenos Aires (Secretaria de Hacienda y Finanzas del GCBA) an extension was granted for “Edificio Esquina” or “Edificio Ballena” to be used as a Multipurpose Area (“Salones de usos múltiples”); and pursuant to Decree No. 867/10 dated November 25, 2010, a five-year extension was granted so the agreement is set to expire on November 18, 2018.

As of the date of these financial statements, no additional extension of the concession term had been agreed upon, for which reason it shall end on November 18, 2018, and on such date the ninety (90)-day term agreed by contract for the return of the property under concession to the Government of the City of Buenos Aires on the terms and conditions set forth in the agreement shall start running. For such purposes and in order to take all legal precautions available, ERSA has filed early eviction proceedings (also known as “condena de futuro”) against all lessees of the shopping mall.

On April 12, 2018, ERSA was given notice by the First Instance Court hearing Federal Criminal and Correctional Matters No. 1 (Juzgado Nacional en lo Criminal y Correccional Federal N° 1), in the case entitled “Blaksley Enrique and others, violation of Section 303”, of the resolution ordering an intervention of ERSAfor a term of six months, and appointment of observer for collection and reporting purposes, and a general restriction on the disposition of property. In response to such court order, ERSA filed motion to dismiss defend the company’s interests. As of the date hereof, ERSA has not been notified of any resolution on such motion or the appointment of an observer. On July 20, 2018 and subsequently, on August 10, 2018, it received two further notices from the same Court, whereby: 1) ERSA it is ordered to transfer to the Court’s account 7.36 % of all revenues of the company from any sources; and 2) the intervenors were appointed representatives of the 46.316% minority shareholders at all shareholders’ and board meetings. A motion to dismiss was filed against such orders.

It should be noted that the end of ERSA’s concession has no significant impact on the Group’s financial statements.

Panamerican Mall S.A.

Below is the summarized financial information of subsidiaries with material non-controlling interests which are considered significant for the Group, presented before intercompany eliminations.

	Current assets	Non-current assets	Current liabilities	Non-current liabilities	Net assets	% of ownership interest held by non-controlling interests	Book value of non-controlling interest	% of ownership interest held  by controlling interests	Book amount
06.30.18	684,125	8,651,271	399,058	2,874,630	6,061,708	20%	1,211,783	80%	4,847,130
06.30.17	424,643	5,136,295	228,464	1,659,926	3,672,548	20%	734,510	80%	2,938,038

	Revenues	Comprehensive income for the year	Cash from operating activities	Cash from investing activities	Cash from financing activities	Net increase in cash and cash equivalents	Dividends paid to non-controlling interest
06.30.18	649,681	2,571,160	300,458	(712,855)	446,230	33,833	36,400
06.30.17	545,783	423,749	(4,917)	215,148	(153,121)	57,110	42,598

The non-controlling interests of the remaining subsidiaries summarize Ps. 186,089 and Ps. 136,659 as of June 30, 2018 and 2017 respectively. Non of these subsidiaries have non-controlling interest that individually are considered significant for the group.

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Interests in joint ventures

12 Months Ended

Jun. 30, 2018

Interests In Joint Ventures

Interests in joint ventures

8. Interests in joint ventures

Restrictions, commitments and other matters in respect of joint ventures

According to Business Companies Law N° 19,550, 5% of the profit of the year is separated to constitute a legal reserve until they reach legal capped amounts (20% of total capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses. The Group’s joint ventures have not reached the legal limit of this reserve.

There are no contingent liabilities relating to the Group’s interest in joint ventures, and there are no contingent liabilities of the joint ventures themselves, other those mentioned bellow.

Quality Invest S.A.

On March 31, 2011, Quality Invest and Nobleza Piccardo S.A.I.C. y F., or “Nobleza Piccardo,” executed the title deed for the purchase of a plot of land of 159,996 square meters located in the District of San Martin, Province of Buenos Aires, currently intended for industrial purposes and suitable in terms of characteristics and scale for mixed-use developments. The price for the property was USD 33 million, being paid 30% as of that date. For the remaining balance a mortgage was constituted in the first degree of privilege over the property in favor of Nobleza Piccardo. Capital plus interest calculated at a nominal annual rate of 7.5% on balances, was paid in full in advance in March 2013.

On May 16, 2012, the Municipality of San Martin granted a pre-feasibility permit for commercial use, entertainment, events, offices, etc., which would enable performance of a mixed-use development thereon.

Pursuant to an Ordinance 11,706 enacted on December 30, 2014, a rezoning permit was obtained for the plot of land to be used mainly for commercial purposes, which considerably expands the uses and potential buildable square meters through new urban indicators. On January 5, 2016, the Provincial Decree 1,835was published in the Official Gazette of the Province of Buenos Aires granting its approval, and the new urban and rezoning standards thus became effective.

As approved in the Ordinance, on January 20, 2015, Quality Invest entered into a zoning agreement with the Municipality of San Martin which governs various issues related to applicable regulations and provides for a mandatory assignment of square meters in exchange for monetary contributions subject to fulfillment of certain administrative milestones of the rezoning process, the first of which (for Ps.20,000) was paid to the Municipality ten days after the execution of the aforementioned agreement.

Moreover, on June 27, 2016, the plot subdivision plan was filed with the Municipality, in compliance with another significant milestone committed under the zoning agreement.

On June 28, 2017, Quality Invest S.A. signed an agreement with EFESUL S.A. in order to assume as their own the obligations that the latter agreed with the Municipality of General San Martin within the framework of the aforementioned Urban Agreement. These agreement contemplates a donation, which will be paid based on the work progress that the Municipality develops on the property initially transferred by EFESUL S.A.

In addition, during July 2017, Quality Invest S.A. subscribed two addendums to the aforementioned Urban Development Agreement, which contemplate the following: 1) a new subdivision plan of the property will be presented within 120 days of the addendum signing and 2) the payment of the twelveth installment in cash was replaced by the sum of Ps. 71 million payables in 18 equal and consecutive monthly installments.

On March 8, 2018, it was agreed with the renowned Gehl Firm (Denmark) - Urban Quality Consultant - the elaboration of a master plan, generating a modern concept of New Urban District of Mixed Uses.

Added to this, local consultants were also hired as: Guillermo Oliveto (Consultant W) in Market Analysis, Gastón Biggio (GUT) in naming and branding of the District, Colla & Colombo Consultants in Business Analysis and Alejandro Langlois in Vehicular Impact, among others. In this way, the Company have a clear sizing and positioning of the business to which will deal opportunely.

Regarding the project, we are working on the definition of the master plan that includes a mix of uses (Residential, Commercial, etc.) in order to carry out a large-scale urban development contemplating more of 500,000 square meters. The regulations for this master plan are framed in a zoning called the Main Commercial District (Distrito Comercial Principal), which entered into force in 2016 through the publication of the Provincial Decree of the Municipal Ordinance No.11,706.

La Rural S.A.

 In connection with the Fairground, as publicly known, in December 2012 the National Executive Branch issued Executive Order 2552/12 that annulled an executive order dated 1991 which had approved the sale of the Fairground to the Sociedad Rural Argentina (SRA); the effect of this new order was to revoke the sale transaction. Subsequent, on March 21, 2012, the National Executive Branch notified the SRA of said executive order and further ordered that the property be returned to the Argentine government within 30 subsequent days. Then, the SRA issued a press release publicly disclosing the initiation of legal actions and the obtaining of a precautionary measure for which Decree 2552/12 was suspended. Furthermore, as it has become publicly known, on August 21, 2013, the Supreme Court of Justice rejected the appeal filed by the Argentine government against the interim measure timely requested by the SRA.

Neither has IRSA Propiedades Comerciales been served notice formally nor is it a party involved in the legal actions brought by the SRA.

In connection with the Fairground, as publicly known, in December 2012 the National Executive Branch issued Executive Order 2552/12 that annulled an executive order dated 1991 which had approved the sale of the Fairground to the Sociedad Rural Argentina (SRA); the effect of this new order was to revoke the sale transaction. Subsequent, on March 21, 2012, the National Executive Branch notified the SRA of said executive order and further ordered that the property be returned to the Argentine government within 30 subsequent days. Then, the SRA issued a press release publicly disclosing the initiation of legal actions and the obtaining of a precautionary measure for which Decree 2552/12 was suspended. Furthermore, as it has become publicly known, on August 21, 2013, the Supreme Court of Justice rejected the appeal filed by the Argentine government against the interim measure timely requested by the SRA.

Neither has IRSA Propiedades Comerciales been served notice formally nor is it a party involved in the legal actions brought by the SRA.

Given the potential dimension of the dispute, as it has been known to the public, we estimate that if Executive Order 2552/12 was found to be unconstitutional, such order shall have no legal effects either in EHSA or in the acquisition by IRSA Propiedades Comerciales of an equity interest in EHSA. However, should the opposite happen, that is, a court order declaring the Executive Order 2699/91, this could have a real impact on acquired assets. In this scenario, the judicial decision may render the purchase of the Plot of Land by SRA null and void, and all acts executed by SRA in relation to the Plot of Land, including the right of use currently held by the entity where EHSA has an indirect equity interest, through vehicle entities, would also become null and void.

On June 1, 2015, a ruling was issued in case 4573/2012 SOCIEDAD RURAL ARGENTINA vs. NATIONAL STATE – EXECUTIVE POWER ON DECLARATORY ACTION, whereby the injunction staying the effects of Executive Order 2552/12 were lifted.

On June 2, 2015 the SRA filed a writ of appeals against the ruling indicated above and on that same date the appeal was admitted with staying effects. While the appeal filed by SRA was filed in the Appellate court, the decision of the judge of first instance who decided to lift the precautionary measure had no effect and was suspended.

On September 17, 2015, the court of appeals revoked the decision and rejected in the motion by of the Argentine government to lift the precautionary measure and the Law N° 26,854 was declared inapplicable to the case of precautionary measures against the Government. As a result, the injunction issued on January 4, 2013 was confirmed. The National Government filed an extraordinary federal appeal and subsequently a complaint, both were dismissed, therefore, the precautionary measure was reaffirmed.

On March 11, 2016 La Rural S.A. was summoned as third party in the case referred to above, and filed an answer to such summons on April 6, 2016.

On April 21, 2016 the National Government presented itself, requested the annotation of litis as a precautionary measure, opposed the exception of incompetence, raised the inadmissibility of the declaratory action of certainty, in subsidy, proceeded to answer the complaint. It also requested the suspension of the sentence until the criminal case is resolved and opposed, as a counterclaim, a motion declare the anulment of Decree 2699/91, as well as all those acts enacted in consequence of said decree.

By order of April 29, 2016, the National Government was presented, opposed to the exception raised, the claim in subsidy was contested and the action of injuriousness filed, and it ordered the transfer of the different Government proposals to the SRA.

On the same occasion, the precautionary measure for the annotation of the requested litigation was admitted under the responsibility of the National Government regarding the individualized properties in the process.

On November 22, 2016, SRA answered the transfer of the injuriousness action filed by the National Government, which was considered as answered on December 1.

On December 21, 2016, the National Government, for its part, answered the exception of expiration opportunely opposed. Nevertheless, it was indicated that confirmation with La Rural S.A. was pending.

On June 19, 2017, the transfer of the exception of incompetence raised by the National Government was substantiated, which was answered by La Rural SA in June 2017. On the same occasion, SRA accused expiry of that previous exception in the terms of article 310 CPCCN, which was resolved by order of July 14, 2017.

On that occasion it was resolved to sustain the expiration filed by Sociedad Rural Argentina regarding the incident of exception of incompetence filed by the National Government. Therefore, the process was settled in the Civil and Commercial Federal jurisdiction.

On August 28, 2017, the National Government notified the transfer of the request of certain sections of the SRA's submission that answered the counterclaim and was transferred to the third party of the prescription exception opposed by the SRA at the time of answer the counterclaim. Both substations were answered by SRA and La Rural SA on September 4, 2017.

On October 5, 2017, the Federal Oral Criminal Court No. 2 requested the referral of the proceedings in the context of the case: "Menem, Carlos Saúl and other s / inf. Art. 261, first paragraph of the CP ". For presentations of December 2017 and March 2018, SRA requested the Oral Court to return the proceedings in order to continue with the process. As of the date of these financial statements, the proceedings have not been returned and are in the possession of the Oral Criminal Court No. 2.

There are no contingent liabilities relating to the Group’s interest in joint ventures, and there are no contingent liabilities of the joint ventures themselves, other those previously the mentioned above.

Set out below is the summarized financial information for the joint ventures considered to be material to the Group:

	Current assets	Non-current assets	Current liabilities	Non-current liabilities	Net assets	% of ownership interest	Book value of non-controlling interest	Goddwill and others	Book amount
06.30.18
Quality Invest S.A	4,888	2,820,477	64,283	648,184	2,112,898	50%	1,056,449	3,911	1,061,610
Tarshop	4,979,104	1,446,607	5,182,946	772,227	470,538	20%	94,108	-	94,108
06.30.17
Quality Invest S.A	17,804	1,486,497	82,300	466,009	955,992	50%	477,996	3,911	481,907
Tarshop	4,752,937	1,132,158	4,222,263	1,259,347	403,485	20%	80,697	-	80,694

	Revenues	Comprehensive income for the year	Cash from operating activities	Cash from investing activities	Cash from financing activities	Net increase (decrease) in cash and cash equivalents
06.30.18
Quality Invest S.A	12,538	1,078,880	(79,768)	(495)	80,270	7
Tarshop S.A.	3,854,868	67,073	(431,855)	(7,620)	395,160	(44,315)
06.30.17
Quality Invest S.A	26,435	237,304	(10,586)	(253)	10,833	(6)
Tarshop S.A.	1,622,801	26,033	(772,527)	(11,081)	808,132	24,524

Below is shown a detail of the investment and values of shares held by de Group in associates and joint ventures as of June 30, 2018 and 2017, as well as the Group's participation in the comprehensive results of these companies as of June 30, 2018, 2017 and 2016:

Name of the entity	% of ownership interest			Value of Company’s interest in equity		Company’s interest in comprehensive income
	06.30.18	06.30.17	06.30.16	06.30.18	06.30.17	06.30.18	06.30.17	06.30.16
Joint ventures
Quality Invest S.A.	50.00%	50.00%	50.00%	1,061,850	481,907	540,930	118,652	154,072
Nuevo Puerto Santa Fe S.A. (1)(5)	50.00%	50.00%	50.00%	181,493	111,908	78,424	20,374	61,244
La Rural S.A.(2)	50.00%	50.00%	-	92,923	113,365	13,728	15,314	-
Entertainment Holdings S.A.	-	-	50.00%	-	-	-	-	20,419
Entretenimiento Universal S.A	-	-	2.50%	-	-	-	-	11
Associates
Tarshop S.A.(2)	20.00%	20.00%	20.00%	94,108	80,694	13,415	5,207	(31,447)
Otra asociadas (3)				2,784	3,546	(6,972)	(6,844)	-
Total interests in associates and joint ventures (4)				1,433,158	791,420	639,525	152,703	204,299

Name of the entity	Place of business / Country of incorporation	Main activity	Common shares	Last financial statements issued
				Share capital (nominal value)	Income for the year	Equity
Joint ventures
Quality Invest S.A.	Argentina	Real estate	120,827,022	241,654	1,078,880	2,112,897
Nuevo Puerto Santa Fe S.A. (1)(5)	Argentina	Real estate	138,750	27,750	156,848	360,340
La Rural S.A.  (2)	Argentina	Event organization and others	714,498	1,430	77,598	156,856
Associates
Tarshop S.A. (2)	Argentina	Consumer financing	48,759,288	598,796	67,073	470,538

(1)   Nominal value per share Ps. 100.

(2)   Correspond to profit for the fiscal year ended at June 30, 2018 and 2017.

(3)   Represents other individually non-significant associates.

(4)   Includes Ps 364 and Ps. 206. as of June 30, 2018 and 2017, respectively, in relation to the equity interest in Avenida Compras disclosed under. (See Note 19)

(5)   Include the necessary adjustments to arrive at balances under international financial reporting standards.

Changes in the Group’s investments in associates and joint ventures for the years ended June 30, 2018 and 2017 were as follows:

	06.30.18	06.30.17
Beginning of the year	791,420	597,759
Profit sharing, net	639,525	152,703
Irrevocable contributions (Note 29)	43,574	3,000
Capital contributions (Note 29)	1,649	-
Dividends distributed (Note 29)	(43,010)	(20,284)
Incorporation as result of business combination, net (i)	-	47,852
Acquisitions of companies	-	10,390
End of the year (4)	1,433,158	791,420

(i) In July 2016, the Group through IRSA Propiedades Comerciales acquired 20% shareholding in Entertainment Holdings S.A (EHSA). It also acquired 1.25% interest in Entretenimiento Universal S.A. (“ENUSA”). The amount paid for the acquisition was Ps. 53 million. As a result, the Group now holds 70% of the voting stock of EHSA (Note 4).

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Investment properties

12 Months Ended

Jun. 30, 2018

Disclosure of detailed information about investment property [abstract]

Investment properties

9. Investment properties

The Group's investment properties are measured at fair value. The following table shows the Group’s hierarchy of fair values per investment property category and the changes in the investment property’s balances for the fiscal years ended June 30, 2018 and 2017:

	Shopping malls	Office and other rental properties	Undeveloped parcels of land	Properties under development	Others (*)	Total
Fair value hierarchy	3	2	2	2	3
Fair value as of 06.30.16	26,425,132	4,446,294	1,355,500	7,170	-	32,234,096
Additions	100,002	466,332	5,539	107,194	-	679,067
Capitalization of financial costs (Note 27)	-	-	-	2,310	-	2,310
Capitalized lease costs	1,397	3,349	-	20,052	-	24,798
Depreciation of capitalized lease costs  (i)	(636)	(1,366)	-	-	-	(2,002)
Transfers	-	(80,160)	(330,366)	410,526	-	-
Transfer to trading properties (Note 11)	(13,617)	-	-	-	-	(13,617)
Disposals	-	(141,183)	-	-	-	(141,183)
Net gain from fair value adjustment on investment properties (ii)	2,048,501	905,487	128,022	51,403	-	3,133,413
Fair value as of 06.30.17	28,560,779	5,598,753	1,158,695	598,655	-	35,916,882
Additions	106,901	504	256,505	982,760	-	1,346,670
Incorporation as result of business combination (Note 15)	-	-	-	-	106,795	106,795
Capitalization of financial costs (Note 27)	-	-	-	14,385	-	14,385
Capitalized lease costs	12,930	3,940	-	1,290	-	18,160
Depreciation of capitalized lease costs  (i)	(1,961)	(2,479)	-	-	-	(4,440)
Transfers	343	-	-	(343)	-	-
Transfer to property plant and equipment (Note10)	-	(3,026)	-	-	-	(3,026)
Disposals	(1,250)	(29,482)	-	-	-	(30,732)
Net gain from fair value adjustment on investment properties(iiI)	11,200,624	4,060,764	979,377	403,772	45,580	16,690,117
Fair value as of 06.30.18	39,878,366	9,628,974	2,394,577	2,000,519	152,375	54,054,811

(i)    As of June 30, 2018 and 2017 depreciation charges were included in “Costs” in the amount of Ps 4,440 and Ps. 2,002, respectively, in the statement of comprehensive income (Note 25)

(ii)   For fiscal year 2017 the increase in the value of our investment properties as measured in Pesos was primarily due to: (i) a 16 basis points decrease in the discount rate applied in calculating the discounted cash flows appraisal method to appraise our shopping mall properties that resulted in increases in value, mainly as a result of macroeconomic improvements that led to a decrease in the cost of capital; and (ii) the Peso depreciated by approximately 11% against the U.S. dollar. The value of our offices properties is booked in U.S. dollars per accepted practice in the Argentine real estate. The appraised values of our shopping mall properties increased 8.1% during fiscal 2017 largely due to a decreased in our capital cost. The appraised value of our office buildings increased 40.3% in fiscal 2017 largely as a result of the impact of the depreciation of the Peso and higher rental rates during the period.

(iii)   For fiscal year 2018 the net impact in the peso values of the Company’s properties was primarily a consequence of the change in the macroeconomic conditions: (i) depreciation of Argentine peso of 73% against the U.S. dollar; (ii) an increase in the projected inflation rate, with the resulting increase in the cash flow of revenues of shopping malls; (iii) an increase of 44 basis points in the discount rate; and (iv) an additional effect due to in the income tax rate used in the methodology applied to value discounted cash flows; such amendment was set forth by the fiscal reform recently approved (See note 20). The values of our shopping mall properties increased 40.4% during the fiscal year ended June 30, 2018, largely due to the change in the applicable income tax rate and the impact of the depreciation of the peso, partially offset by an increase in the discount rate. The value of our office buildings increased 85.7% during the fiscal year ended June 30, 2018 largely as a result of the impact of the depreciation of the peso and higher rental rates for our properties.

(*)        Corresponds to the DirectTV Arena Stadium.

Valuation processes

The Group's investment properties were valued at each reporting date by independent professionally qualified appraisers who hold a recognized relevant professional qualification and have experience in the locations and segments of the investment properties appraised. For all investment properties, their current use equates to the highest and best use.

The Group's finance department includes a team that reviews the appraisals performed by the independent appraisers for financial reporting purposes (the "review team"). At each financial year end, the review team: i) verifies all major and important assumptions relevant to the appraisal in the valuation report from the independent appraiser; ii) assesses property valuation movements compared to the valuation report; and iii) holds discussions with the independent appraiser.

Changes in Level 2 and 3 fair values, if any, are analyzed at each reporting date during the appraisal discussions between the review team and the independent appraiser. The Board of Directors ultimately approves the fair value calculations for recording into the Financial Statements.

Valuation techniques used for the estimation of fair value of the investment property:

For shopping malls, the valuation was determined using the discounted cash flow (“DCF”) projections based on significant unobservable assumptions. Within these assumptions the following are the key ones:

· Future rental cash inflows based on the location, type and quality of the properties and supported by the terms of any existing lease, and considering the estimations of the Gross National Income (GNI) and the estimated inflation rated given by external advisors.

· It was considered that all Shopping malls will grow with the same elasticity in relation to the evolution of the GNI and projected Inflation.

· Cash flows from future investments, expansions, or improvements in shopping malls were not considered.

· Estimated vacancy rates taking into account current and future market conditions once the current leases expired.

· Given the inflationary context, the volatility of certain macroeconomic variables, it is not possible have a relevant interest long-term rate in pesos to discount the projected cash flows for the shopping centers. As result, we proceeded to dollarize the projected cash flows through the future ARS / USD exchange rate curve provided by an external consultant and discounted them with a long-term rate in dollar, the capital cost rate weighted average ("WACC").

· The projected cash flows were discounted using the Company's weighted average cost of capital (WACC) as the discount rate for each valuation date.

· Terminal value: it was determined on the basis of the growth rate ar the discount rate.

· Cash flows for the concessions were projected until the due date of the concession determinate in the current agreements.

· The projected cash flows in dollars were discounted with the WACC rate for each valuation date.

For offices and, other properties for lease and undeveloped land, the valuation was determined using market comparables. These values are adjusted for differences in key attributes such as location, size of the property and quality of the interior design. The most significant contribution to this comparable market approach is the price per square meter.

It can sometimes be difficult to reliably determine the fair value of the property under development. In order to assess whether the fair value of the property under development can be determined reliably, management considers the following factors, among others:

•       The provisions of the construction contract.

•       The stage of completion.

•       Whether the project/property is standard (typical for the market) or non-standard.

•       The level of reliability of cash inflows after completion.

•       The development risk specific to the property.

•       Past experience with similar constructions.

•       Status of construction permits.

There were no changes to the valuation techniques during the fiscal years 2018 and 2017.

The following table presents information regarding the fair value measurements of investment properties using significant unobservable inputs (Level 3):

June 30, 2018

Property type	Valuation technique	Discount rate	Growth rate
Shopping Malls	Discounted cash flow	9.79%	3%

For the next 5 years the Group considered an average exchange rate Ps./USD with increasing trend that begins at Ps. 19.51 (corresponding to the year ended June 30, 2018) and ends at Ps. 49.05. Over the long term, the model assumes a nominal depreciation rate of the peso of 5.6%, estimated based on the projected inflation rates of Argentina and US. The inflation considered shows a decreasing trend, beginning at 25% (corresponding to the year ended June 30, 2018) and leveling off at around 8% in 10 years. The premises were determinated of the closing date of the fiscal year.

June 30, 2017

Property type	Valuation technique	Discount rate	Growth rate
Shopping Malls	Discounted cash flow	9.35%	3%

For the next 5 years the Group considered an average exchange rate Ps./USD with increasing trend that begins at Ps. 15.45 (corresponding to the year ended June 30, 2017) and ends at Ps. 27.66. Over the long term, the model assumes a nominal depreciation rate of the peso of 5.5%, estimated based on the projected inflation rates of Argentina and US. The inflation considered shows a decreasing trend, beginning at 31% (corresponding to the year ended June 30, 2017) and leveling off at around 8% in 10 years.

Sensitivity of unobservable assumptions - Shopping malls (in millions of pesos):

	Discount rate + 1%	Discount rate  -1%	Growth rate + 1 %	Growth rate - 1 %	Inflation + 10% (1)	Inflation - 10% (2)	Devaluation rate + 10% (3)	Devaluation rate - 10% (4)
2018	(5,046)	6,796	3,104	(2,307)	4,035	(3,643)	(3,575)	4,369
2017	(3,948)	5,445	2,464	(1,794)	2,684	(2,425)	(2,565)	3,135

(1) assume a 10% higher inflation rate for each period vis-a-vis projected rates.

(2) assume a 10% lower inflation rate for each period vis-a-vis projected rates.

(3) assume a 10% higher exchange rate for each period vis-a-vis projected rates.

(4) assume a 10% lower exchange rate for each period vis-a-vis projected rates.

The following amounts have been recognized in the statements of comprehensive income:

	06.30.18	06.30.17	06.30.16
Revenues from rental and services (Note 24)	4,128,454	3,409,292	2,672,701
Expenses and collective promotion fund (Note 24)	1,717,000	1,488,187	1,183,627
Rental and services costs (Note 25)	(2,120,715)	(1,874,392)	(1,454,409)
Net unrealized gain from fair value adjustment on investment properties	16,669,347	3,068,248	16,919,859
Net realized gain from fair value adjustment on investment properties	20,770	65,165	172,544

Certain of the Group’s investment properties have been mortgaged or otherwise restricted to secure some of the Group’s borrowings and other liabilities. The net book value of those properties as of June 30, 2018 and 2017 is as follows:

	06.30.18	06.30.17
Córdoba Shopping (i)	1,112,547	759,103
Total	1,112,547	759,103

(i) A portion of the Córdoba Shopping mall property is encumbered with an antichresis right as collateral for an advance rent received from NAI International II Inc. amounting to Ps. 9.6 million and Ps. 12.2 million, as of June 30, 2018 and 2017, respectively, (included in “Trade and other payables” in the statement of financial position).

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Property, plant and equipment

12 Months Ended

Jun. 30, 2018

Property, plant and equipment [abstract]

Property, plant and equipment

10. Property, plant and equipment

Changes in the Group’s property, plant and equipment for the years ended June 30, 2018 and 2017 are as follows:

	Other buildings and facilities	Furniture and fixtures	Machinery and equipment	Vehicles	Othes	Total
As of June 30, 2016
Costs	88,118	22,583	124,586	3,154	56	238,497
Accumulated depreciation	(18,390)	(11,018)	(89,423)	(1,341)	-	(120,172)
Net book amount as of 06.30.16	69,728	11,565	35,163	1,813	56	118,325
Additions	509	3,958	19,345	-	54	23,866
Depreciation charges (i)	(4,772)	(2,321)	(13,989)	(573)	-	(21,655)
As of June 30, 2017	65,465	13,202	40,519	1,240	110	120,536
Costs	88,627	26,541	143,931	3,154	110	262,363
Accumulated depreciation	(23,162)	(13,339)	(103,412)	(1,914)	-	(141,827)
Net book amount as of 06.30.17	65,465	13,202	40,519	1,240	110	120,536
Additions	3,235	991	20,563	-	-	24,789
Transfers from investment properties (Note 9)	3,026	-	-	-	-	3,026
Disposals	(12,379)	-	-	-	-	(12,379)
Incorporation as result of business combination (Note 15)	-	-	67	126	-	193
Depreciation charges (i)	(5,580)	(2,253)	(18,323)	(572)	-	(26,728)
As of June 30, 2018	53,767	11,940	42,826	794	110	109,437
Costs	82,509	27,532	164,561	3,280	110	277,992
Accumulated depreciation	(28,742)	(15,592)	(121,735)	(2,486)	-	(168,555)
Net book amount as of 06.30.18	53,767	11,940	42,826	794	110	109,437

(i) As of June 30, 2018 and 2017, depreciation charges were charged to “Costs” in the amount of Ps. 23,218 and Ps. 18,126, respectively, to “General and administrative expenses” in the amount of Ps. 3,324 and Ps. 3,253, respectively and to “Selling expenses” in the amount of Ps. 186 and Ps. 276, respectively, in the Statements of Comprehensive Income (Note 25).

As of June 30, 2018 and 2017, there are no properties under development included in this items, there were no capitalization of financial costs anual no items of property plant and equipment have assets been mortgaged to guarantee group loans.

During the fiscal years ended June 30, 2017 and 2016, borrowing costs were not capitalized.

The Group leases computer equipment under non-cancellable finance lease agreements. The lease terms have an average of 4 and 5 years, and ownership of the assets lie within the Group (Note 23). Book amount of this equipment, included in class "Machinery and equipment”, is as follows:

	06.30.18	06.30.17
Costs – capitalized finance leases	12,658	9,217
Accumulated depreciation	(4,427)	(7,333)
Net book amount	8,231	1,884

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Trading properties

12 Months Ended

Jun. 30, 2018

Trading Properties

Trading properties

11. Trading properties

Changes in trading properties for the fiscal years ended June 30, 2018 and 2017 are as follows:

	Completed properties	Undeveloped sites	Total
As of June 30, 2016	387	47,642	48,029
Transfers from investment properties (Note 9)	-	13,617	13,617
Transfers from intangible assets (Note 12)	12,857	-	12,857
Disposals (i)	(12,903)	-	(12,903)
As of June 30, 2017	341	61,259	61,6
Transfers from intangible assets (Note 12)	8,837	-	8,837
Disposals (i)	(8,869)	-	(8,869)
As of June 30, 2018	309	61,259	61,568

	Net book amount
Description	06.30.18	06.30.17	Date of acquisition
Undeveloped sites:
Air space Coto	6,024	6,024	Sep-97
Córdoba plot of land	15,544	15,544	May-15
Córdoba plot of land (Shopping)	23,935	23,935	Dec-06
Residencial project Neuquén	15,756	15,756	May-06
Total undeveloped sites	61,259	61,259
Completed properties:
Condominios II	309	341	Nov-13
Total completed properties	309	341
Total trading properties	61,568	61,600
Non-current	61,362	61,600
Current	206	-
Total	61,568	61,600

(i) As of June 30, 2018 and 2017 the sales properties costs were charged to “Costs” in the Statements of Comprehensive Income. (Note 25)

During the fiscal years ended June 30, 2018 and 2017 no borrowing costs were capitalized.

None of the Group’s trading properties have been mortgaged or otherwise restricted to secure Group’s borrowings and other payables.

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Intangible assets

12 Months Ended

Jun. 30, 2018

Intangible Assets

Intangible assets

12. Intangible assets

Changes in the Group’s intangible assets for the fiscal years ended June 30, 2018 and 2017 are as follows:

	Goodwill	Software	Rights of use (ii)	Right to receive units (Barters) (iii)	Others	Total
As of June 30, 2016
Costs	-	16,829	20,873	38,281	11,861	87,844
Accumulated depreciation	-	(15,098)	(1,414)	-	(4,193)	(20,705)
Net book amount as of 06.30.16	-	1,731	19,459	38,281	7,668	67,139
Additions	-	33,650	-	2,136	-	35,786
Incorporation as result of business combination (Note 15)	26,375	-	-	-	-	26,375
Transfers to trading properties (Note 11)	-	-	-	(12,857)	-	(12,857)
Amortization charge (i)	-	(2,271)	(419)	-	(2,193)	(4,883)
As of June 30, 2017	26,375	33,110	19,040	27,560	5,475	111,560
Costs	26,375	50,479	20,873	27,560	11,861	137,148
Accumulated depreciation	-	(17,369)	(1,833)	-	(6,386)	(25,588)
Net book amount as of 06.30.17	26,375	33,110	19,040	27,560	5,475	111,560
Additions	-	41,915	-	7,873	-	49,788
Incorporation as result of business combination (Note 15)	74,486	-	-	-	-	74,486
Transfers to trading properties (Note 11)	-	-	-	(8,837)	-	(8,837)
Amortization charge (i)	-	(10,422)	(1,333)	-	(2,191)	(13,946)
As of June 30, 2018	100,861	64,603	17,707	26,596	3,284	213,051
Costs	100,861	92,394	20,873	26,596	11,861	252,585
Accumulated depreciation	-	(27,791)	(3,166)	-	(8,577)	(39,534)
Net book amount as of 06.30.18	100,861	64,603	17,707	26,596	3,284	213,051

(i) As of June 30, 2018 and 2017, depreciation charges were charged to “Costs” in the amount of Ps. 5,643 and Ps. 2,094, respectively, to “General and administrative expenses” in the amount of Ps. 8,174 and Ps. 2,700, respectively and to “Selling expenses” in the amount of Ps. 129 and Ps. 89, respectively, in the Statements of Comprehensive Income (Note 25). There are no impairment charges for any of the reported years.

(ii) Corresponds to Distrito Arcos.

(iii) Corresponds to in-kind receivables representing the right to receive residential apartments in the future under barter transactions (Note 32).

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Financial instruments by category

12 Months Ended

Jun. 30, 2018

Financial Instruments By Category

Financial instruments by category

  13. Financial instruments by category

The note shows the financial assets and financial liabilities by category and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy. 

Financial assets and financial liabilities as of June 30, 2018 were as follows: 

	Financial assets at amortized cost (i)	Financial assets at fair value through profit or loss			Subtotal financial assets	Non-financial assets	Total
June 30, 2018		Level 1	Level 2	Level 3
Assets as per statement of financial position
Trade and other receivables (excluding allowance for doubtful accounts) (Note 14)	1,424,384	-	-	-	1,424,384	1,498,699	2,923,083
Investments in financial assets:
- Investment in equity public companies	-	201,699	-	-	201,699	-	201,699
- Non-convertible notes issued by related parties (Notes 29 and 31)	-	248,544	-	-	248,544	-	248,544
- Mutual funds	-	1,163,536	-	-	1,163,536	-	1,163,536
- ETF funds	-	121,971	-	-	121,971	-	121,971
- Government bonds	-	2,848,848	-	-	2,848,848	-	2,848,848
- Non-Convertible Notes TGLT	-	-	-	580,462	580,462	-	580,462
- Financial trusts	9,542	-	-	-	9,542	-	9,542
Derivative financial instruments
- Futures contracts	-	-	47,360	-	47,360	-	47,360
Cash and cash equivalents:
- Cash at banks and on hand	1,199,068	-	-	-	1,199,068	-	1,199,068
- Short- term investments	-	2,444,063	-	-	2,444,063	-	2,444,063
Total	2,632,994	7,028,661	47,360	580,462	10,289,477	1,498,699	11,788,176

	Financial liabilities at amortized cost (i)	Financial liabilities at fair value through profit or loss	Subtotal financial liabilities	Non-financial liabilities	Total
		Level 2
Liabilities as per statement of financial position
Trade and other payables (Note 17)	853,305	-	853,305	1,501,155	2,354,460
Derivative financial instruments
- United States treasury bonds	-	263	263	-	263
- Swaps of interest rate (ii)	-	46,448	46,448	-	46,448
Borrowings (excluding finance leases liabilities) (Note 18)	15,653,804	-	15,653,804	-	15,653,804
Total	16,507,109	46,711	16,553,820	1,501,155	18,054,975

Financial assets and financial liabilities as of June 30, 2017 were as follows: 

	Financial assets at amortized cost (i)	Financial assets at fair value through profit or loss	Subtotal financial assets	Non-financial assets	Total
		Level 1
June 31, 2017
Assets as per statement of financial position
Trade and other receivables (excluding allowance for doubtful accounts) (Note 14)	1,096,254	-	1,096,254	1,266,624	2,362,878
Investments in financial assets:
- Investment in equity public companies	-	157,689	157,689	-	157,689
- Non-convertible notes issued by related parties (Notes 29 and 31)	-	267,365	267,365	-	267,365
- Mutual funds	-	196,016	196,016	-	196,016
- EFT funds	-	70,148	70,148	-	70,148
- Government bonds	-	555,748	555,748	-	555,748
- Restringed assets (*) (Note 31)	49,525	-	49,525	-	49,525
Cash and cash equivalents:
- Cash at banks and on hand	119,705	-	119,705	-	119,705
- Short- term investments	-	1,687,839	1,687,839	-	1,687,839
Total	1,265,484	2,934,805	4,200,289	1,266,624	5,466,913

(*) Represents cash related to the Employee Capitalization Plan. 

	Financial liabilities at amortized cost (i)	Financial liabilities at fair value through profit or loss	Subtotal financial liabilities	Non-financial liabilities	Total
		Level 2
Liabilities as per statement of financial position
Trade and other payables (Note 17)	492,944	-	492,944	1,018,636	1,511,580
Derivative financial instruments
- Futures contracts	-	4,950	4,950	-	4,950
- Borrowings (excluding finance leases liabilities) (Note 18)	6,164,838	-	6,164,838	-	6,164,838
Total	6,657,782	4,950	6,662,732	1,018,636	7,681,368

(i)  The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value.

(ii) The maturity date is February 16, 2023 and it is associated with the loan obtained through its subsidiary, Panameriacan Mall S.A, with the purpose of paying for the work that is being carried out at the Polo Dot (Note 18).

Financial liabilities carried at amortized cost also include liabilities under finance leases where the Group is the lessee and which therefore have to be measured in accordance with IAS 17 “Leases”. Finance leases are excluded from the scope of IFRS 7 “Financial Instruments: Disclosures”. Therefore, finance leases have been shown separately.

The following are details of the book value of financial instruments recognized, which were offset in the statements of financial position: 

	06.30.18			06.30.17
	Gross amounts recognized	Gross amounts offset	Net amount presented	Gross amounts recognized	Gross amounts offset	Net amount presented
Financial assets
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)	1,507,724	(83,340)	1,424,384	1,182,876	(86,622)	1,096,254
Financial liabilities
Trade and other payables	(936,645)	83,340	(853,305)	(579,566)	86,622	(492,944)

Results of derivative financial instruments are included in “Financial results, net” in the statements of comprehensive income (Note 27) and can be assigned to the following categories: 

	Financial assets / (liabilities) at amortized cost	Financial assets / (liabilities) at fair value through profit or loss	Total
June 30, 2018
Interest income	234,947	5,031	240,005
Dividend income	34,172	-	34,172
Interest expense	(928,218)	-	(928,218)
Foreign exchange losses, net	(5,993,197)	-	(5,993,197)
Other finance costs	(117,445)	-	(117,445)
Fair value gains of financial assets through profit or loss	-	2,041,061	2,041,061
Gain from derivative financial instruments	-	227,378	227,378
Net (loss) income	(6,769,741)	2,273,470	(4,496,244)

	Financial assets / (liabilities) at amortized cost	Financial assets / (liabilities) at fair value through profit or loss	Total
June 30, 2017
Interest income	177,892	6,404	184,296
Dividend income	9,705	-	9,705
Interest expense	(639,768)	-	(639,768)
Foreign exchange losses, net	(550,408)	-	(550,408)
Other finance costs	(77,033)	-	(77,033)
Fair value gains of financial assets through profit or loss	-	203,087	203,087
Gain from derivative financial instruments	-	81,105	81,105
Loss from repurchase of non-convertible notes	-	(168)	(168)
Net (loss) income	(1,079,612)	290,428	(789,184)

	Financial assets / (liabilities) at amortized cost	Financial assets / (liabilities) at fair value through profit or loss	Total
June 30, 2016
Interest income	94,541	7,628	102,169
Interest expense	(612,486)	-	(612,486)
Foreign exchange losses, net	(1,815,553)	-	(1,815,553)
Other finance costs	(100,051)	-	(100,051)
Fair value gains of financial assets through profit or loss	-	466,328	466,328
Gain from derivative financial instruments	-	1,248,374	1,248,374
Net (loss) income	(2,433,549)	1,722,330	(711,219)

Determination of fair values

IFRS 9 defines the fair value of a financial instrument as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. All financial instruments recognized at fair value are allocated to one of the valuation hierarchy levels of IFRS 7. This valuation hierarchy provides for three levels. 

In the case of Level 1, valuation is based on quoted prices in active markets for identical financial assets or liabilities that the Group can refer to at the date of the statement of financial position. A market is deemed active if transactions take place with sufficient frequency and in sufficient quantity for price information to be available on an ongoing basis. Since a quoted price in an active market is the most reliable indicator of fair value, this should always be used if available.

The financial instruments the Group has allocated to this level mainly comprise equity investments, mutual funds, bonds and non-convertible notes for which quoted prices in active markets are available. In the case of equity shares, the Group allocates them to this level when either a stock market price is available or prices are provided by a price quotation on the basis of actual market transactions.

In the case of Level 2, fair value is determined by using valuation methods based on inputs directly or indirectly observable in the market. The financial instruments the Group has allocated to this level comprise foreign-currency forward contracts. 

In the case of Level 3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as no observable market data are available. The inputs used reflect the Group’s assumptions regarding the factors which any market player would consider in their pricing. The Group uses the best available information for this, including internal company data. The Group uses the best available information, including internal data. The Group has determined that the value of purchase option of Arcos del Gourmet S.A. it is a level 3 financial instrument, wich fair value is zero as of June 30, 2018 and 2017. 

When no quoted prices in an active market are available, fair values are based on recognized valuation methods. The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table: 

Description	Pricing model	Parameters	Fair value hierarchy	Range
Foreign-currency contracts	Present value method - Theoretical price	Money market curve; Interest curve	Level 2	-
Foreign exchange curve
Arcos del Gourmet S.A. purchase option	Discounted cash flow	Projected revenues and discount rate	Level 3	Projected income: USD 0,5MM – USD 1MM Discount rate 8.7% - 9.5%
Non-Convertible Notes - TGLT	Black & Scholes - Black & Scholes	Price and volatility of the subjacent	Level 3	Price: Ps. 13 - Ps. 16 Volatility of the subjacent: 40% - 60% Market interest rate: 6% - 7%
Market Interest rate
Swaps of interest rate	Discounted cash flow	Interest rate futures	Level 2	-

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Trade and other receivables

12 Months Ended

Jun. 30, 2018

Trade and other receivables [abstract]

Trade and other receivables

14. Trade and other receivables

The following table shows the amounts of Trade and other receivables as of June 30, 2018 and 2017:

	06.30.18	06.30.17
Post-dated checks	492,745	422,984
Lease and services receivables	474,311	338,595
Averaging of scheduled rent escalation	301,203	271,747
Debtors under legal proceedings	159,821	100,808
Consumer financing receivables	16,441	15,786
Property sales receivables	20,238	5,510
Less: allowance for doubtful accounts	(201,333)	(131,583)
Total trade receivables	1,263,426	1,023,847
Advance payments	271,800	285,158
Prepayments	150,666	113,190
Other receivables from partners of joint ventures (*)	88,133	89,131
VAT receivables	82,399	45,821
Loans	44,373	20,324
Other tax receivables	19,225	8,656
Expenses to be recovered	8,077	5,226
Others	7,451	6,108
Less: allowance for doubtful accounts	(166)	(165)
Total other receivables	671,958	573,449
Related parties (Note 29)	786,200	633,834
Total current trade and other receivables	2,721,584	2,231,130
Non-current	955,509	777,818
Current	1,766,075	1,453,312
Total	2,721,584	2,231,130

(*)       Includes Ps. 83,942 and Ps. 66,711 at June 30 of 2018 and 2017 respectively, of agreement for assumption of debt with the State Assets Administration Office, or AABE in Spanish. (See Note 18)

As of June 30, 2018 and 2017, all non-current receivables are due within 7 years, from the end of the fiscal year.

The fair values of trade and other receivables approximate their respective carrying amounts because, due to their short-term nature, the impact of discounting is not considered significant. Fair values are based on discounted cash flows.

Trade receivables are generally presented in the statement of financial position net of allowances for doubtful accounts. Impairment policies and procedures by type of receivables are discussed in detail in Note 2.15.

Movements on the Group’s allowance for doubtful accounts and other receivables are as follows:

	06.30.18	06.30.17
Beginning of the year	131,748	93,532
Additions (Note 25)	86,645	49,360
Unused amounts reversed (Note 25)	(12,742)	(8,627)
Used during the year	(4,152)	(2,517)
End of the year	201,499	131,748

The allowance for doubtful accounts’ additions and unused amounts reversed have been included in “Selling expenses” in the statements of comprehensive income (Note 25). Amounts charged to the allowance account are generally written off, when no recovery is expected.

The Group’s trade receivables comprise: shopping mall leased related and services, leases office and related services, consumer financing; and sale of properties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables (Note 5).

The Group also has receivables from related parties. Neither of which are due nor impaired.

Due to the distinct characteristics of each type of receivable, an aging analysis of past due unimpaired and impaired receivables are shown by type and class as of June 30, 2018 and 2017 (includes not past due receivables to reconcile with the amounts in the statements of financial position):

Type of receivables	Up to 3 months	3 to 6 months	Over 6 months	To mature	Allowed	Total
Shopping mall lease and services receivables	144,863	15,347	4,097	1,077,825	184,387	1,426,519
Office leases and services receivables	355	-	701	-	505	1,561
Consumer financing receivables	-	-	-	-	16,441	16,441
Properties sales receivables	1,273	-	16,674	2,291	-	20,238
Total as of June 30, 2018	146,491	15,347	21,472	1,080,116	201,333	1,464,759
Shopping mall leases and services receivables	61,085	3,605	9,364	941,762	115,792	1,131,608
Office leases and services receivables	1,838	376	305	2	5	2,526
Consumer financing receivables	-	-	-	-	15,786	15,786
Property sales receivable	1,982	34	368	3,126	-	5,510
Total as of June 30, 2017	64,905	4,015	10,037	944,890	131,583	1,155,430

Leases and services receivables from investment properties:

Trade receivables related to leases and services from the shopping malls and offices represent 97.5% and 98.1% of the Group’s total trade receivables as of June 30, 2018 and 2017, respectively. The Group has a large customer base and is not dependent on any single customer. Leases and services receivables that are not due and for which no allowance has been recorded relate to a wide and varied number of customers for whom there is no external credit rating available. Most of these customers have been actively renting a minimum of six months. New customers with less than six months are constantly monitored. At the end of the year, the Group has not experienced credit issues with these new customers.

As of June 30, 2018 and 2017, the Group provided for profit net with respect to leases and services receivables for an amount of Ps. 73,248 and Ps. 40,327, respectively.

Consumer financing receivables:

Trade receivables related to the residual activities of the Group represent only 1.1% and 1.4% of the Group’s total trade receivables as of June 30, 2018 and 2017, respectively.

As of June 30, 2018 and 2017, the Group provided for recorded net gains (losses) on impairment of consumer financing receivables in an amount of Ps. 655 and Ps. 406, respectively.

The estimation of the credit risk is complex and requires the use of rating and scoring models which are essential to measure default risk. In measuring the consumption credit risks of credit purchases made through credit cards and cash advances, the Company considers two components: (i) the probability of default by client or counterparty, and (ii) the likeable recovery rate of obligations in arrears. The models are reviewed regularly to check their effectiveness with respect to actual performance and, where necessary, to enhance them.

Receivables from the sale of properties:

Trade receivables related to the sale of properties represent 1.4% and 0.5% of the Group’s total trade receivables as of June 30, 2018 and 2017, respectively. Payments on these receivables are generally received when due and are generally secured by mortgages on the properties, thus credit risk on outstanding amounts is considered low.

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Cash flow and cash equivalent information

12 Months Ended

Jun. 30, 2018

Cash Flow And Cash Equivalent Information

Cash flow and cash equivalent information

15. Cash flow and cash equivalent information

Following is a detailed description of cash flows generated by the Group’s operations for the years ended June 30, 2018, 2017 and 2016.

	Note	06.30.18	06.30.17	06.30.16
Net income for the year		15,656,023	3,377,514	12,252,532
Adjustments:
Income tax expense	20	286,506	1,609,181	6,278,894
Amortization and depreciation	25	45,114	28,540	22,944
Net gain from fair value adjustment on investment properties	9	(16,690,117)	(3,133,413)	(17,092,403)
(Gain) / Loss from disposal of trading properties		(94,328)	(85,889)	241
Written off unused investment properties / property plant and equipment		-	-	23,650
Goodwill disposals		-	-	4,297
Averaging of schedule rent escalation	24	(29,456)	(90,197)	(42,832)
Directors’ fees	29	67,126	44,770	27,700
ILP Long term incentive program	22	6,404	16,545	16,359
Financial results, net		5,379,151	1,117,164	699,211
Provisions and allowances	25 y 26	98,907	54,764	15,397
Share of profit of associates and joint ventures	8	(639,525)	(152,703)	(204,299)
Interest held before the business combination		-	(7,618)	-
Foreign unrealized exchange gain on cash and fair value result of cash equivalents		(272,362)	(5,116)	(1,062)
Right to receive units due to default due to non-compliance	12	(7,873)	-	-
Changes in operating assets and liabilities
Increase in inventories		(2,160)	(4,520)	(2,855)
Decrease in trading properties		100,238	98,792	1,159
Increase in trade and other receivables		(229,761)	(156,265)	(606,342)
Increase in trade and other payables		485,697	396,988	187,298
Decrease in payroll and social security liabilities		34,583	39,713	12,689
Uses in provisions	19	(10,879)	(8,322)	(3,350)
Net cash generated from operating activities before income tax paid		4,183,288	3,139,928	1,589,228

The following table shows a detail of non-cash transactions occurred in the years ended June 30, 2018, 2017 and 2016:

	06.30.18	06.30.17	06.30.16
Non-cash transactions
Decrease in intangible assets trought an increase in trading properties	8,837	12,857	-
Increase in trading properties trought a decrease in investment properties	-	13,617	23,935
Increase in investment properties trought an increase in trade and other payables	132,898	-	-
Increase in investment properties trought an increase in borrowings	14,385	2,310	-
Increase in property plant and equipment a traves in un increase in borrowings	9,015	-	1,852
Increase in property plant and equipment trought a decrease in investment properties	3,026	-	15,224
Increase in investment properties troughtof a decrease in property plant and equipment	-	-	-
Increase in trade and other receivables trought a decrease in trading properties	2,959	-	-
Increase in trade and other receivables trought an increase in trade and other payables	16,659	-	-
Increase in trade and other receivables trought a decrease in investment in associates and joint ventures (Dividends)	7,165	-	-
Decrease in trade and other receivables trought an increase in investment in associates and joint ventures	3,811	2,671	-
Increase in investment in associates and joint ventures trought a decrease in provisions	158	-	-
Decrease in borrowings and trade and other payables trought a decrease in associates and joint ventures	3,965	20,284	-
Decrease in borrowings trought a decrease in investment in financial assets	-	-	372,203
Decrease in trade and other receivables trought a decrease in borrowings	-	30,123	3,591
Decrease in trade and other receivables trought a decrease in trade and other payables (Dividends)	-	64,109	253,663
Decrease in non-controling equity trought an increase in trade and other payables	36,400	-	64,209
Decrease in equity trought a decrease in trade and other receivables (Dividends)	-	656,965	-
Adquisición in non-controling interst	-	865	-
Increase in trade and other receivables trought an increase in borrowings	1,250	-	-
Increase in trade and other receivables trought an increase in borrowings	70	-	-

Balances incorporated as result of business combination

	06.30.18	06.30.17
Investments in joint ventures	-	(106,892)
Trade and other receivables	(36,346)	-
Income tax and minimum presumed income tax credits	(106)	(97,167)
Investment properties (Note 9)	(106,795)	-
Property, plant and equipment (Note 10)	(193)	-
Borrowings	-	54,516
Salaries and social security costs	2,518	-
Deferred income tax (Note 20)	12,070	6,314
Income tax and minimum presumed income tax liabilities	1,332	1,060
Trade and other payables	110,161	13,375
Provisions  (Note 19)	452	2,361
Total net non-cash assets acquired	(16,907)	(126,433)
Cash and cash equivalent acquired	-	(6,902)
Fair value of interest held before combination	-	66,658
Goodwill (Note 12)	(74,486)	(26,375)
Non-controlling interest	6,763	40,004
Total net assets acquired	(84,630)	(53,048)
Financed amount	38,285	-
Cash acquired	-	6,902
Acquisition of subsidiaries, net of cash acquired	(46,345)	(46,146)

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Shareholders' equity

12 Months Ended

Jun. 30, 2018

Shareholders Equity

Shareholders' equity

16.        Shareholder's equity

Share capital and premium 

The share capital of IRSA Propiedades Comerciales was originally represented by common shares with a nominal value of Ps. 0.1 per share and one vote each. On December 18, 2012, the Superintendence of Corporations registered an amendment to the Company’s by-laws whereby it increased the nominal value of its shares from Ps. 0.1 to Ps. 1 each. This amendment, was registered under number 20,264 of Stock Companies Book 62 T°. The CNV admitted the shares indicated above for listing on the Stock Exchange. 

There have been no changes to capital accounts as of June 30, 2018, 2017 and 2016. 

As of June 30, 2018, the capital stock consisted of 126,014,050 common shares with a par value of Ps. 1.00 per share, entitled to one vote each and was as follows: 

		Approved by
Status	Par Value	Body	Date	Date of record with the Public Registry of Commerce
Subscribed, Issued and Paid up	1	Extraordinary Shareholders’ Meeting	10.29.87	12.29.87
Subscribed, Issued and Paid up	1	Extraordinary Shareholders’ Meeting	10.26.88	12.29.88
Subscribed, Issued and Paid up	38	Extraordinary Shareholders’ Meeting	10.25.89	02.05.90
Subscribed, Issued and Paid up	9,460	Ordinary and Extraordinary Shareholders’ meeting	08.31.95	03.15.96
Subscribed, Issued and Paid up	16,000	Ordinary and Extraordinary Shareholders’ meeting	10.29.96	05.15.98
Subscribed, Issued and Paid up	38,000	Ordinary and Extraordinary Shareholders’ meeting	03.10.98	10.21.99
Subscribed, Issued and Paid up	6,500	Ordinary and Extraordinary Shareholders’ meeting	08.06.99	05.07.02
Subscribed, Issued and Paid up	8,206	(*) Board of Directors meeting	06.28.04	05.04.05
Subscribed, Issued and Paid up	47,755	(**) Board of Directors meeting	11.16.10	03.02.11
Subscribed, Issued and Paid up	28	(***) Board of Directors meeting	09.22.11	01.04.12
Subscribed, Issued and Paid up	25	(****) Board of Directors meeting	03.13.13	01.16.15
	126,014

(*)  Capital subscribed in connection with the conversion of convertible notes made until August 2006. Such conversions have been registered.

(**)  Capital subscribed in connection with the conversion of convertible notes made on October 7, 2010.

(***)  Capital subscribed in connection with the conversion of convertible notes made on September 21, 2011.

(****)  Capital subscribed in connection with the conversion of convertible notes made on March 13, 2013. 

Inflation adjustment of share capital

Under Argentine GAAP, the Group’s financial statements were previously prepared on the basis of general price-level accounting which reflected changes in the purchase price of the Argentine Peso in the historical financial statements through February 28, 2003. The inflation adjustment related to share capital was appropriated to an inflation adjustment reserve that formed part of shareholders' equity. The balance of this reserve could be applied only towards the issuance of common stock to shareholders of the Company. Resolution 592/11 of the CNV requires that at the transition date to IFRS certain equity accounts, such as the inflation adjustment reserve, are not adjusted and are considered an integral part of share capital.

Legal reserve

According to Law N° 19,550, 5% of the profit of the year is destined to constitute legal reserves until they reach legal capped amount (20% of share capital). This legal reserve is not available for dividend distribution and can only be released to absorb losses. IRSA Propiedades Comerciales has reached the legal limit of these reserves.

Reserve for future dividends

The Company and subsidiaries may separate portions of their profits of the year to constitute voluntary reserves according to company law and practice. These special reserves may be for general purposes or for specific uses.

Resolution reserve CNV 609/12- unassigned 

The CNV, through General Resolutions N° 562/09 and 576/10, has provided for the application of Technical Resolutions N° 26 and 29 of the FACPCE, which adopt IFRS, as issued by the IASB, for company’s subject to the public offering regime ruled by Law N° 17,811, due to the listing of their shares or corporate notes, and for entities that have applied for authorization to be listed under the mentioned regime.

The Group adopted IFRS, as issued by the IASB, in the fiscal year beginning July 1, 2012, being its transition date July 1, 2011. 

As mentioned in Note 2.1.b) to these Financial Statements, in the third quarter of fiscal 2017, the Company’s Board of Directors decided to change the accounting policy applicable to investment properties replacing the acquisition cost method with fair value accounting, as permitted by IAS 40, and retroactively modified the comparative figures until the date of transition to IFRS (July 1, 2011). 

Pursuant to CNV General Ruling N° 609/12, the Company set up a special reserve reflecting the positive difference between the balance of retained earnings disclosed in the first closing of the last Financial Statements prepared in accordance with previously effective accounting standards and the exchange result recognized in the equity on the transition date as a result of the change in accounting policy in investment properties indicated in Note 2.1.b). The reserve for application of IFRS recorded in a timely manner amounted to Ps. 15,802 and the reserve for policy change amounted to Ps. 2,684,390. 

This reserve may not be used to make distributions in kind or in cash, and may only be reversed to be capitalized to absorb potential negative balances in Retained Earnings. Changes in fair value that have occurred after the transition period are part of the unallocated results. 

As for unallocated results, the effect of the aforementioned policy change amounted to Ps. 15,478,896. 

Special reserve 

The Ordinary and Extraordinary General Shareholders' Meeting on October 31, 2017 constituted a special reserve for Ps. 2,627,076

Dividends

Dividends distributed corresponding to the results of the years ended as of June 30, 2017, 2016 and 2015 were: 

● Ps. 680,000 (Ps 5.40 per share), approved by the Ordinary and Extraordinary General Shareholders' Meeting on October 31, 2017.

● Ps. 770,000 (Ps 6.11 per share), approved Ps460,000 by the Ordinary and Extraordinary General Shareholders' Meeting on October 31, 2016 and Ps. 310,000, in advance by by the Ordinary Shareholders' Meeting on April 5, 2017.

●

 Ps. 283,580 (Ps 2.25 per share), approved by the Ordinary and Extraordinary General Shareholders' Meeting on October 31, 2015.

As of June 30, 2018, 2017 and 2016 there were no prescribed dividends corresponding to dividends pending of payment from previous years. 

The canceled dividends during the years ended as of June 30, 2018, 2017 and 2016 were Ps. 680,000, Ps. 770,000 and Ps. 283,580.

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Trade and other payables

12 Months Ended

Jun. 30, 2018

Trade and other payables [abstract]

Trade and other payables

17. Trade and other payables

The following table shows the amounts of trade and other payables as of June 30, 2018 and 2017:

	06.30.18	06.30.17
Admission rights	589,141	468,323
Rent and service payments received in advance	505,883	380,352
Accrued invoices	340,480	162,980
Trade payables	168,900	133,459
Payments received in advance	77,667	22,115
Tenant deposits	46,690	29,187
Total trade payables	1,728,761	1,196,416
VAT payables	201,279	55,194
Others (*)	102,119	62,911
Withholdings payable	50,793	56,857
Tax payment plans	47,981	16,503
Dividends available to minority shareholders	36,525	125
Other tax payables	21,980	12,367
Other income to be accrued	6,431	6,925
Total other payables	467,108	210,882
Related parties (Note 29)	158,591	104,282
Total trade and other payables	2,354,460	1,511,580
Non-current	483,908	406,598
Current	1,870,552	1,104,982
Total	2,354,460	1,511,580

(*) As of June 30, 2017 includes the Capitalization plan - Ps. 49,525.

The fair value of payables approximates their respective carrying amounts because, due to their short-term nature.

The fair value of currents trade and other payables approximate their respective book values due to theris short- term nature. The fair values of non-current trade and other payables approximate their book values. The impact of the discount is not significant.

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Borrowings

12 Months Ended

Jun. 30, 2018

Borrowings [abstract]

Borrowings

18. Borrowings

The following table shows the Company's borrowings as of June 30, 2018 and 2017:

	06.30.18	06.30.17
Non-Convertible notes	14,516,230	5,991,004
Bank loans	1,014,282	77,445
AABE Debts	83,942	66,711
Loans with non-controling interests	28,504	-
Finance leases	14,403	3,149
Bank overdrafts	6,692	26,107
Related parties (Note 29)	4,154	3,571
Total borrowings	15,668,207	6,167,987
Non-current	15,362,726	5,918,119
Current	305,481	249,868
Total	15,668,207	6,167,987

On September 5, 2017, the Class III and IV Non-convertible notes were auctioned, for a nominal value of USD 140 million with a maturity date of 36 months from the issue date, integrated and payable in dollars, which will accrue a fixed annual interest rate of 5.0%, with interest payable quarterly. The capital will be amortized in a single quota that mature on September 14, 2020. The settlement was on September 12, 2017. The class III has been declared void.

On February 16, 2018 the Group, through its subsidiary Panameriacan Mall S.A. signed a loan for USD 35 million in order to found the work that is being done in Polo Dot. The expiration date operates on February 16, 2023.

As of June 30, 2018 and 2017, the Group did not hold collateralized liabilities (seller financing and long-term borrowings, excluding finance leases).

Borrowings also include liabilities under finance leases where the Group is the lessee and which therefore are measured in accordance with IAS 17 “Leases”. Information regarding liabilities under finance leases is disclosed in Note 23.

The maturity of the Group's borrowings (excluding obligations under finance leases) and the Group's classification related to interest rates is as follows:

	06.30.18	06.30.17
Fixed rate:
Less than one year	28,242	76,661
Between 2 and 3 years	4,026,046	-
More than 4 years	10,235,361	5,849,857
	14,289,649	5,926,518
Floating rate:
Less than one year	10,033	29,297
Between 1 and 2 years	225,519	-
Between 2 and 3 years	310,692	-
Between 3 and 4 years	388,163	-
More than 4 years	155,346	66,711
	1,089,753	96,008
Accrued interest:
Less than one year	260,632	142,312
Between 1 and 2 years	13,770	-
	274,402	142,312
	15,653,804	6,164,838

The fair value of current borrowings at fixed-rates and current and non-current borrowings at floating-rates approaches its carrying amount, as the effect of discounting is not significant. The fair value of debt instruments that are not quoted on a market are valued at their technical value, that is, nominal value plus accrued interest.

The following table shows a detail of the borrowings evolution as of June 30, 2018, 2017 and 2016:

	06.30.18	06.30.17	06.30.16
Balances at the beginning of the year	6,167,987	5,893,068	3,794,940
Borrowings obtained	728,506	106,667	1,275,756
Payment of borrowings	(85,495)	(111,103)	(5,046,597)
Interest paid	(724,730)	(542,410)	(278,279)
Accrued interest	876,610	607,400	580,210
Foreign exchange	6,327,426	565,364	2,214,158
Short terms loans, net	(19,766)	(14,065)	(232,203)
Issuance of non-convertible notes	2,365,003	-	5,411,199
Payment of non-convertible notes	-	(407,260)	(1,686,393)
Repurchase of non-convertible notes	-	-	(139,723)
Others	32,666	70,326	-
Balances at the end of the year	15,668,207	6,167,987	5,893,068

The fair value of non-current borrowings at fixed rates (excluding obligations under finance leases) is as follows:

	06.30.18	06.30.17
NCN Class II due 2023	10,760,445	6,877,234
NCN Class IV due 2020	3,997,825	-
Bank loans	1,017,269	2,338
	15,775,539	6,879,572

The following table breakdown the borrowings by fixed and floating rate of the Group by emission currency (excluding the financial leases)

Borrowings by currency and rate	06.30.18	06.30.17
Fixed rate:
Argentine Peso	-	76,661
US Dollar	14,289,649	5,849,857
Subtotal borrowings at fixed rate	14,289,649	5,926,518
Floating rate:
Argentine Peso	80,205	96,008
US Dollar	1,009,548	-
Subtotal borrowings at floating rate	1,089,753	96,008
Accrued interest	274,402	142,312
Total borrowings	15,653,804	6,164,838
Financial leasing	14,403	3,149
Total borrowings in accordance with financial statement	15,668,207	6,167,987

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Provisions

12 Months Ended

Jun. 30, 2018

Provisions [abstract]

Provisions

19. Provisions

The following table shows the movements in the Group's provisions for other liabilities:

	Labor, legal and other claims	Investments in associates  (*)	06.30.18	06.30.17
Balances at the beginning of the year	41,144	206	41,350	33,074
Increases (Note 26)	33,513	-	33,513	25,860
Recovery (Note 26)	(8,509)	-	(8,509)	(11,829)
Increases	-	158	158	206
Used during the year	(10,879)	-	(10,879)	(8,322)
Incorporation as result of business combination (Note 15)	452	-	452	2,361
Balances at the end of the year	55,721	364	56,085	41,350
Non-current			12,258	16,509
Current			43,827	24,841
Total			56,085	41,350

(*) Corresponds to investments in associates with negative equity. (Note 8)

Included in the item are certain amounts in respect of which the Group has established a provision for legal claims, none of which is considered significant.

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Current and deferred income tax

12 Months Ended

Jun. 30, 2018

Current And Deferred Income Tax

Current and deferred income tax

20. Current and deferred income tax

The Group’s income tax has been calculated on the estimated taxable profit for each year at the rates prevailing in the respective tax jurisdictions. The subsidiaries of the Group in the jurisdictions where the Group operates are required to calculate their income taxes on a separate basis; thus, they are not permitted to compensate subsidiaries’ losses against other subsidiarie’s income.

The details of the provision for the Group’s income tax are as follows:

	06.30.18	06.30.17	06.30.16
Current income tax	(137,667)	(510,130)	(223,220)
Deferred income tax	(148,806)	(1,099,051)	(6,055,674)
Minimum presumed income tax	(33)	-	-
Income tax expense	(286,506)	(1,609,181)	(6,278,894)

The statutory tax rates in the countries where the Group operates for all of the years presented are:

Tax jurisdiction	Income tax rate
Argentina	35%
Uruguay	0%

Deferred tax assets and liabilities of the Group as of June 30, 2018, 2017 and 2016 are expected to be recovered as follows:

	06.30.18	06.30.17
Deferred income tax asset to be recovered after more than 12 months	80,696	174,165
Deferred income tax asset to be recovered within 12 months	1,086,937	143,910
Deferred income tax asset	1,167,633	318,075
Deferred income tax liabilities to be recovered after more than 12 months	(12,356,539)	(9,435,983)
Deferred income tax liabilities to be recovered within 12 months	(175,856)	(2,085,978)
Deferred income tax liabilities	(12,532,395)	(11,521,961)
Deferred income tax, net	(11,364,762)	(11,203,886)

Deferred income tax (broken down into assets and liabilities) during the fiscal years ended June 30, 2018 and 2017, without considering offsetting balances within the same tax jurisdiction, is the following:

	06.30.17	(Charged) / Credited to the statement of income	Incorporation as result of business combination (Note 15)	06.30.18
Deferred income tax asset
Tax loss carry-forwards	158	851,966	1,472	853,596
Trade and other payables	270,839	11,119	-	281,958
Other	38,296	(7,191)	-	31,105
Trading properties	8,782	(7,808)	-	974
Subtotal deferred income tax assets	318,075	848,086	1,472	1,167,633
Deferred income tax liabilities
Investment properties	(11,060,948)	(809,615)	(13,542)	(11,884,105)
Property, plant and equipment  and trading properties	(235,750)	(227,200)	-	(462,950)
Investments	(129,454)	33,131	-	(96,323)
Trade and other receivables	(67,439)	(4,287)	-	(71,726)
Other	(28,370)	11,181	-	(17,189)
Trade and other payables	-	(102)	-	(102)
Subtotal deferred income tax liabilities	(11,521,961)	(996,892)	(13,542)	(12,532,395)
Deferred income tax liabilities, net	(11,203,886)	(148,806)	(12,070)	(11,364,762)

	06.30.16	(Charged) / Credited to the statement of income	Incorporation as result of business combination (Note 15)	06.30.17
Deferred income tax asset
Tax loss carry-forwards	19,352	(19,194)	-	158
Trade and other payables	187,024	83,850	(35)	270,839
Others	29,601	7,722	973	38,296
Trading properties	(2,163)	10,945	-	8,782
Subtotal deferred income tax assets	233,814	83,323	938	318,075
Deferred income tax liabilities
Investment properties	(9,948,064)	(1,112,884)	-	(11,060,948)
Property, plant and equipment  and trading properties	(173,976)	(61,774)	-	(235,750)
Investments	(87,985)	(34,217)	(7,252)	(129,454)
Trade and other receivables	(91,530)	24,091	-	(67,439)
Other	(30,780)	2,410	-	(28,370)
Subtotal deferred income tax liabilities	(10,332,335)	(1,182,374)	(7,252)	(11,521,961)
Deferred income tax liabilities, net	(10,098,521)	(1,099,051)	(6,314)	(11,203,886)

Deferred income tax assets are recognized for tax loss carry-forwards to the extent that the realization of the related tax benefits through future taxable profits is probable. Tax loss carry-forwards may have expiration dates or may be permanently available for use by the Group depending on the tax jurisdiction where the tax loss carry forward is generated. Tax loss carry-forwards in Argentina and Uruguay generally expire within 5 years.

In order to fully realize the deferred income tax asset, the Group will need to generate taxable income in the countries where the net operating losses were incurred. Based upon the level of historical taxable income and projections for future over the years in which the deferred income tax assets are deductible, management believes that as the end of the present year it is probable that the Group will realize all of the deferred income tax assets in Argentina.

As of June 30, 2018, the tax loss carry-forwards of the Group and the jurisdictions which generated them are as follows:

Jurisdiction	Tax loss carry-forward	Date of generation	Date of expiration	Rate
Argentina	2,487	2014	2019	25%
Argentina	252	2015	2020	25%
Argentina	182	2016	2021	25%
Argentina	2,816	2017	2022	25%
Argentina	2,819,414	2018	2023	30%
Argentina	41,634	2018	2023	25%
	2,866,785

The Group did not recognize deferred income tax assets of Ps. 4,071 and Ps. 1,308 as of June 30, 2018 and 2017 corresponding to losses of P.s 15,808 and Ps. 3,737, respectively, related to certain subsidiaries. Although management estimates that these subsidiaries will become profitable in the future, as a result of the recent loss history during the last periods and the lack of verifiable and objective evidence, it has been determined that there is sufficient uncertainty as to the generation of sufficient income to be able to offset losses within a reasonable timeframe, therefore, no deferred tax asset is recognized in relation to these losses.

The Group did not recognize deferred income tax liabilities of Ps. 222 million and Ps. 168 million as of June 30, 2018 and 2017, respectively, related to the potential dividend distribution of its investments in foreign subsidiaries, Torodur S.A. In addition, the withholdings and/or similar taxes paid at source may be creditable against the Group’s potential final tax liability.

from applying the prevailing tax rate on the Profit Before Income Tax for the years ended June 30, 2018, 2017 and 2016:

	06.30.18	06.30.17	06.30.16
Profit for the year before income tax at the prevailing tax rate (i)	(5,357,337)	(1,746,909)	(6,346,363)
Tax effects of:
Rate change	4,729,172	-	-
Share of profit of associates and joint ventures (ii)	226,273	55,399	71,505
Non-taxable financial dividends	122,597	63,529	-
Non-taxable / non-deductible items	(7,223)	5,548	2,492
Derivative special tax	(846)	-	-
Difference between provisions and affidavits	1,077	-	-
Minimum presumed income tax	(33)	-	-
(Recovery) / expiration of carry-forwards	-	7,038	(7,038)
Results from revaluation of equity interest held before combination	-	2,666	-
Others	(186)	3,548	510
Income tax loss	(286,506)	(1,609,181)	(6,278,894)

(i) Does not include Uruguayan-source income / (loss) of Ps. 635,853, as of June 30, 2018, (Ps.4,474) as of June 30, 2017 and Ps. 398,960 as of June 30, 2016.

(ii) Does not include Uruguayan-source income / (loss) by pasticipation in associated and joint ventures of Ps. (6,969) and Ps. (5,580) as of June 30, 2018 and 2017.

On December 27, 2017, the Argentine Congress approved the Tax Reform, through Law No. 27,430, which was enacted on December 29, 2017, and has introduced many changes to the income tax treatment applicable to financial income. The key components of the Tax Reform are as follows:

-  Dividends: Tax on dividends distributed by Argentine companies would be as follows: (i) dividends originated from profits obtained before fiscal year of the Group ending June 30, 2018 will not be subject to withholding tax; (ii) dividends derived from profits generated during fiscal years ending June 30, 2019 and 2020 paid to Argentine Individuals and/or foreign residents, will be subject to a 7% withholding tax; and (iii) dividends originated from profits obtained during fiscal year ending June 30, 2021 onward will be subject to withholding tax at a rate of 13%.

-  Income tax: Corporate income tax gradually would be reduced to 30% for fiscal years beginning at January 1, 2018 through December 31, 2019, and to 25% for fiscal periods beginning at after January 1, 2020, inclusive.

-  Presumptions of dividends: Certain facts will be presumed to constitute dividend payments, such as: i) withdrawals from shareholders, ii) shareholders private use of property of the company, iii) transactions with shareholders at values different from market values, iv) personal expenses from shareholders or shareholder remuneration without substance.

Revaluation of assets: The regulation establishes that, at the option of the companies, tax revaluation of assets is permitted for assets located in Argentina and affected to the generation of taxable profits. The special tax on the amount of the revaluation depends on the asset, being (i) 8% for real estate not classified as inventories, (ii) 15% for real estate classified as inventories, (iii) 5% for shares, quotas and equity interests owned by individuals and (iv) 10% for the rest of the assets. As of the date of these Financial Statements, the Group has not exercised the option. The gain generated by the revaluation is exempted according to article N 291 of Law 27,430 and, the additional tax generated by the revaluation is not deductible.

In addition, the Argentine tax reform contemplates other amendments regarding the following matters: social security contributions, tax administrative procedures law, criminal tax law, tax on liquid fuels, and excise taxes, among others. At the date of these Financial Statements, many issues are pending regulation by the government.

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Employee benefits

12 Months Ended

Jun. 30, 2018

Employee Benefits

Employee benefits

21. Employee benefits

The Group maintains a defined contribution plan (the “Plan”) covering key member of management in Argentina. The Plan became effective on January 1, 2006. Participants may make contributions to the Plan of up to 2.5% of their monthly salary (“Base Contributions”) and contributions of up to 15% of their annual bonus (“Extraordinary Contributions”). Under the Plan, the Group matches employee contributions to the plan at a rate of 200% for Base Contributions and 300% for Extraordinary Contributions.

All contributions are invested in funds administered outside of the Group. Participants or their assignees, as the case may be, may have access to the 100% of the Company contributions under the following circumstances:

(i) ordinary retirement in accordance with applicable labor regulations;

(ii) total or permanent incapacity or disability;

(iii) death.

In case of resignation or termination without good cause, the manager will received the Group’s contribution only if the employee has participated in the Plan for at least 5 years.

Contributions made by the Group under the Plan amount to Ps. 16.8, Ps. 11.6 and Ps. 10.3 million for the fiscal years ended June 30, 2018, 2017 and 2016, respectively.

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Equity Incentive Plan

12 Months Ended

Jun. 30, 2018

Equity Incentive Plan

Equity Incentive Plan

22. Equity Incentive Plan

The Group maintains an equity incentive plan, under which certain selected employees, directors and top management of the Group, IRSA and Cresud (the “Participants”). Engagement is voluntary and by invitation of the Board of Directors.

This plan was effectively established on September 30, 2011 and is administered by the Board of Directors of the Group, IRSA and Cresud, as appropriate, or a committee appointed by the Board of Directors of the respective companies.

Initially, the Incentive Plan established that Participants would be entitled to receive shares (“Contributions”) of IRSA Propiedades Comerciales, IRSA and Cresud, based on a percentage of the annual bonus, on condition that they keep holding the acquired shares and remain an employee of the Company for at least 5 years, among other conditions required to qualify for such Contributions. Due to the small number of transactions in the market it was not possible to fulfil the formal aspects of the plan and as established by the Shareholders’ Meeting the Board of IRSA Propiedades Comerciales decided to modify certain conditions, including, delivery of IRSA and Cresud shares (upon transfer of funds by IRSA Propiedades Comerciales) to replace the shares of IRSA Propiedades Comerciales, IRSA and Cresud.

Consequently, shares shall be under the ownership of IRSA and Cresud, and as the conditions established by the Plan are verified, such contributions are transferred to the Participants.

Additionally, IRSA Propiedades Comerciales’s Board of Directors resolved to include a special one-off bonus composed of unrestricted shares issued by IRSA for the fiscal year ended on June 30, 2014, to employees with 2 or more years of service.

As of June 30, 2018 and 2017 IRSA Propiedades Comerciales has a credit of PS. 12.4 and Ps. 10.5 million with IRSA Inversiones y Representaciones S.A. and a liability of Ps. 2.5 and Ps. 1.1 millon with Cresud S.A.C.I.F. y A.. The subsidiaries of IRSA Propiedades Comerciales have a liability of Ps. 14.6 and Ps. 15.4 million with IRSA Inversiones y Representaciones S.A..

As of June 30, 2018, 2017 and 2016, the amount accrued for the plans amounts to Ps. 82.1 million, Ps. 77.2 million and Ps. 64.2 million respectively, based on the market value of the shares to be granted pertaining to the Group’s contributions, proportionately to the period already elapsed for the vesting of shares in the Incentive Plan and adjusted for the probability that any beneficiary should leave the Group before the term and/or the conditions required to qualify for the benefits of the plan are met at fiscal year-end.

For the fiscal years ended June 30, 2018, 2017 and 2016, the Group has incurred in a charge related to the Incentive Plan and the extraordinary gratification of Ps. 6.4 million, Ps. 16.5 million and Ps. 16.4 million, respectively.

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Leases

12 Months Ended

Jun. 30, 2018

Leases

Leases

23. Leases

The Group as lessee

Operating leases:

The Group leases two properties that are used as a shopping mall. These agreements provide for fixed monthly rent payments, adjusted pursuant to a rent escalation clause. Rent expense for the years ended June 30, 2018, 2017 and 2016 amounted to Ps. 6,951, Ps. 5,700 and Ps. 5,222, respectively and are included in "Costs" in the Statements of income.

Furthermore, the Group also leases office space under an operating lease with companies related to the Chairman and Director of the Group (Note 29).

The future minimum payments that the Group must pay off under non-cancellable operating leases are as follows:

	06.30.18	06.30.17
No latter than a year	13,763	7,102
Later than 1 year and not later than 5 years	18,105	12,446
More than 5 years	40,000	42,400
	71,868	61,948

Finance leases:

The Group leases certain computer equipment under various finance leases for an average term of four years. The book value of these assets under financial leases is included in Note 10.

At the commencement of the lease term, the Group recognizes a lease liability equal to the carrying amount of the leased asset. In subsequent periods, the liability decreases by the amount of lease payments made to the lessors using the effective interest method. The interest component of the lease payments is recognized in the statements of comprehensive income. The book value of these liabilities under finance leases is included in Note 18.

Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.

The future minimum payments that the Group must pay off under financial leases are as follows:

	06.30.18	06.30.17
Not later than 1 year	6,945	1,690
Later than 1 year and not later than 5 years	8,301	1,636
Subtotal value of finance lease liabilities	15,246	3,326
Future - financial charges on finance leases	(843)	(177)
Present value of finance lease liabilities	14,403	3,149

The fair value of finance lease liabilities is as follows:

	06.30.18	06.30.17
Not later than 1 year	6,574	1,598
Later than 1 year and not later than 5 years	7,829	1,551
Present value of finance lease liabilities	14,403	3,149

Under the terms of these agreements, no contingent rents are payable. The inherent interest rate is fixed at the contract date for all of the lease term. The average interest rate on financial lease payables as of June 30, 2018 and 2017 and 2016 was 11.62%, 20.63% and 14.40%, respectively.

The Group as lessor

Operating leases:

· Leases of shopping malls, office and other buildings

The Group enters into cancellable operating leases relating to shopping malls. The agreements have an average term raging from three to five years. Some leases related to anchor stores have terms of ten years, which are usually extendable. Tenants normally pay a rent which consists of the higher of (i) the base rent; and (ii) the percentage rent (which generally ranges between 2% and 12% of the tenants’ gross sales). Furthermore, pursuant to one rent escalation clause in most lease arrangements, the tenants’ base rent generally increases between 18% and 24% each year during the agreement term. Regarding the supplementary rental, because this item is not known until the end of the period, it falls within the definition of contingency rental under IAS 17 "Leases". Accordingly, rental income is recognized once the contingent rent is known.

The book value of assets for such leases are described in Note 9.

For the fiscal years ended June 30, 2018, 2017 and 2016, the base and contingent rental income of the Group’s shopping malls amounted to Ps. 2,825,140, Ps. 2,270,643 and Ps. 1,851,472, respectively, and are included under “Income from sales, rents and services” in the consolidated statement of comprehensive income.

Additionally, IRSA Propiedades Comerciales, owns a shopping mall property known as "Patio Olmos" in the Province of Córdoba, Argentina. The Group leases this property to a third party shopping mall operator under an operating lease agreement expiring in 2032. The agreement provides for fixed monthly payments, adjusted pursuant to a rent escalation clause. Rental income for the years ended June 30, 2018, 2017 and 2016 amounted to Ps. 2,919, Ps. 2,250 and Ps. 4,196, respectively, and is included in the line item “Income from sales, rents and services” in the consolidated statements of comprehensive income.

The Group also enters into cancellable operating leases agreements relating to offices and other buildings. These agreements have an average term raging from three to five years. The tenants are charged a base rent on a monthly basis.

Office and other buildings leases amount to Ps. 480,365, Ps. 382,087 and Ps. 280,175 for the fiscal years ended June 30, 2018, 2017 and 2016, respectively, and are included within “income from sales, rents and services” in the statements of comprehensive income.

The book value of assets for such leases are described in Note 9.

The future minimum proceeds under non-cancellable operating leases from Group’s shopping malls, offices and other buildings are as follows:

	06.30.18	06.30.17
2018	-	1,421,954
2019	1,904,572	1,004,397
2020	1,305,965	439,775
2021	636,762	89,098
2022	172,217	10,030
Later than 2022	25,679	209
	4,045,195	2,965,463

Finance leases:

The Group does not act as a lessor in connection with finance leases.

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Revenues

12 Months Ended

Jun. 30, 2018

Revenues

Revenues

24. Revenues

	06.30.18	06.30.17	06.30.16
Base rent	2,589,799	2,029,990	1,548,213
Contingent rent	718,625	624,990	587,630
Admission rights	343,420	300,933	207,190
Parking fees	236,323	192,749	153,213
Commissions	123,284	107,580	84,815
Averaging of scheduled rent escalation	29,456	90,197	42,832
Property management fees	65,833	52,303	41,213
Others	21,714	10,550	7,595
Total revenues from rentals and services	4,128,454	3,409,292	2,672,701
Sale of trading properties	103,197	98,792	1,159
Total revenues from sale of properties	103,197	98,792	1,159
Other revenues	555	891	1,013
Other revenues	555	891	1,013
Total revenues from sales, rentals and services	4,232,206	3,508,975	2,674,873
Expenses and collective promotion fund	1,717,000	1,488,187	1,183,627
Total revenues from expenses and collective promotion funds	1,717,000	1,488,187	1,183,627
Total revenues	5,949,206	4,997,162	3,858,500

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Expenses by nature

12 Months Ended

Jun. 30, 2018

Expenses By Nature

Expenses by nature

25. Expenses by nature

The Group presented the statement of comprehensive income classified according to their function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”.

The following tables provide additional disclosure regarding expenses by nature and their relationship to the function within the Group.

	Costs (ii)	General and administrative expenses	Selling expenses	06.30.18
Salaries, social security costs and other personnel administrative expenses (i)	773,968	114,249	23,914	912,131
Maintenance, security, cleaning, repairs and other	739,853	19,512	804	760,169
Taxes, rates and contributions	238,669	11,795	157,836	408,300
Advertising and other selling expenses	263,869	-	28,330	292,199
Directors' fees	-	164,339	-	164,339
Fees and payments for services	10,911	60,678	8,117	79,706
Allowance for doubtful accounts (additions and unused amounts reversed) (Note 14)	-	-	73,903	73,903
Leases and expenses	47,615	6,037	400	54,052
Amortization and depreciation (Notes 9,10 y 12)	33,301	11,498	315	45,114
Traveling, transportation and stationery	18,387	13,987	1,215	33,589
Bank expenses	2,910	12,585	-	15,495
Cost of sale of properties (Note 11)	8,869	-	-	8,869
Other expenses	1,095	562	31	1,688
Total 06.30.18	2,139,447	415,242	294,865	2,849,554

	Costs (ii)	General and administrative expenses	Selling expenses	06.30.17
Salaries, social security costs and other personnel administrative expenses (i)	653,834	95,201	27,500	776,535
Maintenance, security, cleaning, repairs and other	645,022	7,216	795	653,033
Taxes, rates and contributions	173,718	4,294	131,254	309,266
Advertising and other selling expenses	280,598	-	29,312	309,910
Directors' fees	-	131,481	-	131,481
Fees and payments for services	12,811	58,130	2,517	73,458
Allowance for doubtful accounts (additions and unused amounts reversed) (*) (Note 14)	-	-	41,310	41,310
Leases and expenses	77,619	4,516	525	82,660
Amortization and depreciation (Notes 9,10 y 12)	22,222	5,953	365	28,540
Traveling, transportation and stationery	16,803	8,127	893	25,823
Bank expenses	-	7,059	-	7,059
Cost of sale of properties (Note 11)	12,903	-	-	12,903
Other expenses	4,256	199	146	4,601
Commercial compensation	-	-	1,911	1,911
Total 06.30.17	1,899,786	322,176	236,528	2,458,490

	Costs (ii)	General and administrative expenses	Selling expenses	06.30.16
Salaries, social security costs and other personnel administrative expenses (i)	515,022	53,448	20,911	589,381
Maintenance, security, cleaning, repairs and other	444,824	4,428	503	449,755
Taxes, rates and contributions	127,361	1,957	101,833	231,151
Advertising and other selling expenses	284,935	-	21,706	306,641
Directors' fees	-	113,673	-	113,673
Fees and payments for services	9,008	28,562	3,481	41,051
Allowance for doubtful accounts (additions and unused amounts reversed) (*)	-	-	12,005	12,005
Leases and expenses	46,873	3,077	375	50,325
Amortization and depreciation	14,802	7,911	231	22,944
Traveling, transportation and stationery	14,043	2,597	805	17,445
Bank expenses	-	5,896	-	5,896
Cost of sale of properties	1,400	-	-	1,400
Other expenses	1,936	31	-	1,967
Commercial compensation	-	-	371	371
Total 06.30.16	1,460,204	221,580	162,221	1,844,005

(*) At June 30, 2017 y 2016 includes debt relief for Ps 577 and Ps. 10, respectively.

(i) For the fiscal year ended June 30, 2018 includes Ps. 842,559 of Salaries, Bonuses and Social Security; Ps. 6,404 of Equity incentive plan and Ps. 63,168 of other concepts. For the fiscal year ended June 30, 2017 includes Ps. 694,067 Salaries, Bonuses and Social Security; Ps. 16,545 of Equity incentive plan and Ps. 65,923 of other concepts. For the fiscal year ended June 30, 2016 includes Ps. 519,782 Salaries, Bonuses and Social Security; Ps. 16,359 of Equity incentive plan and Ps. 53,240 of other concepts.

(ii) For the fiscal year ended June 30, 2018 includes Ps. 2,120,715 of Rental and services costs; Ps. 18,713 of Cost of sales and developments and Ps.19 of other consumer financing costs. For the fiscal year ended June 30, 2017 includes Ps. 1,874,392 of Rental and services costs; Ps. 25.346 of Cost of sales and developments and Ps. 48 of other consumer financing costs. For the fiscal year ended June 30, 2016 includes Ps. 1,454,409 of Rental and services costs; Ps. 5,718 of Cost of sales and developments and Ps. 77 of other consumer financing costs.

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Other operating results, net

12 Months Ended

Jun. 30, 2018

Other Operating Results Net

Other operating results, net

26. Other operating results, net

	06.30.18	06.30.17	06.30.16
Gain resulting from sale anual reserval of property plant and equipment	35,602	437	-
Others	12,347	10,508	(17,451)
Donations	(26,967)	(52,910)	(38,889)
Lawsuits (Note 19)	(25,004)	(14,031)	(3,402)
Gain resulting from the revaluation of equity interes held before the bussines combination	-	7,618	-
Expenses related to the sale of investment property	(884)	(2,841)	(8,810)
Total other operating results, net	(4,906)	(51,219)	(68,552)

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Financial results, net

12 Months Ended

Jun. 30, 2018

Financial Results Net

Financial results, net

27. Financial results, net

	06.30.18	06.30.17	06.30.16
- Foreign exchange	413,976	48,437	410,386
- Interest income	240,005	184,296	102,169
- Dividends income	34,172	9,705	-
Finance income	688,153	242,438	512,555
- Foreign exchange	(6,407,173)	(598,845)	(2,225,939)
- Interest expense	(928,218)	(639,768)	(612,486)
- Others financial costs	(117,445)	(77,033)	(100,051)
Subtotal finance costs	(7,452,836)	(1,315,646)	(2,938,476)
Less: Capitalized finance costs	14,385	2,310	-
Finance costs	(7,438,451)	(1,313,336)	(2,938,476)
- Fair value gains of financial assets at fair value through profit or loss	2,041,061	203,087	466,328
- Gain from derivative financial instruments	227,378	81,105	1,248,374
- Loss from repurchase of non - convertible notes	-	(168)	-
Other financial results	2,268,439	284,024	1,714,702
Total financial results, net	(4,481,859)	(786,874)	(711,219)

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Earnings per share

12 Months Ended

Jun. 30, 2018

Profit per share attributable to equity holders of the parent for the year (Note 28):

Earnings per share

28. Earnings per share

(a) Basic

Basic earnings per share amounts are calculated in accordance with IAS 33 "Earning per share" by dividing the profit attributable to equity holders of the Group by the weighted average number of ordinary shares outstanding during the year (Note 16).

On December 18, 2012, the Superintendence of Corporations registered an amendment to the Company’s by-laws whereby it increased the nominal value of its shares from Ps. 0.1 to Ps. 1 each. This amendment, which was notified through the CNV, was registered under number 20,264 of Stock Companies Book 62 T°. Furthermore, the CNV has admitted the shares indicated above for listing in the Stock Exchange.

	06.30.18	06.30.17	06.30.16
Profit attributable to equity holders of the Parent	15,099,936	3,260,476	11,821,280
Weighted average number of ordinary shares in issue (thousands)	126,014	126,014	126,014
Basic earnings per share	119.83	25.87	93.81

As mentioned in Note 16, the nominal value of shares increased from Ps. 0.1 to Ps. 1 per share. The number of shares, prices and any other information per share included in these Financial Statements for all of these periods have adjusted retroactively to reflect the change from Ps. 0.1 to Ps. 1.

(b) Diluted

Diluted earnings per share amounts are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential shares. As of June 30, 2018, 2016 and 2016, the Group has no convertible instruments. The diluted earnings per share is equal to basic earnings per share.

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Related Party transactions

12 Months Ended

Jun. 30, 2018

Related party transactions [abstract]

Related Party transactions

29. Related Party transactions

In the normal course of business, the Group conducts transactions with different entities or parties related to it. An individual or legal entity is considered a related party where:

- An entity, individual or close relative of such individual or legal entity exercises control, or joint control, or significant influence over the reporting entity, or is a member of the Board of Directors or the Senior Management of the entity or its parent company.

- An entity is a subsidiary, associate or joint venture of the entity or its parent or controlled company.

The following section provides a brief description of the main transactions conducted with related parties which are not described in other notes of these consolidated Financial Statements:

1. Remuneration of the Board of Directors

Law N° 19,550 provides that the remuneration of the Board of Directors, where it is not set forth in the Company’s by-laws, shall be fixed by the Shareholders' Meetings. The maximum amount of remuneration that the members of the Board are allowed to receive, including salary and other performance-based remuneration of permanent technical-administrative functions, may not exceed 25% of the profits.

Such maximum amount is limited to 5% where no dividends are distributed to the Shareholders, and will be increased proportionately to the distribution, until reaching such cap where total profits are distributed.

Some of our Directors are hired under the Employment Contract Act N° 20,744. This Act rules on certain conditions of the work relationship, including remuneration, salary protection, working hours, vacations, paid leaves, minimum age requirements, workmen protection and forms of suspension and contract termination.

The remuneration of directors for each fiscal year is based on the provisions established by the Law N° 19,550, taking into consideration whether such directors perform technical-administrative functions and depending upon the results recorded by the Company during the fiscal year. Once such amounts are determined, they should be approved by the Shareholders’ Meeting.

2. Senior Management remuneration

The members of the Senior or Top Management are appointed and removed by the Board of Directors, and perform functions in accordance with the instructions delivered by the Board itself.

The remuneration earned by the Company's Senior Management (including Directors) was Ps. 35.4 million; Ps. 29.8 million and Ps. 38.5 million as of June 30, 2018, 2017 and 2016, respectively. The remuneration earned by Senior Management for their functions consists of an amount that is fixed taking into account the manager's background, capacity and experience, and an annual bonus which varies according to their individual performance and the Group's results. Members of senior management participate in defined contribution and share-based incentive plans that are described in Notes 21 and 22, respectively.

The Group’s Senior Management is composed of as follows:

Name	Date of birth	Position	In the position since
Alejandro G. Elsztain	31/03/1966	General Manager	2002
Daniel R. Elsztain	22/12/1972	Operating Manager	2011
Matias Gaivironsky	23/02/1976	Real Estate Manager	2011
Juan José Martinucci	31/01/1972	Financial and Administrative Manager	2013
Arnaldo Jawerbaum	13/08/1966	Investment Manager	2017

3. Corporate Service Agreement with Cresud and IRSA

Whereas, given that the Group, IRSA and Cresud have operating areas with certain characteristics of affinity, the Board of Directors considered it was convenient to implement alternatives that allows to reduce certain fixed costs, with the aim of reducing their incidence on the operating results, building on and enhancing the individual efficiencies of each of the companies in the different areas that form part of operating administration.

To such end, on June 30, 2004, a Master Agreement for the Exchange of Corporate Services (“Frame Agreement") was entered into between IRSA Propiedades Comerciales S.A., IRSA and Cresud, which was amended several times to bring it in line with the current context. The agreement has a term of 24 months, is renewable automatically for equal periods, unless it is terminated by any of the parties upon prior notice.

Under the current Master Agreement corporate services are provided in the following areas: Human Resources, Finance, Institutional Relations, Administration and Control, Insurance, Security, Agreements, Technical Tasks, Infrastructure and Services, Procurement, Architecture and Design, Development and Works, Real Estate, Hotels, Board of Directors, Board of directors of Real Estate Business, General Manager Office, Board Safety, Audit Committee, Real Estate Business Management, Human Resources of Real Estate Business, Fraud Prevention, Internal Audit and Agricultural Investment Management.

Pursuant to this agreement, the companies hired an external consulting firm to review and evaluate half-yearly the criteria used in the process of liquidating the corporate services, as well as the basis for distribution and source documentation used in the process indicated above, by means of a half-yearly report.

It should be noted that the operations indicated above allows both Group IRSA and Cresud to keep our strategic and commercial decisions fully independent and confidential, with cost and profit apportionment being made on the basis of operating efficiency and equity, without pursuing individual economic benefits for any of the companies.

4. Legal services

The Group hires legal services from Estudio Zang, Bergel & Viñes, from which Saúl Zang is a partner and sits at the Board of Directors of the Group companies.

5. Donations granted to Fundación IRSA and Fundación Museo de los Niños

Fundación IRSA is a non-profit charity institution that seeks to support and generate initiatives concerning education, the promotion of corporate social responsibility and the entrepreneurial spirit of the youth. It carries out corporate volunteering programs and fosters donations by the Group’s employees. The main members of Fundación IRSA's Board of Administrators are: Eduardo S. Elsztain (Chairman); Saúl Zang (Vice Chairman I), Alejandro Elsztain (Vice Chairman II) and Mariana C. de Elsztain (secretary). It finances its activities with the donations made by IRSA Propiedades Comerciales S.A., IRSA, Cresud and others Group’s companies.

Fundación Museo de los Niños is a non-profit association, created by the same founders of Fundación IRSA and its Management Board is formed by the same members as Fundación IRSA’s.

On October 31, 1997, IRSA Propiedades Comerciales S.A. entered into an agreement with Fundación IRSA whereby 3,800 square meters of the constructed area at the Abasto shopping mall was granted under a gratuitous bailment agreement for a term of 30 years. Subsequently, on October 29, 1999, Fundación IRSA assigned free of cost all the rights of use over such store and its respective obligations to Fundación Museo de los Niños.

On November 29, 2005, IRSA Propiedades Comerciales S.A. signed another agreement with Fundación Museo de los Niños granting under gratuitous bailment 2,670.11 square meters of the constructed area at Alto Rosario shopping mall for a term of 30 years.

Fundación Museo de los Niños has used these spaces to set up "Museo de los Niños, Abasto” and “Museo de los Niños, Rosario", two interactive learning centers intended for children and adults. Both agreements establish the payment of common expenses and direct expenses related to the services performed by these stores should be borne by Fundación Museo de los Niños.

6. Offices and Shopping malls spaces rental

IRSA and Cresud rent office space for their executive offices located at the Intercontinental Plaza tower at Moreno 877 in the Autonomous City of Buenos Aires, which we have owned since December 2014. They also rent space at our Abasto Shopping Mall.

The offices of our President are located at Bolívar 108, in the Autonomous City of Buenos Aires. The property has been rented to Isaac Elsztain e Hijos S.A., a company controlled by Eduardo Sergio Elsztain, our President, and some of his family members and to Hamonet S.A., a company controlled by Fernando A. Elsztain, one of our directors, and some of its family members.

In addition, Tarshop, Banco de Crédito y Securitización S.A., BHN Sociedad de Inversión S.A., BHN Seguros Generales S.A. and BHN Vida S.A. rent offices owned by us in different buildings. In addition, we also let various spaces in our Shopping Malls (stores, stands, storage space or advertising space) to third parties and related parties such as Tarshop S.A. and Banco Hipotecario S.A.. Lease agreement entered into with these related parties include clauses and values in line with those agreed upon with unrelated parties.

7. Special reimbursement programs with several means of payment

The Group carries out diverse commercial activities and promotions intended to promote larger number of visitors and consumption inside its shopping malls. Some promotions are offered on specific dates or periods, different types of discounts to clients and/or interest-free financing plans. To this end, the Group enters into agreements with various third party financial entities and/or related parties, such as Banco Hipotecario S.A. and Tarshop S.A..

These agreements usually establish different refund percentages for those clients that make purchases at all the participating stores using the means of payment specific of each financial entity and, on occasions, additional financing plans with interest-free instalments. The cost of the refunds granted to the clients is generally distributed as a percentage among the lessors of the shopping malls and the financial entities, while the cost of interest-free financing is borne, in general, by the latter. The Group acts as an intermediary and is in charge of the lessors’ engagement and the advertising of these promotions. This activity results in no money flows or transfer of revenues or costs between the Group and its related parties.

8. Hospitality Services

On certain occasions, the Group hires hospitality and event venue rental services from Nuevas Fronteras S.A., Hoteles Argentinos S.A. and Llao Llao Resorts S.A., all subsidiaries of our parent company IRSA.

9. Property purchase - sale

The Group in the course of business operations may acquire or sell to or from other related parties certain real estate properties used for rental purposes.

10. Borrowings

In the normal course of its activities, the Group enters into diverse loan agreements or credit facilities between the group’s companies and/or other related parties. These loans accrue interest at market rates.

11. Financial and service operations

The Group works with several financial entities in the Argentine market for operations including, but not limited to, credit, investment, purchase and sale of securities and financial derivatives. Such entities include Banco Hipotecario S.A. and its subsidiaries. Furthermore, Banco Hipotecario S.A. and BACS Banco de Crédito y Securitización S.A. usually act as underwriters in Capital Market transactions for the Group. All transactions are carried out at arm’s length.

12. Purchase of financial assets

The Group usually invests excess cash in several instruments that may include those issued by related companies, acquired at issuance or from unrelated third parties through secondary market deals.

13. Investment in investment funds managed by BACS Administradora de Activos

The Group invests its liquid funds in mutual funds managed by BACS Administradora de Activos S.A.S.G.F.C.I. among other entities.

The following is a summary of the balances with related parties:

Item	06.30.18	06.30.17
Trade and other receivables	786,200	633,834
Investments in financial assets	248,544	267,365
Trade and other payables	(158,591)	(104,282)
Borrowings	(4,154)	(3,571)
Total	871,999	793,346

Related parties	06.30.18	06.30.17	Description of transaction
IRSA Inversiones y Representaciones Sociedad Anónima (IRSA)	673,406	542,052	Advances
	41,709	22,854	Corporate services
	40,863	25,425	Non-convertible notes
	12,448	10,472	Equity incentive plan
	9,023	16,482	Reimbursement of expenses
	428	-	Others
	-	4	Loans granted
	-	265	Commissions
	-	535	Lease collections
	(439)	(9)	Reimbursement of expenses to pay
	(14,609)	(15,380)	Equity incentive plan to pay
Total direct parent company	762,829	602,700
Cresud S.A.CI.F. y A.	207,681	241,940	Non-convertible notes
	(2,546)	(1,113)	Equity incentive plan to pay
	(15,375)	(23,385)	Reimbursement of expenses to pay
	(55,483)	(13,595)	Corporate services to pay
Total direct parent company of IRSA	134,277	203,847
La Rural S.A.	28,712	119	Leases and/or rights to use space
	7,165	8,841	Dividends
	-	3,676	Loans granted
	-	16,394	Canon
	(845)	(55)	Reimbursement of expenses to pay
Other associates and joint ventures	4,309	4,557	Loans granted
	509	812	Management fee
	314	931	Reimbursement of expenses
	-	1,625	Leases and/or rights to use space
	-	(105)	Lease collections
	(235)	-	Reimbursement of expenses to pay
	(286)	(619)	Advertising space  to pay
	(518)	(1,288)	Leases and/or rights to use space
	(4,154)	(3,571)	Borrowings obtained
Total associates and joint ventures of IRSA Propiedades Comerciales	34,971	31,317
Directors	(12)	(17)	Reimbursement of expenses to pay
	(67,126)	(44,770)	Fees
Total Directors	(67,138)	(44,787)
Others	4,685	3,370	Leases and/or rights to use space to pay
	3,283	746	Reimbursement of expenses
	209	-	Advertising space
	-	(40)	Hotel services to pay
	-	99	Commissions
	(4)	(219)	Reimbursement of expenses to pay
	(5)	(272)	Dividends to pay
	(9)	(41)	Leases and/or rights to use space to pay
	(27)	-	Commissions to pay
	(1,072)	(3,374)	Legal services
Total Others	7,060	269
Total	871,999	793,346

The following is a summary of the results with related parties:

Related parties	06.30.18	06.30.17	06.30.16	Description of transaction
IRSA Inversiones y Representaciones Sociedad Anónima (IRSA)	35,056	23,972	19,165	Corporate services
	17,448	516	(1,491,911)	Financial operations
	910	2,533	(375)	Leases and/or rights to use space
	163	127	76	Commissions
Total direct parent company	53,577	27,148	(1,473,045)
Cresud S.A.CI.F. y A.	151,002	61,923	84,980	Financial operations
	1,931	867	1,417	Leases and/or rights to use space
	(162,756)	(128,819)	(88,517)	Corporate services
Total direct parent company of IRSA	(9,823)	(66,029)	(2,120)
La Rural S.A.	12,209	-	-	Financial operations
	12,678	8,518	-	Leases and/or rights to use space
Tarshop S.A.	15,809	13,816	11,802	Leases and/or rights to use space
	322	-	265	Commissions
Nuevo Puerto Santa Fe S.A.	3,882	3,565	3,619	Fees
	(548)	(1,165)	(1,716)	Financial operations
	(504)	5,641	(385)	Leases and/or rights to use space
Others associates and joint ventures	216	216	216	Fees
	1,286	707	31	Financial operations
Total associates and joint ventures of IRSA Propiedades Comerciales	45,350	31,298	13,832
Directors	(164,339)	(131,481)	(113,673)	Fees
Senior Managment	(9,606)	(6,677)	(6,246)	Fees
Total Directors	(173,945)	(138,158)	(119,919)
Estudio Zang, Bergel & Viñes	(10,038)	(9,185)	(2,940)	Fees
Banco de Crédito y Securitización	17,180	9,507	6,493	Leases and/or rights to use space
REIG V	-	58,125	-	Financial operations
Others	9,389	7,335	2,578	Leases and/or rights to use space
	25	21	222	Commissions
	(2,079)	(609)	(96)	Donations
	-	-	4,912	Financial operations
Total others	14,477	65,194	11,169
Total	(70,364)	(80,547)	(1,570,083)

The following is a summary of the transactions with related parties:

Related parties	06.30.18	06.30.17	Description of transaction
IRSA Inversiones y Representaciones S.A.	586,745	726,974	Dividends granted
Tyrus	652	738	Dividends granted
Total  Dividends granted	587,397	727,712
La Rural S.A	34,172	8,841	Dividends received
Nuevo Puerto Santa Fe S.A.	8,838	11,443	Dividends received
Total Dividends received	43,010	20,284
Quality Invest S.A.	37,364	3,000	Irrevocable contributions granted
	1,649	-	Equity contributions granted
Avenida Inc.	6,210	-	Irrevocable contributions granted
Total Contributions	45,223	3,000

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CNV General Resolution N 622/13

12 Months Ended

Jun. 30, 2018

Cnv General Resolution N 62213

CNV General Resolution N 622/13

30. CNV General Resolution N° 622/13

As required by Section 1°, Chapter III, Title IV of CNV General Resolution N° 622/13, below there is a detail of the notes to the Consolidated Financial Statements that disclose the information required by the Resolution.

Exhibit A - Property, plant and equipment	Note 9 - Investment properties
	Note 10 - Property, plant and equipment
Exhibit B - Intangible assets	Note 8 - Intangible assets
Exhibit C - Equity investments	Note 12 - Information about, associates and joint ventures
Exhibit D - Other investments	Note 13 - Financial instruments by category
Exhibit E - Provisions	Note 14 - Trade and other receivables
	Note 19 - Provisions
Exhibit F - Cost of sales and services provided	Note 25 - Expenses by nature
	Note 11 - Trading properties
Exhibit G - Foreign currency assets and liabilities	Note 31 - Foreign currency assets and liabilities

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Foreign currency assets and liabilities

12 Months Ended

Jun. 30, 2018

Foreign Currency Assets And Liabilities

Foreign currency assets and liabilities

31. Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Items (1)	Amount (2)	Exchange rate (3)	06.30.18	Amount (2)	Exchange rate (3)	06.30.17
Assets
Trade and other receivables
Uruguayan Pesos	25	0.92	23	3	0.58	2
US Dollar	9,245	28.75	265,788	5,423	16.53	89,640
Euros	142	33.54	4,777	-	-	-
Trade and other receivables with related parties
US Dollar	3,897	28.85	112,422	3,147	16.63	52,334
Total trade and other receivables			383,010			141,976
Restricted assets
US Dollar	-	-	-	2,996	16.53	49,525
Total Restricted assets			-			49,525
Investments in financial assets
US Dollar	119,323	28.75	3,430,544	43,368	16.53	716,867
Investment in financial assets with related parties
US Dollar	8,615	28.85	248,544	16,077	16.63	267,365
Total investments in financial assets			3,679,088			984,232
Cash and cash equivalents
Uruguayan Pesos	2	0.91	2	7	0.58	4
US Dollar	84,029	28.75	2,415,829	6,170	16.53	101,987
Pound	2	37.90	57	1	21.49	32
Euros	1	33.54	38	6	18.85	105
Total cash and cash equivalents			2,415,926			102,128
Total Assets			6,478,024			1,277,861
Liabilities
Trade and other payables
Uruguayan Pesos	15	0.91	14	9	0.58	5
US Dollar	5,723	28.85	165,114	9,452	16.63	157,190
Euros	41	33.73	1,391	-	-	-
Trade and other payables with related parties
US Dollar	-	-	-	271	16.63	4,505
Total trade and other payables			166,519			161,700
Borrowings
US Dollar	542,367	28.85	15,647,296	364,889	16.63	6,068,102
Total borrowings			15,647,296			6,068,102
Borrowings
US Dollar	9	28.85	264	-	-	-
Total borrowings			264			-
Provisions
US Dollar	5	28.85	144	5	16.63	83
Total Provisions			144			83
Total Liabilities			15,814,223			6,229,885

(1) Considering foreign currencies those that differ from each one of the Group’s companies’ functional currency at each year-end.

(2) Expressed in thousands of foreign currency.

(3) Exchange rate of the Argentine Peso as of June 30, 2018 and 2017 as reported by the Argentina Central Bank.

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Barter transactions

12 Months Ended

Jun. 30, 2018

Barter Transactions

Barter transactions

32. Barter transactions

The Group generally enters into barter transactions with third-party developers in the ordinary course of business. By virtue of these transactions, the Group generally exchanges undeveloped plots of land for units to be constructed and received in the future. Following is a description of pending transactions that have not yet been perfected by the third parties as of June 30, 2018:

Beruti

On October 13, 2010, the Group and TGLT entered into an agreement to barter a plot of land located at Beruti 3351/59 in the city of Buenos Aires for cash and future residential apartments to be constructed by TGLT on the mentioned land. The transaction, which was subject to certain precedent conditions including the completion by TGLT of its initial public offering, was agreed upon at USD 18.8 million. TGLT constructed an apartment building with residential and commercial parking space. In consideration, TGLT had to transfer to IRSA Propiedades Comerciales S.A. (i) a number of apartments to be determined representing 17.33% of total square meters of residential space; (ii) a number of parking spaces to be determined representing 15.82% of total square meters of parking space; (iii) all spaces reserved for commercial parking in the future building and (iv) the amount of USD 10.7 million payable upon delivering the deeds of title on the land. TGLT completed its initial public offering in the Buenos Aires Stock Exchange on October 29, 2010 and therefore the precedent condition for the transaction was fulfilled on that date. TGLT paid the mentioned USD 10.7 million on November 5, 2010. On December 16, 2010, the title deed to the Beruti plot of land was executed. To secure performance of obligations assumed by TGLT under the deed of sale, a mortgage was granted in favour of IRSA Propiedades Comerciales S.A..

An association named Asociación Amigos Alto Palermo presented an injunction requesting that the construction is prohibited and obtained a suspension interim measure for this purpose. Later, the Court of Appels from the Autonomous City of Buenos Aires ordered the lifting of such interim measure. On December 4, 2013 the delivery terms for committed units were extended for 11 months and on November 4, 2014 a new 11-month extension was signed. On June 11, 2015 final judgment was rendered in favour of IRSA Propiedades Comerciales and TGLT.

On December 30, 2016, TGLT S.A. and IRSA Propiedades Comerciales executed a possession conveyance deed in wich TGLT is not able to execute the relevant title conveyance deed, as it had not completed registration of the Condominium interest as contracted.

During the fiscal year ended June 30, 2018, third parties were assigned the right to notarize in public deeds part of the units, which generated income of Ps. 94.3 million.

As already explained, the remaining part of the transactions continues to be classified as a barter.

Conil

On November 5, 2014, the Group executed a conveyance deed evidencing a swap and mortgage transaction in favour of Darío Palombo (acting as Trustee of “Fideicomiso Esquina Guemes”) to convey title on four plots of land located in Avellaneda district. The agreement provides for the development by the Trust of two building construction undertakings. In consideration for such work, the compensation agreed included the amount of USD 0.01 million and delivery, within 24 months as from such agreement execution, of two functional units for commercial purposes and one functional unit for office purposes (the non-monetary compensation was valued at USD 0.7 million).

On June 26, 2018, an extension of the barter transaction was signed, in which the buyer undertakes to deliver the public deed in a maximum period of 54 months for BUILDING "A" and 80 months for the BUILDING " B ", both counting from November 5, 2014.

In the same act, a delivery commitment was signed for a department unit with an approximate area of 57.5 sm, located on the 4th floor, along with a 14 m2 garage located on the ground floor, both belonging to Building 'B' as payment for the fines due from the failure of delivery of possession of the units of both buildings, until date of signature of extension of the barter transaction, which is equivalent to USD 291,600.

Coto Residential Project

The Group owns air space of approximately 23,000 square meters above Hipermercado Coto near the Abasto Shopping Mall at the heart of the Autonomous City of Buenos Aires. On September 24, 1997, the Group and Coto Centro Integral de Comercialización S.A. (Coto) granted a title deed by which the Group acquired the rights to receive the parking spaces and the rights to increase the height of the building located between the Agüero, Lavalle, Guardia Vieja and Gallo streets, in the Abasto neighbourhood.

On June 2016, a conditional Exchange Agreement was executed for a one year term, to be later formalized through the execution of a conveyance deed. The project will be a residential development for a consideration of apartments covering an area of 3,621 square meters plus payment of USD 1 million. The consideration will be delivered no later than June 2021 for Tower I, and no later than September 2022 for Tower II. The value in the bill of sale was set at USD 7.5 million.

Córdoba Shopping Project

The Group owns a plot of land next to Córdoba Shopping, with building capacity of approximately 17,300 square meters, at the heart of Cordoba City.

In May 2016, an Exchange Agreement was executed for a building of 13,500 square meters, subject to conditions for a term of one year, after which it may be formalized through a title conveyance deed. The project will be a mixed development, combining residential and office space, and the consideration will include apartments covering 2,160 square meters, parking space, and procedures to obtain permits, combinations and subdivisions of 3 plots of land. Delivery of the consideration will take place no later than May 2021 for Tower I and no later than July 2023 for Tower II. The Exchange Value was set at USD 4 million.

The two mentioned contracts that are part of the Coto residential project and the Córdoba Shopping exchange project include conditions precedent and/or suspensive clauses. Since suspensive clauses have not materialized yet, the real property involved is classified as trading properties.

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CNV General Ruling N 629/14 Storage of documentation

12 Months Ended

Jun. 30, 2018

Cnv General Ruling N 62914 Storage Of Documentation

CNV General Ruling N 629/14 Storage of documentation

33. CNV General Ruling N° 629/14 – Storage of documentation

On August 14, 2014, the CNV issued General Resolution N° 629 whereby it introduced amendments to rules related to storage and conservation of corporate books, accounting books and commercial documentation. In this sense, it should be noted that the Group has entrusted the storage of certain non-sensitive and old information to the following providers:

Documentation storage provider	Home location
Iron Mountain Argentina S.A.	Av. Amancio Alcorta 2482, C.A.B.A.
Iron Mountain Argentina S.A.	Pedro de Mendoza 2143, C.A.B.A.
Iron Mountain Argentina S.A.	Saraza 6135, C.A.B.A.
Iron Mountain Argentina S.A.	Azara 1245, C.A.B.A. (i)
Iron Mountain Argentina S.A.	Polígono Industrial Spegazzini, Au Ezeiza-Cañuelas KM 45
Iron Mountain Argentina S.A.	Cañada de Gómez 3825, C.A.B.A.

(i)       On February 5, 2014, there was a widely known fire in Iron Mountain’s warehouse. To the original date of these Financial Statements, the Group had not been notified whether the documentation in storage has been affected by the fire or as to its condition after the accident. Nevertheless, based on the internal review carried out by the Group, duly reported to the CNV on February 12, 2014, the information kept at the warehouse that were on fire do not appear to be sensitive or capable of affecting normal business operations.

It is further noted that a detailed list of all documentation held in custody by providers, as well as documentation required in section 5 a.3) of section I, Chapter V, Title II of the RULES (2013 as amended) are available at the registered office.

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Subsequent events

12 Months Ended

Jun. 30, 2017

Disclosure of non-adjusting events after reporting period [abstract]

Subsequent events

34. Subsequent events

La Malteria S.A. 

On July 11, 2018, the Company "La Malteria S.A." was formed, with a capital contribution of Ps. 0.1 represented by 100,000 common nominative shares with a par value of 1 peso. IRSA Commercial Properties S.A. subscribed 95,000 shares of share capital, while the remaining 5,000 were subscribed by FIBESA Sociedad Anónima. 

Acquisition de predio Malteria Hudson 

In July 2018, we announced the acquisition, of a property of 147,895 square meters of surface and approximately 40,000 sqm of built surface known as “Maltería Hudson”, located in the intersection of route 2 and Buenos Aires - La Plata highway, in the City of Hudson, province of Buenos Aires. The price of the operation was set at the amount of USD 7.0 million.

Moreover, we entered into an agreement to buy the two adjoining properties to “La Maltería” of approximately 49,000 sqm and 57,000 sqm respectively, for a total amount of USD 720,825

In addition, we granted an option to a non-related third party to buy from us between 15% to 30% of the outstanding shares of “La Maltería S.A.” at the acquisition price plus a certain interest for a six month period.

The purpose of this acquisition is the future development of a mixed-use project, with a total constructive capacity of approximately 177,000 sqm.

Devaluation of the Argentine Peso

As of the issuance date of these financial statements, the Argentine peso has suffered a devaluation against the US dollar and other currencies close to 31%, as compared to the exchange rate as of the end of the year, which has an impact on the figures presented in these Financial Statements, mainly originated by exposure to the exchange rate of our revenues and costs of the "offices and other properties" segment, and our assets and liabilities, denominated in foreign currency.

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Summary of significant accounting policies (Policies)

12 Months Ended

Jun. 30, 2018

Summary Of Significant Accounting Policies

Basis of preparation of the Consolidated Financial Statements

2.1       Basis of preparation of the Consolidated Financial Statements

(a) Basis of preparation

These Consolidated Financial Statements have been prepared in accordance with IFRS, issued by the IASB and interpretations issued by the IFRIC. All IFRS applicable as of these date of the Consolidated Financial Statements have been applied.

IAS 29 “Financial Reporting in Hyperinflationary Economies”, requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation is produced from the date of acquisition or from the revaluation date, as applicable, must be calculated in the non-monetary items. This requirement also includes the comparative information of the financial statements.

In order to conclude on whether an economy is categorized as hyperinflationary in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of a cumulative inflation rate in three years that approximates or exceed 100%. Bearing in mind that the downward trend in inflation observed in the previous year has reversed, noticing a significant increase in inflation during 2018, that it is also expected that the accumulated inflation rate of the last three years will exceed 100% and that the rest of the indicators do not contradict the conclusion that Argentina should be considered a hyperinflationary economy for accounting purposes, the Management understands that there is sufficient evidence to conclude that Argentina is a hyperinflationary economy in the terms of IAS 29, starting with the year initiated on July 1, 2018. Consequently, the Group should restate its next financial statements to be presented after the aforementioned date. However, it must be taken into account that, as of the date of issuance of these financial statements, Decree PEN 664/03 is in force, and it does not allow the presentation of restated for inflation financial statements before the National Securities Commission (CNV) and other bodies of corporate control.

In an inflationary period, any entity that maintains an excess of monetary assets over monetary liabilities, will lose purchasing power, and any entity that maintains an excess of monetary liabilities over monetary assets, will gain purchasing power, provided that such items are not subject to an adjustment mechanism.

Briefly, the restatement method of IAS 29 establishes that monetary assets and liabilities must not be restated since they are already expressed in the current unit of measurement at the end of the reporting period. Assets and liabilities subject to adjustments based on specific agreements must be adjusted in accordance with such agreements. The non-monetary items measured at their current values at the end of the reporting period, such as the net realization value or others, do not need to be restated. The remaining non-monetary assets and liabilities must be restated by a general price index. The loss or gain from the net monetary position will be included in the net result of the reporting year / period, revealing this information in a separate line item.

As of June 30, 2018, the restatement criteria of financial information established in IAS 29 have not been applied. However, in recent years’ certain macroeconomic variables that affect the Company's businesses, such as wages and prices of inputs, have undergone annual variations of certain importance. This circumstance must be considered in the evaluation and interpretation of the financial situation and the results presented by the Company in these financial statements.

(b) Current and non-current classification

The Group presents current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position according with the operating cycle of each activity.

The operating cycle for activities related to the Group’s investment properties is 12 months. Therefore, current assets and current liabilities include the assets and liabilities that are either realized or settled within 12 months from the end of the fiscal year. The operating cycle of activities related to the Group’s investment properties for sale depends on each specific project, and thus cannot be clearly defined. In general, assets and liabilities classified as investment properties for sale are realized or discharged over many fiscal years, ranging between one and three years or, in exceptional cases, over a longer period. As a result, and for purposes of classification, the Group has assumed the operating cycle of investment properties for sale to be 12 months.

All other assets and liabilities are classified as non-current. Current and deferred tax assets and liabilities (income tax payable), are presented separately from each other and from other assets and liabilities as current and non-current, respectively.

(c) Presentation currency

The Consolidated Financial Statements are presented in thousands of Argentine Pesos. Unless otherwise stated or the context otherwise requires, references to ‘Peso amounts’ or ‘Ps.’, are to Argentine Pesos, and references to ‘USD’ or ‘US dollars’ are to United States dollars.

(d) End of the fiscal year

The fiscal year begins on July 1 and ends on June 30 each year.

(e) Accounting conventions

These Consolidated Financial Statements have been prepared under the deemed cost convention, except for investment properties, financial assets and financial liabilities (including derivative instruments) which have been prepared at fair value through profit or loss and share-based compensation at fair value.

(f) Cash flows

The Group reports cash flows from operating activities using the indirect method. Interest paid is presented within cash used in financing activities. Interest received is presented within cash generated by investing activities. The acquisitions and disposals of investment properties are disclosed as cash from investing activities because this most appropriately reflects the Group’s business activities. Cash flows in respect of trading properties are disclosed as cash from operating activities because these assets are sold in the ordinary course of business.

(g) Use of estimates

The preparation of financial statements at a certain date requires the Company’s Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of consolidated financial statements. The most significant judgments made by Management in applying the Group’s accounting policies and the major estimates and significant judgments are described in Note 3.

New accounting standards

<table cellspacing="0" cellpadding="0" style="font: 10pt/14pt Georgia, Times, Serif; margin-top: 0px; margin-bottom: 0px; width: 100%"><tr style="vertical-align: top"><td style="width: 0px"></td> <td style="width: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>2.2.</b></font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>New accounting standards</b></font></td></tr> </table> <p style="font: 10pt/14pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif">The following standards, amendments and interpretations have been published by the IASB and by the IFRIC. Below we outline the standards, amendments and interpretations that may potentially have an impact on the Group at the time of application.</font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/12pt Arial, Helvetica, Sans-Serif; margin: 0 0 12pt"><font style="font: 10pt Times New Roman, Times, Serif"><u>Standards and amendments adopted by the Group:</u></font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Georgia, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: top"> <td style="border: black 1pt solid; text-align: center; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; width: 45%; padding-right: 5.4pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>Standards and amendments</b></font></td> <td style="border-bottom: black 1pt solid; padding-left: 5.4pt; width: 43%; padding-right: 5.4pt; border-top: black 1pt solid; border-right: black 1pt solid"><p style="font: 10pt/12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 12pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p></td> <td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; width: 12%; padding-right: 5.4pt; border-top: black 1pt solid; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>Date of application by the Group </b></font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: justify; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">Cycle of annual improvements 2014-2016. IFRS 12 “Disclosure of Interests in other entities”.</font></td> <td style="border-bottom: black 1pt solid; text-align: justify; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">Clarifies the standard scope.</font></td> <td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2018</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: justify; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">Amendments to IAS 7 "Disclosure about the statement of cash flows"</font></td> <td style="border-bottom: black 1pt solid; text-align: justify; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">The entity shall disclose information so that users of the financial statements may assess the changes in liabilities resulting from financing activities, including both cash flow and non-cash-flow derivatives.</font></td> <td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2018</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: justify; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">Amendments to IAS 12 "Recognition of deferred tax assets for unrealized losses".</font></td> <td style="border-bottom: black 1pt solid; text-align: justify; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">The amendments clarify the accounting of deferred income tax assets in the case of unrealized losses on instruments measured at fair value</font></td> <td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2018</font></td></tr> </table> <p style="font: 10pt/13pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/12pt Arial, Helvetica, Sans-Serif; margin: 0 0 12pt"><font style="font: 10pt Times New Roman, Times, Serif"><u>Standards and amendments not adopted yet by the Group</u></font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Georgia, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: top"> <td style="border: black 1pt solid; text-align: center; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; width: 18%; padding-right: 5.4pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>Standards and amendments</b></font></td> <td style="border-bottom: black 1pt solid; padding-left: 5.4pt; width: 67%; padding-right: 5.4pt; border-top: black 1pt solid; border-right: black 1pt solid"><p style="font: 10pt/12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 12pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p></td> <td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; width: 15%; padding-right: 5.4pt; border-top: black 1pt solid; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>Date of application by the Group</b></font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">Amendments to IAS 40 "Transfers of investment properties"</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">The amendments clarify the conditions that should be met for an entity to transfer a property to, or from, investment properties.</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2019</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">Cycle of annual improvements 2014-2016. IAS 28 “Investments in Associates and Joint ventures”.</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">It clarifies that the option to measure an associate or a joint venture at fair value for a qualifying entity is available upon initial recognition</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2019</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">IFRS 16 "Leases".</font></td> <td style="border-bottom: black 1pt solid; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 12pt"><font style="font: 10pt Times New Roman, Times, Serif">The lessees are required to account for leases under one single model in the balance sheet that is similar to the one used to account for financial leases under IAS 17. There are two exceptions to this rule: to recognize the lease of low-cost assets and short-term leases. There is almost no change to lessor accounting.</font></p> <p style="font: 10pt/14pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 12pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2020</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">IFRS 9 “Financial Instruments”.</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">This version adds a new impairment model based on expected losses and introduces some minor amendments to the classification and measurement of financial assets.</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2019</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">IFRS 15 “Revenue from contracts with customers”.</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">Provides the new revenue recognition model derived from contracts with customers. The core principle underlying the model is satisfaction of obligations assumed with customers. Applies to all contracts with customers, other than those covered by other IFRSs, such as leases, insurance and financial instruments contracts. The standard does not address recognition of interest or dividend income.</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2019</font></td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid; border-left: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">Amendments to IFRS 2 "Share-based Payment<font style="color: #222222"><b>".</b></font></font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">The amendments clarify the scope of the standard in relation to: (i) accounting for the effects that the concession consolidation conditions have on cash settled share-based payments, (ii) the classification of the share-based payment transactions subject to net settlement, and (iii) accounting for the amendment of terms and conditions of the share-based payment transaction that reclassifies the transaction from cash settled to equity settled.</font></td> <td style="border-bottom: black 1pt solid; padding-bottom: 12pt; line-height: 12pt; padding-left: 5.4pt; padding-right: 5.4pt; border-right: black 1pt solid"><font style="font: 10pt/115% Times New Roman, Times, Serif">06-30-2019</font></td></tr> </table> <p style="font: 10pt/13pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif">The future adoption of these standards, amendments and interpretations adopted, will not have a material impact on the Group, except IFRS 9.</font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"><u>IFRS 9: Financial instruments</u></font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif">The new standard includes a new model of "expected credit loss" for credits or other assets not measured at fair value. The new model presents a dual measurement approach for impairment: if the credit risk of a financial asset has not increased significantly since its initial recognition, an impairment allowance will be recorded in the amount of expected credit losses resulting from the events of non-compliance that are possible within a certain period. If the credit risk has increased significantly, in most cases the allowance will increase and the amount of the expected loss will be recorded.</font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif">In accordance with the new standard, in cases where a change in terms or exchange of financial liabilities is immaterial and does not lead, at the time of analysis, to the reduction of the previous liability and recognition of the new, the new cash flows must be discounted at the original effective interest rate, with the difference between the present value of the financial liability that has the new terms and the present value of the original financial liability that is recognized in results. As a result of the application of the new standard, the amount of the liabilities, whose terms were modified and which a new effective interest rate was calculated at the time of the change in the terms in accordance with IAS 39, will be recalculated from the date of the change in terms using the original effective interest rate.</font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt/115% Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 35.45pt"><font style="font: 10pt Times New Roman, Times, Serif">As of date of these financial statements, our estimate of the application of IFRS 9, would generate a decrease in retained earnings and in investment in associates and joint ventures of Ps. 18.4 million, due to the impact of the application of said standard on the calculation of the allowance for uncollectible debtors in our associate Tarshop S.A.. The methodology of this estimate may vary from that which is defined in the model at the moment of the effective application of the aforementioned standard.</font></p>

Scope of consolidation

2.3. Scope of consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its investment in with the entity and has the ability to effect such returns through its power over the entity. The Group also analyzes whether there is control when it does not hold more than 50% of the voting rights of an entity, but does have capacity to define its relevant activities because of de-facto control.

There may be de-facto control where the relative size of voting rights held by the Group in an entity in relation to the size and dilution of other shareholders gives the Group power to define the relevant activities of such entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date control ceases.

The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

IFRS 3 “Business Combination” allows up to 12 months to finalize the accounting for a business combination. Where the accounting for a business combination is not complete by the end of the reporting period in which the business combination occurred, the Group reports provisional amounts.

The Group has elected to recognize acquisition of assets or group of assets carried out between entities under common control who also qualify as “Business Combination” according to IFRS 3, using the acquisition method.

The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. The Group chooses the method to be used on case-by-case basis.

The amount by which the aggregate of the fair value of consideration transferred, the acquisition date fair value of the Company's previously held interest and any non-controlling interest exceeds the fair value of the assets and liabilities acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the consolidated statements of comprehensive income as "Bargain purchase gains".

Inter-company transactions, balances and unrealized gains on transactions between or among group companies are eliminated. Unrealized losses are also eliminated. Accounting policies of subsidiaries are changed where necessary to ensure consistency with the policies adopted by the Group. The majority of subsidiaries have the same year-end as the Group, however, a small number of subsidiaries have non-coterminous year-ends. In these circumstances, special-purpose financial statements prepared as of June 30 of each year are used for purposes of the Group consolidation.

The Group conducts its business through several operating and holding subsidiaries. Unless otherwise stated, the subsidiaries listed in Note 7 have share capital consisting solely of ordinary shares, which are held directly by the Group and the proportion of ownership interests held is equal to the voting rights held by the Group. The country of incorporation or registration is also their place of business.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in subsidiaries are considered significant. In quantitative terms, the Group considers significant those investments that individually represent at least 20% of the total equity attributable to non-controlling interest in subsidiaries at each year-end. Therefore, in qualitative terms, the Group considers, among other factors, the specific risks to which each company is exposed, their returns and the importance that each of them has for the Group.

Summarized financial information on subsidiaries with material non-controlling interests and other information are included in Note 7.

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions, that is to say as transactions with the owners in their capacity as owners. The amount recorded is the difference between the fair value of any consideration paid and/or collected and the relevant share acquired and/or transferred of the carrying value of net assets of the subsidiary.

(c) Disposal of subsidiaries with loss of control

When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

(d) Associates

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and less than 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income is reclassified to profit or loss where appropriate.

The Group’s share of post-acquisition profit or loss is recognized in the consolidated statements of comprehensive income, and its share of post acquisition movements is recognized in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of any impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the impairment loss within “share of profit of associates and joint ventures line item” in the Statements of comprehensive income.

Profits and losses resulting from upstream and downstream transactions between the Group and its associate are recognized in the Group’s financial statements only to the extent of any unrelated investor’s interests in the associates. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

For purposes of including the earnings of associates by applying the equity method, the Group uses financial statements of the associates as of the same date or a later date, provided the difference between the reporting date of the associate and that of the Group is no longer than three months. In these cases, the Group assesses and adjusts the results of such associates for material transactions or other material events occurred during the interim period.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in associates are considered significant. In quantitative terms, investments that individually represent at least 20% of equity in earnings of joint ventures in the consolidated statements of comprehensive income and, simultaneously, at least 20% of all investments in joint ventures total equity attributable to non-controlling interest in associates at each year-end are considered significant. Therefore, in qualitative terms, the Group considers, among other factors, the specific risks to which each company is exposed, their returns and the importance that each company has for the Group.

Summarized financial information and other information for associates is included in Note 8.

(e) Joint arrangements

Joint arrangements are arrangements of which the Group and other party or parties have joint control bound by a contractual arrangement. Under IFRS 11, investments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.

Investments in joint ventures are accounted for under the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition of profits or losses and movements in other comprehensive income in the consolidated statements of comprehensive income and in other comprehensive income, respectively.

When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint ventures), the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint ventures.

The Group determines at each reporting date whether there is any objective evidence that the investment in a joint venture is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value and recognizes the amount adjacent to share of profit of associates and joint ventures in the statements of comprehensive income.

Unrealized gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group.

The Group takes into account both quantitative and qualitative aspects in order to determine which non-controlling interests in joint ventures are considered significant. In quantitative terms, the investments that individually represent at least 20% of equity in earnings of joint ventures in the consolidated statements of comprehensive income and, simultaneously, at least 20% the total equity attributable to non-controlling interest in joint ventures at the each year-end are considered significant. Therefore, in qualitative terms the Group considers, among other factors, the specific risks to which each company is exposed to, their returns and the importance that each company has for the Group.

Summarized financial information and other information for significant joint ventures is included in Note 8.

Segment reporting

2.4. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) the Group’s Executive Committee. This CODM is responsible for allocating resources and assessing performance of the operating segments. The operating segments are described in Note 6.

Foreign currency translation

2.5.Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). These Financial Statements are presented in Argentine Pesos, which is the Group’s presentation currency.

(b) Transactions and balances in foreign currency

Foreign currency transactions are translated into Argentine Pesos using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the profit or loss for the year.

Foreign exchange gains and losses are presented in the statements of comprehensive income within finance income and finance costs, as appropriate, unless they are capitalized as explained in Note 2.19.

Investment properties

2.6. Investment properties

Investment properties are those properties owned by the Group that are held either to earn long-term rental income or for capital appreciation and that are not occupied by the Group for its own operations. Properties occupied by associates or joint ventures are accounted for as investment properties in these Consolidated Financial Statements.

Investment property also includes properties that are being constructed or developed for future use as investment property. The Group also classifies land whose future use has not been determined yet as investment property.

When a property is partially owner-occupied, with the rest being held for rental income or capital appreciation, the Group accounts for the portions separately. The portion that is owner-occupied is accounted for as property, plant and equipment under IAS 16 “Property, Plant and Equipment” and the portion that is held for rental income or capital appreciation, or both, is treated as investment property under IAS 40 “Investment Property”.

The Group’s investment properties primarily comprise the Group’s portfolio of shopping malls and offices, certain property under development and other undeveloped land.

Investment property is measured initially at cost. Cost comprises the purchase price and directly attributable expenditures, such as legal fees, certain direct taxes, commissions and in the case of properties under construction, the capitalization of financial costs.

For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and property is in conditions to start operating. Capitalized costs include mainly the part attributable to third-party service costs, as well as the materials necessary for construction. Capitalization of such costs ceases when the property reaches the operating conditions indicated above. 

Direct expenses related to lease contract negotiation (as well as payment to third parties for services rendered and certain specific taxes related to execution of such contracts) are capitalized as part of the book value of the relevant investment properties and amortized over the term of the lease.

Borrowing costs associated with properties under development or undergoing major refurbishment are capitalized. The finance cost capitalized is calculated using the Group’s weighted average cost of borrowings after adjusting for borrowings associated with specific developments. Where borrowings are associated with specific developments, the amount capitalized is the gross interest incurred on those borrowings less any investment income arising on their temporary investment. Finance cost is capitalized from the commencement of the development work until the date of practical completion. The capitalization of finance costs is suspended if there are prolonged periods when development activity is interrupted. Finance cost is also capitalized on the purchase cost of land or property acquired specifically for redevelopment in the short term but only when activities necessary to prepare the asset for redevelopment are in progress.

After initial recognition, investment property is carried at fair value. Investment property that is being redeveloped for continuing use as investment property or for which the market has become less active, continues to be measured at fair value. Investment properties under construction are measured at fair value if the fair value is considered to be reliably determinable. Investment properties under construction for which the fair value cannot be determined reliably, but for which the Group expects that the fair value of the property will be reliably determinable when construction is completed, are measured at cost less impairment until the fair value becomes reliably determinable or construction is completed, whichever is earlier.

Fair values are determined differently depending on the type of property being measured.

Generally, fair value of office buildings and land reserves is based on active market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset. If this information is not available, the Group uses alternative valuation methods, such as recent prices on less active markets or discounted cash flow projections (Level 2).

The fair value of the Group’s portfolio of Shopping Malls is based on discounted cash flow projections. This method of valuation is commonly used in the shopping mall industry in the region where the Group conducts its operations (Level 3).

As required by Resolution 576/10 of the CNV, valuations are performed as of the financial position date by accredited professional appraisers who have recognized and relevant professional qualifications and have recent experience in the location and category of the investment property being valued. These valuations form the basis for the carrying amounts in the consolidated Financial Statements. The fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions.

Subsequent expenditure is capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost of the asset can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized.

Changes in fair values are recognized in the consolidated statements of comprehensive income under the line item “Net gain from fair value adjustments of investment properties”.

Asset transfers, including assets classified as investments properties which are reclassified under other items or vice-versa, may only be carried out when there is a change of use evidenced by: a) commencement of occupation of real property by the Group, where investment property is transferred to property, plant and equipment; b) commencement of development activities for sale purposes, where investment property is transferred to property for sale; c) the end of Group occupation, where it is transferred from property, plant and equipment to investment properties; or d) commencement of an operating lease transaction with a third party, where properties for sale are transferred to investment property. The value of the transfer is the one that the property had at the time of the transfer and subsequently is valued in accordance with the accounting policy related to the item.

The Group may sell its investment property when it considers they are not core to its ongoing rental business activities. Where the Group disposes of a property at fair value in an arm’s length transaction, the carrying value immediately prior to the sale is adjusted to the transaction price, and the adjustment is recorded in the other comprehensive consolidated statements of comprehensive income in the line “Net gain from fair value adjustments of investment properties”.

Investment properties are derecognized when they are disposed of or when they are permanently withdrawn from use and no future economic benefits are expected to arise from their disposal. The disposal of properties is recognized when the significant risks and rewards have been transferred to the buyer. As for unconditional agreements, proceeds are recognized when legal title to property passes to the buyer and the buyer intends to make the respective payment therefor. In the case of conditional agreements, the disposal is accounted for where such conditions have been met. Where consideration receivable for the sale of the properties is deferred, it is discounted to present value.

The difference between the discounted amount and the amount receivable is treated as interest income and recognized over the period using the effective interest method. Direct expenses related to the sale are recognized in the line "other operating results, net" in the consolidated statements of comprehensive income at the time they are incurred.

Property, plant and equipment

2.7.       Property, plant and equipment

This category primarily comprises buildings or portions of a building used for administrative purposes, machines, computers and other equipment, motor vehicles, furniture, fixtures and fittings and improvements to the Group’s corporate offices.

All property, plant and equipment (“PPE”) is stated at historical cost less depreciation and accumulated impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. For properties under development, capitalization of costs includes not only financial costs, but also all costs directly attributable to works in process, from commencement of construction until it is completed and property is in conditions to start operating. Capitalized costs include mainly the part attributable to third-party service costs, as well as the materials necessary for construction. Capitalization of such costs ceases when the property reaches the operating conditions indicated above. 

Borrowing costs are directly incurred for the purpose of acquiring, constructing or producing a qualifying PPE are capitalized as part of its cost. A qualifying PPE is an asset that necessarily takes a substantial period of time to get ready for its intended use. Borrowing costs are capitalized during the period of construction or production of the eligible asset; such capitalization ceases once the necessary activities for the asset to have the intended use have been completed, or else capitalization is suspended while construction activity is suspended.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Such costs may include the cost of improvements and replacement of parts as they meet the conditions to be capitalized the carrying amount of those parts that are replaced is derecognized. Repairs and maintenance are charged to the consolidated statements of comprehensive income during the financial period in which they are incurred. Depreciation, based on a component approach, is calculated using the straight-line method to allocate the cost over the assets’ estimated useful lives.

As of June 30, 2018 useful lives are as follows:

Other buildings and facilities	Between 1 and 22 years
Furniture and fixtures	Between 3 and 10 years
Machinery and equipment	Between 1 and 10 years
Vehicles	5 years
Other	3 years

As of each period-end, an evaluation is performed to determine the existence of indicators of any decrease in recoverable value or useful life of assets. If there are any indicators, the recoverable amount and/or residual useful life of impaired asset(s) is estimated, and an impairment adjustment is made, if applicable. As of each year-end, the residual useful life of assets is estimated and adjusted, if necessary.

An asset’s carrying amount is written down immediately to its recoverable amount if its carrying amount is greater than its estimated recoverable amount (see Note 2.10.).

Gains from the sale of these assets are recognized when the significant risks and rewards have been transferred to the buyer. This will normally take place on unconditional exchange, generally when legal title passes to the buyer and it is probable that the buyer will pay. For conditional exchanges, sales are recognized when these conditions are satisfied.

Gains and losses on disposals are determined by comparing the proceeds, net of direct expenses related to those proceeds, with carrying amount at the date of each transaction. Gains and losses from the disposal of property, plant and equipment items are recognized within “Other operating results, net” in the consolidated statements of comprehensive income.

Leases

2.8. Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement.

A Group company is the lessor: Operating lease – properties leased to tenants under operating leases are included in “Investment properties” in the statements of financial position. See Note 2.25 for the recognition of rental income.

Finance lease – the Group does not have any finance leases.

A Group company is the lessee: Operating lease – leases in which substantially all risks and rewards of ownership are retained by another party, as lessor, are classified as operating leases.

Payments, including prepayments, made under operating leases (net of any incentives received from the lessor) are charged to the consolidated statements of comprehensive income on a straight-line basis over the period of the lease. Significant leases where the Group acts as lessee under operating leases mainly include principal offices.

Finance lease - leases of assets where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the commencement of the lease at the lower of the fair value of the property and the present value of the minimum lease payments. Capitalized lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. The finance charges are charged over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Liabilities corresponding to finance leases, measured at discounted value, are included in current and non-current borrowings. Significant leases where the Group acts as lessee under finance leases include machinery and computer equipment.

Intangible assets

2.9. Intangible assets

(a) Goodwill

Goodwill represents future economic benefits arising from assets that are not capable of being individually identified and separately recognized by the Group on an acquisition. Goodwill is initially measured as the difference between the fair value of the consideration transferred, plus the amount of non-controlling interest in the acquisition and, in business combinations achieved in stages, the acquisition-date fair value of the previously held equity interest in the acquisition; and the net fair value of the identifiable assets and liabilities assumed on the acquisition date.

At acquisition goodwill is allocated to those cash generating units expected to benefit from the acquisition for the purpose of impairment (see Note 2.10.). Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill arising on the acquisition of subsidiaries is included within “Intangible assets” in the statements of financial position.

Goodwill may also arise upon investments in associates and joint ventures, being the surplus of the cost of investment over the Group’s share of the fair value of the net identifiable assets. Such goodwill is recorded within investments in associates or joint ventures.

Goodwill is not amortized but tested for impairment at each fiscal year end, or more frequently if there is an indication of impairment.

(b) Software

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives between 3 and 5 years.

Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets when the following criteria are met: (i) it is technically feasible to complete the software product so that it will be available for use; (ii) management intends to complete the software product and use or sell it; (iii) there is an ability to use or sell the software product; (iv) it can be demonstrated how the software product will generate probable future economic benefits; (v) adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and (vi) the expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.

Computer software development costs recognized as assets are amortized over their estimated useful lives, which does not exceed 5 years.

(c) Rights of use

The Group acquired certain rights to develop a plot of land and facilities. These rights primarily comprise the right to develop the land and attached buildings and facilities known as Distrito Arcos (“Arcos”).

The Arcos land and attached facilities is owned by Administration of Railway Infrastructure (“ADIF”, as per its Spanish acronym), a governmental agency created for the management of certain State’s properties, particularly assets pertaining to the railway system. Arcos are the old warehouse and adjacent spaces below the tracks of the San Martin railway lines. The right was acquired as part of the Arcos acquisition and is carried at acquisition cost less accumulated amortization. Amortization is calculated using the straight-line method over the period in which the economic benefits of use accrue. The Group must pay ADIF a fee on a monthly basis.

(d) Right to receive future units under barter agreements

The Group also enters into barter transactions where the Group normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land. The Group generally receives monetary assets as part of the transactions and/or a right to receive future units to be constructed by developers. Such rights are initially recognized at cost (which is the fair value of the land assigned) and such rights are not adjusted later, unless there is any sign of impairment.

Impairment of assets

2.10. Impairment of assets

(a)Goodwill

For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows, referred to as cash-generating units. In order to determine whether any impairment loss should be recognized, the book value of cash-generating units or cash generating unit groups is compared against its recoverable value. Net book value of cash-generating units and cash generating unit groups include goodwill and assets with limited useful life (such as, investment properties, property, plant and equipment, intangible assets and working capital).

If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. Impairment losses recognized for goodwill are included in the statements of comprehensive income and are not reversed in a subsequent period.

The recoverable amount of a cash-generating unit is the higher of fair value less costs-to-sell and value-in-use. The fair value is the amount at which a cash-generating unit may be sold in a current transaction between unrelated, willing and duly informed parties. Value-in-use is the present value of all estimated future cash flows expected to be derived from cash-generating units or cash-generating unit groups.

(b)Properties, plant and equipment and defined-lived intangible assets

At the date of each statement of financial position, the Group reviews the carrying amounts of its property, plant and equipment, and limited-duration 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, if any, of the impairment loss.

When the asset does not generate cash flows independently of other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in the statements of comprehensive income.

Assets or cash-generating units that have suffered an impairment loss are revised as of each year-end date to assess a potential reversal of such impairment. The impairment loss recognized in prior fiscal years may only be reversed if there has been a change in the estimates used to assess the recoverable value of assets or the cash-generating unit since the recognition of the impairment loss.

Where an impairment loss subsequently reverses the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, not to exceed the carrying amount that would have been determined if no impairment loss had been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in the statements of comprehensive income.

Trading properties

2.11. Trading properties

Trading properties comprise those properties either intended for sale or in the process of construction for sale. Trading properties are carried at the lower of cost and net realizable value. Where there is a change in use of investment properties evidenced by the commencement of development with a view to sale, the properties are reclassified as trading properties at cost, which is the carrying value at the date of change in use. They are subsequently carried at the lower of cost and net realizable value.

Cost comprises all direct costs of purchase, costs of conversion and other costs incurred in bringing the trading properties to their present location and condition.

Borrowing costs incurred for the purpose of acquiring, constructing or producing a qualifying trading property are capitalized as part of its cost. A qualifying trading property is an asset that necessarily takes a substantial period of time to get ready for its intended use. Borrowing costs are capitalized while acquisition, construction or production is underway and cease once the asset is substantially complete or suspended if development of the asset is suspended.

Net realizable value is the estimated selling price of a property in the ordinary course of business less costs to complete and selling expenses. If the net realizable value is lower than the carrying amount, a write-down is recognized in the amount by which the carrying amount exceeds its net realizable value. Write-downs are reversed when circumstances that caused the write-down cease to exist, or when net realizable value increases.

Inventories

2.12. Inventories

Inventories mainly include materials, supplies or other assets required to offer different services.

Supplies and other of materials and assets classified in this category are measured at the lower of cost or net realizable value. The cost of supplies, materials and other assets is determined using the weighted average cost method.

Financial instruments

2.13. Financial instruments

Classification

The Group classifies financial assets in the following categories: those to be measured at fair value and those to be measured at amortized cost. This classification depends on whether the financial asset is a debt or equity instrument.

Debt instruments

A debt instrument is classified at amortized cost only if both of the following criteria are met: i) the objective of the Group’s business model is to hold the asset to collect the contractual cash flows; and (ii) the contractual terms give rise on specified dates to cash derived solely from payments of principal and interest due on the principal outstanding. The nature of any derivatives embedded in the debt instrument are considered in determining whether the cash flows of the instrument are derived solely from payment of principal and interest due on the principal outstanding and are not accounted for separately.

If either of the two criteria above is not met, the debt instrument is classified at “fair value through profit or loss”. The Group has not designated any debt investment as measured at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch. Changes in fair values and gains from disposal of financial assets at fair value through profit or loss are recorded within “Financial results, net” in the statements of comprehensive income.

Equity instruments

All equity instruments, which are neither subsidiaries, associate companies nor joint ventures of the Group, are measured at fair value. Equity investments that are held for trading are measured at fair value through profit or loss. For all other equity investments, the Group can make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Group decided to recognize changes in fair value of equity instruments through changes in profit or loss.

Changes in fair values and results from disposal of equity investments at fair value through profit or loss and dividends income are recorded within ”Financial results, net” in the statements of comprehensive income.

Regular purchases and sales of financial assets are recognized on the trade date–the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statements of comprehensive income.

Results on debt instruments measured at amortized cost and not identified for hedging purposes are charged to income where the financial assets are derecognized or an impairment loss is recognized and during the amortization process under the effective interest method.

All equity investments, which are neither subsidiary associate companies nor joint venture of the Group, are measured at fair value.

The Group is required to reclassify all affected investments in debt instruments when and only when its business model for managing those assets changes.

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets measured at amortized cost is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) can be reliably estimated.

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulties, defaults or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization, and where observable data indicate that there is a measurable decrease in the estimated future cash flows.

The amount of the impairment is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognized in the consolidated statements of comprehensive income. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in the consolidated statements of comprehensive income.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

Derivative financial instruments and hedging activities

2.14. Derivative financial instruments and hedging activities

Derivative financial instruments are initially recognized at fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Group manages exposures to various risks using hedging instruments that provide the appropriate economic outcome. The Group does not use derivative financial instruments for speculative purposes. To date, the Group has used future and forward contracts, as appropriate.

The Group’s policy is to apply hedge accounting to hedging relationships where it is permissible under IFRS 9, practical to do so and its application reduces volatility, but transactions that may be effective hedges in economic terms may not always qualify for hedge accounting under IFRS 9. To date the Group has not applied hedge accounting to any of its derivative financial instruments. Trading derivatives are classified as a current asset or liability on the statement of financial position. Gains and losses on other derivatives are classified in “Financial results, net”, in the statements of comprehensive income.

The fair values of financial instruments that are traded in active markets are computed by reference to market prices. The fair value of derivative financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

Trade and other receivables

2.15. Trade and other receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

A provision of doubtful accounts is recorded when there is objective evidence that the Group may not be able to collect all receivables within their original payment term. Indicators of doubtful accounts include significant financial distress of the debtor, the debtor potentially filing a petition for reorganization or bankruptcy, or any event of default or past due account.

In the case of larger non-homogeneous receivables, the Group generally measures the impairment provision on an individual basis. When assessed individually, the Group records a provision for impairment which amounts to the difference between the value of the discounted expected future cash flows of the receivable and its carrying amount, taking into account the existing collateral, if any. This provision takes into consideration the financial situation of the debtor, the resources, payment track-record and, if applicable, the value of collateral.

The Group collectively evaluates for impairment smaller-balance homogeneous receivables, which are grouped on the basis of similar risk characteristics, taking into account asset type, collateral type, past-due status and other relevant factors. The Group applies allowance factors, which in the judgment of management represent the expected losses over the life of the receivables. In determining those factors, the Group considers the following: (i) delinquencies of the credits, (ii) loss history and the general behaviour of clients, (iii) trends in volume and terms of receivables, (iv) the experience and depth of the debtors’ management, (v) national and local economic trends, (vi) concentrations of credit by individual credit size and by class of receivable, and (vii) the effect of other external factors.

The amount of the provision for doubtful accounts is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the statements of comprehensive income within “Selling expenses”. Subsequent recoveries of amounts previously written off are credited against “Selling expenses” in the statements of comprehensive income.

Trade and other payables

2.16. Trade and other payables

Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method.

Tenant deposits

2.17. Tenant deposits

The Group generally obtains deposits from tenants as a guarantee for returning the property at the end of the lease term in a specified good condition or for the lease payments for a period of generally 3 years. The deposits are generally equivalent to one month of lease rentals. Such deposits are treated as both a financial asset and a financial liability in accordance with IFRS 9, and they are initially recognized at fair value. The difference between fair value and cash received is considered to be part of the minimum lease payments received for the operating lease (refer to Note 2.25. for the recognition of rental income). The deposits are subsequently measured at amortized cost.

Borrowings

2.18. Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized as finance cost over the period of the borrowings using the effective interest method.

Borrowing costs

2.19. Borrowing costs

General and specific borrowing costs (interest and foreign exchange differences) directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially completed.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

The Group capitalizes borrowing costs on qualifying investment properties, property, plant and equipment and trading properties.

Provisions

2.20. Provisions

Provisions are recognized when: (i) the Group has a present legal or constructive obligation as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) a reliable estimate of the amount of the obligation can be made. Provisions are not recognized for future operating losses.

The amount of its accruals is based on up-to-date developments, estimates of the outcomes of the matters and legal counsel’s experience in contesting, litigating and settling matters. As the scope of the liabilities becomes better defined or more information is available, the Group may be required to change its estimates of future costs, which could have a material adverse effect on its results of operations and financial condition or liquidity.

Provisions are measured at the present value of the cash flows expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in provisions due to passage of time is recognized in the statements of comprehensive income.

Employee benefits

2.21. Employee benefits

(a) Pension plans obligations

The Group operates a defined contribution plan. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The contributions are recognized as employee benefit expense in the statement of comprehensive income when they are due.

(b) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy.

(c) Bonus plans

The Group recognizes a liability and an expense for bonuses based on a formula that takes into consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

Shared based payments

2.22. Shared based payments

The Group operates an incentive plan, under which certain selected employees, directors and top management of IRSA Propiedades Comerciales S.A., IRSA and Cresud have a right to matching shares of IRSA and Cresud, although they must hold their purchased shares and remain with the employer entity for a specified period of time.

The fair value of the equity settled awards is measured at the date of grant. Management measures the fair value using the valuation technique that it considers to be the most appropriate to value each class of award. Methods used may include Black-Scholes calculations or other models as appropriate. The valuations take into account factors such as non-transferability, exercise restrictions and behavioural considerations.

The fair value of the share-based payment is recognized in the statements of comprehensive income under the straight-line method over the vesting period in which the right to receive shares of IRSA and Cresud becomes irrevocable (“vesting period”); such value is based on the best available estimate of the number of shares expected to vest.

Such estimate is revised if subsequent information becomes available indicating that the number of shares expected to vest differs from original estimates.

Current income tax, deferred income tax and minimum presumed income tax

2.23. Current income tax, deferred income tax and minimum presumed income tax

Tax expense for the year comprises the charge for tax currently payable and deferred taxation. Tax is recognized in the statement of income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted at the date of the statement of financial position in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. The Group establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated Financial Statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the date of the statement of financial position and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Entities in Argentina are subject to the Minimum Presumed Income Tax (“MPIT”). Pursuant to this tax regime, an entity is required to pay the greater of the income tax or the MPIT. The MPIT provision is calculated on an individual entity basis at the statutory asset tax rate of 1% and is based upon the taxable assets of each company as of the end of the year, as defined by Argentine law. Any excess of the MPIT over the income tax may be carried forward and recognized as a tax credit against future income taxes payable over a 10-year period. When the Group assesses that it is probable that it will use the MPIT payment against future taxable income tax charges within the applicable 10-year period, the Group recognizes the MPIT as a current or non-current receivable, as applicable, within “Trade and other receivables” in the statements of financial position.

Minimum presumed income tax was repealed by the Law No. 27,260 in section 76 for the annual periods beginning on January 1, 2019.

In this respect, considering recent Instruction No. 2 issued by the Federal Administration of Public Revenue (AFIP), if the Company posts financial and tax losses, no provision for income tax would be recorded.

Cash and cash equivalents

2.24. Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less. Cash equivalents do not include bank overdrafts.

Revenue recognition

2.25. Revenue recognition

Revenue from Group’s activities is principally derived from business activities carried out in shopping malls and in rental buildings and mainly include rental income from shopping mall properties and offices leased under operating leases, admission rights, commissions and revenue from several services provided to the Group’s lessees.

Revenue from the sale of properties is recognized when: (a) material risks and benefits derived from title to property have been transferred; (b) the Company does not retain any management function on the assets sold nor does it have any control whatsoever on such assets; (c) the amount of revenues and costs associated to the transaction may be measured on a reliable basis; and (d) the Company is expected to accrue the economic benefits associated to the transaction.

Revenue from the provision of services is recognized when: (a) the amount of revenue and costs associated to the services may be measured on a reliable basis; (b) the Company is expected to accrue the economic benefits associated to the transaction, and (c) the level of completion of services may be measured on a reliable basis.

· Shopping malls portfolio

Primarily comprises rental income from shopping mall properties lease out over operating leases, admission rights, commissions and revenue from several services provided to the Group’s lessees.

The Argentine Civil and Commercial Code section 1221 provides that tenants may rescind commercial lease within the initial six months by means of written notification. If option is used within the first year of the lease, the Tenant shall pay the Lessor, as compensation, the equivalent of one-and-a-half month’s rent, and one month’s rent if the tenant makes use of the option after that period. Given that the rule does not provide for advance notice, Lease Agreements include a provision whereby the lessee must give at least 60 days advance notice of its intention to terminate the lease. The exercise of such early termination could materially and adversely affect the Group.

The Group analyzed the definition of leasing term in IAS 17 wich provides that a non-cancellable lease is a lease that is cancellable only (a) upon the occurrence of some remote contingency, (b) with the permission of the lessor, (c) if the lessee enters into a new lease with the same lessor or (d) upon payment by the lessee of such an additional amount that, at inception of the lease, continuation of the lease is reasonably certain.

The Group has determined that, in all operating leases, the lease term for accounting purposes matches the term of the contract. The Group concluded that, even though a lease is cancellable under law, tenants would incur significant “economic penalties” if the leases are terminated prior to expiry. The Group considered that these economic penalties are of such amount that continuation of the lease contracts by tenants appears to be reasonably certain at the inception of the respective agreements. The Group reached this conclusion based on factors such as: (i) the strategic geographical location and accessibility to customers of the Group’s investment properties; (ii) the nature and tenure of tenants (mostly well-known local and international retail chains); (iii) limited availability of identical revenue-producing space in the areas where the Group’s investment properties are located; (iv) the tenants’ brand image and other competitive considerations; (v) tenants’ significant expenses incurred in renovation, maintenance and improvements on the leased space to fit their own image; (vi) the majority of the Group’s tenants only have stores in shopping malls with a few or none street stores. See datails in Note 24

Lessees of shopping malls are generally required to pay the higher of: (i) a base monthly rent (the “Base Rent”) and (ii) a specific percentage of gross monthly sales recorded by the Lessee (the “Contingent Rent”), which generally ranges between 2% and 10% of gross sales. Moreover, in accordance with agreements entered into for most locations, the Base Rent is subject to scheduled increases, typically between 10% on a semi-annually over the term of the lease.

In addition, some lease contracts include provisions that set forth variable rent based on specific volumes of sales and other types of ratios.

Rental income from shopping mall properties leased out under operating leases is recognized in the consolidated statements of comprehensive income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

Contingent rents, being lease payments that are not fixed at the inception of a lease, are recorded as income in the periods in which they are known and can be determined. Rent reviews are recognized when such reviews have been agreed with tenants.

Tenants in the Group’s shopping mall are also generally charged a non-refundable admission right upon entering a lease contract or renewing an existing one. Admission rights are treated as additional rental income and recognized in the statement of comprehensive income under a straight-line basis over the term of the respective lease agreement.

The Group acts as its own leasing agent for arranging and closing lease agreements in its shopping malls properties and consequently earns letting fees. Letting fees are paid by tenants upon the successful closing of an agreement. A transaction is considered successfully concluded when both parties have signed the related lease contract. Letting fees received by the Group are treated as additional rental income and are recognized in the statement of comprehensive income on a straight-line basis over the term of the lease agreements.

Lease contracts also provide that common area maintenance (“CAM”) of the Group’s shopping malls are borne by the corresponding lessees, generally on a prorrata basis. CAM include all such expenses convenient and necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The lessor is responsible for determining the need and suitability of incurring a common area service charge. The Group makes the original payment for such expenses, which are then reimbursed by the lessees. The Group considered that it acts as a principal in these cases.

Service charge income related to can is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

Under the lease contracts entered into, lessees also agree to participate in collective promotion funds (“CPF”) to be used in advertising and promoting the Group’s shopping malls. Each lessee’s participation is generally calculated as a percentage of the 15% monthly rent accrued.

Revenue so derived is also included under rental income and services segregated from advertising and promotion expenses. Such expenses are charged to income when incurred.

On the other hand, revenue includes income from managed operations and other services such as car parking lots. Those revenues are recognized on an accrual basis as services are provided.

· Office and other rental properties portfolio

Rental income from office and other rental properties include rental income from office leased out under operating leases, income for services and expenses recovery paid by tenant.

Rental income from office and other rental properties leased out under operating leases is recognized in the consolidated statements of comprehensive income on a straight-line basis over the term of the leases (‘rent averaging’). When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.

Contingent rents, are recorded as income in the periods in which they are collected. Rent reviews are recognized when such reviews have been agreed with tenants.

Lease contracts also provide that common area service charges of the Group’s office and other rental properties are borne by the corresponding lessees, generally on a proportionally basis. These common area service charges include all such expenses convenient and necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The Group acts as the management of rental properties. The Group makes the original payment for such expenses, which are then reimbursed by the lessees. The Group considered that it acts as a principal in these cases. The Group accrues reimbursements from tenants for recoverable portions of all these expenses as service charge revenue in the period the applicable expenditures are incurred and is presented separately from property operating expenses. Property operating expenses are expensed as incurred.

· Sales and Development activities

Revenue from sale and developments of real estate properties primarily comprises the results from the sale of trading properties. Results from the sale of properties are recognized only when the significant risks and rewards have been transferred to the buyer. This normally takes place on unconditional exchange of contracts (except where payment or completion is expected to occur significantly after exchange). For conditional exchanges, sales are recognized when these conditions are satisfied.

The Group applies IFRIC 15 “Agreements for the Construction of Real Estate”. IFRIC 15 gives guidance as to which standard applies when accounting for the construction of real estate; that is IAS 11 “Construction Contracts” or IAS 18 “Revenue”. IFRIC 15 interprets that an agreement meets the definition of a construction contract under IAS 11 when the buyer is able to specify the major structural elements of the design of the property either before or during construction. Furthermore, IFRIC 15 interprets that an agreement is for the sale of goods under IAS 18 when construction takes place independently of the agreement and the buyer has only a limited ability to influence the design. The Group has assessed the nature of its agreements and determined that they are within the scope of IAS 18. As a result, the Group recognizes revenue from the sale of open market private homes and commercial units entirely at the delivery in accordance with IAS 18.

The Group also enters into barter transactions where the Group normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land and on occasion, the Group also receives cash as part of the transactions. Legal title to the land together with all risks and rewards of ownership are transferred to the developer upon sale. The Group generally requires the developer to issue insurances or to mortgage the land in favor of the Group as performance guarantee. In the event the developer does not fulfil its obligations, the Group forecloses on the land through the execution of the mortgage or the surety insurances, together with a cash penalty.

The Group may sell the residential apartments to third-party homebuyers once they are finalized and transferred from the developer. In these circumstances, revenue is recognized when the significant risks and rewards are transferred to the buyer. This will normally take place when the deeds of title are transferred to the homebuyer.

However, the Group may market residential apartments during construction or even before construction commences. In these situations, buyers generally surrender a down payment to the Group with the remaining amount being paid when the developer completes the property and transfers it to the Group, and the Group in turn transfers it to the buyer. In these cases, revenue is not recognized until the apartments are completed and the transaction is legally completed, that is when the apartments are transferred to the homebuyers and deeds of title are executed. This is because in the event the residential apartments are not completed by the developer and consequently not delivered to the homebuyer, the Group is contractually obligated to return to the homebuyer any down payment received plus a penalty amount. The Group may then seek legal remedy against the developer for non-performance of its obligations under the agreement. The Group exercised judgment and considers that the most significant risk associated with the asset the Group holds (i.e. the right to receive the apartments) consisting of the unfulfillment of the developer's obligations (i.e. to complete the construction of the apartments) has not been transferred to the homebuyers upon reception of the down payment.

Share capital

2.26. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

When any of Group’s subsidiaries purchase the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of tax) is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or reissued. When such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and related income tax effects, is included in equity attributable to the Company’s equity holders.

Instruments issued by the Group that will be settled by the Company delivering a fixed number of its own equity instruments in exchange for a fixed amount of cash or another financial asset are classified as equity.

Earnings per share

2.27. Earnings per share

Earnings per share is calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average of common shares outstanding during the year. Diluted earnings per share is computed by dividing the profit for the year by the weighted average of common shares outstanding, and when dilutive, adjusted for the effect of all potentially dilutive shares, including share options, on an as-if converted basis.

In computing diluted earnings per share, income available to common shareholders used in the basic earnings per share calculation is adjusted to add back the after-tax amount of interest recognized in the year with respect to any debt convertible to common stock. The weighted-average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Diluted earnings per share is based on the most advantageous conversion rate or exercise price over the entire term of the instrument from the standpoint of the security holder. The calculation of diluted earnings per share excludes potential common shares if their effect is anti-dilutive (Note 28). 

Dividend distribution

2.28. Dividend distribution

Cash dividend distribution to the Group’s shareholders is recognized as a liability in the period in which the dividends are approved. Such amounts have been recorded either under Retained Earnings, if already forfeited or under Trade and Other Payables, if not forfeited.

Dividends income

2.29. Dividends income

Dividends earned are recorded when declared.

Comparative information

2.30. Comparative information

Balance items as of June 30, 2017 and 2016 shown in these Financial Statements for comparative purposes arise from Financial Statements then ended. Reclassifications have been made in the comparative information as of June 30, 2017 and 2016.

During the fiscal year ended June 30, 2018, 2017 and 2016, there was a devaluation of the Argentine peso in relation to the US Dollar that accounted for approximately 74%, 11% and 65%, respectively. This situation affects the comparability of figures disclosed in these Financial Statements, arising mainly from the impact of the exchange rate on our assets and liabilities in foreign currency.

Seasonal effects on operations

2.31. Seasonal effects on operations

The operations of the Group’s shopping mall are subject to seasonal effects, which affect the level of sales recorded by tenants. During summer time (January and February), the tenants of shopping mall experience the lowest sales levels in comparison with the winter holidays (July) and during the period of Christmas’ Seasons (December) when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping mall sales. Sale discounts at the end of each season also impact in the business. As a consequence, a higher level of revenues is generally expected in shopping mall operations during the second half of the year rather than the first.

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Summary of significant accounting policies (Tables)

12 Months Ended

Jun. 30, 2018

Summary Of Significant Accounting Policies

Schedule of operating and holding subsidiaries

The following standards, amendments and interpretations have been published by the IASB and by the IFRIC. Below we outline the standards, amendments and interpretations that may potentially have an impact on the Group at the time of application.

Standards and amendments adopted by the Group:

Standards and amendments	Description	Date of application by the Group
Cycle of annual improvements 2014-2016. IFRS 12 “Disclosure of Interests in other entities”.	Clarifies the standard scope.	06-30-2018
Amendments to IAS 7 "Disclosure about the statement of cash flows"	The entity shall disclose information so that users of the financial statements may assess the changes in liabilities resulting from financing activities, including both cash flow and non-cash-flow derivatives.	06-30-2018
Amendments to IAS 12 "Recognition of deferred tax assets for unrealized losses".	The amendments clarify the accounting of deferred income tax assets in the case of unrealized losses on instruments measured at fair value	06-30-2018

Standards and amendments not adopted yet by the Group

Standards and amendments	Description	Date of application by the Group
Amendments to IAS 40 "Transfers of investment properties"	The amendments clarify the conditions that should be met for an entity to transfer a property to, or from, investment properties.	06-30-2019
Cycle of annual improvements 2014-2016. IAS 28 “Investments in Associates and Joint ventures”.	It clarifies that the option to measure an associate or a joint venture at fair value for a qualifying entity is available upon initial recognition	06-30-2019
IFRS 16 "Leases".	The lessees are required to account for leases under one single model in the balance sheet that is similar to the one used to account for financial leases under IAS 17. There are two exceptions to this rule: to recognize the lease of low-cost assets and short-term leases. There is almost no change to lessor accounting.	06-30-2020
IFRS 9 “Financial Instruments”.	This version adds a new impairment model based on expected losses and introduces some minor amendments to the classification and measurement of financial assets.	06-30-2019
IFRS 15 “Revenue from contracts with customers”.	Provides the new revenue recognition model derived from contracts with customers. The core principle underlying the model is satisfaction of obligations assumed with customers. Applies to all contracts with customers, other than those covered by other IFRSs, such as leases, insurance and financial instruments contracts. The standard does not address recognition of interest or dividend income.	06-30-2019
Amendments to IFRS 2 "Share-based Payment".	The amendments clarify the scope of the standard in relation to: (i) accounting for the effects that the concession consolidation conditions have on cash settled share-based payments, (ii) the classification of the share-based payment transactions subject to net settlement, and (iii) accounting for the amendment of terms and conditions of the share-based payment transaction that reclassifies the transaction from cash settled to equity settled.	06-30-2019

Schedule of useful life

As of June 30, 2018 useful lives are as follows:

Other buildings and facilities	Between 1 and 22 years
Furniture and fixtures	Between 3 and 10 years
Machinery and equipment	Between 1 and 10 years
Vehicles	5 years
Other	3 years

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Significant judgments, key assumptions and estimates (Tables)

12 Months Ended

Jun. 30, 2018

Significant Judgments Key Assumptions And Estimates

Schedule of complexity, judgment or estimations involved in their application

Actual results may differ from these estimates.

Estimation	Main assumptions	Potential implications	Main references
Business combination - Allocation of acquisition prices	Assumptions regarding timing, amount of future revenues and expenses, revenue growth, expected rate of return, economic conditions, discount rate, among other.	If the assumptions made be inaccurate, the recognized combination may not be correct.	Note 4 – Acquisitions and dispositions
Recoverable amounts of cash-generating units (even those including goodwill), associates and assets.	The discount rate and the expected growth rate before taxes in connection with cash-generating units. The discount rate and the expected growth rate after taxes in connection with associates. Cash flows are determined based on past experiences with the asset or with similar assets and in accordance with the Group’s best factual assumption relative to the economic conditions expected to prevail. Business continuity of cash-generating units. Appraisals made by external appraisers and valuators with relation to the assets’ fair value, net of realization costs (including real estate assets).	If any of the assumptions made be inaccurate, this could lead to differences in the recoverable values of cash-generating units.	Note 10 – Property, plant and equipment Note 12 – Intangible assets
Estimated useful life of intangible assets and property, plant and equipment	Estimated useful life of assets based on their conditions.	Recognition of accelerated or decelerated depreciation by comparison against final actual earnings (losses).	Note 10 – Property, plant and equipment Note 12 – Intangible assets
Fair value valuation of investment properties	Fair value valuation made by external appraisers and valuators. See Note 9.	Incorrect valuation of investment property values	Note 9 – Investment properties
Income tax	The Group estimates the income tax amount payable for transactions where the Treasury’s Claim cannot be clearly determined. Additionally, the Group evaluates the recoverability of assets due to deferred taxes considering whether some or all of the assets will not be recoverable.	Upon the improper determination of the provision for income tax, the Group will be bound to pay additional taxes, including fines and compensatory and punitive interest.	Note 20 – Taxes
Allowance for doubtful accounts	A periodic review is conducted of receivables risks in the Group’s clients’ portfolios. Bad debts based on the expiration of account receivables and account receivables’ specific conditions.	Incorrect recognition of charges / reimbursements of the allowance for bad debt.	Note 14 – Trade and other receivables
Level 2 and 3 financial instruments	Main assumptions used by the Group are: ·      Discounted projected income by interest rate ·      Values determined in accordance with the shares in equity funds on the basis of its Financial Statements, based on fair value or investment assessments. ·      Comparable market multiple (EV/GMV ratio). ·      Underlying asset price (Market price); share price volatility (historical) and market interest-rate (Libor rate curve).	Incorrect recognition of a charge to income / (loss).	Note 13 – Financial instruments by category
Probability estimate of contingent liabilities.	Whether more economic resources may be spent in relation to litigation against the Group; such estimate is based on legal advisors’ opinions.	Charge / reversal of provision in relation to a claim.	Note 19 – Provisions

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Financial Risk Management (Tables)

12 Months Ended

Jun. 30, 2018

Financial Risk Management

Schedule of net amounts of the financial instruments

All amounts are presented in Argentine Pesos, the presentation currency of the Group:

	Net monetary position liability
	06.30.18	06.30.17
Borrowing position with third parties	(9,697,165)	(5,267,218)
Lending position with related parties	360,966	315,194
Net monetary position	(9,336,199)	(4,952,024)

Schedule of interest payable

Where the interest payable is not fixed, the amount disclosed has been determined by reference to the conditions existing at each reporting date.

At June 30, 2018	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	More than 4 years	Total
Trade and other payables	776,952	71,444	3,670	2,498	-	854,564
Borrowings (excluding finance lease liabilities)	1,138,838	1,387,782	5,374,580	1,235,747	11,381,419	20,518,366
Finance leases	6,945	6,498	1,803	-	-	15,246
Derivative financial instruments	264	-	-	-	46,447	46,711
Total	1,922,999	1,465,724	5,380,053	1,238,245	11,427,866	21,434,887

At June 30, 2017	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	More than 4 years	Total
Trade and other payables	480,612	5,940	4,570	1,497	1,489	494,108
Borrowings (excluding finance lease liabilities)	787,406	523,845	523,845	523,845	6,748,934	9,107,875
Finance leases	1,690	968	668	-	-	3,326
Derivative financial instruments	4,950	-	-	-	-	4,950
Total	1,274,658	530,753	529,083	525,342	6,750,423	9,610,259

Schedule of Groups key metrics in relation to managing its capital structure

The following table details a number of the Group’s key metrics in relation to managing its capital structure. The ratios are within the ranges previously established by the Group’s strategy.

	06.30.18	06.30.17
Gearing ratio (i)	29.21%	21.13%
Debt ratio (ii)	28.66%	16.94%

(i) Calculated as total current and non-current borrowings divided by total current and non-current borrowings plus equity.

(ii) Calculated as total current and non-current borrowings divided by total properties at fair value (including trading properties, property, plant and equipment, investment properties and units to be received under barter agreements).

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Segment reporting (Tables)

12 Months Ended

Jun. 30, 2018

Disclosure of operating segments [abstract]

Schedule of reconciliation between results of operations corresponding to segment information and the results of operations as per the statements of comprehensive income

The following is a summary analysis of the Group's business segments, corresponding to the fiscal years ended June 30, 2018, 2017 and 2016. Additionally, a reconciliation between results of operations corresponding to segment information and the results of operations as per the statements of comprehensive income; and total assets by segment and total assets according to the statement of financial position. The information by segments has been prepared and classified according to the businesses in which the Group carries out its activities: 

	06.30.18
	Shopping Malls	Offices	Sales and developments	Others	Total segmet reporting	Adjustment for expenses and collective promotion funds	Adjustment for share in profit/ (loss) of joint ventures	Total as per Statement of Comprehensive Income
Revenue	3,664,651	492,096	105,525	9,326	4,271,598	1,717,000	(39,392)	5,949,206
Operating costs	(329,785)	(48,407)	(18,688)	(19,752)	(416,632)	(1,747,051)	24,236	(2,139,447)
Gross profit (loss)	3,334,866	443,689	86,837	(10,426)	3,854,966	(30,051)	(15,156)	3,809,759
Net gain from fair value adjustment of investment properties	11,340,085	5,042,427	1,000,147	45,580	17,428,239	-	(738,122)	16,690,117
General and administrative expenses	(320,234)	(39,438)	(38,566)	(18,100)	(416,338)	-	1,096	(415,242)
Selling expenses	(238,170)	(47,362)	(10,635)	(1,955)	(298,122)	-	3,257	(294,865)
Other operating results, net	(56,451)	348	33,569	13,684	(8,850)	-	3,945	(4,905)
Profit (Loss) from operations	14,060,096	5,399,664	1,071,352	28,783	20,559,895	(30,051)	(744,980)	19,784,864
Share in profit of associates and joint ventures	-	-	-	20,171	20,171	-	619,354	639,525
Segment profit (loss) before financing and Taxation	14,060,096	5,399,664	1,071,352	48,954	20,580,066	(30,051)	(125,626)	20,424,389
Investment properties	40,467,248	12,625,243	2,394,577	191,667	55,678,735	-	(1,623,924)	54,054,811
Property, plant and equipment	55,952	53,956	-	-	109,908	-	(471)	109,437
Trading properties	-	-	61,568	-	61,568	-	-	61,568
Goodwill	1,323	3,913	-	100,861	106,097	-	(5,236)	100,861
Rights to receive units (barter transactions)	-	-	26,596	-	26,596	-	-	26,596
Inventories	25,492	-	-	-	25,492	-	(610)	24,882
Investments in associates and joint ventures	-	-	-	189,815	189,815	-	1,243,343	1,433,158
Operating assets	40,550,015	12,835,487	2,482,741	329,968	56,198,211	-	(386,898)	55,811,313

	06.30.17
	Shopping Malls	Offices	Sales and developments	Others	Total segmet reporting	Adjustment for expenses and collective promotion funds	Adjustment for share in profit/ (loss) of joint ventures	Total as per Statement of Comprehensive Income
Revenue	3,046,588	401,767	99,136	891	3,548,382	1,488,187	(39,407)	4,997,162
Operating costs	(349,445)	(27,908)	(22,534)	(48)	(399,935)	(1,512,738)	12,887	(1,899,786)
Gross profit (loss)	2,697,143	373,859	76,602	843	3,148,447	(24,551)	(26,520)	3,097,376
Net gain from fair value adjustmentof investment properties	2,068,103	1,064,586	193,187	-	3,325,876	-	(192,463)	3,133,413
General and administrative expenses	(261,475)	(31,464)	(30,483)	(1,539)	(324,961)	-	2,785	(322,176)
Selling expenses	(188,081)	(33,871)	(13,740)	(2,982)	(238,674)	-	2,146	(236,528)
Other operating results, net	(57,712)	(6,731)	(4,062)	16,183	(52,322)	-	1,103	(51,219)
Profit (Loss) from operations	4,257,978	1,366,379	221,504	12,505	5,858,366	(24,551)	(212,949)	5,620,866
Share in profit of associates and joint ventures	-	-	-	13,677	13,677	-	139,026	152,703
Segment profit (loss) before Financing and Taxation	4,257,978	1,366,379	221,504	26,182	5,872,043	(24,551)	(73,923)	5,773,569
Investment properties	28,799,277	6,841,517	1,158,695	-	36,799,489	-	(882,607)	35,916,882
Property, plant and equipment	55,409	65,663	-	-	121,072	-	(536)	120,536
Trading properties	-	-	61,600	-	61,600	-	-	61,600
Goodwill	1,323	3,913	-	26,375	31,611	-	(5,236)	26,375
Rights to receive units (barter transactions)	-	-	27,560	-	27,560	-	-	27,560
Inventories	23,260	-	-	-	23,260	-	(538)	22,722
Investments in associates	-	-	-	197,605	197,605	-	593,815	791,420
Operating assets	28,879,269	6,911,093	1,247,855	223,980	37,262,197	-	(295,102)	36,967,095

	06.30.16
	Shopping Malls	Offices	Sales and developments	Others	Total segmet reporting	Adjustment for expenses and collective promotion funds	Adjustment for share in profit/ (loss) of joint ventures	Total as per Statement of Comprehensive Income
Revenue	2,409,082	284,137	2,679	1,013	2,696,911	1,183,627	(22,038)	3,858,500
Operating costs	(250,306)	(12,254)	(5,720)	(77)	(268,357)	(1,201,305)	9,458	(1,460,204)
Gross profit (loss)	2,158,776	271,883	(3,041)	936	2,428,554	(17,678)	(12,580)	2,398,296
Net gain from fair value adjustmentof investment properties	16,131,702	867,413	425,114	-	17,424,229	-	(331,826)	17,092,403
General and administrative expenses	(178,643)	(23,308)	(20,296)	-	(222,247)	-	667	(221,580)
Selling expenses	(145,278)	(12,824)	(4,264)	(1,835)	(164,201)	-	1,980	(162,221)
Other operating results, net	(61,556)	(1,377)	(7,831)	(18)	(70,782)	-	2,230	(68,552)
Profit (Loss) from operations	17,905,001	1,101,787	389,682	(917)	19,395,553	(17,678)	(339,529)	19,038,346
Share in profit of associates and joint ventures	-	-	-	(11,017)	(11,017)	-	215,316	204,299
Segment profit (loss) before Financing and Taxation	17,905,001	1,101,787	389,682	(11,934)	19,384,536	(17,678)	(124,213)	19,242,645
Investment properties	26,633,273	4,876,164	1,362,670	-	32,872,107	-	(638,011)	32,234,096
Property, plant and equipment	49,053	69,870	-	-	118,923	-	(598)	118,325
Trading properties	-	-	48,029	-	48,029	-	-	48,029
Goodwill	1,323	3,911	-	-	5,234	-	(5,234)	-
Rights to receive units (barter transactions)	-	-	38,281	-	38,281	-	-	38,281
Inventories	18,560	-	-	-	18,560	-	(358)	18,202
Investments in associates	-	-	-	134,527	134,527	-	463,232	597,759
Operating assets	26,702,209	4,949,945	1,448,980	134,527	33,235,661	-	(180,969)	33,054,692

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Information about subsidiaries (Tables)

12 Months Ended

Jun. 30, 2018

Information About Subsidiaries

Schedule of subsidiaries

The subsidiaries are shown by percentage of participation held by the Group:

			06.30.18		06.30.17
Name of the entity	Place of business / Country of incorporation	Main activity	% of ownership interest held	% of ownership interest held  by non-controlling interests	% of ownership interest held	% of ownership interest held  by non-controlling interests
Fibesa S.A.	Argentina	Mandatary	100.00%	-	100.00%	-
Centro de Entretenimientos La Plata S.A.	Argentina	Real estate	100.00%	-	-	-
Torodur S.A.	Uruguay	Investment	100.00%	-	100.00%	-
Shopping Neuquén S.A.	Argentina	Real estate	99.95%	0.05%	99.92%	0.08%
Arcos del Gourmet S.A.	Argentina	Real estate	90.00%	10.00%	90.00%	10.00%
Panamerican Mall S.A.	Argentina	Real estate	80.00%	20.00%	80.00%	20.00%
Entertainment Holdings S.A.	Argentina	Investment	70.00%	30.00%	70.00%	30.00%
Emprendimiento Recoleta S.A.	Argentina	Real estate	53.68%	46.32%	53.68%	46.32%

Schedule of financial information of subsidiaries

Below is the summarized financial information of subsidiaries with material non-controlling interests which are considered significant for the Group, presented before intercompany eliminations.

	Current assets	Non-current assets	Current liabilities	Non-current liabilities	Net assets	% of ownership interest held by non-controlling interests	Book value of non-controlling interest	% of ownership interest held  by controlling interests	Book amount
06.30.18	684,125	8,651,271	399,058	2,874,630	6,061,708	20%	1,211,783	80%	4,847,130
06.30.17	424,643	5,136,295	228,464	1,659,926	3,672,548	20%	734,510	80%	2,938,038

	Revenues	Comprehensive income for the year	Cash from operating activities	Cash from investing activities	Cash from financing activities	Net increase in cash and cash equivalents	Dividends paid to non-controlling interest
06.30.18	649,681	2,571,160	300,458	(712,855)	446,230	33,833	36,400
06.30.17	545,783	423,749	(4,917)	215,148	(153,121)	57,110	42,598

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Interests in joint ventures (Tables)

12 Months Ended

Jun. 30, 2018

Interests In Joint Ventures

Schedule of financial information in joint ventures

Set out below is the summarized financial information for the joint ventures considered to be material to the Group:

	Current assets	Non-current assets	Current liabilities	Non-current liabilities	Net assets	% of ownership interest	Book value of non-controlling interest	Goddwill and others	Book amount
06.30.18
Quality Invest S.A	4,888	2,820,477	64,283	648,184	2,112,898	50%	1,056,449	3,911	1,061,610
Tarshop	4,979,104	1,446,607	5,182,946	772,227	470,538	20%	94,108	-	94,108
06.30.17
Quality Invest S.A	17,804	1,486,497	82,300	466,009	955,992	50%	477,996	3,911	481,907
Tarshop	4,752,937	1,132,158	4,222,263	1,259,347	403,485	20%	80,697	-	80,694

	Revenues	Comprehensive income for the year	Cash from operating activities	Cash from investing activities	Cash from financing activities	Net increase (decrease) in cash and cash equivalents
06.30.18
Quality Invest S.A	12,538	1,078,880	(79,768)	(495)	80,270	7
Tarshop S.A.	3,854,868	67,073	(431,855)	(7,620)	395,160	(44,315)
06.30.17
Quality Invest S.A	26,435	237,304	(10,586)	(253)	10,833	(6)
Tarshop S.A.	1,622,801	26,033	(772,527)	(11,081)	808,132	24,524

Schedule of groups participation in the comprehensive results

Below is shown a detail of the investment and values of shares held by de Group in associates and joint ventures as of June 30, 2018 and 2017, as well as the Group's participation in the comprehensive results of these companies as of June 30, 2018, 2017 and 2016:

Name of the entity	% of ownership interest			Value of Company’s interest in equity		Company’s interest in comprehensive income
	06.30.18	06.30.17	06.30.16	06.30.18	06.30.17	06.30.18	06.30.17	06.30.16
Joint ventures
Quality Invest S.A.	50.00%	50.00%	50.00%	1,061,850	481,907	540,930	118,652	154,072
Nuevo Puerto Santa Fe S.A. (1)(5)	50.00%	50.00%	50.00%	181,493	111,908	78,424	20,374	61,244
La Rural S.A.(2)	50.00%	50.00%	-	92,923	113,365	13,728	15,314	-
Entertainment Holdings S.A.	-	-	50.00%	-	-	-	-	20,419
Entretenimiento Universal S.A	-	-	2.50%	-	-	-	-	11
Associates
Tarshop S.A.(2)	20.00%	20.00%	20.00%	94,108	80,694	13,415	5,207	(31,447)
Otra asociadas (3)				2,784	3,546	(6,972)	(6,844)	-
Total interests in associates and joint ventures (4)				1,433,158	791,420	639,525	152,703	204,299

Name of the entity	Place of business / Country of incorporation	Main activity	Common shares	Last financial statements issued
				Share capital (nominal value)	Income for the year	Equity
Joint ventures
Quality Invest S.A.	Argentina	Real estate	120,827,022	241,654	1,078,880	2,112,897
Nuevo Puerto Santa Fe S.A. (1)(5)	Argentina	Real estate	138,750	27,750	156,848	360,340
La Rural S.A.  (2)	Argentina	Event organization and others	714,498	1,430	77,598	156,856
Associates
Tarshop S.A. (2)	Argentina	Consumer financing	48,759,288	598,796	67,073	470,538

(1)   Nominal value per share Ps. 100.

(2)   Correspond to profit for the fiscal year ended at June 30, 2018 and 2017.

(3)   Represents other individually non-significant associates.

(4)   Includes Ps 364 and Ps. 206. as of June 30, 2018 and 2017, respectively, in relation to the equity interest in Avenida Compras disclosed under. (See Note 19)

(5)   Include the necessary adjustments to arrive at balances under international financial reporting standards.

Schedule of group's investments in associates and joint ventures

Changes in the Group’s investments in associates and joint ventures for the years ended June 30, 2018 and 2017 were as follows:

	06.30.18	06.30.17
Beginning of the year	791,420	597,759
Profit sharing, net	639,525	152,703
Irrevocable contributions (Note 29)	43,574	3,000
Capital contributions (Note 29)	1,649	-
Dividends distributed (Note 29)	(43,010)	(20,284)
Incorporation as result of business combination, net (i)	-	47,852
Acquisitions of companies	-	10,390
End of the year (4)	1,433,158	791,420

(i) In July 2016, the Group through IRSA Propiedades Comerciales acquired 20% shareholding in Entertainment Holdings S.A (EHSA). It also acquired 1.25% interest in Entretenimiento Universal S.A. (“ENUSA”). The amount paid for the acquisition was Ps. 53 million. As a result, the Group now holds 70% of the voting stock of EHSA (Note 4).

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Investment properties (Tables)

12 Months Ended

Jun. 30, 2018

Disclosure of detailed information about investment property [abstract]

Schedule of investment properties

The following table shows the Group’s hierarchy of fair values per investment property category and the changes in the investment property’s balances for the fiscal years ended June 30, 2018 and 2017:

	Shopping malls	Office and other rental properties	Undeveloped parcels of land	Properties under development	Others (*)	Total
Fair value hierarchy	3	2	2	2	3
Fair value as of 06.30.16	26,425,132	4,446,294	1,355,500	7,170	-	32,234,096
Additions	100,002	466,332	5,539	107,194	-	679,067
Capitalization of financial costs (Note 27)	-	-	-	2,310	-	2,310
Capitalized lease costs	1,397	3,349	-	20,052	-	24,798
Depreciation of capitalized lease costs  (i)	(636)	(1,366)	-	-	-	(2,002)
Transfers	-	(80,160)	(330,366)	410,526	-	-
Transfer to trading properties (Note 11)	(13,617)	-	-	-	-	(13,617)
Disposals	-	(141,183)	-	-	-	(141,183)
Net gain from fair value adjustment on investment properties (ii)	2,048,501	905,487	128,022	51,403	-	3,133,413
Fair value as of 06.30.17	28,560,779	5,598,753	1,158,695	598,655	-	35,916,882
Additions	106,901	504	256,505	982,760	-	1,346,670
Incorporation as result of business combination (Note 15)	-	-	-	-	106,795	106,795
Capitalization of financial costs (Note 27)	-	-	-	14,385	-	14,385
Capitalized lease costs	12,930	3,940	-	1,290	-	18,160
Depreciation of capitalized lease costs  (i)	(1,961)	(2,479)	-	-	-	(4,440)
Transfers	343	-	-	(343)	-	-
Transfer to property plant and equipment (Note10)	-	(3,026)	-	-	-	(3,026)
Disposals	(1,250)	(29,482)	-	-	-	(30,732)
Net gain from fair value adjustment on investment properties(iiI)	11,200,624	4,060,764	979,377	403,772	45,580	16,690,117
Fair value as of 06.30.18	39,878,366	9,628,974	2,394,577	2,000,519	152,375	54,054,811

(i)    As of June 30, 2018 and 2017 depreciation charges were included in “Costs” in the amount of Ps 4,440 and Ps. 2,002, respectively, in the statement of comprehensive income (Note 25)

(ii)   For fiscal year 2017 the increase in the value of our investment properties as measured in Pesos was primarily due to: (i) a 16 basis points decrease in the discount rate applied in calculating the discounted cash flows appraisal method to appraise our shopping mall properties that resulted in increases in value, mainly as a result of macroeconomic improvements that led to a decrease in the cost of capital; and (ii) the Peso depreciated by approximately 11% against the U.S. dollar. The value of our offices properties is booked in U.S. dollars per accepted practice in the Argentine real estate. The appraised values of our shopping mall properties increased 8.1% during fiscal 2017 largely due to a decreased in our capital cost. The appraised value of our office buildings increased 40.3% in fiscal 2017 largely as a result of the impact of the depreciation of the Peso and higher rental rates during the period.

(iii)   For fiscal year 2018 the net impact in the peso values of the Company’s properties was primarily a consequence of the change in the macroeconomic conditions: (i) depreciation of Argentine peso of 73% against the U.S. dollar; (ii) an increase in the projected inflation rate, with the resulting increase in the cash flow of revenues of shopping malls; (iii) an increase of 44 basis points in the discount rate; and (iv) an additional effect due to in the income tax rate used in the methodology applied to value discounted cash flows; such amendment was set forth by the fiscal reform recently approved (See note 20). The values of our shopping mall properties increased 40.4% during the fiscal year ended June 30, 2018, largely due to the change in the applicable income tax rate and the impact of the depreciation of the peso, partially offset by an increase in the discount rate. The value of our office buildings increased 85.7% during the fiscal year ended June 30, 2018 largely as a result of the impact of the depreciation of the peso and higher rental rates for our properties.

(*)        Corresponds to the DirectTV Arena Stadium.

Schedule of fair value measurements of investment properties

The following table presents information regarding the fair value measurements of investment properties using significant unobservable inputs (Level 3): 

June 30, 2018

Property type	Valuation technique	Discount rate	Growth rate
Shopping Malls	Discounted cash flow	9.79%	3%

For the next 5 years the Group considered an average exchange rate Ps./USD with increasing trend that begins at Ps. 19.51 (corresponding to the year ended June 30, 2018) and ends at Ps. 49.05. Over the long term, the model assumes a nominal depreciation rate of the peso of 5.6%, estimated based on the projected inflation rates of Argentina and US. The inflation considered shows a decreasing trend, beginning at 25% (corresponding to the year ended June 30, 2018) and leveling off at around 8% in 10 years. The premises were determinated of the closing date of the fiscal year. 

June 30, 2017

Property type	Valuation technique	Discount rate	Growth rate
Shopping Malls	Discounted cash flow	9.35%	3%

For the next 5 years the Group considered an average exchange rate Ps./USD with increasing trend that begins at Ps. 15.45 (corresponding to the year ended June 30, 2017) and ends at Ps. 27.66. Over the long term, the model assumes a nominal depreciation rate of the peso of 5.5%, estimated based on the projected inflation rates of Argentina and US. The inflation considered shows a decreasing trend, beginning at 31% (corresponding to the year ended June 30, 2017) and leveling off at around 8% in 10 years.

Schedule of sensitivity of unobservable assumptions

Sensitivity of unobservable assumptions - Shopping malls (in millions of pesos):

	Discount rate + 1%	Discount rate  -1%	Growth rate + 1 %	Growth rate - 1 %	Inflation + 10% (1)	Inflation - 10% (2)	Devaluation rate + 10% (3)	Devaluation rate - 10% (4)
2018	(5,046)	6,796	3,104	(2,307)	4,035	(3,643)	(3,575)	4,369
2017	(3,948)	5,445	2,464	(1,794)	2,684	(2,425)	(2,565)	3,135

(1) assume a 10% higher inflation rate for each period vis-a-vis projected rates.

(2) assume a 10% lower inflation rate for each period vis-a-vis projected rates.

(3) assume a 10% higher exchange rate for each period vis-a-vis projected rates.

(4) assume a 10% lower exchange rate for each period vis-a-vis projected rates.

Schedule of recognized in the statements of comprehensive income

The following amounts have been recognized in the statements of comprehensive income:

	06.30.18	06.30.17	06.30.16
Revenues from rental and services (Note 24)	4,128,454	3,409,292	2,672,701
Expenses and collective promotion fund (Note 24)	1,717,000	1,488,187	1,183,627
Rental and services costs (Note 25)	(2,120,715)	(1,874,392)	(1,454,409)
Net unrealized gain from fair value adjustment on investment properties	16,669,347	3,068,248	16,919,859
Net realized gain from fair value adjustment on investment properties	20,770	65,165	172,544

Schedule of net book value of mortgaged properties

The net book value of those properties as of June 30, 2018 and 2017 is as follows:

	06.30.18	06.30.17
Córdoba Shopping (i)	1,112,547	759,103
Total	1,112,547	759,103

(i) A portion of the Córdoba Shopping mall property is encumbered with an antichresis right as collateral for an advance rent received from NAI International II Inc. amounting to Ps. 9.6 million and Ps. 12.2 million, as of June 30, 2018 and 2017, respectively, (included in “Trade and other payables” in the statement of financial position).

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Property, plant and equipment (Tables)

12 Months Ended

Jun. 30, 2018

Property, plant and equipment [abstract]

Schedule of property, plant and equipment

Changes in the Group’s property, plant and equipment for the years ended June 30, 2018 and 2017 are as follows:

	Other buildings and facilities	Furniture and fixtures	Machinery and equipment	Vehicles	Othes	Total
As of June 30, 2016
Costs	88,118	22,583	124,586	3,154	56	238,497
Accumulated depreciation	(18,390)	(11,018)	(89,423)	(1,341)	-	(120,172)
Net book amount as of 06.30.16	69,728	11,565	35,163	1,813	56	118,325
Additions	509	3,958	19,345	-	54	23,866
Depreciation charges (i)	(4,772)	(2,321)	(13,989)	(573)	-	(21,655)
As of June 30, 2017	65,465	13,202	40,519	1,240	110	120,536
Costs	88,627	26,541	143,931	3,154	110	262,363
Accumulated depreciation	(23,162)	(13,339)	(103,412)	(1,914)	-	(141,827)
Net book amount as of 06.30.17	65,465	13,202	40,519	1,240	110	120,536
Additions	3,235	991	20,563	-	-	24,789
Transfers from investment properties (Note 9)	3,026	-	-	-	-	3,026
Disposals	(12,379)	-	-	-	-	(12,379)
Incorporation as result of business combination (Note 15)	-	-	67	126	-	193
Depreciation charges (i)	(5,580)	(2,253)	(18,323)	(572)	-	(26,728)
As of June 30, 2018	53,767	11,940	42,826	794	110	109,437
Costs	82,509	27,532	164,561	3,280	110	277,992
Accumulated depreciation	(28,742)	(15,592)	(121,735)	(2,486)	-	(168,555)
Net book amount as of 06.30.18	53,767	11,940	42,826	794	110	109,437

(i) As of June 30, 2018 and 2017, depreciation charges were charged to “Costs” in the amount of Ps. 23,218 and Ps. 18,126, respectively, to “General and administrative expenses” in the amount of Ps. 3,324 and Ps. 3,253, respectively and to “Selling expenses” in the amount of Ps. 186 and Ps. 276, respectively, in the Statements of Comprehensive Income (Note 25).

Schedule of book amount of computer equipment under non-cancellable finance lease agreements

Book amount of this equipment, included in class "Machinery and equipment”, is as follows:

	06.30.18	06.30.17
Costs – capitalized finance leases	12,658	9,217
Accumulated depreciation	(4,427)	(7,333)
Net book amount	8,231	1,884

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Trading properties (Tables)

12 Months Ended

Jun. 30, 2018

Trading Properties

Schedule of trading properties

Changes in trading properties for the fiscal years ended June 30, 2018 and 2017 are as follows:

	Completed properties	Undeveloped sites	Total
As of June 30, 2016	387	47,642	48,029
Transfers from investment properties (Note 9)	-	13,617	13,617
Transfers from intangible assets (Note 12)	12,857	-	12,857
Disposals (i)	(12,903)	-	(12,903)
As of June 30, 2017	341	61,259	61,6
Transfers from intangible assets (Note 12)	8,837	-	8,837
Disposals (i)	(8,869)	-	(8,869)
As of June 30, 2018	309	61,259	61,568

	Net book amount
Description	06.30.18	06.30.17	Date of acquisition
Undeveloped sites:
Air space Coto	6,024	6,024	Sep-97
Córdoba plot of land	15,544	15,544	May-15
Córdoba plot of land (Shopping)	23,935	23,935	Dec-06
Residencial project Neuquén	15,756	15,756	May-06
Total undeveloped sites	61,259	61,259
Completed properties:
Condominios II	309	341	Nov-13
Total completed properties	309	341
Total trading properties	61,568	61,600
Non-current	61,362	61,600
Current	206	-
Total	61,568	61,600

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Intangible assets (Tables)

12 Months Ended

Jun. 30, 2018

Intangible Assets

Schedule of intangible assets

Changes in the Group’s intangible assets for the fiscal years ended June 30, 2018 and 2017 are as follows:

	Goodwill	Software	Rights of use (ii)	Right to receive units (Barters) (iii)	Others	Total
As of June 30, 2016
Costs	-	16,829	20,873	38,281	11,861	87,844
Accumulated depreciation	-	(15,098)	(1,414)	-	(4,193)	(20,705)
Net book amount as of 06.30.16	-	1,731	19,459	38,281	7,668	67,139
Additions	-	33,650	-	2,136	-	35,786
Incorporation as result of business combination (Note 15)	26,375	-	-	-	-	26,375
Transfers to trading properties (Note 11)	-	-	-	(12,857)	-	(12,857)
Amortization charge (i)	-	(2,271)	(419)	-	(2,193)	(4,883)
As of June 30, 2017	26,375	33,110	19,040	27,560	5,475	111,560
Costs	26,375	50,479	20,873	27,560	11,861	137,148
Accumulated depreciation	-	(17,369)	(1,833)	-	(6,386)	(25,588)
Net book amount as of 06.30.17	26,375	33,110	19,040	27,560	5,475	111,560
Additions	-	41,915	-	7,873	-	49,788
Incorporation as result of business combination (Note 15)	74,486	-	-	-	-	74,486
Transfers to trading properties (Note 11)	-	-	-	(8,837)	-	(8,837)
Amortization charge (i)	-	(10,422)	(1,333)	-	(2,191)	(13,946)
As of June 30, 2018	100,861	64,603	17,707	26,596	3,284	213,051
Costs	100,861	92,394	20,873	26,596	11,861	252,585
Accumulated depreciation	-	(27,791)	(3,166)	-	(8,577)	(39,534)
Net book amount as of 06.30.18	100,861	64,603	17,707	26,596	3,284	213,051

(i) As of June 30, 2018 and 2017, depreciation charges were charged to “Costs” in the amount of Ps. 5,643 and Ps. 2,094, respectively, to “General and administrative expenses” in the amount of Ps. 8,174 and Ps. 2,700, respectively and to “Selling expenses” in the amount of Ps. 129 and Ps. 89, respectively, in the Statements of Comprehensive Income (Note 25). There are no impairment charges for any of the reported years.

(ii) Corresponds to Distrito Arcos.

(iii) Corresponds to in-kind receivables representing the right to receive residential apartments in the future under barter transactions (Note 32).

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Financial instruments by category (Tables)

12 Months Ended

Jun. 30, 2018

Financial Instruments By Category

Schedule of financial assets and financial liabilities

Financial assets and financial liabilities as of June 30, 2018 were as follows:

	Financial assets at amortized cost (i)	Financial assets at fair value through profit or loss			Subtotal financial assets	Non-financial assets	Total
June 30, 2018		Level 1	Level 2	Level 3
Assets as per statement of financial position
Trade and other receivables (excluding allowance for doubtful accounts) (Note 14)	1,424,384	-	-	-	1,424,384	1,498,699	2,923,083
Investments in financial assets:
- Investment in equity public companies	-	201,699	-	-	201,699	-	201,699
- Non-convertible notes issued by related parties (Notes 29 and 31)	-	248,544	-	-	248,544	-	248,544
- Mutual funds	-	1,163,536	-	-	1,163,536	-	1,163,536
- ETF funds	-	121,971	-	-	121,971	-	121,971
- Government bonds	-	2,848,848	-	-	2,848,848	-	2,848,848
- Non-Convertible Notes TGLT	-	-	-	580,462	580,462	-	580,462
- Financial trusts	9,542	-	-	-	9,542	-	9,542
Derivative financial instruments
- Futures contracts	-	-	47,360	-	47,360	-	47,360
Cash and cash equivalents:
- Cash at banks and on hand	1,199,068	-	-	-	1,199,068	-	1,199,068
- Short- term investments	-	2,444,063	-	-	2,444,063	-	2,444,063
Total	2,632,994	7,028,661	47,360	580,462	10,289,477	1,498,699	11,788,176

	Financial liabilities at amortized cost (i)	Financial liabilities at fair value through profit or loss	Subtotal financial liabilities	Non-financial liabilities	Total
		Level 2
Liabilities as per statement of financial position
Trade and other payables (Note 17)	853,305	-	853,305	1,501,155	2,354,460
Derivative financial instruments
- United States treasury bonds	-	263	263	-	263
- Swaps of interest rate (ii)	-	46,448	46,448	-	46,448
Borrowings (excluding finance leases liabilities) (Note 18)	15,653,804	-	15,653,804	-	15,653,804
Total	16,507,109	46,711	16,553,820	1,501,155	18,054,975

Financial assets and financial liabilities as of June 30, 2017 were as follows:

	Financial assets at amortized cost (i)	Financial assets at fair value through profit or loss	Subtotal financial assets	Non-financial assets	Total
		Level 1
June 31, 2017
Assets as per statement of financial position
Trade and other receivables (excluding allowance for doubtful accounts) (Note 14)	1,096,254	-	1,096,254	1,266,624	2,362,878
Investments in financial assets:
- Investment in equity public companies	-	157,689	157,689	-	157,689
- Non-convertible notes issued by related parties (Notes 29 and 31)	-	267,365	267,365	-	267,365
- Mutual funds	-	196,016	196,016	-	196,016
- EFT funds	-	70,148	70,148	-	70,148
- Government bonds	-	555,748	555,748	-	555,748
- Restringed assets (*) (Note 31)	49,525	-	49,525	-	49,525
Cash and cash equivalents:
- Cash at banks and on hand	119,705	-	119,705	-	119,705
- Short- term investments	-	1,687,839	1,687,839	-	1,687,839
Total	1,265,484	2,934,805	4,200,289	1,266,624	5,466,913

(*) Represents cash related to the Employee Capitalization Plan.

	Financial liabilities at amortized cost (i)	Financial liabilities at fair value through profit or loss	Subtotal financial liabilities	Non-financial liabilities	Total
		Level 2
Liabilities as per statement of financial position
Trade and other payables (Note 17)	492,944	-	492,944	1,018,636	1,511,580
Derivative financial instruments
- Futures contracts	-	4,950	4,950	-	4,950
- Borrowings (excluding finance leases liabilities) (Note 18)	6,164,838	-	6,164,838	-	6,164,838
Total	6,657,782	4,950	6,662,732	1,018,636	7,681,368

(i) The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value.

(ii)    The maturity date is February 16, 2023 and it is associated with the loan obtained through its subsidiary, Panameriacan Mall S.A, with the purpose of paying for the work that is being carried out at the Polo Dot (Note 18).

Schedule of book value of financial instruments recognized

The following are details of the book value of financial instruments recognized, which were offset in the statements of financial position:

	06.30.18			06.30.17
	Gross amounts recognized	Gross amounts offset	Net amount presented	Gross amounts recognized	Gross amounts offset	Net amount presented
Financial assets
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables)	1,507,724	(83,340)	1,424,384	1,182,876	(86,622)	1,096,254
Financial liabilities
Trade and other payables	(936,645)	83,340	(853,305)	(579,566)	86,622	(492,944)

Schedule of derivative financial instrument

Results of derivative financial instruments are included in “Financial results, net” in the statements of comprehensive income (Note 27) and can be assigned to the following categories:

	Financial assets / (liabilities) at amortized cost	Financial assets / (liabilities) at fair value through profit or loss	Total
June 30, 2018
Interest income	234,947	5,031	240,005
Dividend income	34,172	-	34,172
Interest expense	(928,218)	-	(928,218)
Foreign exchange losses, net	(5,993,197)	-	(5,993,197)
Other finance costs	(117,445)	-	(117,445)
Fair value gains of financial assets through profit or loss	-	2,041,061	2,041,061
Gain from derivative financial instruments	-	227,378	227,378
Net (loss) income	(6,769,741)	2,273,470	(4,496,244)

	Financial assets / (liabilities) at amortized cost	Financial assets / (liabilities) at fair value through profit or loss	Total
June 30, 2017
Interest income	177,892	6,404	184,296
Dividend income	9,705	-	9,705
Interest expense	(639,768)	-	(639,768)
Foreign exchange losses, net	(550,408)	-	(550,408)
Other finance costs	(77,033)	-	(77,033)
Fair value gains of financial assets through profit or loss	-	203,087	203,087
Gain from derivative financial instruments	-	81,105	81,105
Loss from repurchase of non-convertible notes	-	(168)	(168)
Net (loss) income	(1,079,612)	290,428	(789,184)

	Financial assets / (liabilities) at amortized cost	Financial assets / (liabilities) at fair value through profit or loss	Total
June 30, 2016
Interest income	94,541	7,628	102,169
Interest expense	(612,486)	-	(612,486)
Foreign exchange losses, net	(1,815,553)	-	(1,815,553)
Other finance costs	(100,051)	-	(100,051)
Fair value gains of financial assets through profit or loss	-	466,328	466,328
Gain from derivative financial instruments	-	1,248,374	1,248,374
Net (loss) income	(2,433,549)	1,722,330	(711,219)

Schedule of range of valuation models for the measurement of Level 2 and Level 3 instruments

When no quoted prices in an active market are available, fair values are based on recognized valuation methods. The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table: 

Description	Pricing model	Parameters	Fair value hierarchy	Range
Foreign-currency contracts	Present value method - Theoretical price	Money market curve; Interest curve	Level 2	-
Foreign exchange curve
Arcos del Gourmet S.A. purchase option	Discounted cash flow	Projected revenues and discount rate	Level 3	Projected income: USD 0,5MM – USD 1MM Discount rate 8.7% - 9.5%
Non-Convertible Notes - TGLT	Black & Scholes - Black & Scholes	Price and volatility of the subjacent	Level 3	Price: Ps. 13 - Ps. 16 Volatility of the subjacent: 40% - 60% Market interest rate: 6% - 7%
Market Interest rate
Swaps of interest rate	Discounted cash flow	Interest rate futures	Level 2	-

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Trade and other receivables (Tables)

12 Months Ended

Jun. 30, 2018

Trade and other receivables [abstract]

Schedule of trade and other receivables

The following table shows the amounts of Trade and other receivables as of June 30, 2018 and 2017:

	06.30.18	06.30.17
Post-dated checks	492,745	422,984
Lease and services receivables	474,311	338,595
Averaging of scheduled rent escalation	301,203	271,747
Debtors under legal proceedings	159,821	100,808
Consumer financing receivables	16,441	15,786
Property sales receivables	20,238	5,510
Less: allowance for doubtful accounts	(201,333)	(131,583)
Total trade receivables	1,263,426	1,023,847
Advance payments	271,800	285,158
Prepayments	150,666	113,190
Other receivables from partners of joint ventures (*)	88,133	89,131
VAT receivables	82,399	45,821
Loans	44,373	20,324
Other tax receivables	19,225	8,656
Expenses to be recovered	8,077	5,226
Others	7,451	6,108
Less: allowance for doubtful accounts	(166)	(165)
Total other receivables	671,958	573,449
Related parties (Note 29)	786,200	633,834
Total current trade and other receivables	2,721,584	2,231,130
Non-current	955,509	777,818
Current	1,766,075	1,453,312
Total	2,721,584	2,231,130

(*)       Includes Ps. 83,942 and Ps. 66,711 at June 30 of 2018 and 2017 respectively, of agreement for assumption of debt with the State Assets Administration Office, or AABE in Spanish.

Schedule of allowance for doubtful accounts

Movements on the Group’s allowance for doubtful accounts and other receivables are as follows:

	06.30.18	06.30.17
Beginning of the year	131,748	93,532
Additions (Note 25)	86,645	49,360
Unused amounts reversed (Note 25)	(12,742)	(8,627)
Used during the year	(4,152)	(2,517)
End of the year	201,499	131,748

Schedule of an aging analysis of past due unimpaired and impaired receivables

Due to the distinct characteristics of each type of receivable, an aging analysis of past due unimpaired and impaired receivables are shown by type and class as of June 30, 2018 and 2017 (includes not past due receivables to reconcile with the amounts in the statements of financial position):

Type of receivables	Up to 3 months	3 to 6 months	Over 6 months	To mature	Allowed	Total
Shopping mall lease and services receivables	144,863	15,347	4,097	1,077,825	184,387	1,426,519
Office leases and services receivables	355	-	701	-	505	1,561
Consumer financing receivables	-	-	-	-	16,441	16,441
Properties sales receivables	1,273	-	16,674	2,291	-	20,238
Total as of June 30, 2018	146,491	15,347	21,472	1,080,116	201,333	1,464,759
Shopping mall leases and services receivables	61,085	3,605	9,364	941,762	115,792	1,131,608
Office leases and services receivables	1,838	376	305	2	5	2,526
Consumer financing receivables	-	-	-	-	15,786	15,786
Property sales receivable	1,982	34	368	3,126	-	5,510
Total as of June 30, 2017	64,905	4,015	10,037	944,890	131,583	1,155,430

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Cash flow and cash equivalent information (Tables)

12 Months Ended

Jun. 30, 2018

Cash Flow And Cash Equivalent Information

Schedule of cash flows generated

Following is a detailed description of cash flows generated by the Group’s operations for the years ended June 30, 2018, 2017 and 2016.

	Note	06.30.18	06.30.17	06.30.16
Net income for the year		15,656,023	3,377,514	12,252,532
Adjustments:
Income tax expense	20	286,506	1,609,181	6,278,894
Amortization and depreciation	25	45,114	28,540	22,944
Net gain from fair value adjustment on investment properties	9	(16,690,117)	(3,133,413)	(17,092,403)
(Gain) / Loss from disposal of trading properties		(94,328)	(85,889)	241
Written off unused investment properties / property plant and equipment		-	-	23,650
Goodwill disposals		-	-	4,297
Averaging of schedule rent escalation	24	(29,456)	(90,197)	(42,832)
Directors’ fees	29	67,126	44,770	27,700
ILP Long term incentive program	22	6,404	16,545	16,359
Financial results, net		5,379,151	1,117,164	699,211
Provisions and allowances	25 y 26	98,907	54,764	15,397
Share of profit of associates and joint ventures	8	(639,525)	(152,703)	(204,299)
Interest held before the business combination		-	(7,618)	-
Foreign unrealized exchange gain on cash and fair value result of cash equivalents		(272,362)	(5,116)	(1,062)
Right to receive units due to default due to non-compliance	12	(7,873)	-	-
Changes in operating assets and liabilities
Increase in inventories		(2,160)	(4,520)	(2,855)
Decrease in trading properties		100,238	98,792	1,159
Increase in trade and other receivables		(229,761)	(156,265)	(606,342)
Increase in trade and other payables		485,697	396,988	187,298
Decrease in payroll and social security liabilities		34,583	39,713	12,689
Uses in provisions	19	(10,879)	(8,322)	(3,350)
Net cash generated from operating activities before income tax paid		4,183,288	3,139,928	1,589,228

Schedule of detail of significant non-cash transactions

The following table shows a detail of non-cash transactions occurred in the years ended June 30, 2018, 2017 and 2016:

	06.30.18	06.30.17	06.30.16
Non-cash transactions
Decrease in intangible assets trought an increase in trading properties	8,837	12,857	-
Increase in trading properties trought a decrease in investment properties	-	13,617	23,935
Increase in investment properties trought an increase in trade and other payables	132,898	-	-
Increase in investment properties trought an increase in borrowings	14,385	2,310	-
Increase in property plant and equipment a traves in un increase in borrowings	9,015	-	1,852
Increase in property plant and equipment trought a decrease in investment properties	3,026	-	15,224
Increase in investment properties troughtof a decrease in property plant and equipment	-	-	-
Increase in trade and other receivables trought a decrease in trading properties	2,959	-	-
Increase in trade and other receivables trought an increase in trade and other payables	16,659	-	-
Increase in trade and other receivables trought a decrease in investment in associates and joint ventures (Dividends)	7,165	-	-
Decrease in trade and other receivables trought an increase in investment in associates and joint ventures	3,811	2,671	-
Increase in investment in associates and joint ventures trought a decrease in provisions	158	-	-
Decrease in borrowings and trade and other payables trought a decrease in associates and joint ventures	3,965	20,284	-
Decrease in borrowings trought a decrease in investment in financial assets	-	-	372,203
Decrease in trade and other receivables trought a decrease in borrowings	-	30,123	3,591
Decrease in trade and other receivables trought a decrease in trade and other payables (Dividends)	-	64,109	253,663
Decrease in non-controling equity trought an increase in trade and other payables	36,400	-	64,209
Decrease in equity trought a decrease in trade and other receivables (Dividends)	-	656,965	-
Adquisición in non-controling interst	-	865	-
Increase in trade and other receivables trought an increase in borrowings	1,250	-	-
Increase in trade and other receivables trought an increase in borrowings	70	-	-

Balances incorporated as result of business combination

	06.30.18	06.30.17
Investments in joint ventures	-	(106,892)
Trade and other receivables	(36,346)	-
Income tax and minimum presumed income tax credits	(106)	(97,167)
Investment properties (Note 9)	(106,795)	-
Property, plant and equipment (Note 10)	(193)	-
Borrowings	-	54,516
Salaries and social security costs	2,518	-
Deferred income tax (Note 20)	12,070	6,314
Income tax and minimum presumed income tax liabilities	1,332	1,060
Trade and other payables	110,161	13,375
Provisions  (Note 19)	452	2,361
Total net non-cash assets acquired	(16,907)	(126,433)
Cash and cash equivalent acquired	-	(6,902)
Fair value of interest held before combination	-	66,658
Goodwill (Note 12)	(74,486)	(26,375)
Non-controlling interest	6,763	40,004
Total net assets acquired	(84,630)	(53,048)
Financed amount	38,285	-
Cash acquired	-	6,902
Acquisition of subsidiaries, net of cash acquired	(46,345)	(46,146)

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Shareholders' Equity (Tables)

12 Months Ended

Jun. 30, 2018

Shareholders Equity

Schedule of capital stock

As of June 30, 2018, the capital stock consisted of 126,014,050 common shares with a par value of Ps. 1.00 per share, entitled to one vote each and was as follows:

		Approved by
Status	Par Value	Body	Date	Date of record with the Public Registry of Commerce
Subscribed, Issued and Paid up	1	Extraordinary Shareholders’ Meeting	10.29.87	12.29.87
Subscribed, Issued and Paid up	1	Extraordinary Shareholders’ Meeting	10.26.88	12.29.88
Subscribed, Issued and Paid up	38	Extraordinary Shareholders’ Meeting	10.25.89	02.05.90
Subscribed, Issued and Paid up	9,460	Ordinary and Extraordinary Shareholders’ meeting	08.31.95	03.15.96
Subscribed, Issued and Paid up	16,000	Ordinary and Extraordinary Shareholders’ meeting	10.29.96	05.15.98
Subscribed, Issued and Paid up	38,000	Ordinary and Extraordinary Shareholders’ meeting	03.10.98	10.21.99
Subscribed, Issued and Paid up	6,500	Ordinary and Extraordinary Shareholders’ meeting	08.06.99	05.07.02
Subscribed, Issued and Paid up	8,206	(*) Board of Directors meeting	06.28.04	05.04.05
Subscribed, Issued and Paid up	47,755	(**) Board of Directors meeting	11.16.10	03.02.11
Subscribed, Issued and Paid up	28	(***) Board of Directors meeting	09.22.11	01.04.12
Subscribed, Issued and Paid up	25	(****) Board of Directors meeting	03.13.13	01.16.15
	126,014

(*)  Capital subscribed in connection with the conversion of convertible notes made until August 2006. Such conversions have been registered.

(**)  Capital subscribed in connection with the conversion of convertible notes made on October 7, 2010.

(***)  Capital subscribed in connection with the conversion of convertible notes made on September 21, 2011.

(****)  Capital subscribed in connection with the conversion of convertible notes made on March 13, 2013.

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Trade and other payables (Tables)

12 Months Ended

Jun. 30, 2018

Trade and other payables [abstract]

Schedule of trade and other payables

The following table shows the amounts of trade and other payables as of June 30, 2018 and 2017:

	06.30.18	06.30.17
Admission rights	589,141	468,323
Rent and service payments received in advance	505,883	380,352
Accrued invoices	340,480	162,980
Trade payables	168,900	133,459
Payments received in advance	77,667	22,115
Tenant deposits	46,690	29,187
Total trade payables	1,728,761	1,196,416
VAT payables	201,279	55,194
Others (*)	102,119	62,911
Withholdings payable	50,793	56,857
Tax payment plans	47,981	16,503
Dividends available to minority shareholders	36,525	125
Other tax payables	21,980	12,367
Other income to be accrued	6,431	6,925
Total other payables	467,108	210,882
Related parties (Note 29)	158,591	104,282
Total trade and other payables	2,354,460	1,511,580
Non-current	483,908	406,598
Current	1,870,552	1,104,982
Total	2,354,460	1,511,580

(*) As of June 30, 2017 includes the Capitalization plan - Ps. 49,525.

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Borrowings (Tables)

12 Months Ended

Jun. 30, 2018

Borrowings [abstract]

Schedule of borrowings

The following table shows the Company's borrowings as of June 30, 2018 and 2017:

	06.30.18	06.30.17
Non-Convertible notes	14,516,230	5,991,004
Bank loans	1,014,282	77,445
AABE Debts	83,942	66,711
Loans with non-controling interests	28,504	-
Finance leases	14,403	3,149
Bank overdrafts	6,692	26,107
Related parties (Note 29)	4,154	3,571
Total borrowings	15,668,207	6,167,987
Non-current	15,362,726	5,918,119
Current	305,481	249,868
Total	15,668,207	6,167,987

Schedule of maturity of the Group's borrowings

The maturity of the Group's borrowings (excluding obligations under finance leases) and the Group's classification related to interest rates is as follows:

	06.30.18	06.30.17
Fixed rate:
Less than one year	28,242	76,661
Between 2 and 3 years	4,026,046	-
More than 4 years	10,235,361	5,849,857
	14,289,649	5,926,518
Floating rate:
Less than one year	10,033	29,297
Between 1 and 2 years	225,519	-
Between 2 and 3 years	310,692	-
Between 3 and 4 years	388,163	-
More than 4 years	155,346	66,711
	1,089,753	96,008
Accrued interest:
Less than one year	260,632	142,312
Between 1 and 2 years	13,770	-
	274,402	142,312
	15,653,804	6,164,838

Schedule of borrowings evolution

The following table shows a detail of the borrowings evolution as of June 30, 2018, 2017 and 2016:

	06.30.18	06.30.17	06.30.16
Balances at the beginning of the year	6,167,987	5,893,068	3,794,940
Borrowings obtained	728,506	106,667	1,275,756
Payment of borrowings	(85,495)	(111,103)	(5,046,597)
Interest paid	(724,730)	(542,410)	(278,279)
Accrued interest	876,610	607,400	580,210
Foreign exchange	6,327,426	565,364	2,214,158
Short terms loans, net	(19,766)	(14,065)	(232,203)
Issuance of non-convertible notes	2,365,003	-	5,411,199
Payment of non-convertible notes	-	(407,260)	(1,686,393)
Repurchase of non-convertible notes	-	-	(139,723)
Others	32,666	70,326	-
Balances at the end of the year	15,668,207	6,167,987	5,893,068

Schedule of non-current borrowings at fixed rates

The fair value of non-current borrowings at fixed rates (excluding obligations under finance leases) is as follows:

	06.30.18	06.30.17
NCN Class II due 2023	10,760,445	6,877,234
NCN Class IV due 2020	3,997,825	-
Bank loans	1,017,269	2,338
	15,775,539	6,879,572

Schedule of breakdown the borrowings by fixed and floating rate

The following table breakdown the borrowings by fixed and floating rate of the Group by emission currency (excluding the financial leases)

Borrowings by currency and rate	06.30.18	06.30.17
Fixed rate:
Argentine Peso	-	76,661
US Dollar	14,289,649	5,849,857
Subtotal borrowings at fixed rate	14,289,649	5,926,518
Floating rate:
Argentine Peso	80,205	96,008
US Dollar	1,009,548	-
Subtotal borrowings at floating rate	1,089,753	96,008
Accrued interest	274,402	142,312
Total borrowings	15,653,804	6,164,838
Financial leasing	14,403	3,149
Total borrowings in accordance with financial statement	15,668,207	6,167,987

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Provisions (Tables)

12 Months Ended

Jun. 30, 2018

Provisions [abstract]

Schedule of provisions

The following table shows the movements in the Group's provisions for other liabilities:

	Labor, legal and other claims	Investments in associates  (*)	06.30.18	06.30.17
Balances at the beginning of the year	41,144	206	41,350	33,074
Increases (Note 26)	33,513	-	33,513	25,860
Recovery (Note 26)	(8,509)	-	(8,509)	(11,829)
Increases	-	158	158	206
Used during the year	(10,879)	-	(10,879)	(8,322)
Incorporation as result of business combination (Note 15)	452	-	452	2,361
Balances at the end of the year	55,721	364	56,085	41,350
Non-current			12,258	16,509
Current			43,827	24,841
Total			56,085	41,350

(*) Corresponds to investments in associates with negative equity.

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Current and deferred income tax (Tables)

12 Months Ended

Jun. 30, 2018

Current And Deferred Income Tax

Schedule of income tax

The details of the provision for the Group’s income tax are as follows:

	06.30.18	06.30.17	06.30.16
Current income tax	(137,667)	(510,130)	(223,220)
Deferred income tax	(148,806)	(1,099,051)	(6,055,674)
Minimum presumed income tax	(33)	-	-
Income tax expense	(286,506)	(1,609,181)	(6,278,894)

Schedule of statutory taxes rates

The statutory tax rates in the countries where the Group operates for all of the years presented are:

Tax jurisdiction	Income tax rate
Argentina	35%
Uruguay	0%

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities of the Group as of June 30, 2018, 2017 and 2016 are expected to be recovered as follows:

	06.30.18	06.30.17
Deferred income tax asset to be recovered after more than 12 months	80,696	174,165
Deferred income tax asset to be recovered within 12 months	1,086,937	143,910
Deferred income tax asset	1,167,633	318,075
Deferred income tax liabilities to be recovered after more than 12 months	(12,356,539)	(9,435,983)
Deferred income tax liabilities to be recovered within 12 months	(175,856)	(2,085,978)
Deferred income tax liabilities	(12,532,395)	(11,521,961)
Deferred income tax, net	(11,364,762)	(11,203,886)

Schedule of the deferred income tax assets and liabilities

Deferred income tax (broken down into assets and liabilities) during the fiscal years ended June 30, 2018 and 2017, without considering offsetting balances within the same tax jurisdiction, is the following:

	06.30.17	(Charged) / Credited to the statement of income	Incorporation as result of business combination (Note 15)	06.30.18
Deferred income tax asset
Tax loss carry-forwards	158	851,966	1,472	853,596
Trade and other payables	270,839	11,119	-	281,958
Other	38,296	(7,191)	-	31,105
Trading properties	8,782	(7,808)	-	974
Subtotal deferred income tax assets	318,075	848,086	1,472	1,167,633
Deferred income tax liabilities
Investment properties	(11,060,948)	(809,615)	(13,542)	(11,884,105)
Property, plant and equipment  and trading properties	(235,750)	(227,200)	-	(462,950)
Investments	(129,454)	33,131	-	(96,323)
Trade and other receivables	(67,439)	(4,287)	-	(71,726)
Other	(28,370)	11,181	-	(17,189)
Trade and other payables	-	(102)	-	(102)
Subtotal deferred income tax liabilities	(11,521,961)	(996,892)	(13,542)	(12,532,395)
Deferred income tax liabilities, net	(11,203,886)	(148,806)	(12,070)	(11,364,762)

	06.30.16	(Charged) / Credited to the statement of income	Incorporation as result of business combination (Note 15)	06.30.17
Deferred income tax asset
Tax loss carry-forwards	19,352	(19,194)	-	158
Trade and other payables	187,024	83,850	(35)	270,839
Others	29,601	7,722	973	38,296
Trading properties	(2,163)	10,945	-	8,782
Subtotal deferred income tax assets	233,814	83,323	938	318,075
Deferred income tax liabilities
Investment properties	(9,948,064)	(1,112,884)	-	(11,060,948)
Property, plant and equipment  and trading properties	(173,976)	(61,774)	-	(235,750)
Investments	(87,985)	(34,217)	(7,252)	(129,454)
Trade and other receivables	(91,530)	24,091	-	(67,439)
Other	(30,780)	2,410	-	(28,370)
Subtotal deferred income tax liabilities	(10,332,335)	(1,182,374)	(7,252)	(11,521,961)
Deferred income tax liabilities, net	(10,098,521)	(1,099,051)	(6,314)	(11,203,886)

Schedule of tax loss carry forward

As of June 30, 2018, the tax loss carry-forwards of the Group and the jurisdictions which generated them are as follows:

Jurisdiction	Tax loss carry-forward	Date of generation	Date of expiration	Rate
Argentina	2,487	2014	2019	25%
Argentina	252	2015	2020	25%
Argentina	182	2016	2021	25%
Argentina	2,816	2017	2022	25%
Argentina	2,819,414	2018	2023	30%
Argentina	41,634	2018	2023	25%
	2,866,785

Schedule of reconciliation of income tax recognized

from applying the prevailing tax rate on the Profit Before Income Tax for the years ended June 30, 2018, 2017 and 2016:

	06.30.18	06.30.17	06.30.16
Profit for the year before income tax at the prevailing tax rate (i)	(5,357,337)	(1,746,909)	(6,346,363)
Tax effects of:
Rate change	4,729,172	-	-
Share of profit of associates and joint ventures (ii)	226,273	55,399	71,505
Non-taxable financial dividends	122,597	63,529	-
Non-taxable / non-deductible items	(7,223)	5,548	2,492
Derivative special tax	(846)	-	-
Difference between provisions and affidavits	1,077	-	-
Minimum presumed income tax	(33)	-	-
(Recovery) / expiration of carry-forwards	-	7,038	(7,038)
Results from revaluation of equity interest held before combination	-	2,666	-
Others	(186)	3,548	510
Income tax loss	(286,506)	(1,609,181)	(6,278,894)

(i) Does not include Uruguayan-source income / (loss) of Ps. 635,853, as of June 30, 2018, (Ps.4,474) as of June 30, 2017 and Ps. 398,960 as of June 30, 2016.

(ii) Does not include Uruguayan-source income / (loss) by pasticipation in associated and joint ventures of Ps. (6,969) and Ps. (5,580) as of June 30, 2018 and 2017.

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Leases (Tables)

12 Months Ended

Jun. 30, 2018

Leases

Schedule of non-cancellable operating leases and finance leases

The future minimum payments that the Group must pay off under non-cancellable operating leases are as follows:

	06.30.18	06.30.17
No latter than a year	13,763	7,102
Later than 1 year and not later than 5 years	18,105	12,446
More than 5 years	40,000	42,400
	71,868	61,948

Schedule of future minimum payments under financial leases

The future minimum payments that the Group must pay off under financial leases are as follows:

	06.30.18	06.30.17
Not later than 1 year	6,945	1,690
Later than 1 year and not later than 5 years	8,301	1,636
Subtotal value of finance lease liabilities	15,246	3,326
Future - financial charges on finance leases	(843)	(177)
Present value of finance lease liabilities	14,403	3,149

Schedule of fair value of finance lease liabilities

The fair value of finance lease liabilities is as follows:

	06.30.18	06.30.17
Not later than 1 year	6,574	1,598
Later than 1 year and not later than 5 years	7,829	1,551
Present value of finance lease liabilities	14,403	3,149

Schedule of future minimum proceeds under non-cancellable operating leases

The future minimum proceeds under non-cancellable operating leases from Group’s shopping malls, offices and other buildings are as follows:

	06.30.18	06.30.17
2018	-	1,421,954
2019	1,904,572	1,004,397
2020	1,305,965	439,775
2021	636,762	89,098
2022	172,217	10,030
Later than 2022	25,679	209
	4,045,195	2,965,463

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Revenues (Tables)

12 Months Ended

Jun. 30, 2018

Revenues

Schedule of revenues

	06.30.18	06.30.17	06.30.16
Base rent	2,589,799	2,029,990	1,548,213
Contingent rent	718,625	624,990	587,630
Admission rights	343,420	300,933	207,190
Parking fees	236,323	192,749	153,213
Commissions	123,284	107,580	84,815
Averaging of scheduled rent escalation	29,456	90,197	42,832
Property management fees	65,833	52,303	41,213
Others	21,714	10,550	7,595
Total revenues from rentals and services	4,128,454	3,409,292	2,672,701
Sale of trading properties	103,197	98,792	1,159
Total revenues from sale of properties	103,197	98,792	1,159
Other revenues	555	891	1,013
Other revenues	555	891	1,013
Total revenues from sales, rentals and services	4,232,206	3,508,975	2,674,873
Expenses and collective promotion fund	1,717,000	1,488,187	1,183,627
Total revenues from expenses and collective promotion funds	1,717,000	1,488,187	1,183,627
Total revenues	5,949,206	4,997,162	3,858,500

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Expenses by nature (Tables)

12 Months Ended

Jun. 30, 2018

Expenses By Nature

Schedule of expenses by nature

The following tables provide additional disclosure regarding expenses by nature and their relationship to the function within the Group.

	Costs (ii)	General and administrative expenses	Selling expenses	06.30.18
Salaries, social security costs and other personnel administrative expenses (i)	773,968	114,249	23,914	912,131
Maintenance, security, cleaning, repairs and other	739,853	19,512	804	760,169
Taxes, rates and contributions	238,669	11,795	157,836	408,300
Advertising and other selling expenses	263,869	-	28,330	292,199
Directors' fees	-	164,339	-	164,339
Fees and payments for services	10,911	60,678	8,117	79,706
Allowance for doubtful accounts (additions and unused amounts reversed) (Note 14)	-	-	73,903	73,903
Leases and expenses	47,615	6,037	400	54,052
Amortization and depreciation (Notes 9,10 y 12)	33,301	11,498	315	45,114
Traveling, transportation and stationery	18,387	13,987	1,215	33,589
Bank expenses	2,910	12,585	-	15,495
Cost of sale of properties (Note 11)	8,869	-	-	8,869
Other expenses	1,095	562	31	1,688
Total 06.30.18	2,139,447	415,242	294,865	2,849,554

	Costs (ii)	General and administrative expenses	Selling expenses	06.30.17
Salaries, social security costs and other personnel administrative expenses (i)	653,834	95,201	27,500	776,535
Maintenance, security, cleaning, repairs and other	645,022	7,216	795	653,033
Taxes, rates and contributions	173,718	4,294	131,254	309,266
Advertising and other selling expenses	280,598	-	29,312	309,910
Directors' fees	-	131,481	-	131,481
Fees and payments for services	12,811	58,130	2,517	73,458
Allowance for doubtful accounts (additions and unused amounts reversed) (*) (Note 14)	-	-	41,310	41,310
Leases and expenses	77,619	4,516	525	82,660
Amortization and depreciation (Notes 9,10 y 12)	22,222	5,953	365	28,540
Traveling, transportation and stationery	16,803	8,127	893	25,823
Bank expenses	-	7,059	-	7,059
Cost of sale of properties (Note 11)	12,903	-	-	12,903
Other expenses	4,256	199	146	4,601
Commercial compensation	-	-	1,911	1,911
Total 06.30.17	1,899,786	322,176	236,528	2,458,490

	Costs (ii)	General and administrative expenses	Selling expenses	06.30.16
Salaries, social security costs and other personnel administrative expenses (i)	515,022	53,448	20,911	589,381
Maintenance, security, cleaning, repairs and other	444,824	4,428	503	449,755
Taxes, rates and contributions	127,361	1,957	101,833	231,151
Advertising and other selling expenses	284,935	-	21,706	306,641
Directors' fees	-	113,673	-	113,673
Fees and payments for services	9,008	28,562	3,481	41,051
Allowance for doubtful accounts (additions and unused amounts reversed) (*)	-	-	12,005	12,005
Leases and expenses	46,873	3,077	375	50,325
Amortization and depreciation	14,802	7,911	231	22,944
Traveling, transportation and stationery	14,043	2,597	805	17,445
Bank expenses	-	5,896	-	5,896
Cost of sale of properties	1,400	-	-	1,400
Other expenses	1,936	31	-	1,967
Commercial compensation	-	-	371	371
Total 06.30.16	1,460,204	221,580	162,221	1,844,005

(*) At June 30, 2017 y 2016 includes debt relief for Ps 577 and Ps. 10, respectively.

(i) For the fiscal year ended June 30, 2018 includes Ps. 842,559 of Salaries, Bonuses and Social Security; Ps. 6,404 of Equity incentive plan and Ps. 63,168 of other concepts. For the fiscal year ended June 30, 2017 includes Ps. 694,067 Salaries, Bonuses and Social Security; Ps. 16,545 of Equity incentive plan and Ps. 65,923 of other concepts. For the fiscal year ended June 30, 2016 includes Ps. 519,782 Salaries, Bonuses and Social Security; Ps. 16,359 of Equity incentive plan and Ps. 53,240 of other concepts.

(ii) For the fiscal year ended June 30, 2018 includes Ps. 2,120,715 of Rental and services costs; Ps. 18,713 of Cost of sales and developments and Ps.19 of other consumer financing costs. For the fiscal year ended June 30, 2017 includes Ps. 1,874,392 of Rental and services costs; Ps. 25.346 of Cost of sales and developments and Ps. 48 of other consumer financing costs. For the fiscal year ended June 30, 2016 includes Ps. 1,454,409 of Rental and services costs; Ps. 5,718 of Cost of sales and developments and Ps. 77 of other consumer financing costs.

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Other operating results, net (Tables)

12 Months Ended

Jun. 30, 2018

Other Operating Results Net

Schedule of other operating results

	06.30.18	06.30.17	06.30.16
Gain resulting from sale anual reserval of property plant and equipment	35,602	437	-
Others	12,347	10,508	(17,451)
Donations	(26,967)	(52,910)	(38,889)
Lawsuits (Note 19)	(25,004)	(14,031)	(3,402)
Gain resulting from the revaluation of equity interes held before the bussines combination	-	7,618	-
Expenses related to the sale of investment property	(884)	(2,841)	(8,810)
Total other operating results, net	(4,906)	(51,219)	(68,552)

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Financial results, net (Tables)

12 Months Ended

Jun. 30, 2018

Financial Results Net

Schedule of financial results

	06.30.18	06.30.17	06.30.16
- Foreign exchange	413,976	48,437	410,386
- Interest income	240,005	184,296	102,169
- Dividends income	34,172	9,705	-
Finance income	688,153	242,438	512,555
- Foreign exchange	(6,407,173)	(598,845)	(2,225,939)
- Interest expense	(928,218)	(639,768)	(612,486)
- Others financial costs	(117,445)	(77,033)	(100,051)
Subtotal finance costs	(7,452,836)	(1,315,646)	(2,938,476)
Less: Capitalized finance costs	14,385	2,310	-
Finance costs	(7,438,451)	(1,313,336)	(2,938,476)
- Fair value gains of financial assets at fair value through profit or loss	2,041,061	203,087	466,328
- Gain from derivative financial instruments	227,378	81,105	1,248,374
- Loss from repurchase of non - convertible notes	-	(168)	-
Other financial results	2,268,439	284,024	1,714,702
Total financial results, net	(4,481,859)	(786,874)	(711,219)

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Earnings per share (Tables)

12 Months Ended

Jun. 30, 2018

Profit per share attributable to equity holders of the parent for the year (Note 28):

Schedule of basic earnings per share

On December 18, 2012, the Superintendence of Corporations registered an amendment to the Company’s by-laws whereby it increased the nominal value of its shares from Ps. 0.1 to Ps. 1 each. This amendment, which was notified through the CNV, was registered under number 20,264 of Stock Companies Book 62 T°. Furthermore, the CNV has admitted the shares indicated above for listing in the Stock Exchange. 

	06.30.18	06.30.17	06.30.16
Profit attributable to equity holders of the Parent	15,099,936	3,260,476	11,821,280
Weighted average number of ordinary shares in issue (thousands)	126,014	126,014	126,014
Basic earnings per share	119.83	25.87	93.81

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Related party transactions (Tables)

12 Months Ended

Jun. 30, 2018

Related party transactions [abstract]

Schedule of company's senior management

The Group’s Senior Management is composed of as follows:

Name	Date of birth	Position	In the position since
Alejandro G. Elsztain	31/03/1966	General Manager	2002
Daniel R. Elsztain	22/12/1972	Operating Manager	2011
Matias Gaivironsky	23/02/1976	Real Estate Manager	2011
Juan José Martinucci	31/01/1972	Financial and Administrative Manager	2013
Arnaldo Jawerbaum	13/08/1966	Investment Manager	2017

Schedule of balances with related parties

The following is a summary of the balances with related parties:

Item	06.30.18	06.30.17
Trade and other receivables	786,200	633,834
Investments in financial assets	248,544	267,365
Trade and other payables	(158,591)	(104,282)
Borrowings	(4,154)	(3,571)
Total	871,999	793,346

Related parties	06.30.18	06.30.17	Description of transaction
IRSA Inversiones y Representaciones Sociedad Anónima (IRSA)	673,406	542,052	Advances
	41,709	22,854	Corporate services
	40,863	25,425	Non-convertible notes
	12,448	10,472	Equity incentive plan
	9,023	16,482	Reimbursement of expenses
	428	-	Others
	-	4	Loans granted
	-	265	Commissions
	-	535	Lease collections
	(439)	(9)	Reimbursement of expenses to pay
	(14,609)	(15,380)	Equity incentive plan to pay
Total direct parent company	762,829	602,700
Cresud S.A.CI.F. y A.	207,681	241,940	Non-convertible notes
	(2,546)	(1,113)	Equity incentive plan to pay
	(15,375)	(23,385)	Reimbursement of expenses to pay
	(55,483)	(13,595)	Corporate services to pay
Total direct parent company of IRSA	134,277	203,847
La Rural S.A.	28,712	119	Leases and/or rights to use space
	7,165	8,841	Dividends
	-	3,676	Loans granted
	-	16,394	Canon
	(845)	(55)	Reimbursement of expenses to pay
Other associates and joint ventures	4,309	4,557	Loans granted
	509	812	Management fee
	314	931	Reimbursement of expenses
	-	1,625	Leases and/or rights to use space
	-	(105)	Lease collections
	(235)	-	Reimbursement of expenses to pay
	(286)	(619)	Advertising space  to pay
	(518)	(1,288)	Leases and/or rights to use space
	(4,154)	(3,571)	Borrowings obtained
Total associates and joint ventures of IRSA Propiedades Comerciales	34,971	31,317
Directors	(12)	(17)	Reimbursement of expenses to pay
	(67,126)	(44,770)	Fees
Total Directors	(67,138)	(44,787)
Others	4,685	3,370	Leases and/or rights to use space to pay
	3,283	746	Reimbursement of expenses
	209	-	Advertising space
	-	(40)	Hotel services to pay
	-	99	Commissions
	(4)	(219)	Reimbursement of expenses to pay
	(5)	(272)	Dividends to pay
	(9)	(41)	Leases and/or rights to use space to pay
	(27)	-	Commissions to pay
	(1,072)	(3,374)	Legal services
Total Others	7,060	269
Total	871,999	793,346

The following is a summary of the results with related parties:

Related parties	06.30.18	06.30.17	06.30.16	Description of transaction
IRSA Inversiones y Representaciones Sociedad Anónima (IRSA)	35,056	23,972	19,165	Corporate services
	17,448	516	(1,491,911)	Financial operations
	910	2,533	(375)	Leases and/or rights to use space
	163	127	76	Commissions
Total direct parent company	53,577	27,148	(1,473,045)
Cresud S.A.CI.F. y A.	151,002	61,923	84,980	Financial operations
	1,931	867	1,417	Leases and/or rights to use space
	(162,756)	(128,819)	(88,517)	Corporate services
Total direct parent company of IRSA	(9,823)	(66,029)	(2,120)
La Rural S.A.	12,209	-	-	Financial operations
	12,678	8,518	-	Leases and/or rights to use space
Tarshop S.A.	15,809	13,816	11,802	Leases and/or rights to use space
	322	-	265	Commissions
Nuevo Puerto Santa Fe S.A.	3,882	3,565	3,619	Fees
	(548)	(1,165)	(1,716)	Financial operations
	(504)	5,641	(385)	Leases and/or rights to use space
Others associates and joint ventures	216	216	216	Fees
	1,286	707	31	Financial operations
Total associates and joint ventures of IRSA Propiedades Comerciales	45,350	31,298	13,832
Directors	(164,339)	(131,481)	(113,673)	Fees
Senior Managment	(9,606)	(6,677)	(6,246)	Fees
Total Directors	(173,945)	(138,158)	(119,919)
Estudio Zang, Bergel & Viñes	(10,038)	(9,185)	(2,940)	Fees
Banco de Crédito y Securitización	17,180	9,507	6,493	Leases and/or rights to use space
REIG V	-	58,125	-	Financial operations
Others	9,389	7,335	2,578	Leases and/or rights to use space
	25	21	222	Commissions
	(2,079)	(609)	(96)	Donations
	-	-	4,912	Financial operations
Total others	14,477	65,194	11,169
Total	(70,364)	(80,547)	(1,570,083)

Schedule of transactions with related parties

The following is a summary of the transactions with related parties:

Related parties	06.30.18	06.30.17	Description of transaction
IRSA Inversiones y Representaciones S.A.	586,745	726,974	Dividends granted
Tyrus	652	738	Dividends granted
Total  Dividends granted	587,397	727,712
La Rural S.A	34,172	8,841	Dividends received
Nuevo Puerto Santa Fe S.A.	8,838	11,443	Dividends received
Total Dividends received	43,010	20,284
Quality Invest S.A.	37,364	3,000	Irrevocable contributions granted
	1,649	-	Equity contributions granted
Avenida Inc.	6,210	-	Irrevocable contributions granted
Total Contributions	45,223	3,000

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CNV General Resolution N 622/13 (Tables)

12 Months Ended

Jun. 30, 2018

Cnv General Resolution N 62213

Schedule of CNV General Resolution

As required by Section 1°, Chapter III, Title IV of CNV General Resolution N° 622/13, below there is a detail of the notes to the Consolidated Financial Statements that disclose the information required by the Resolution.

Exhibit A - Property, plant and equipment	Note 9 - Investment properties
	Note 10 - Property, plant and equipment
Exhibit B - Intangible assets	Note 8 - Intangible assets
Exhibit C - Equity investments	Note 12 - Information about, associates and joint ventures
Exhibit D - Other investments	Note 13 - Financial instruments by category
Exhibit E - Provisions	Note 14 - Trade and other receivables
	Note 19 - Provisions
Exhibit F - Cost of sales and services provided	Note 25 - Expenses by nature
	Note 11 - Trading properties
Exhibit G - Foreign currency assets and liabilities	Note 31 - Foreign currency assets and liabilities

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Foreign currency assets and liabilities (Tables)

12 Months Ended

Jun. 30, 2018

Foreign Currency Assets And Liabilities

Schedule of foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Items (1)	Amount (2)	Exchange rate (3)	06.30.18	Amount (2)	Exchange rate (3)	06.30.17
Assets
Trade and other receivables
Uruguayan Pesos	25	0.92	23	3	0.58	2
US Dollar	9,245	28.75	265,788	5,423	16.53	89,640
Euros	142	33.54	4,777	-	-	-
Trade and other receivables with related parties
US Dollar	3,897	28.85	112,422	3,147	16.63	52,334
Total trade and other receivables			383,010			141,976
Restricted assets
US Dollar	-	-	-	2,996	16.53	49,525
Total Restricted assets			-			49,525
Investments in financial assets
US Dollar	119,323	28.75	3,430,544	43,368	16.53	716,867
Investment in financial assets with related parties
US Dollar	8,615	28.85	248,544	16,077	16.63	267,365
Total investments in financial assets			3,679,088			984,232
Cash and cash equivalents
Uruguayan Pesos	2	0.91	2	7	0.58	4
US Dollar	84,029	28.75	2,415,829	6,170	16.53	101,987
Pound	2	37.90	57	1	21.49	32
Euros	1	33.54	38	6	18.85	105
Total cash and cash equivalents			2,415,926			102,128
Total Assets			6,478,024			1,277,861
Liabilities
Trade and other payables
Uruguayan Pesos	15	0.91	14	9	0.58	5
US Dollar	5,723	28.85	165,114	9,452	16.63	157,190
Euros	41	33.73	1,391	-	-	-
Trade and other payables with related parties
US Dollar	-	-	-	271	16.63	4,505
Total trade and other payables			166,519			161,700
Borrowings
US Dollar	542,367	28.85	15,647,296	364,889	16.63	6,068,102
Total borrowings			15,647,296			6,068,102
Borrowings
US Dollar	9	28.85	264	-	-	-
Total borrowings			264			-
Provisions
US Dollar	5	28.85	144	5	16.63	83
Total Provisions			144			83
Total Liabilities			15,814,223			6,229,885

(1) Considering foreign currencies those that differ from each one of the Group’s companies’ functional currency at each year-end.

(2) Expressed in thousands of foreign currency.

(3) Exchange rate of the Argentine Peso as of June 30, 2018 and 2017 as reported by the Argentina Central Bank.

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CNV General Ruling N 629/14 Storage of documentation (Tables)

12 Months Ended

Jun. 30, 2018

Cnv General Ruling N 62914 Storage Of Documentation

Schedule of entrusted the storage of certain non-sensitive and old information

In this sense, it should be noted that the Group has entrusted the storage of certain non-sensitive and old information to the following providers:

Documentation storage provider	Home location
Iron Mountain Argentina S.A.	Av. Amancio Alcorta 2482, C.A.B.A.
Iron Mountain Argentina S.A.	Pedro de Mendoza 2143, C.A.B.A.
Iron Mountain Argentina S.A.	Saraza 6135, C.A.B.A.
Iron Mountain Argentina S.A.	Azara 1245, C.A.B.A. (i)
Iron Mountain Argentina S.A.	Polígono Industrial Spegazzini, Au Ezeiza-Cañuelas KM 45
Iron Mountain Argentina S.A.	Cañada de Gómez 3825, C.A.B.A.

(i)       On February 5, 2014, there was a widely known fire in Iron Mountain’s warehouse. To the original date of these financial statements, the Group had not been notified whether the documentation in storage has been affected by the fire or as to its condition after the accident. Nevertheless, based on the internal review carried out by the Group, duly reported to the CNV on February 12, 2014, the information kept at the warehouse that were on fire do not appear to be sensitive or capable of affecting normal business operations.

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Summary of significant accounting policies (Details)	12 Months Ended
	Jun. 30, 2018
Other Buildings and Facilities [Member] | Bottom of Range [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life of property, plant and equipment	P1Y
Other Buildings and Facilities [Member] | Top of Range [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life of property, plant and equipment	P22Y
Vehicles [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life of property, plant and equipment	P5Y
Other [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life of property, plant and equipment	P3Y
Furniture and Fixtures [Member] | Bottom of Range [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life of property, plant and equipment	P3Y
Furniture and Fixtures [Member] | Top of Range [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life of property, plant and equipment	P10Y
Machinery and Equipment [Member] | Bottom of Range [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life of property, plant and equipment	P1Y
Machinery and Equipment [Member] | Top of Range [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life of property, plant and equipment	P10Y

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Acquisitions and disposals (Details Narrative) $ in Thousands, $ in Thousands		1 Months Ended		12 Months Ended
	Mar. 14, 2018 USD ($)	Mar. 22, 2018 USD ($)	Jul. 31, 2016 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($) a	Feb. 20, 2018	Jul. 31, 2016 ARS ($)
Mendoza [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Description of assets	<p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">A 3,641 sqm of plot of land adjacent to Mendoza Shopping</font></p>
USD | Mendoza [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Considration for acquisation	$ 800
Principal amount	$ 1,200
Philips building [member] | USD
Disclosure of disaggregation of revenue from contracts with customers [line items]
Purchase of assets					$ 29,000
Constructed area | a					10,142,000
Remain leasing term					7 months 15 days
Expire of leasing term					Jan. 19, 2018
Intercontinental building [Member] | USD
Disclosure of disaggregation of revenue from contracts with customers [line items]
Sale of assets				$ 3,000	$ 9,000
Description of assets				<p style="font: 13px Times New Roman, Times, Serif; color: #FF00FF !important; margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">IRSA Propiedades Comerciales sold 851,79 square meters corresponding to one floor of office and eight parking lots in the Intercontinental Plaza building</font></p>	<p style="font: 13px Times New Roman, Times, Serif"><font style="font: 10pt Times New Roman, Times, Serif">IRSA Propiedades Comerciales sold 2,432 square meters corresponding to three floors of office and 24 parking lots in the Intercontinental Plaza building. The Company still holds 3,876 square meters profitable of the building.</font></p>
Land [Member] | Centro de Entretenimientos La Plata SA [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Percentage of shareholding acquire		100.00%
Percentage of shareholding owned		61.85%
Remaining pecentage of owned by third parties		38.15%
Description of assets		<p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">A plot of land of 78,614 sqm of surface located in Camino General Belgrano, between 514th Av., 19th Av. and 511 Street, in the town of La Plata, province of Buenos Aires.</font></p>
Land [Member] | USD | Centro de Entretenimientos La Plata SA [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Purchase of assets		$ 7,500
Entertainment Holdings S.A. [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Percentage of shareholding acquire			20.00%				20.00%
Percentage of shareholding owned			70.00%
Considration for acquisation							$ 53,000
Percentage of shareholding already owned			50.00%
Entretenimiento Universal S.A. [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Percentage of shareholding acquire			1.25%				1.25%
La Arena [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Percentage of shareholding acquire						60.00%
La Arena [Member] | USD
Disclosure of disaggregation of revenue from contracts with customers [line items]
Considration for acquisation			$ 1,900
Principal amount			$ 4,200

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Financial risk management (Details) - Market Risk [Member] - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of financial liabilities [line items]
Net monetary position	$ (9,336,199)	$ (4,952,024)
Borrowing Position [Member]
Disclosure of financial liabilities [line items]
Net monetary position	(9,697,165)	(5,267,218)
Lending Position [Member] | Related Parties [Member]
Disclosure of financial liabilities [line items]
Net monetary position	$ 360,966	$ 315,194

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Financial risk management (Details 1) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of risk management strategy related to hedge accounting [line items]
Total	$ 29,781,216	$ 19,405,260
Liquidity Risk [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	21,434,887	9,610,259
Liquidity Risk [Member] | Trade and Other Payables [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	854,564	494,108
Liquidity Risk [Member] | Borrowings Excluding Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	20,518,366	9,107,875
Liquidity Risk [Member] | Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	15,246	3,326
Liquidity Risk [Member] | Derivative Financial Instruments [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	46,711	4,950
Liquidity Risk [Member] | Less Than One Year [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	1,922,999	1,274,658
Liquidity Risk [Member] | Less Than One Year [Member] | Trade and Other Payables [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	776,952	480,612
Liquidity Risk [Member] | Less Than One Year [Member] | Borrowings Excluding Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	1,138,838	787,406
Liquidity Risk [Member] | Less Than One Year [Member] | Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	6,945	1,690
Liquidity Risk [Member] | Less Than One Year [Member] | Derivative Financial Instruments [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	264	4,950
Liquidity Risk [Member] | Between 1 and 2 years [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	1,465,724	530,753
Liquidity Risk [Member] | Between 1 and 2 years [Member] | Trade and Other Payables [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	71,444	5,940
Liquidity Risk [Member] | Between 1 and 2 years [Member] | Borrowings Excluding Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	1,387,782	523,845
Liquidity Risk [Member] | Between 1 and 2 years [Member] | Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	6,498	968
Liquidity Risk [Member] | Between 1 and 2 years [Member] | Derivative Financial Instruments [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total
Liquidity Risk [Member] | Between 2 and 3 years [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	5,380,053	529,083
Liquidity Risk [Member] | Between 2 and 3 years [Member] | Trade and Other Payables [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	3,670	4,570
Liquidity Risk [Member] | Between 2 and 3 years [Member] | Borrowings Excluding Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	5,374,580	523,845
Liquidity Risk [Member] | Between 2 and 3 years [Member] | Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	1,803	668
Liquidity Risk [Member] | Between 2 and 3 years [Member] | Derivative Financial Instruments [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total
Liquidity Risk [Member] | Between 3 and 4 years [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	1,238,245	525,342
Liquidity Risk [Member] | Between 3 and 4 years [Member] | Trade and Other Payables [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	2,498	1,497
Liquidity Risk [Member] | Between 3 and 4 years [Member] | Borrowings Excluding Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	1,235,747	523,845
Liquidity Risk [Member] | Between 3 and 4 years [Member] | Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total
Liquidity Risk [Member] | Between 3 and 4 years [Member] | Derivative Financial Instruments [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total
Liquidity Risk [Member] | Later than 4 years [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	11,427,866	6,750,423
Liquidity Risk [Member] | Later than 4 years [Member] | Trade and Other Payables [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total		1,489
Liquidity Risk [Member] | Later than 4 years [Member] | Borrowings Excluding Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	11,381,419	6,748,934
Liquidity Risk [Member] | Later than 4 years [Member] | Finance Leases [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total
Liquidity Risk [Member] | Later than 4 years [Member] | Derivative Financial Instruments [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Total	$ 46,447

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Financial risk management (Details 2) - Lease liabilities [Member]		Jun. 30, 2018	Jun. 30, 2017
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Gearing ratio	[1]	29.21%	21.13%
Debt ratio	[2]	28.66%	16.94%

[1] Calculated as total current and non-current borrowings divided by total current and non-current borrowings plus equity.

[2] Calculated as total current and non-current borrowings divided by total properties at fair value (including trading properties, property, plant and equipment, investment properties and units to be received under barter agreements).

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Segment reporting (Details) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of operating segments [line items]
Revenue	$ 5,949,206	$ 4,997,162	$ 3,858,500
Operating costs	(2,139,447)	(1,899,786)	(1,460,204)
Gross profit (loss)	3,809,759	3,097,376	2,398,296
Net gain from fair value adjustment of investment properties	16,690,117	3,133,413	17,092,403
General and administrative expenses	(415,242)	(322,176)	(221,580)
Selling expenses	(294,865)	(236,528)	(162,221)
Other operating results, net	(4,906)	(51,219)	(68,552)
Profit (Loss) from operations	19,784,863	5,620,866	19,038,346
Share in profit of associates and joint ventures	639,525	152,703	204,299
Profit from operations before financing and taxation	20,424,388	5,773,569	19,242,645
Investment properties	54,054,811	35,916,882	32,234,096
Property, plant and equipment	109,437	120,536	118,325
Trading properties	61,568	61,600	48,029
Goodwill	100,861	26,375
Rights to receive units (barter transactions)	26,596	27,560	38,281
Inventories	24,882	22,722	18,202
Investments in associates and joint ventures	1,433,522	791,626	597,759
Operating assets	55,811,313	36,967,095	33,054,692
Adjustment for Expenses And Collective Promotion Funds [Member]
Disclosure of operating segments [line items]
Revenue	1,717,000	1,488,187	1,183,627
Operating costs	(1,747,051)	(1,512,738)	(1,201,305)
Gross profit (loss)	(30,051)	(24,551)	(17,678)
Net gain from fair value adjustment of investment properties
General and administrative expenses
Selling expenses
Other operating results, net
Profit (Loss) from operations	(30,051)	(24,551)	(17,678)
Share in profit of associates and joint ventures
Profit from operations before financing and taxation	(30,051)	(24,551)	(17,678)
Investment properties
Property, plant and equipment
Trading properties
Goodwill
Rights to receive units (barter transactions)
Inventories
Investments in associates and joint ventures
Operating assets
Adjustment for Share In Profit/ (Loss) of Joint Ventures [Member]
Disclosure of operating segments [line items]
Revenue	(39,392)	(39,407)	(22,038)
Operating costs	24,236	12,887	9,458
Gross profit (loss)	(15,156)	(26,520)	(12,580)
Net gain from fair value adjustment of investment properties	(738,122)	(192,463)	(331,826)
General and administrative expenses	1,096	2,785	667
Selling expenses	3,257	2,146	1,980
Other operating results, net	3,945	1,103	2,230
Profit (Loss) from operations	(744,980)	(212,949)	(339,529)
Share in profit of associates and joint ventures	619,354	139,026	215,316
Profit from operations before financing and taxation	(125,626)	(73,923)	(124,213)
Investment properties	(1,623,924)	(882,607)	(638,011)
Property, plant and equipment	(471)	(536)	(598)
Trading properties
Goodwill	(5,236)	(5,236)	(5,234)
Rights to receive units (barter transactions)
Inventories	(610)	(538)	(358)
Investments in associates and joint ventures	1,243,343	593,815	463,232
Operating assets	(386,898)	(295,102)	(180,969)
Urban Properties [Member] | Shopping Malls [Member]
Disclosure of operating segments [line items]
Revenue	3,664,651	3,046,588	2,409,082
Operating costs	(329,785)	(349,445)	(250,306)
Gross profit (loss)	3,334,866	2,697,143	2,158,776
Net gain from fair value adjustment of investment properties	11,340,085	2,068,103	16,131,702
General and administrative expenses	(320,234)	(261,475)	(178,643)
Selling expenses	(238,170)	(188,081)	(145,278)
Other operating results, net	(56,451)	(57,712)	(61,556)
Profit (Loss) from operations	14,060,096	4,257,978	17,905,001
Share in profit of associates and joint ventures
Profit from operations before financing and taxation	14,060,096	4,257,978	17,905,001
Investment properties	40,467,248	28,799,277	26,633,273
Property, plant and equipment	55,952	55,409	49,053
Trading properties
Goodwill	1,323	1,323	1,323
Rights to receive units (barter transactions)
Inventories	25,492	23,260	18,560
Investments in associates and joint ventures
Operating assets	40,550,015	28,879,269	26,702,209
Urban Properties [Member] | Offices [Member]
Disclosure of operating segments [line items]
Revenue	492,096	401,767	284,137
Operating costs	(48,407)	(27,908)	(12,254)
Gross profit (loss)	443,689	373,859	271,883
Net gain from fair value adjustment of investment properties	5,042,427	1,064,586	867,413
General and administrative expenses	(39,438)	(31,464)	(23,308)
Selling expenses	(47,362)	(33,871)	(12,824)
Other operating results, net	348	(6,731)	(1,377)
Profit (Loss) from operations	5,399,664	1,366,379	1,101,787
Share in profit of associates and joint ventures
Profit from operations before financing and taxation	5,399,664	1,366,379	1,101,787
Investment properties	12,625,243	6,841,517	4,876,164
Property, plant and equipment	53,956	65,663	69,870
Trading properties
Goodwill	3,913	3,913	3,911
Rights to receive units (barter transactions)
Inventories
Investments in associates and joint ventures
Operating assets	12,835,487	6,911,093	4,949,945
Urban Properties [Member] | Sales and Developments [Member]
Disclosure of operating segments [line items]
Revenue	105,525	99,136	2,679
Operating costs	(18,688)	(22,534)	(5,720)
Gross profit (loss)	86,837	76,602	(3,041)
Net gain from fair value adjustment of investment properties	1,000,147	193,187	425,114
General and administrative expenses	(38,566)	(30,483)	(20,296)
Selling expenses	(10,635)	(13,740)	(4,264)
Other operating results, net	33,569	(4,062)	(7,831)
Profit (Loss) from operations	1,071,352	221,504	389,682
Share in profit of associates and joint ventures
Profit from operations before financing and taxation	1,071,352	221,504	389,682
Investment properties	2,394,577	1,158,695	1,362,670
Property, plant and equipment
Trading properties	61,568	61,600	48,029
Goodwill
Rights to receive units (barter transactions)	26,596	27,560	38,281
Inventories
Investments in associates and joint ventures
Operating assets	2,482,741	1,247,855	1,448,980
Investments [Member] | Others [Member]
Disclosure of operating segments [line items]
Revenue	9,326	891	1,013
Operating costs	(19,752)	(48)	(77)
Gross profit (loss)	(10,426)	843	936
Net gain from fair value adjustment of investment properties	45,580
General and administrative expenses	(18,100)	(1,539)
Selling expenses	(1,955)	(2,982)	(1,835)
Other operating results, net	13,684	16,183	(18)
Profit (Loss) from operations	28,783	12,505	(917)
Share in profit of associates and joint ventures	20,171	13,677	(11,017)
Profit from operations before financing and taxation	48,954	26,182	(11,934)
Investment properties	191,667
Property, plant and equipment
Trading properties
Goodwill	100,861	26,375
Rights to receive units (barter transactions)
Inventories
Investments in associates and joint ventures	189,815	197,605	134,527
Operating assets	329,968	223,980	134,527
Total Segment Reporting [Member]
Disclosure of operating segments [line items]
Revenue	4,271,598	3,548,382	2,696,911
Operating costs	(416,632)	(399,935)	(268,357)
Gross profit (loss)	3,854,966	3,148,447	2,428,554
Net gain from fair value adjustment of investment properties	17,428,239	3,325,876	17,424,229
General and administrative expenses	(416,338)	(324,961)	(222,247)
Selling expenses	(298,122)	(238,674)	(164,201)
Other operating results, net	(8,850)	(52,322)	(70,782)
Profit (Loss) from operations	20,559,895	5,858,366	19,395,553
Share in profit of associates and joint ventures	20,171	13,677	(11,017)
Profit from operations before financing and taxation	20,580,066	5,872,043	19,384,536
Investment properties	55,678,735	36,799,489	32,872,107
Property, plant and equipment	109,908	121,072	118,923
Trading properties	61,568	61,600	48,029
Goodwill	106,097	31,611	5,234
Rights to receive units (barter transactions)	26,596	27,560	38,281
Inventories	25,492	23,260	18,560
Investments in associates and joint ventures	189,815	197,605	134,527
Operating assets	$ 56,198,211	$ 37,262,197	$ 33,235,661

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Information about subsidiaries (Details)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Fibesa S.A. [Member]
Disclosure of joint ventures [line items]
Place of business	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Mandatary</font></p>
% of ownership interest held	100.00%	100.00%
% of ownership interest held by non-controlling interests
Centro de Entretenimientos La Plata SA [Member]
Disclosure of joint ventures [line items]
Place of business	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina </font></p>
Main activity	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Real estate </font></p>
% of ownership interest held	100.00%
% of ownership interest held by non-controlling interests
Torodur S.A. [Member]
Disclosure of joint ventures [line items]
Place of business	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Uruguay</font></p>
Main activity	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Investment</font></p>
% of ownership interest held	100.00%	100.00%
% of ownership interest held by non-controlling interests
Shopping Neuquen S.A. [Member]
Disclosure of joint ventures [line items]
Place of business	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></p>
% of ownership interest held	99.95%	99.92%
% of ownership interest held by non-controlling interests	0.05%	0.08%
Arcos del Gourmet S.A. [Member]
Disclosure of joint ventures [line items]
Place of business	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></p>
% of ownership interest held	90.00%	90.00%
% of ownership interest held by non-controlling interests	10.00%	10.00%
Panamerican Mall S.A. [Member]
Disclosure of joint ventures [line items]
Place of business	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></p>
% of ownership interest held	80.00%	80.00%
% of ownership interest held by non-controlling interests	20.00%	20.00%
Entertainment Holdings S.A. [Member]
Disclosure of joint ventures [line items]
Place of business	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Investment</font></p>
% of ownership interest held	70.00%	70.00%
% of ownership interest held by non-controlling interests	30.00%	30.00%
Emprendimiento Recoleta S.A. [Member]
Disclosure of joint ventures [line items]
Place of business	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></p>
% of ownership interest held	53.68%	53.68%
% of ownership interest held by non-controlling interests	46.32%	46.32%

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Information about subsidiaries (Details 1) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of subsidiaries [line items]
Current assets	$ 10,670,386	$ 4,515,285
Non-current assets	57,073,717	37,906,223
Current liabilities	2,496,828	1,800,693
Non-current liabilities	27,284,388	17,604,567
Net assets	67,744,103	42,421,508
Book value of non-controlling interest	1,397,872	871,169
Revenues	5,949,206	4,997,162	$ 3,858,500
Comprehensive income for the year	15,656,023	3,377,514	12,252,532
Cash from operating activities	3,624,007	2,875,207	1,013,373
Cash from investing activities	(3,861,213)	(148,074)	(1,864,555)
Cash from financing activities	1,800,431	(957,754)	579,670
Net increase in cash and cash equivalents	1,563,225	1,769,379	$ (271,512)
Panamerican Mall S.A.[Member]
Disclosure of subsidiaries [line items]
Current assets	684,125	424,643
Non-current assets	8,651,271	5,136,295
Current liabilities	399,058	228,464
Non-current liabilities	2,874,630	1,659,926
Net assets	$ 6,061,708	$ 3,672,548
% of ownership interest held by non-controlling interests	20.00%	20.00%
Book value of non-controlling interest	$ 1,211,783	$ 734,510
% of ownership interest held by controlling interests	80.00%	80.00%
Book amount	$ 4,847,130	$ 2,938,038
Revenues	649,681	545,783
Comprehensive income for the year	2,571,160	423,749
Cash from operating activities	300,458	(4,917)
Cash from investing activities	(712,855)	215,148
Cash from financing activities	446,230	(153,121)
Net increase in cash and cash equivalents	33,833	57,110
Dividends paid to non-controlling interest	$ 36,400	$ 42,598

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Interests in joint ventures (Details) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of joint ventures [line items]
Current assets	$ 10,670,386	$ 4,515,285
Non-current assets	57,073,717	37,906,223
Current liabilities	2,496,828	1,800,693
Non-current liabilities	27,284,388	17,604,567
Net assets	67,744,103	42,421,508
Revenues	5,949,206	4,997,162	$ 3,858,500
Comprehensive income for the year	15,656,023	3,377,514	12,252,532
Cash from operating activities	3,624,007	2,875,207	1,013,373
Cash from investing activities	(3,861,213)	(148,074)	(1,864,555)
Cash from financing activities	1,800,431	(957,754)	$ 579,670
Quality Invest S.A. [Member]
Disclosure of joint ventures [line items]
Current assets	4,888	17,804
Non-current assets	2,820,477	1,486,497
Current liabilities	64,283	82,300
Non-current liabilities	648,184	466,009
Net assets	$ 2,112,898	$ 955,992
% of ownership interest	50.00%	50.00%	50.00%
Book value of non-controlling interest	$ 1,056,449	$ 477,996
Goddwill and others	3,911	3,911
Book amount	1,061,610	481,907
Revenues	12,538	26,435
Comprehensive income for the year	1,078,880	237,304
Cash from operating activities	(79,768)	(10,586)
Cash from investing activities	(495)	(253)
Cash from financing activities	80,270	10,833
Net increase (decrease) in cash and cash equivalents	7	(6)
Tarshop S.A [Member]
Disclosure of joint ventures [line items]
Current assets	4,979,104	4,752,937
Non-current assets	1,446,607	1,132,158
Current liabilities	5,182,946	4,222,263
Non-current liabilities	772,227	1,259,347
Net assets	$ 470,538	$ 403,485
% of ownership interest	20.00%	20.00%
Book value of non-controlling interest	$ 94,108	$ 80,697
Goddwill and others
Book amount	94,108	80,694
Revenues	3,854,868	1,622,801
Comprehensive income for the year	67,073	26,033
Cash from operating activities	(431,855)	(772,527)
Cash from investing activities	(7,620)	(11,081)
Cash from financing activities	395,160	808,132
Net increase (decrease) in cash and cash equivalents	$ (44,315)	$ 24,524

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Interests in joint ventures (Details 1) - ARS ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Dec. 18, 2012
Disclosure of joint ventures [line items]
Value of Group's interest in equity		$ 1,433,158	$ 791,420	$ 597,759
Share capital (nominal value)		$ 1				$ 0.1
Income for the year		$ 15,656,023	3,377,514	12,252,532
Equity		37,962,887	23,016,248	20,430,219	$ 8,560,417
Otra asociadas [Member]
Disclosure of joint ventures [line items]
Value of Group's interest in equity	[1]	2,784	3,546
Company's interest in comprehensive income	[1]	(6,972)	(6,844)
Total Interests In Associates And Joint Ventures [Member]
Disclosure of joint ventures [line items]
Value of Group's interest in equity	[2]	1,433,158	791,420
Company's interest in comprehensive income	[2]	$ 639,525	$ 152,703	$ 204,299
Tarshop S.A [Member]
Disclosure of joint ventures [line items]
% ownership interest	[3]	20.00%	20.00%	20.00%
Value of Group's interest in equity	[3]	$ 94,108	$ 80,694
Company's interest in comprehensive income	[3]	$ 13,415	$ 5,207	$ (31,447)
Place of business	[3]	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	[3]	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Consumer financing</font></p>
Common shares	[3]	48,759,288
Share capital (nominal value)	[3]	$ 598,796
Income for the year	[3]	$ 67,073
Equity	[3]	$ 470,538
Quality Invest S.A. [Member]
Disclosure of joint ventures [line items]
% ownership interest		50.00%	50.00%	50.00%
Value of Group's interest in equity		$ 1,061,850	$ 481,907
Company's interest in comprehensive income		$ 540,930	$ 118,652	$ 154,072
Place of business		<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity		<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></p>
Common shares		120,827,022
Share capital (nominal value)		$ 241,654
Income for the year		$ 1,078,880
Equity		$ 2,112,897
Nuevo Puerto Santa Fe S.A. [Member]
Disclosure of joint ventures [line items]
% ownership interest	[4],[5]	50.00%	50.00%	50.00%
Value of Group's interest in equity	[4],[5]	$ 181,493	$ 111,908
Company's interest in comprehensive income	[4],[5]	$ 78,424	$ 20,374	$ 61,244
Place of business	[4],[5]	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	[4],[5]	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></p>
Common shares	[4],[5]	138,750
Share capital (nominal value)	[4],[5]	$ 27,750
Income for the year	[4],[5]	$ 156,848
Equity	[4],[5]	$ 360,340
La Rural SA [Member]
Disclosure of joint ventures [line items]
% ownership interest	[3]	50.00%	50.00%
Value of Group's interest in equity	[3]	$ 92,923	$ 113,365
Company's interest in comprehensive income	[3]	$ 13,728	$ 15,314
Place of business	[3]	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Argentina</font></p>
Main activity	[3]	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Event organization and others</font></p>
Common shares	[3]	714,498
Share capital (nominal value)	[3]	$ 1,430
Income for the year	[3]	$ 77,598
Equity	[3]	$ 156,856
Entertainment Holdings S.A. [Member]
Disclosure of joint ventures [line items]
% ownership interest				50.00%
Value of Group's interest in equity
Company's interest in comprehensive income				$ 20,419
Entretenimiento Universal S.A. [Member]
Disclosure of joint ventures [line items]
% ownership interest				2.50%
Value of Group's interest in equity
Company's interest in comprehensive income				$ 11

[1] Represents other individually non-significant associates.

[2] Includes Ps 364 and Ps. 206. as of June 30, 2018 and 2017, respectively, in relation to the equity interest in Avenida Compras disclosed under. (See Note 19)

[3] Correspond to profit for the fiscal year ended at June 30, 2018 and 2017.

[4] Include the necessary adjustments to arrive at balances under international financial reporting standards.

[5] Nominal value per share Ps. 100.

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Interests in joint ventures (Details 2) - ARS ($) $ in Thousands		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Interests In Joint Ventures
Beginning of the year		$ 791,420	$ 597,759
Profit sharing, net		639,525	152,703
Irrevocable contributions (Note 29)		43,574	3,000
Capital contributions (Note 29)		1,649
Dividends distributed (Note 29)		(43,010)	(20,284)
Incorporation as result of business combination, net	[1]		47,852
Acquisitions of companies			10,390
End of the year		$ 1,433,158	$ 791,420

[1] In July 2016, the Group through IRSA Propiedades Comerciales acquired 20% shareholding in Entertainment Holdings S.A (EHSA). It also acquired 1.25% interest in Entretenimiento Universal S.A. ("ENUSA"). The amount paid for the acquisition was Ps. 53 million. As a result, the Group now holds 70% of the voting stock of EHSA (Note 4).

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Investment properties (Details) - ARS ($) $ in Thousands		12 Months Ended
		Jun. 30, 2018		Jun. 30, 2017
Disclosure of detailed information about investment property [line items]
Fair value as of beginning		$ 35,916,882		$ 32,234,096
Additions		1,346,670		679,067
Incorporation as result of business combination (Note 15)		106,795
Capitalization of financial costs		14,385		2,310
Capitalization of financial costs (Note 27)		18,160		24,798
Depreciation of capitalized lease costs	[1]	(4,440)		(2,002)
Transfers
Transfer to trading properties (Note 10 & 11)		(3,026)		(13,617)
Disposals		(30,732)		(141,183)
Net gain from fair value adjustment on investment properties		16,690,117	[2]	3,133,413	[3]
Fair value as of end		54,054,811		35,916,882
Shopping Malls [Member] | Level 3 [Member]
Disclosure of detailed information about investment property [line items]
Fair value as of beginning		28,560,779		26,425,132
Additions		106,901		100,002
Incorporation as result of business combination (Note 15)
Capitalization of financial costs
Capitalization of financial costs (Note 27)		12,930		1,397
Depreciation of capitalized lease costs	[1]	(1,961)		(636)
Transfers		343
Transfer to trading properties (Note 10 & 11)				(13,617)
Disposals		(1,250)
Net gain from fair value adjustment on investment properties		11,200,624	[2]	2,048,501	[3]
Fair value as of end		39,878,366		28,560,779
Office And Other Rental Properties [Member] | Level 2 [Member]
Disclosure of detailed information about investment property [line items]
Fair value as of beginning		5,598,753		4,446,294
Additions		504		466,332
Incorporation as result of business combination (Note 15)
Capitalization of financial costs
Capitalization of financial costs (Note 27)		3,940		3,349
Depreciation of capitalized lease costs	[1]	(2,479)		(1,366)
Transfers				(80,160)
Transfer to trading properties (Note 10 & 11)		(3,026)
Disposals		(29,482)		(141,183)
Net gain from fair value adjustment on investment properties		4,060,764	[2]	905,487	[3]
Fair value as of end		9,628,974		5,598,753
Undeveloped Parcels Of Land [Member] | Level 2 [Member]
Disclosure of detailed information about investment property [line items]
Fair value as of beginning		1,158,695		1,355,500
Additions		256,505		5,539
Incorporation as result of business combination (Note 15)
Capitalization of financial costs
Capitalization of financial costs (Note 27)
Depreciation of capitalized lease costs	[1]
Transfers				(330,366)
Transfer to trading properties (Note 10 & 11)
Disposals
Net gain from fair value adjustment on investment properties		979,377	[2]	128,022	[3]
Fair value as of end		2,394,577		1,158,695
Properties Under Development [Member] | Level 2 [Member]
Disclosure of detailed information about investment property [line items]
Fair value as of beginning		598,655		7,170
Additions		982,760		107,194
Incorporation as result of business combination (Note 15)
Capitalization of financial costs		14,385		2,310
Capitalization of financial costs (Note 27)		1,290		20,052
Depreciation of capitalized lease costs	[1]
Transfers		(343)		410,526
Transfer to trading properties (Note 10 & 11)
Disposals
Net gain from fair value adjustment on investment properties		403,772	[2]	51,403	[3]
Fair value as of end		2,000,519		598,655
Others [Member] | Level 3 [Member]
Disclosure of detailed information about investment property [line items]
Fair value as of beginning	[4]
Additions
Incorporation as result of business combination (Note 15)		106,795
Capitalization of financial costs	[4]
Capitalization of financial costs (Note 27)	[4]
Depreciation of capitalized lease costs	[1],[4]
Transfers	[4]
Transfer to trading properties (Note 10 & 11)	[4]
Disposals	[4]
Net gain from fair value adjustment on investment properties	[4]	45,580	[2]		[3]
Fair value as of end	[4]	$ 152,375

[1] As of June 30, 2018 and 2017 depreciation charges were included in "Costs" in the amount of Ps 4,440 and Ps. 2,002, respectively, in the statement of comprehensive income (Note 25)

[2] For fiscal year 2018 the net impact in the peso values of the Company's properties was primarily a consequence of the change in the macroeconomic conditions: (i) depreciation of Argentine peso of 73% against the U.S. dollar; (ii) an increase in the projected inflation rate, with the resulting increase in the cash flow of revenues of shopping malls; (iii) an increase of 44 basis points in the discount rate; and (iv) an additional effect due to in the income tax rate used in the methodology applied to value discounted cash flows; such amendment was set forth by the fiscal reform recently approved (See note 20). The values of our shopping mall properties increased 40.4% during the fiscal year ended June 30, 2018, largely due to the change in the applicable income tax rate and the impact of the depreciation of the peso, partially offset by an increase in the discount rate. The value of our office buildings increased 85.7% during the fiscal year ended June 30, 2018 largely as a result of the impact of the depreciation of the peso and higher rental rates for our properties.

[3] For fiscal year 2017 the increase in the value of our investment properties as measured in Pesos was primarily due to: (i) a 16 basis points decrease in the discount rate applied in calculating the discounted cash flows appraisal method to appraise our shopping mall properties that resulted in increases in value, mainly as a result of macroeconomic improvements that led to a decrease in the cost of capital; and (ii) the Peso depreciated by approximately 11% against the U.S. dollar. The value of our offices properties is booked in U.S. dollars per accepted practice in the Argentine real estate. The appraised values of our shopping mall properties increased 8.1% during fiscal 2017 largely due to a decreased in our capital cost. The appraised value of our office buildings increased 40.3% in fiscal 2017 largely as a result of the impact of the depreciation of the Peso and higher rental rates during the period.

[4] Corresponds to the DirectTV Arena Stadium.

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Investment properties (Details 1) - Shopping Malls [Member] - Discounted Cash Flows [Member]	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Disclosure of detailed information about investment property [line items]
Discount rate	9.79%	9.35%
Growth rate	3.00%	3.00%

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Investment properties (Details 2) - ARS ($) $ in Thousands		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Disclosure of detailed information about investment property [abstract]
Discount rate 1%		$ (5,046)	$ (3,948)
Discount rate -1%		6,796	5,445
Growth rate 1%		3,104	2,464
Growth rate -1%		(2,307)	(1,794)
Inflation 10%	[1]	4,035	2,684
Inflation -10%	[2]	(3,643)	(2,425)
Devaluation rate + 10%	[3]	(3,575)	(2,565)
Devaluation rate - 10%	[4]	$ 4,369	$ 3,135

[1] assume a 10% higher inflation rate for each period vis-a-vis projected rates.

[2] assume a 10% lower inflation rate for each period vis-a-vis projected rates.

[3] assume a 10% higher exchange rate for each period vis-a-vis projected rates.

[4] assume a 10% lower exchange rate for each period vis-a-vis projected rates.

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Investment properties (Details 3) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of detailed information about investment property [abstract]
Revenues from rental and services (Note 24)	$ 4,128,454	$ 3,409,292	$ 2,672,701
Expenses and collective promotion fund (Note 24)	1,717,000	1,488,187	1,183,627
Rental and services costs (Note 25)	(2,120,715)	(1,874,392)	(1,454,409)
Net unrealized gain from fair value adjustment on investment properties	16,669,347	3,068,248	16,919,859
Net realized gain from fair value adjustment on investment properties	$ 20,770	$ 65,165	$ 172,544

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Investment properties (Details 4) - ARS ($) $ in Thousands		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of detailed information about investment property [line items]
Total		$ 54,054,811	$ 35,916,882	$ 32,234,096
Cordoba Shopping [Member]
Disclosure of detailed information about investment property [line items]
Total	[1]	$ 1,112,547	$ 759,103

[1] A portion of the Cordoba Shopping mall property is encumbered with an antichresis right as collateral for an advance rent received from NAI International II Inc. amounting to Ps. 9.6 million and Ps. 12.2 million, as of June 30, 2018 and 2017, respectively, (included in "Trade and other payables" in the statement of financial position).

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Property, plant and equipment (Details) - ARS ($) $ in Thousands		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		$ 120,536	$ 118,325
Additions		24,789	23,866
Transfers from investment properties (Note 9)		3,026
Disposals		(12,379)
Incorporation as result of business combination (Note 15)		193
Depreciation charges	[1]	(26,728)	(21,655)
Net book amount as of end		109,437	120,536
Costs - Capitalized Finance Leases [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		262,363	238,497
Net book amount as of end		277,992	262,363
Accumulated Depreciation [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		(141,827)	(120,172)
Net book amount as of end		(168,555)	(141,827)
Other Buildings And Facilities [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		65,465	69,728
Additions		3,235	509
Transfers from investment properties (Note 9)		3,026
Disposals		(12,379)
Incorporation as result of business combination (Note 15)
Depreciation charges	[1]	(5,580)	(4,772)
Net book amount as of end		53,767	65,465
Other Buildings And Facilities [Member] | Costs - Capitalized Finance Leases [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		88,627	88,118
Additions
Net book amount as of end		82,509	88,627
Other Buildings And Facilities [Member] | Accumulated Depreciation [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		(23,162)	(18,390)
Additions
Net book amount as of end		(28,742)	(23,162)
Furniture and Fixtures [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		13,202	11,565
Additions		991	3,958
Transfers from investment properties (Note 9)
Disposals
Incorporation as result of business combination (Note 15)
Depreciation charges	[1]	(2,253)	(2,321)
Net book amount as of end		11,940	13,202
Furniture and Fixtures [Member] | Costs - Capitalized Finance Leases [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		26,541	22,583
Net book amount as of end		27,532	26,541
Furniture and Fixtures [Member] | Accumulated Depreciation [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		(13,339)	(11,018)
Net book amount as of end		(15,592)	(13,339)
Machinery and Equipment [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		40,519	35,163
Additions		20,563	19,345
Transfers from investment properties (Note 9)
Disposals
Incorporation as result of business combination (Note 15)		67
Depreciation charges	[1]	(18,323)	(13,989)
Net book amount as of end		42,826	40,519
Machinery and Equipment [Member] | Costs - Capitalized Finance Leases [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		143,931	124,586
Additions
Net book amount as of end		164,561	143,931
Machinery and Equipment [Member] | Accumulated Depreciation [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		(103,412)	(89,423)
Additions
Net book amount as of end		(121,735)	(103,412)
Vehicles [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		1,240	1,813
Additions
Transfers from investment properties (Note 9)
Disposals
Incorporation as result of business combination (Note 15)		126
Depreciation charges	[1]	(572)	(573)
Net book amount as of end		794	1,240
Vehicles [Member] | Costs - Capitalized Finance Leases [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		3,154	3,154
Net book amount as of end		3,280	3,154
Vehicles [Member] | Accumulated Depreciation [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		(1,914)	(1,341)
Net book amount as of end		(2,486)	(1,914)
Others [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		110	56
Additions			54
Transfers from investment properties (Note 9)
Disposals
Incorporation as result of business combination (Note 15)
Depreciation charges	[1]
Net book amount as of end		110	110
Others [Member] | Costs - Capitalized Finance Leases [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning		110	56
Net book amount as of end		110	110
Others [Member] | Accumulated Depreciation [Member]
Changes in property, plant and equipment [Abstract]
Net book amount as of beginning
Net book amount as of end

[1] As of June 30, 2018 and 2017, depreciation charges were charged to "Costs" in the amount of Ps. 23,218 and Ps. 18,126, respectively, to "General and administrative expenses" in the amount of Ps. 3,324 and Ps. 3,253, respectively and to "Selling expenses" in the amount of Ps. 186 and Ps. 276, respectively, in the Statements of Comprehensive Income (Note 25).

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Property, plant and equipment (Details 1) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of reconciliation of changes in goodwill [line items]
Net book amount	$ 8,231	$ 1,884
Costs - Capitalized Finance Leases [Member]
Disclosure of reconciliation of changes in goodwill [line items]
Net book amount	12,658	9,217
Accumulated Depreciation [Member]
Disclosure of reconciliation of changes in goodwill [line items]
Net book amount	$ (4,427)	$ (7,333)

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Property, plant and equipment (Details Narrative) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Financial Assets at Amortized Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation charge	$ 23,218	$ 18,126
General and Administrative Expenses [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation charge	3,324	3,253
Selling Expenses [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation charge	$ 186	$ 276

XML

Trading properties (Details) - ARS ($) $ in Thousands		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Disclosure of financial assets [line items]
Balance at beginning		$ 61,600	$ 48,029
Transfers from investment properties (Note 9)			13,617
Transfers from intangible assets (Note 12)		8,837	12,857
Disposals	[1]	(8,869)	(12,903)
Balance at ending		61,568	61,600
Completed Properties [Member]
Disclosure of financial assets [line items]
Balance at beginning		341	387
Transfers from investment properties (Note 9)
Transfers from intangible assets (Note 12)		8,837	12,857
Disposals	[1]	(8,869)	(12,903)
Balance at ending		309	341
Undeveloped Sites [Member]
Disclosure of financial assets [line items]
Balance at beginning		61,259	47,642
Transfers from investment properties (Note 9)			13,617
Transfers from intangible assets (Note 12)
Disposals	[1]
Balance at ending		$ 61,259	$ 61,259

[1] As of June 30, 2018 and 2017 the sales properties costs were charged to "Costs" in the Statements of Comprehensive Income. (Note 25)

XML

Trading properties (Details 1) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Non-current	$ 61,362	$ 61,600
Current	206
Net book amount	$ 61,568	61,600	$ 48,029
Air Space Coto [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Date of acquisition	1997-09
Net book amount	$ 6,024	6,024
Cordoba Plot Of Land [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Date of acquisition	2015-05
Net book amount	$ 15,544	15,544
Cordoba Plot Of Land Shopping [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Date of acquisition	2006-12
Net book amount	$ 23,935	23,935
Residential Project Neuquen [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Date of acquisition	2006-05
Net book amount	$ 15,756	15,756
Total Undeveloped Sites [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Net book amount	$ 61,259	61,259
Condominios II [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Date of acquisition	2013-11
Net book amount	$ 309	341
Total Completed Properties [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Net book amount	$ 309	$ 341

XML

Intangible assets (Details) - ARS ($) $ in Thousands		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		$ 111,560	$ 67,139
Additions		49,788	35,786
Incorporation as result of business combination (Note 15)		74,486	26,375
Transfers to trading properties (Note 11)		(8,837)	(12,857)
Amortization charges	[1]	(13,946)	(4,883)
Net book amount as of end		213,051	111,560
Costs - Capitalized Finance Leases [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		137,148	87,844
Net book amount as of end		252,585	137,148
Accumulated Amortization [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		(25,588)	(20,705)
Net book amount as of end		(39,534)	(25,588)
Goodwill [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		26,375
Additions
Incorporation as result of business combination (Note 15)		74,486	26,375
Transfers to trading properties (Note 11)
Amortization charges	[1]
Net book amount as of end		100,861	26,375
Goodwill [Member] | Costs - Capitalized Finance Leases [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		26,375
Net book amount as of end		100,861	26,375
Goodwill [Member] | Accumulated Amortization [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning
Net book amount as of end
Software [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		33,110	1,731
Additions		41,915	33,650
Incorporation as result of business combination (Note 15)
Transfers to trading properties (Note 11)
Amortization charges	[1]	(10,422)	(2,271)
Net book amount as of end		64,603	33,110
Software [Member] | Costs - Capitalized Finance Leases [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		50,479	16,829
Net book amount as of end		92,394	50,479
Software [Member] | Accumulated Amortization [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		(17,369)	(15,098)
Net book amount as of end		(27,791)	(17,369)
Rights Of Use [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning	[2]	19,040	19,459
Additions	[2]
Incorporation as result of business combination (Note 15)	[2]
Transfers to trading properties (Note 11)	[2]
Amortization charges	[1],[2]	(1,333)	(419)
Net book amount as of end	[2]	17,707	19,040
Rights Of Use [Member] | Costs - Capitalized Finance Leases [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning	[2]	20,873	20,873
Net book amount as of end	[2]	20,873	20,873
Rights Of Use [Member] | Accumulated Amortization [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning	[2]	(1,833)	(1,414)
Net book amount as of end	[2]	(3,166)	(1,833)
Rights To Receive Units [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning	[3]	27,560	38,281
Additions	[3]	7,873	2,136
Incorporation as result of business combination (Note 15)	[3]
Transfers to trading properties (Note 11)	[3]	(8,837)	(12,857)
Amortization charges	[1],[3]
Net book amount as of end	[3]	26,596	27,560
Rights To Receive Units [Member] | Costs - Capitalized Finance Leases [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning	[3]	27,560	38,281
Net book amount as of end	[3]	26,596	27,560
Rights To Receive Units [Member] | Accumulated Amortization [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning	[3]
Net book amount as of end	[3]
Others [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		5,475	7,668
Additions
Incorporation as result of business combination (Note 15)
Transfers to trading properties (Note 11)
Amortization charges	[1]	(2,191)	(2,193)
Net book amount as of end		3,284	5,475
Others [Member] | Costs - Capitalized Finance Leases [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		11,861	11,861
Additions
Net book amount as of end		11,861	11,861
Others [Member] | Accumulated Amortization [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Net book amount as of beginning		(6,386)	(4,193)
Additions
Net book amount as of end		$ (8,577)	$ (6,386)

[1] As of June 30, 2018 and 2017, depreciation charges were charged to "Costs" in the amount of Ps. 5,643 and Ps. 2,094, respectively, to "General and administrative expenses" in the amount of Ps. 8,174 and Ps. 2,700, respectively and to "Selling expenses" in the amount of Ps. 129 and Ps. 89, respectively, in the Statements of Comprehensive Income (Note 25). There are no impairment charges for any of the reported years.

[2] Corresponds to Distrito Arcos.

[3] Corresponds to in-kind receivables representing the right to receive residential apartments in the future under barter transactions (Note 32).

XML

Intangible assets (Details Narrative) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Financial Assets at Amortized Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Amortization charge	$ 5,643	$ 2,094
General and Administrative Expenses [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Amortization charge	8,174	2,700
Selling Expenses [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Amortization charge	$ 129	$ 89

XML

Financial instruments by category (Details) - ARS ($) $ in Thousands		Jun. 30, 2018		Jun. 30, 2017
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]	$ 2,632,994		$ 1,265,484
Subtotal financial assets		10,289,477		4,200,289
Non-financial assets		1,498,699		1,266,624
Total		11,788,176		5,466,913
Financial liabilities at amortized cost		16,507,109		6,657,782
Subtotal financial liabilities		16,553,820		6,662,732
Non-financial liabilities		1,501,155		1,018,636
Total		18,054,975		7,681,368
Trade and Other Payables [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at amortized cost		853,305	[2]	492,944	[1]
Subtotal financial liabilities		853,305		492,944
Non-financial liabilities		1,501,155		1,018,636
Total		2,354,460		1,511,580
Borrowings Excluding Finance Leases [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at amortized cost		15,653,804	[2]	6,164,838	[1]
Subtotal financial liabilities		15,653,804		6,164,838
Non-financial liabilities
Total		15,653,804		6,164,838
United States Treasury Bonds [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at amortized cost
Subtotal financial liabilities		263
Non-financial liabilities
Total		263
Swaps Of Interest Rate [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at amortized cost	[3]
Subtotal financial liabilities	[3]	46,448
Non-financial liabilities	[3]
Total	[3]	46,448
Futures Contracts [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at amortized cost
Subtotal financial liabilities				4,950
Non-financial liabilities
Total				4,950
Level 1 [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		7,028,661		2,934,805
Level 2 [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		47,360
Financial liabilities at fair value through profit or loss		46,711		4,950
Level 2 [Member] | Trade and Other Payables [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at fair value through profit or loss
Level 2 [Member] | Borrowings Excluding Finance Leases [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at fair value through profit or loss
Level 2 [Member] | Future Contracts [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at fair value through profit or loss		263
Level 2 [Member] | Swaps Of Interest Rate [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at fair value through profit or loss	[3]	46,448
Level 2 [Member] | Futures Contracts [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities at fair value through profit or loss				4,950
Level 3 [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		580,462
Trade and Other Receivables Excluding Allowance For Doubtful Accounts And Other Receivables [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]	1,424,384		1,096,254
Subtotal financial assets		1,424,384		1,096,254
Non-financial assets		1,498,699		1,266,624
Total		2,923,083		2,362,878
Trade and Other Receivables Excluding Allowance For Doubtful Accounts And Other Receivables [Member] | Level 1 [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Trade and Other Receivables Excluding Allowance For Doubtful Accounts And Other Receivables [Member] | Level 2 [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Trade and Other Receivables Excluding Allowance For Doubtful Accounts And Other Receivables [Member] | Level 3 [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Investment In Equity Public Companies [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]
Subtotal financial assets		201,699		157,689
Non-financial assets
Total		201,699		157,689
Investment In Equity Public Companies [Member] | Level 1 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		201,699		157,689
Investment In Equity Public Companies [Member] | Level 2 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Investment In Equity Public Companies [Member] | Level 3 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Non-Convertible Notes Issued By Related Parties [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]
Subtotal financial assets		248,544		267,365
Non-financial assets
Total		248,544		267,365
Non-Convertible Notes Issued By Related Parties [Member] | Level 1 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		248,544		267,365
Non-Convertible Notes Issued By Related Parties [Member] | Level 2 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Non-Convertible Notes Issued By Related Parties [Member] | Level 3 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Mutual Funds [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]
Subtotal financial assets		1,163,536		196,016
Non-financial assets
Total		1,163,536		196,016
Mutual Funds [Member] | Level 1 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		1,163,536		196,016
Mutual Funds [Member] | Level 2 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Mutual Funds [Member] | Level 3 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
ETF Funds [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]
Subtotal financial assets		121,971		70,148
Non-financial assets
Total		121,971		70,148
ETF Funds [Member] | Level 1 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		121,971		70,148
ETF Funds [Member] | Level 2 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
ETF Funds [Member] | Level 3 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Government Bonds [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]
Subtotal financial assets		2,848,848		555,748
Non-financial assets
Total		2,848,848		555,748
Government Bonds [Member] | Level 1 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		2,848,848		555,748
Government Bonds [Member] | Level 2 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Government Bonds [Member] | Level 3 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Non-Convertible Notes TGLT [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]
Subtotal financial assets		580,462
Non-financial assets
Total		580,462
Non-Convertible Notes TGLT [Member] | Level 1 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Non-Convertible Notes TGLT [Member] | Level 2 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Non-Convertible Notes TGLT [Member] | Level 3 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		580,462
Financial Trusts [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]	9,542
Subtotal financial assets		9,542
Non-financial assets
Total		9,542
Financial Trusts [Member] | Level 1 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Financial Trusts [Member] | Level 2 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Financial Trusts [Member] | Level 3 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Future Contracts [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]
Subtotal financial assets		47,360
Non-financial assets
Total		47,360
Future Contracts [Member] | Level 1 [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Future Contracts [Member] | Level 2 [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		47,360
Future Contracts [Member] | Level 3 [Member] | Derivative Financial Instruments [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Cash At Bank And On Hand [Member] | Cash And Cash Equivalents [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]	1,199,068		119,705
Subtotal financial assets		1,199,068		119,705
Non-financial assets
Total		1,199,068		119,705
Cash At Bank And On Hand [Member] | Level 1 [Member] | Cash And Cash Equivalents [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Cash At Bank And On Hand [Member] | Level 2 [Member] | Cash And Cash Equivalents [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Cash At Bank And On Hand [Member] | Level 3 [Member] | Cash And Cash Equivalents [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Short Term Investments [Member] | Cash And Cash Equivalents [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]
Subtotal financial assets		2,444,063		1,687,839
Non-financial assets
Total		2,444,063		1,687,839
Short Term Investments [Member] | Level 1 [Member] | Cash And Cash Equivalents [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss		2,444,063		1,687,839
Short Term Investments [Member] | Level 2 [Member] | Cash And Cash Equivalents [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Short Term Investments [Member] | Level 3 [Member] | Cash And Cash Equivalents [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss
Restringed Assets [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at amortized cost	[1]			49,525
Subtotal financial assets	[2]			49,525
Non-financial assets	[2]
Total	[2]			49,525
Restringed Assets [Member] | Level 1 [Member] | Investments In Financial Assets [Member]
Disclosure of fair value measurement of assets [line items]
Financial assets at fair value through profit or loss

[1] The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value.

[2] Represents cash related to the Employee Capitalization Plan.

[3] The maturity date is February 16, 2023 and it is associated with the loan obtained through its subsidiary, Panameriacan Mall S.A, with the purpose of paying for the work that is being carried out at the Polo Dot (Note 18).

XML

Financial instruments by category (Details 1) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Trade and Other Payables [Member]
Disclosure of fair value measurement of liabilities [line items]
Gross amounts recognized	$ (936,645)	$ (579,566)
Gross amounts offset	83,340	86,622
Net amount presented	(853,305)	(492,944)
Trade and Other Receivables Excluding Allowance For Doubtful Accounts And Other Receivables [Member]
Disclosure of fair value measurement of liabilities [line items]
Gross amounts recognized	1,507,724	1,182,876
Gross amounts offset	(83,340)	(86,622)
Net amount presented	$ 1,424,384	$ 1,096,254

XML

Financial instruments by category (Details 2) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of financial liabilities [line items]
Interest income	$ 240,005	$ 184,296	$ 102,169
Interest expense	(928,218)	(639,768)	(612,486)
Foreign exchange losses, net	(5,993,197)	(550,408)	(1,815,553)
Dividend income	34,172	9,705
Fair value gains of financial assets through profit or loss	2,041,061	203,087	466,328
Loss from repurchase of non-convertible notes		168
Gain from derivative financial instruments	227,378	81,105	1,248,374
Other finance costs	(117,445)	(77,033)	(100,051)
Net (loss) / income	(4,496,244)	(789,184)	(711,219)
Financial Assets And Liabilities At Amortised Cost Category [Member]
Disclosure of financial liabilities [line items]
Interest income	234,947	177,892	94,541
Interest expense	(928,218)	(639,768)	(612,486)
Foreign exchange losses, net	(5,993,197)	(550,408)	(1,815,553)
Dividend income	34,172	9,705
Fair value gains of financial assets through profit or loss
Loss from repurchase of non-convertible notes
Gain from derivative financial instruments
Other finance costs	(117,445)	(77,033)	(100,051)
Net (loss) / income	(6,769,741)	(1,079,612)	(2,433,549)
Financial Assets And Liabilities At Fair Value Through Profit Or Loss Category [Member]
Disclosure of financial liabilities [line items]
Interest income	5,031	6,404	7,628
Interest expense
Foreign exchange losses, net
Dividend income
Fair value gains of financial assets through profit or loss	2,041,061	203,087	466,328
Loss from repurchase of non-convertible notes		(168)
Gain from derivative financial instruments	227,378	81,105	1,248,374
Other finance costs
Net (loss) / income	$ 2,273,470	$ 290,428	$ 1,722,330

XML

Financial instruments by category (Details 3)	12 Months Ended
	Jun. 30, 2018 $ / shares
Level 2 [Member] | Swaps Of Interest Rate [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
Description	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Swaps of interest rate</font></p>
Pricing model / method	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Discounted cash flow</font></p>
Parameters	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Interest rate futures</font></p>
Range
Level 3 [Member] | Non-Convertible Notes TGLT [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
Description	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Non-Convertible Notes - TGLT</font></p>
Pricing model / method	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Black & Scholes - Black & Scholes</font></p>
Parameters	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Price and volatility of the subjacent</font></p> <p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Market Interest rate</font></p>
Range term	<p style="font: 13px Times New Roman, Times, Serif; color: #000000; margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Price: Ps. 13 - Ps. 16 Volatility of the subjacent: 40% - 60% Market interest rate: 6% - 7%</font></p>
Level 3 [Member] | Arcos del Gourmet S.A. [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
Description	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Arcos del Gourmet S.A. purchase option</font></p>
Pricing model / method	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Discounted cash flow</font></p>
Parameters	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Projected revenues and discount rate</font></p>
Range term	<p style="font: 13px Times New Roman, Times, Serif; color: #000000; margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Projected income: USD 0,5MM – USD 1MM Discount rate 8.7% - 9.5%</font></p>
Foreign-Currency Contracts [Member] | Level 2 [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items]
Description	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Foreign-currency contracts</font></p>
Pricing model / method	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Present value method - Theoretical price</font></p>
Parameters	<p style="text-align: left; text-indent: 0px; margin: 0pt 0; font: 13px Times New Roman, Times, Serif; color: #000000"><font style="font: 10pt Times New Roman, Times, Serif">Money market curve; Interest curve; Foreign exchange curve</font></p>

XML

Trade and other receivables (Details) - ARS ($) $ in Thousands		Jun. 30, 2018	Jun. 30, 2017
Trade and other receivables [abstract]
Post-dated checks		$ 492,745	$ 422,984
Lease and services receivables		474,311	338,595
Averaging of scheduled rent escalation		301,203	271,747
Debtors under legal proceedings		159,821	100,808
Consumer financing receivables		16,441	15,786
Property sales receivables		20,238	5,510
Less: allowance for doubtful accounts		(201,333)	(131,583)
Total trade receivables		1,263,426	1,023,847
Advance payments		271,800	285,158
Prepayments		150,666	113,190
Other receivables from partners of joint ventures	[1]	88,133	89,131
VAT receivables		82,399	45,821
Loans		44,373	20,324
Other tax receivables		19,225	8,656
Expenses to be recovered		8,077	5,226
Others		7,451	6,108
Less: allowance for doubtful accounts		(166)	(165)
Total other receivables		671,958	573,449
Related parties (Note 29)		786,200	633,834
Total current trade and other receivables		2,721,584	2,231,130
Non-current		955,509	777,818
Current		1,766,075	1,453,312
Total		$ 2,721,584	$ 2,231,130

[1] Includes Ps. 83,942 and Ps. 66,711 at June 30 of 2018 and 2017 respectively, of agreement for assumption of debt with the State Assets Administration Office, or AABE in Spanish. (See Note 18)

XML

Trade and other receivables (Details 1) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Trade and other receivables [abstract]
Beginning of the year	$ 131,748	$ 93,532
Additions (Note 25)	86,645	49,360
Unused amounts reversed (Note 25)	(12,742)	(8,627)
Used during the year	(4,152)	(2,517)
End of the year	$ 201,499	$ 131,748

XML

Trade and other receivables (Details 2) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of provision matrix [line items]
Total	$ 1,464,759	$ 1,155,430
Up to 3 months [Member]
Disclosure of provision matrix [line items]
Total	146,491	64,905
3 to 6 months [Member]
Disclosure of provision matrix [line items]
Total	15,347	4,015
Over 6 months [Member] [Member]
Disclosure of provision matrix [line items]
Total	21,472	10,037
To mature [Member]
Disclosure of provision matrix [line items]
Total	1,080,116	944,890
Allowed [Member]
Disclosure of provision matrix [line items]
Total	201,333	131,583
Shopping mall lease and services receivables [Member]
Disclosure of provision matrix [line items]
Total	1,426,519	1,131,608
Shopping mall lease and services receivables [Member] | Up to 3 months [Member]
Disclosure of provision matrix [line items]
Total	144,863	61,085
Shopping mall lease and services receivables [Member] | 3 to 6 months [Member]
Disclosure of provision matrix [line items]
Total	15,347	3,605
Shopping mall lease and services receivables [Member] | Over 6 months [Member] [Member]
Disclosure of provision matrix [line items]
Total	4,097	9,364
Shopping mall lease and services receivables [Member] | To mature [Member]
Disclosure of provision matrix [line items]
Total	1,077,825	941,762
Shopping mall lease and services receivables [Member] | Allowed [Member]
Disclosure of provision matrix [line items]
Total	184,387	115,792
Office leases and services receivables [Member]
Disclosure of provision matrix [line items]
Total	1,561	2,526
Office leases and services receivables [Member] | Up to 3 months [Member]
Disclosure of provision matrix [line items]
Total	355	1,838
Office leases and services receivables [Member] | 3 to 6 months [Member]
Disclosure of provision matrix [line items]
Total		376
Office leases and services receivables [Member] | Over 6 months [Member] [Member]
Disclosure of provision matrix [line items]
Total	701	305
Office leases and services receivables [Member] | To mature [Member]
Disclosure of provision matrix [line items]
Total		2
Office leases and services receivables [Member] | Allowed [Member]
Disclosure of provision matrix [line items]
Total	505	5
Consumer financing receivables [Member]
Disclosure of provision matrix [line items]
Total	16,441	15,786
Consumer financing receivables [Member] | Up to 3 months [Member]
Disclosure of provision matrix [line items]
Total
Consumer financing receivables [Member] | 3 to 6 months [Member]
Disclosure of provision matrix [line items]
Total
Consumer financing receivables [Member] | Over 6 months [Member] [Member]
Disclosure of provision matrix [line items]
Total
Consumer financing receivables [Member] | To mature [Member]
Disclosure of provision matrix [line items]
Total
Consumer financing receivables [Member] | Allowed [Member]
Disclosure of provision matrix [line items]
Total	16,441	15,786
Properties sales receivables [Member]
Disclosure of provision matrix [line items]
Total	20,238	5,510
Properties sales receivables [Member] | Up to 3 months [Member]
Disclosure of provision matrix [line items]
Total	1,273	1,982
Properties sales receivables [Member] | 3 to 6 months [Member]
Disclosure of provision matrix [line items]
Total		34
Properties sales receivables [Member] | Over 6 months [Member] [Member]
Disclosure of provision matrix [line items]
Total	16,674	368
Properties sales receivables [Member] | To mature [Member]
Disclosure of provision matrix [line items]
Total	2,291	3,126
Properties sales receivables [Member] | Allowed [Member]
Disclosure of provision matrix [line items]
Total

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Cash flow and cash equivalent information (Details) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Cash Flow And Cash Equivalent Information
Net income for the year	$ 15,656,023	$ 3,377,514	$ 12,252,532
Adjustments:
Income tax expense	286,506	1,609,181	6,278,894
Amortization and depreciation	45,114	28,540	22,944
Net gain from fair value adjustment on investment properties	(16,690,117)	(3,133,413)	(17,092,403)
(Gain) / Loss from disposal of trading properties	(94,328)	(85,889)	241
Written off unused investment properties / property plant and equipment			23,650
Goodwill disposals			4,297
Averaging of schedule rent escalation	(29,456)	(90,197)	(42,832)
Directors' fees	67,126	44,770	27,700
ILP Long term incentive program	6,404	16,545	16,359
Financial results, net	5,379,151	1,117,164	699,211
Provisions and allowances	98,907	54,764	15,397
Share of profit of associates and joint ventures	(639,525)	(152,703)	(204,299)
Interest held before the business combination		(7,618)
Foreign unrealized exchange gain on cash and fair value result of cash equivalents	(272,362)	(5,116)	(1,062)
Right to receive units due to default due to non-compliance	(7,873)
Changes in operating assets and liabilities
Increase in inventories	(2,160)	(4,520)	(2,855)
Decrease in trading properties	100,238	98,792	1,159
Increase in trade and other receivables	(229,761)	(156,265)	(606,342)
Increase in trade and other payables	485,697	396,988	187,298
Decrease in payroll and social security liabilities	34,583	39,713	12,689
Uses in provisions	(10,879)	(8,322)	(3,350)
Net cash generated from operating activities before income tax paid	$ 4,183,288	$ 3,139,928	$ 1,589,228

XML

Cash flow and cash equivalent information (Details 1) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Non-cash transactions
Decrease in intangible assets trought an increase in trading properties	$ 8,837	$ 12,857
Increase in trading properties trought a decrease in investment properties		13,617	23,935
Increase in investment properties trought an increase in trade and other payables	132,898
Increase in investment properties trought an increase in borrowings	14,385	2,310
Increase in property plant and equipment a traves in un increase in borrowings	9,015		1,852
Increase in property plant and equipment trought a decrease in investment properties	3,026		15,224
Increase in investment properties troughtof a decrease in property plant and equipment
Increase in trade and other receivables trought a decrease in trading properties	2,959
Increase in trade and other receivables trought an increase in trade and other payables	16,659
Increase in trade and other receivables trought a decrease in investment in associates and joint ventures (Dividends)	7,165
Decrease in trade and other receivables trought an increase in investment in associates and joint ventures	3,811	2,671
Increase in investment in associates and joint ventures trought a decrease in provisions	158
Decrease in borrowings and trade and other payables trought a decrease in associates and joint ventures	3,965	20,284
Decrease in borrowings trought a decrease in investment in financial assets			372,203
Decrease in trade and other receivables trought a decrease in borrowings		30,123	3,591
Decrease in trade and other receivables trought a decrease in trade and other payables (Dividends)		64,109	253,663
Decrease in non-controling equity trought an increase in trade and other payables	36,400		64,209
Decrease in equity trought a decrease in trade and other receivables (Dividends)		656,965
Adquisicion in non-controling interst		865
Increase in trade and other receivables trought an increase in borrowings	1,250
Increase in trade and other receivables trought an increase in borrowings	$ 70

XML

Cash flow and cash equivalent information (Details 2) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Cash Flow And Cash Equivalent Information
Investments in joint ventures		$ (106,892)
Trade and other receivables	$ (36,346)
Income tax and minimum presumed income tax credits	(106)	(97,167)
Investment properties (Note 9)	(106,795)
Property, plant and equipment (Note 10)	(193)
Borrowings		54,516
Salaries and social security costs	2,518
Deferred income tax (Note 20)	12,070	6,314
Income tax and minimum presumed income tax liabilities	1,332	1,060
Trade and other payables	110,161	13,375
Provisions (Note 19)	452	2,361
Total net non-cash assets acquired	(16,907)	(126,433)
Cash and cash equivalent acquired		(6,902)
Fair value of interest held before combination		66,658
Goodwill	(74,486)	(26,375)
Non-controlling interest	6,763	40,004
Total net assets acquired	(84,630)	(53,048)
Financed amount	38,285
Cash acquired		6,902
Acquisition of subsidiaries, net of cash acquired	$ (46,345)	$ (46,146)

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Shareholders' equity (Details) $ in Thousands	Jun. 30, 2018 ARS ($)
Par Value	$ 126,014
Subscribed Issued And Paid Up Extraordinary Shareholders Meeting [Member] | 10.29.87 [Member] | 12.29.87 [Member]
Par Value	1
Subscribed Issued And Paid Up Extraordinary Shareholders Meeting [Member] | 10.26.88 | 12.29.88
Par Value	1
Subscribed Issued And Paid Up Extraordinary Shareholders Meeting [Member] | 10.25.89 | 02.05.90
Par Value	38
Subscribed Issued And Paid Up Ordinary And Extraordinary Shareholders Meeting [Member] | 08.31.95 | 03.15.96
Par Value	9,460
Subscribed Issued And Paid Up Ordinary And Extraordinary Shareholders Meeting [Member] | 03.10.98 | 10.21.99
Par Value	38,000
Subscribed Issued And Paid Up Ordinary And Extraordinary Shareholders Meeting [Member] | 08.06.99 | 05.07.02
Par Value	6,500
Subscribed Issued And Paid Up Ordinary And Extraordinary Shareholders Meeting [Member] | 10.29.96 | 05.15.98
Par Value	16,000
Subscribed Issued And Paid Up Board Of Directors Meeting [Member] | 06.28.04 | 05.04.05
Par Value	8,206	[1]
Subscribed Issued And Paid Up Board Of Directors Meeting [Member] | 11.16.10 | 03.02.11
Par Value	47,755	[2]
Subscribed Issued And Paid Up Board Of Directors Meeting [Member] | 09.22.11 | 01.04.12
Par Value	28	[3]
Subscribed Issued And Paid Up Board Of Directors Meeting [Member] | 03.13.13 | 01.16.15
Par Value	$ 25	[4]

[1] Capital subscribed in connection with the conversion of convertible notes made until August 2006. Such conversions have been registered.

[2] Capital subscribed in connection with the conversion of convertible notes made on October 7, 2010.

[3] Capital subscribed in connection with the conversion of convertible notes made on September 21, 2011.

[4] Capital subscribed in connection with the conversion of convertible notes made on March 13, 2013.

XML

Shareholders' equity (Details Narrative) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2018 ARS ($) $ / shares shares	Jun. 30, 2017 $ / shares	Jun. 30, 2017 ARS ($)	Jun. 30, 2016 $ / shares	Jun. 30, 2016 ARS ($)	Jun. 30, 2015 $ / shares	Jun. 30, 2015 ARS ($)	Oct. 31, 2017 ARS ($)	Dec. 18, 2012 $ / shares shares
Nominal value, per shares (in pesos per share) | $ / shares	$ 1								$ 0.1
Increase of nominal value, per shares (in pesos per share) | $ / shares									$ 1
Number of shares par value increase | shares									20,264
Number of shares outstanding | shares	126,014,050
Policy change amounted	$ 15,478,896
Dividend, per shares (in pesos per share) | $ / shares				$ 6.11		$ 2.25
Dividend					$ 770,000		$ 283,580
Canceled dividends	680,000		$ 770,000		283,580
Reserve For Application Of IFRS [Member]
Reserve	15,802
Reserve For Policy Change [Member]
Reserve	$ 2,684,390
Special Reserve [Member]
Reserve								$ 2,627,076
Dividends Approved On October 31, 2017 [Member]
Dividend, per shares (in pesos per share) | $ / shares		$ 5.40
Dividend			$ 680,000
Dividends Approved On October 31, 2016 [Member]
Dividend					460,000
Dividends Approved On April 5, 2017 [Member]
Dividend					$ 310,000
Dividends Approved On October 31, 2015 [Member]
Dividend, per shares (in pesos per share) | $ / shares						$ 2.25
Dividend							$ 283,580

XML

Trade and other payables (Details) - ARS ($) $ in Thousands		Jun. 30, 2018	Jun. 30, 2017
Trade and other payables [abstract]
Admission rights		$ 589,141	$ 468,323
Rent and service payments received in advance		505,883	380,352
Accrued invoices		340,480	162,980
Trade payables		168,900	133,459
Payments received in advance		77,667	22,115
Tenant deposits		46,690	29,187
Total trade payables		1,728,761	1,196,416
VAT payables		201,279	55,194
Others	[1]	102,119	62,911
Withholdings payable		50,793	56,857
Tax payment plans		47,981	16,503
Dividends available to minority shareholders		36,525	125
Other tax payables		21,980	12,367
Other income to be accrued		6,431	6,925
Total other payables		467,108	210,882
Related parties (Note 29)		158,591	104,282
Total trade and other payables		$ 2,354,460	$ 1,511,580

[1] As of June 30, 2017 includes the Capitalization plan - Ps. 49,525.

XML

Trade and other payables (Details 1) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Trade and other payables [abstract]
Non-current	$ 483,908	$ 406,598
Current	1,870,552	1,104,982
Total	$ 2,354,460	$ 1,511,580

XML

Borrowings (Details) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Disclosure of detailed information about borrowings [line items]
Total non-current borrowings	$ 15,362,726	$ 5,918,119
Total current borrowings	305,481	249,868
Total Borrowings amount	15,668,207	6,167,987	$ 5,893,068	$ 3,794,940
Non-Convertible notes [Member]
Disclosure of detailed information about borrowings [line items]
Total Borrowings amount	14,516,230	5,991,004
Bank loans [Member]
Disclosure of detailed information about borrowings [line items]
Total Borrowings amount	1,014,282	77,445
AABE Debts [Member]
Disclosure of detailed information about borrowings [line items]
Total Borrowings amount	83,942	66,711
Loans With Non-Controling Interests [Member]
Disclosure of detailed information about borrowings [line items]
Total Borrowings amount	28,504
Finance Leases [Member]
Disclosure of detailed information about borrowings [line items]
Total Borrowings amount	14,403	3,149
Bank Overdrafts [Member]
Disclosure of detailed information about borrowings [line items]
Total Borrowings amount	6,692	26,107
Related Parties [Member]
Disclosure of detailed information about borrowings [line items]
Total Borrowings amount	$ 4,154	$ 3,571

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Borrowings (Details 1) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of disaggregation of revenue from contracts with customers [line items]
Fixed-rate borrowings	$ 14,289,649	$ 5,926,518
Floating-rate borrowings	1,089,753	96,008
Accrued interest borrowing	274,402	142,312
Borrowings under finance leases	15,653,804	6,164,838
Less Than One Year [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Fixed-rate borrowings	28,242	76,661
Floating-rate borrowings	10,033	29,297
Accrued interest borrowing	260,632	142,312
Between 1 and 2 years [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Fixed-rate borrowings
Floating-rate borrowings	225,519
Accrued interest borrowing	13,770
Between 2 and 3 years [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Fixed-rate borrowings	4,026,046
Floating-rate borrowings	310,692
Between 3 and 4 years [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Floating-rate borrowings	388,163
More Than Four Years [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Fixed-rate borrowings	10,235,361	5,849,857
Floating-rate borrowings	$ 155,346	$ 66,711

XML

Borrowings (Details 2) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Evolution of borrowing [RollForward]
Balance at the beginning of the year	$ 6,167,987	$ 5,893,068	$ 3,794,940
Borrowings obtained	728,506	106,667	1,275,756
Payment of borrowings	(85,495)	(111,103)	(5,046,597)
Interest paid	(724,730)	(542,410)	(278,279)
Accrued interests	876,610	607,400	580,210
Foreign exchange	6,327,426	565,364	2,214,158
Short terms loans, net	(19,766)	(14,065)	(232,203)
Issuance of non-convertible notes	2,365,003		5,411,199
Payment of non-convertible notes		(407,260)	(1,686,393)
Repurchase of non-convertible notes			(139,723)
Others	32,666	70,326
Balance at the end of the year	$ 15,668,207	$ 6,167,987	$ 5,893,068

XML

Borrowings (Details 3) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of detailed information about borrowings [line items]
Non-current borrowings	$ 15,775,539	$ 6,879,572
NCN Class II due 2023 [Member]
Disclosure of detailed information about borrowings [line items]
Non-current borrowings	10,760,445	6,877,234
Bank loans [Member]
Disclosure of detailed information about borrowings [line items]
Non-current borrowings	1,017,269	2,338
NCN Class IV due 2020 [Member]
Disclosure of detailed information about borrowings [line items]
Non-current borrowings	$ 3,997,825

XML

Borrowings (Details 4) $ in Thousands, $ in Thousands	Jun. 30, 2018 USD ($)	Jun. 30, 2018 ARS ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 ARS ($)	Jun. 30, 2016 ARS ($)	Jun. 30, 2015 ARS ($)
Disclosure of detailed information about borrowings [line items]
Fixed-rate borrowings		$ 14,289,649		$ 5,926,518
Floating-rate borrowings		1,089,753		96,008
Accrued interest borrowing		274,402		142,312
Financial leasing		14,403		3,149
Total Borrowings amount		15,668,207		6,167,987	$ 5,893,068	$ 3,794,940
ARS
Disclosure of detailed information about borrowings [line items]
Fixed-rate borrowings				76,661
Floating-rate borrowings		$ 80,205		$ 96,008
USD
Disclosure of detailed information about borrowings [line items]
Fixed-rate borrowings	$ 14,289,649		$ 5,849,857
Floating-rate borrowings	$ 1,009,548

XML

Borrowings (Details Narrative) - USD ($) $ in Thousands	Feb. 16, 2018	Sep. 05, 2017
Panameriacan Mall S.A. [Member]
Disclosure of financial instruments by type of interest rate [line items]
Description of maturity	<p style="font: 13px Times New Roman, Times, Serif; color: #FF00FF !important; margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">February 16, 2023</font></p>
USD | Panameriacan Mall S.A. [Member]
Disclosure of financial instruments by type of interest rate [line items]
Nominal value	$ 35,000
Class III And IV Non-convertible Notes [Member]
Disclosure of financial instruments by type of interest rate [line items]
Description of maturity		<p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Maturity date of 36 months from the issue date.</font></p>
Class III And IV Non-convertible Notes [Member] | Fixed Interest Rate [Member]
Disclosure of financial instruments by type of interest rate [line items]
Interest rate		5.00%
Description of interest payment		<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Quarterly</font></p>
Class III And IV Non-convertible Notes [Member] | USD
Disclosure of financial instruments by type of interest rate [line items]
Nominal value		$ 140,000

XML

Provisions (Details) - ARS ($) $ in Thousands		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Disclosure of other provisions [line items]
As of beginning		$ 41,350	$ 33,074
Increases (Note 26)		33,513	25,860
Recovery (Note 29)		(8,509)	(11,829)
Increases		158	206
Used during the year		(10,879)	(8,322)
Incorporation as result of business combination (Note 15)		452	2,361
As of end		56,085	41,350
Non-current		12,258	16,509
Current		43,827	24,841
Total		56,085	41,350
Labor,Legal And Other Claims [Member]
Disclosure of other provisions [line items]
As of beginning		41,144
Increases (Note 26)		33,513
Recovery (Note 29)		(8,509)
Increases
Used during the year		(10,879)
Incorporation as result of business combination (Note 15)		452
As of end		55,721	41,144
Investments in associates [Member]
Disclosure of other provisions [line items]
As of beginning	[1]	206
Increases (Note 26)	[1]
Recovery (Note 29)	[1]
Increases	[1]	158
Used during the year	[1]
Incorporation as result of business combination (Note 15)	[1]
As of end	[1]	$ 364	$ 206

[1] Corresponds to investments in associates with negative equity.

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Current and deferred income tax (Details) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Current And Deferred Income Tax
Current income tax	$ (137,667)	$ (510,130)	$ (223,220)
Deferred income tax	(148,806)	(1,099,051)	(6,055,674)
Minimum presumed income tax	(33)
Income tax expense	$ (286,506)	$ (1,609,181)	$ (6,278,894)

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Current and deferred income tax (Details1)	12 Months Ended
	Jun. 30, 2018
ARGENTINA
Disclosure of financial assets [line items]
Income tax rate	35.00%
URUGUAY
Disclosure of financial assets [line items]
Income tax rate	0.00%

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Current and deferred income tax (Details 2) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Deferred income tax asset	$ 1,167,633	$ 318,075
Deferred income tax liabilities	(12,532,395)	(11,521,961)
Deferred income tax, net	(11,364,762)	(11,203,886)	$ (10,098,521)
Recovered After More Than Twelve Months [Member]
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Deferred income tax asset	80,696	174,165
Deferred income tax liabilities	(12,356,539)	(9,435,983)
Recovered With In Twelve Months [Member]
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Deferred income tax asset	1,086,937	143,910
Deferred income tax liabilities	$ (175,856)	$ (2,085,978)

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Current and deferred income tax (Details 3) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Disclosure of financial assets [line items]
Balance at the beginning	$ (11,203,886)	$ (10,098,521)
(Charged) / Credited to the statement of income	(148,806)	(1,099,051)
Incorporation as result of business combination	(12,070)	(6,314)
Balance at the end	(11,364,762)	(11,203,886)
Deferred Income Tax Liabilities [Member]
Disclosure of financial assets [line items]
Balance at the beginning	(11,521,961)	(10,332,335)
(Charged) / Credited to the statement of income	(996,892)	(1,182,374)
Incorporation as result of business combination	(13,542)	(7,252)
Balance at the end	(12,532,395)	(11,521,961)
Deferred Income Tax Liabilities [Member] | Investment Properties [Member]
Disclosure of financial assets [line items]
Balance at the beginning	(11,060,948)	(9,948,064)
(Charged) / Credited to the statement of income	(809,615)	(1,112,884)
Incorporation as result of business combination	(13,542)
Balance at the end	(11,884,105)	(11,060,948)
Trade and Other Payables [Member] | Deferred Income Tax Liabilities [Member]
Disclosure of financial assets [line items]
Balance at the beginning
(Charged) / Credited to the statement of income	(102)
Incorporation as result of business combination
Balance at the end	(102)
Other [Member] | Deferred Income Tax Liabilities [Member]
Disclosure of financial assets [line items]
Balance at the beginning	(28,370)	(30,780)
(Charged) / Credited to the statement of income	11,181	2,410
Incorporation as result of business combination
Balance at the end	(17,189)	(28,370)
Property Plant And Equipment And Trading Properties [Member] | Deferred Income Tax Liabilities [Member]
Disclosure of financial assets [line items]
Balance at the beginning	(235,750)	(173,976)
(Charged) / Credited to the statement of income	(227,200)	(61,774)
Incorporation as result of business combination
Balance at the end	(462,950)	(235,750)
Investments [Member] | Deferred Income Tax Liabilities [Member]
Disclosure of financial assets [line items]
Balance at the beginning	(129,454)	(87,985)
(Charged) / Credited to the statement of income	33,131	(34,217)
Incorporation as result of business combination		(7,252)
Balance at the end	(96,323)	(129,454)
Trade and Other Receivables [Member] | Deferred Income Tax Liabilities [Member]
Disclosure of financial assets [line items]
Balance at the beginning	(67,439)	(91,530)
(Charged) / Credited to the statement of income	(4,287)	24,091
Incorporation as result of business combination
Balance at the end	(71,726)	(67,439)
Deferred Income Tax Asset [Member]
Disclosure of financial assets [line items]
Balance at the beginning	318,075	233,814
(Charged) / Credited to the statement of income	848,086	83,323
Incorporation as result of business combination	1,472	938
Balance at the end	1,167,633	318,075
Deferred Income Tax Asset [Member] | Tax Loss Carry Forwards [Member]
Disclosure of financial assets [line items]
Balance at the beginning	158	19,352
(Charged) / Credited to the statement of income	851,966	(19,194)
Incorporation as result of business combination	1,472
Balance at the end	853,596	158
Deferred Income Tax Asset [Member] | Trade and Other Payables [Member]
Disclosure of financial assets [line items]
Balance at the beginning	270,839	187,024
(Charged) / Credited to the statement of income	11,119	83,850
Incorporation as result of business combination		(35)
Balance at the end	281,958	270,839
Deferred Income Tax Asset [Member] | Other [Member]
Disclosure of financial assets [line items]
Balance at the beginning	8,782	29,601
(Charged) / Credited to the statement of income	(7,191)	7,722
Incorporation as result of business combination		973
Balance at the end	31,105	8,782
Deferred Income Tax Asset [Member] | Trading Properties [Member]
Disclosure of financial assets [line items]
Balance at the beginning	38,296	(2,163)
(Charged) / Credited to the statement of income	(7,808)	10,945
Incorporation as result of business combination
Balance at the end	$ 974	$ 38,296

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Current and deferred income tax (Details 4) - Unused Tax Losses [Member] - ARGENTINA $ in Thousands	12 Months Ended
	Jun. 30, 2018 ARS ($)
2014 [Member]
Disclosure of financial assets [line items]
Total cumulative tax loss carry-forwards	$ 2,487
Date of expiration	2019
Percenatge of income tax rate	25.00%
2015 [Member]
Disclosure of financial assets [line items]
Total cumulative tax loss carry-forwards	$ 252
Date of expiration	2020
Percenatge of income tax rate	25.00%
2016 [Member]
Disclosure of financial assets [line items]
Total cumulative tax loss carry-forwards	$ 182
Date of expiration	2021
Percenatge of income tax rate	25.00%
2017 [Member]
Disclosure of financial assets [line items]
Total cumulative tax loss carry-forwards	$ 2,816
Date of expiration	2022
Percenatge of income tax rate	25.00%
2018 [Member]
Disclosure of financial assets [line items]
Total cumulative tax loss carry-forwards	$ 2,819,414
Date of expiration	2023
Percenatge of income tax rate	30.00%
2018 [Member]
Disclosure of financial assets [line items]
Total cumulative tax loss carry-forwards	$ 41,634
Date of expiration	2023
Percenatge of income tax rate	25.00%

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Current and deferred income tax (Details 5) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Current And Deferred Income Tax
Profit for the year before income tax at the prevailing tax rate (i)	$ (5,357,337)	$ (1,746,909)	$ (6,346,363)
Tax effects of:
Rate change	4,729,172
Share of profit of associates and joint ventures	226,273	55,399	71,505
Non-taxable financial dividends	122,597	63,529
Non-deductible / non-taxable items	(7,223)	5,548	2,492
Derivative special tax	(846)
Difference between provisions and affidavits	1,077
Minimum presumed income tax	33
(Recovery) / expiration of carry-forwards		7,038	(7,038)
Results from revaluation of equity interest held before combination		2,666
Other	(186)	3,548	510
Income tax loss	$ 286,506	$ 1,609,181	$ 6,278,894

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Employee benefits (Details Narrative) - ARS ($) $ in Thousands		12 Months Ended
	Jan. 01, 2006	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Base Contributions [Member]
Disclosure of defined benefit plans [line items]
Monthly salary contribution	2.50%
Employee contributions	200.00%
Contribution plan amount		$ 16,800	$ 11,600	$ 10,300
Extraordinary Contributions [Member]
Disclosure of defined benefit plans [line items]
Annual bonus contribution	15.00%
Employee contributions	300.00%

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Equity Incentive Plan (Details Narrative) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure of defined benefit plans [line items]
Trade and other payables of equity	$ 12,400	$ 10,500
Debt equity	14,600	15,400
Incentive Plan [Member]
Disclosure of defined benefit plans [line items]
Accrued amount of equity	82,100	77,200	$ 64,200
Total cost of equity	$ 6,400	$ 16,500	$ 16,400

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Leases (Details) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Non-cancellable operating leases	$ 71,868	$ 61,948
Less Than One Year [Member]
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Non-cancellable operating leases	13,763	7,102
Later Than One Year And Not Later Than Five Years [Member]
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Non-cancellable operating leases	18,105	12,446
More Than Five Years [Member]
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items]
Non-cancellable operating leases	$ 40,000	$ 42,400

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Leases (Details 1) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of disaggregation of revenue from contracts with customers [line items]
Subtotal value of finance lease liabilities	$ 71,868	$ 61,948
Less Than One Year [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Subtotal value of finance lease liabilities	13,763	7,102
Later Than One Year And Not Later Than Five Years [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Subtotal value of finance lease liabilities	18,105	12,446
Lease liabilities [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Subtotal value of finance lease liabilities	15,246	3,326
Future - financial charges on finance leases	(843)	(177)
Present value of finance lease liabilities	14,403	3,149
Lease liabilities [Member] | Less Than One Year [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Subtotal value of finance lease liabilities	6,945	1,690
Present value of finance lease liabilities	6,574	1,598
Lease liabilities [Member] | Later Than One Year And Not Later Than Five Years [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Subtotal value of finance lease liabilities	8,301	1,636
Present value of finance lease liabilities	$ 7,829	$ 1,551

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Leases (Details 2) - Lease liabilities [Member] - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of disaggregation of revenue from contracts with customers [line items]
Present value of finance lease liabilities	$ 14,403	$ 3,149
Less Than One Year [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Present value of finance lease liabilities	6,574	1,598
Later Than One Year And Not Later Than Five Years [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Present value of finance lease liabilities	$ 7,829	$ 1,551

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Leases (Details 3) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Leases
2018		$ 1,421,954
2019	1,904,572	1,004,397
2020	1,305,965	439,775
2021	636,762	89,098
2022	172,217	10,030
Later than 2022	25,679	209
Total	$ 4,045,195	$ 2,965,463

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Revenues (Details) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Revenues
Base rent	$ 2,589,799	$ 2,029,990	$ 1,548,213
Contingent rent	718,625	624,990	587,630
Admission rights	343,420	300,933	207,190
Parking fees	236,323	192,749	153,213
Commissions	123,284	107,580	84,815
Averaging of scheduled rent escalation	29,456	90,197	42,832
Property management fees	65,833	52,303	41,213
Others	21,714	10,550	7,595
Total revenues from rentals and services	4,128,454	3,409,292	2,672,701
Sale of trading properties	103,197	98,792	1,159
Total revenues from sale of properties	103,197	98,792	1,159
Other revenues	555	891	1,013
Total Other revenues	555	891	1,013
Total revenues from sales, rentals and services	4,232,206	3,508,975	2,674,873
Expenses and collective promotion fund	1,717,000	1,488,187	1,183,627
Total revenues from expenses and collective promotion funds	1,717,000	1,488,187	1,183,627
Total revenues	$ 5,949,206	$ 4,997,162	$ 3,858,500

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Expenses by nature (Details) - ARS ($) $ in Thousands		12 Months Ended
		Jun. 30, 2018		Jun. 30, 2017		Jun. 30, 2016
Disclosure of financial liabilities [line items]
Salaries, social security costs and other personnel administrative expenses (i)	[1]	$ 912,131		$ 776,535		$ 589,381
Maintenance, security, cleaning, repairs and other		760,169		653,033		449,755
Taxes, rates and contributions		408,300		309,266		231,151
Advertising and other selling expenses		292,199		309,910		306,641
Directors' fees		164,339		131,481		113,673
Fees and payments for services		79,706		73,458		41,051
Allowance for doubtful accounts and other receivables (additions and unused amounts reversed) (Note 14)		73,903	[2]	41,310		12,005	[2]
Leases and expenses		54,052		82,660		50,325
Amortization and depreciation		45,114		28,540		22,944
Traveling, transportation and stationery		33,589		25,823		17,445
Bank expenses		15,495		7,059		5,896
Cost of sale of properties (Note 11)		8,869		12,903		1,400
Other expenses		1,688		4,601		1,967
Commercial compensation				1,911		371
Total expenses by nature		2,849,554		2,458,490		1,844,005
Costs [Member]
Disclosure of financial liabilities [line items]
Salaries, social security costs and other personnel administrative expenses (i)		773,968		653,834		515,022	[1],[3]
Maintenance, security, cleaning, repairs and other		739,853		645,022	[3]	444,824	[3]
Taxes, rates and contributions	[3]	238,669		173,718		127,361
Advertising and other selling expenses	[3]	263,869		280,598		284,935
Directors' fees	[3]
Fees and payments for services	[3]	10,911		12,811		9,008
Allowance for doubtful accounts and other receivables (additions and unused amounts reversed) (Note 14)	[3]
Leases and expenses	[3]	47,615		77,619		46,873
Amortization and depreciation	[3]	33,301		22,222		14,802
Traveling, transportation and stationery	[3]	18,387		16,803		14,043
Bank expenses	[3]	2,910
Cost of sale of properties (Note 11)	[3]	8,869		12,903		1,400
Other expenses	[3]	1,095		4,256		1,936
Total expenses by nature	[3]	2,139,447		1,899,786		1,460,204
General And Administrative Expenses [Member]
Disclosure of financial liabilities [line items]
Salaries, social security costs and other personnel administrative expenses (i)	[1]	114,249		95,201		53,448
Maintenance, security, cleaning, repairs and other		19,512		7,216		4,428
Taxes, rates and contributions		11,795		4,294		1,957
Advertising and other selling expenses
Directors' fees		164,339		131,481		113,673
Fees and payments for services		60,678		58,130		28,562
Allowance for doubtful accounts and other receivables (additions and unused amounts reversed) (Note 14)	[2]
Leases and expenses		6,037		4,516		3,077
Amortization and depreciation		11,498		5,953		7,911
Traveling, transportation and stationery		13,987		8,127		2,597
Bank expenses		12,585		7,059		5,896
Cost of sale of properties (Note 11)
Other expenses		562		199		31
Total expenses by nature		415,242		322,176		221,580
Selling Expenses [Member]
Disclosure of financial liabilities [line items]
Salaries, social security costs and other personnel administrative expenses (i)	[1]	23,914		27,500		20,911
Maintenance, security, cleaning, repairs and other		804		795		503
Taxes, rates and contributions		157,836		131,254		101,833
Advertising and other selling expenses		28,330		29,312		21,706
Directors' fees
Fees and payments for services		8,117		2,517		3,481
Allowance for doubtful accounts and other receivables (additions and unused amounts reversed) (Note 14)		73,903	[2]	41,310		12,005	[2]
Leases and expenses		400		525		375
Amortization and depreciation		315		365		231
Traveling, transportation and stationery		1,215		893		805
Bank expenses
Cost of sale of properties (Note 11)
Other expenses		31		146
Commercial compensation				1,911		371
Total expenses by nature		$ 294,865		$ 236,528		$ 162,221

[1] For the fiscal year ended June 30, 2018 includes Ps. 842,559 of Salaries, Bonuses and Social Security; Ps. 6,404 of Equity incentive plan and Ps. 63,168 of other concepts. For the fiscal year ended June 30, 2017 includes Ps. 694,067 Salaries, Bonuses and Social Security; Ps. 16,545 of Equity incentive plan and Ps. 65,923 of other concepts. For the fiscal year ended June 30, 2016 includes Ps. 519,782 Salaries, Bonuses and Social Security; Ps. 16,359 of Equity incentive plan and Ps. 53,240 of other concepts.

[2] At June 30, 2017 y 2016 includes debt relief for Ps 577 and Ps. 10, respectively.

[3] For the fiscal year ended June 30, 2018 includes Ps. 2,120,715 of Rental and services costs; Ps. 18,713 of Cost of sales and developments and Ps.19 of other consumer financing costs. For the fiscal year ended June 30, 2017 includes Ps. 1,874,392 of Rental and services costs; Ps. 25.346 of Cost of sales and developments and Ps. 48 of other consumer financing costs. For the fiscal year ended June 30, 2016 includes Ps. 1,454,409 of Rental and services costs; Ps. 5,718 of Cost of sales and developments and Ps. 77 of other consumer financing costs.

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Other operating results, net (Details) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Other Operating Results Net
Gain resulting from sale anual reserval of property plant and equipment	$ 35,602	$ 437
Others	12,347	10,508	(17,451)
Donations	(26,967)	(52,910)	(38,889)
Lawsuits (Note 19)	(25,004)	(14,031)	(3,402)
Gain resulting from revaluation of equity interest held before combination		7,618
Expenses related to the sale of investment property	(884)	(2,841)	(8,810)
Total other operating results, net	$ (4,906)	$ (51,219)	$ (68,552)

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Financial results, net (Details) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Finance income:
Foreign exchange	$ 413,976	$ 48,437	$ 410,386
Interest income	240,005	184,296	102,169
Dividends income	34,172	9,705
Total finance income	688,153	242,438	512,555
Finance costs:
Foreign exchange	(6,407,173)	(598,845)	(2,225,939)
Interest expenses	(928,218)	(639,768)	(612,486)
Other finance costs	(117,445)	(77,033)	(100,051)
Subtotal finance costs	(7,452,836)	(1,315,646)	(2,938,476)
Less: Capitalized finance costs	14,385	2,310
Total finance costs	(7,438,451)	(1,313,336)	(2,938,476)
Other financial results:
Fair value gains of financial assets at fair value through profit or loss	2,041,061	203,087	466,328
Gain from derivative financial instruments	227,378	81,105	1,248,374
Loss from repurchase of non - convertible notes		(168)
Other financial results	2,268,439	284,024	1,714,702
Total financial results, net	$ (4,481,859)	$ (786,874)	$ (711,219)

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Earnings per share (Details) - ARS ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Basic
Profit attributable to equity holders of the Parent	$ 15,099,936	$ 3,260,476	$ 11,821,280
Weighted average number of ordinary shares in issue (thousands)	$ 126,014	$ 126,014	$ 126,014
Basic earnings per share	$ 119.83	$ 25.87	$ 93.81

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Related party transactions (Details) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Disclosure of financial assets [line items]
Total	$ 871,999	$ 793,346
Trade And Other Receivables [Member]
Disclosure of financial assets [line items]
Total	786,200	633,834
Investments In Financial Assets [Member]
Disclosure of financial assets [line items]
Total	248,544	267,365
Trade and Other Payables [Member]
Disclosure of financial assets [line items]
Total	(158,591)	(104,282)
Borrowings [Member]
Disclosure of financial assets [line items]
Total	$ (4,154)	$ (3,571)

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Related party transactions (Details 1) - ARS ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Disclosure of associates [line items]
Borrowings	$ 15,668,207	$ 6,167,987	$ 5,893,068	$ 3,794,940
La Rural SA [Member]
Disclosure of associates [line items]
Borrowings		3,676
Reimbursement of expenses to pay	(845)	(55)
Leases and/or rights to use space	28,712	119
Dividends	7,165	8,841
Canon		16,394
Total Associates And Joint Ventures Of IRSA Propiedades Comerciales (La Rural S.A. And Other Associates And Joint Ventures) [Member]
Disclosure of associates [line items]
Total associates and joint ventures of IRSA Propiedades Comerciales (La Rural S.A. and Other associates and joint ventures)	34,971	31,317
IRSA Inversionesy Representaciones Sociedad Anonima (IRSA) [Member]
Disclosure of associates [line items]
Advances	673,406	542,052
Corporate services	41,709	22,854
Non-Convertible Notes	40,863	25,425
Equity incentive plan	12,448	10,472
Reimbursement of expenses	9,023	16,482
Other	428
Borrowings		4
Commissions		265
Lease collections		535
Reimbursement of expenses to pay	(439)	(9)
Equity incentive plan to pay	(14,609)	(15,380)
Total Direct Parent Company [Member]
Disclosure of associates [line items]
Total direct parent company	762,829	602,700
Cresud S.A.C.I.F. y A. [Member]
Disclosure of associates [line items]
Corporate services	(55,483)	(13,595)
Non-Convertible Notes	207,681	241,940
Reimbursement of expenses to pay	(15,375)	(23,385)
Equity incentive plan to pay	(2,546)	(1,113)
Total Direct Parent Company Of IRSA [Member]
Disclosure of associates [line items]
Total direct parent company of IRSA	134,277	203,847
Others Associates And Joint Ventures [Member]
Disclosure of associates [line items]
Reimbursement of expenses	314	931
Borrowings	4,309	4,557
Lease collections		(105)
Reimbursement of expenses to pay	(235)
Leases and/or rights to use space		1,625
Leases and/or rights to use space of relaated parties	(518)	(1,288)
Borrowings obtained	(4,154)	(3,571)
Management fees	509	812
Advertising spaces	(286)	(619)
Directors [Member]
Disclosure of associates [line items]
Reimbursement of expenses to pay	(12)	(17)
Fees	(67,126)	(44,770)
Total Directors [Member]
Disclosure of associates [line items]
Total Directors	(67,138)	(44,787)
Others [Member]
Disclosure of associates [line items]
Reimbursement of expenses	3,283	746
Commissions		99
Reimbursement of expenses to pay	(4)	(219)
Leases and/or rights to use space	4,685	3,370
Leases and/or rights to use space of relaated parties	(9)	(41)
Commissions to pay	(27)
Legal services	(1,072)	(3,374)
Dividends	(5)	(272)
Advertising spaces	209
Hotel services		(40)
Total Others [Member]
Disclosure of associates [line items]
Total other	7,060	269
Total [Member]
Disclosure of associates [line items]
Total	$ 871,999	$ 793,346

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Related party transactions (Details 2) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
La Rural SA [Member]
Disclosure of associates [line items]
Financial operations	$ 12,209
Leases and/or rights of use	12,678	8,518
Nuevo Puerto Santa Fe S.A. [Member]
Disclosure of associates [line items]
Financial operations	(548)	(1,165)	(1,716)
Leases and/or rights of use	(504)	5,641	(385)
Fees	3,882	3,565	3,619
Tarshop S.A. [Member]
Disclosure of associates [line items]
Leases and/or rights of use	15,809	13,816	11,802
Commisions	322		265
Total Associates And Joint Ventures Of IRSA Propiedades Comerciales (La Rural S.A. And Other Associates And Joint Ventures) [Member]
Disclosure of associates [line items]
Total associates and joint ventures of IRSA Propiedades Comerciales	45,350	31,298	13,832
Banco de Credito y Securitizacion [Member]
Disclosure of associates [line items]
Leases and/or rights of use	17,180	9,507	6,493
IRSA Inversionesy Representaciones Sociedad Anonima (IRSA) [Member]
Disclosure of associates [line items]
Corporate services	35,056	23,972	19,165
Financial operations	17,448	516	(1,491,911)
Leases and/or rights of use	910	2,533	(375)
Commisions	163	127	76
Total Direct Parent Company [Member]
Disclosure of associates [line items]
Total direct parent company	53,577	27,148	(1,473,045)
Cresud S.A.C.I.F. y A. [Member]
Disclosure of associates [line items]
Corporate services	(162,756)	(128,819)	(88,517)
Financial operations	151,002	61,923	84,980
Leases and/or rights of use	1,931	867	1,417
Total Direct Parent Company Of IRSA [Member]
Disclosure of associates [line items]
Total direct parent company of IRSA	(9,823)	(66,029)	(2,120)
Others Associates And Joint Ventures [Member]
Disclosure of associates [line items]
Financial operations	1,286	707	31
Fees	216	216	216
Directors [Member]
Disclosure of associates [line items]
Fees	(164,339)	(131,481)	(113,673)
Senior Management [Member]
Disclosure of associates [line items]
Fees	(9,606)	(6,677)	(6,246)
Total Directors [Member]
Disclosure of associates [line items]
Total directors	(173,945)	(138,158)	(119,919)
Estudio Zang, Bergel & Vines [Member]
Disclosure of associates [line items]
Fees	(10,038)	(9,185)	(2,940)
REIG V [Member]
Disclosure of associates [line items]
Financial operations		58,125
Others [Member]
Disclosure of associates [line items]
Financial operations			4,912
Leases and/or rights of use	9,389	7,335	2,578
Commisions	25	21	222
Donations	(2,079)	(609)	(96)
Total Others [Member]
Disclosure of associates [line items]
Total others	14,477	65,194	11,169
Total [Member]
Disclosure of associates [line items]
Total	$ (70,364)	$ (80,547)	$ (1,570,083)

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Related party transactions (Details 3) - ARS ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Disclosure of associates [line items]
Dividends granted	$ 587,397	$ 727,712
Dividends received	43,010	20,284
Total Contributions	45,223	3,000
La Rural SA [Member]
Disclosure of associates [line items]
Dividends received	34,172	8,841
Nuevo Puerto Santa Fe S.A. [Member]
Disclosure of associates [line items]
Dividends received	8,838	11,443
Quality Invest S.A. [Member]
Disclosure of associates [line items]
Irrevocable contributions granted	37,364	3,000
Equity contributions granted	1,649
Avenida Inc. [Member]
Disclosure of associates [line items]
Irrevocable contributions granted	6,210
IRSA Inversionesy Representaciones Sociedad Anonima (IRSA) [Member]
Disclosure of associates [line items]
Dividends granted	586,745	726,974
Tyrus [Member]
Disclosure of associates [line items]
Dividends granted	$ 652	$ 738

XML

Foreign currency assets and liabilities (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands		Jun. 30, 2018 USD ($)	Jun. 30, 2018 ARS ($)	Jun. 30, 2018 UYU ($)	Jun. 30, 2018 GBP (£)	Jun. 30, 2018 EUR (€)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 ARS ($)	Jun. 30, 2017 UYU ($)	Jun. 30, 2017 GBP (£)	Jun. 30, 2017 EUR (€)
Assets
Total assets			$ 11,788,176					$ 5,466,913
Derivative Financial Instruments [Member]
Liabilities
Total trade and other payables			166,519					161,700
Total borrowings			15,647,296					6,068,102
Total borrowings			264
Total Provisions			144					83
Total liabilities			$ 15,814,223					$ 6,229,885
Uruguay, Pesos | Derivative Financial Instruments [Member] | Trade and Other Payables [Member]
Liabilities
Amount of foreign currency	[1]			$ 15					$ 9
Prevailing exchange rate	[2]	0.91	0.91	0.91	0.91	0.91	0.58	0.58	0.58	0.58	0.58
Total trade and other payables				$ 14					$ 5
USD | Derivative Financial Instruments [Member] | Trade and Other Payables [Member]
Liabilities
Amount of foreign currency	[1]	$ 5,723					$ 9,452
Prevailing exchange rate	[2]	28.85	28.85	28.85	28.85	28.85	16.63	16.63	16.63	16.63	16.63
Total trade and other payables		$ 165,114					$ 157,190
USD | Derivative Financial Instruments [Member] | Borrowings [Member]
Liabilities
Amount of foreign currency	[1]	$ 542,367					$ 364,889
Prevailing exchange rate	[2]	28.85	28.85	28.85	28.85	28.85	16.63	16.63	16.63	16.63	16.63
Total borrowings		$ 15,647,296					$ 6,068,102
USD | Derivative Financial Instruments [Member] | Borrowings [Member]
Liabilities
Amount of foreign currency	[1]	$ 9
Prevailing exchange rate	[2]	28.85	28.85	28.85	28.85	28.85
Total borrowings		$ 264
USD | Derivative Financial Instruments [Member] | Provisions [Member]
Liabilities
Amount of foreign currency	[1]	$ 5					$ 5
Prevailing exchange rate	[2]	28.85	28.85	28.85	28.85	28.85	16.63	16.63	16.63	16.63	16.63
Total Provisions		$ 144					$ 83
USD | Derivative Financial Instruments [Member] | Related Parties [Member] | Trade Payable [Member]
Liabilities
Amount of foreign currency	[1]						$ 271
Prevailing exchange rate	[2]						16.63	16.63	16.63	16.63	16.63
Total trade and other payables							$ 4,505
Euros | Derivative Financial Instruments [Member] | Trade and Other Payables [Member]
Liabilities
Amount of foreign currency | €	[1]					€ 41
Prevailing exchange rate	[2]	33.73	33.73	33.73	33.73	33.73
Total trade and other payables | €						€ 1,391
Trade And Other Receivables [Member] | USD | Derivative Financial Instruments [Member] | Related Parties [Member]
Assets
Amount of foreign currency	[1]	$ 3,897					$ 3,147
Prevailing exchange rate	[2]	28.85	28.85	28.85	28.85	28.85	16.63	16.63	16.63	16.63	16.63
Total trade and other receivables		$ 112,422					$ 52,334
Investments In Financial Assets [Member] | USD | Derivative Financial Instruments [Member] | Related Parties [Member]
Assets
Amount of foreign currency	[1]		$ 8,615				$ 16,077
Prevailing exchange rate	[2]	28.85	28.85	28.85	28.85	28.85	16.63	16.63	16.63	16.63	16.63
Total investments in financial assets			$ 248,544					$ 267,365
Cash And Cash Equivalents [Member] | USD | Derivative Financial Instruments [Member]
Assets
Amount of foreign currency	[1]	$ 6,170						$ 84,029
Prevailing exchange rate	[2]	16.53	16.53	16.53	16.53	16.53	28.75	28.75	28.75	28.75	28.75
Total cash and cash equivalents		$ 101,987					$ 2,415,829
Cash And Cash Equivalents [Member] | Euros | Derivative Financial Instruments [Member]
Assets
Amount of foreign currency | €	[1]					€ 1					€ 6
Prevailing exchange rate	[2]	33.54	33.54	33.54	33.54	33.54	18.85	18.85	18.85	18.85	18.85
Total cash and cash equivalents | €						€ 38					€ 105
Derivative Financial Instruments [Member]
Assets
Total trade and other receivables			$ 383,010					$ 141,976
Total restricted assets								49,525
Total investments in financial assets			3,679,088					984,232
Total cash and cash equivalents			2,415,926					102,128
Total assets			$ 6,478,024					$ 1,277,861
Derivative Financial Instruments [Member] | Trade And Other Receivables [Member] | Uruguay, Pesos
Assets
Amount of foreign currency	[1]			$ 25					$ 3
Prevailing exchange rate	[2]	0.92	0.92	0.92	0.92	0.92	0.58	0.58	0.58	0.58	0.58
Total trade and other receivables				$ 23					$ 2
Derivative Financial Instruments [Member] | Trade And Other Receivables [Member] | USD
Assets
Amount of foreign currency	[1]	$ 9,245					$ 5,423
Prevailing exchange rate	[2]	28.75	28.75	28.75	28.75	28.75	16.53	16.53	16.53	16.53	16.53
Total trade and other receivables		$ 265,788					$ 89,640
Derivative Financial Instruments [Member] | Trade And Other Receivables [Member] | Euros
Assets
Amount of foreign currency | €	[1]					€ 142
Prevailing exchange rate	[2]	33.54	33.54	33.54	33.54	33.54
Total trade and other receivables | €						€ 4,777
Derivative Financial Instruments [Member] | Restricted assets [Member] | USD
Assets
Amount of foreign currency	[1]						$ 2,996
Prevailing exchange rate	[2]						16.53	16.53	16.53	16.53	16.53
Total restricted assets							$ 49,525
Derivative Financial Instruments [Member] | Investments In Financial Assets [Member] | USD
Assets
Amount of foreign currency	[1]	$ 119,323					$ 43,368
Prevailing exchange rate	[2]	28.75	28.75	28.75	28.75	28.75	16.53	16.53	16.53	16.53	16.53
Total investments in financial assets		$ 3,430,544					$ 716,867
Derivative Financial Instruments [Member] | Cash And Cash Equivalents [Member] | Uruguay, Pesos
Assets
Amount of foreign currency	[1]			$ 2					$ 7
Prevailing exchange rate	[2]	0.91	0.91	0.91	0.91	0.91	0.58	0.58	0.58	0.58	0.58
Total cash and cash equivalents				$ 2					$ 4
Derivative Financial Instruments [Member] | Cash And Cash Equivalents [Member] | Pounds
Assets
Amount of foreign currency | £	[1]				£ 2					£ 1
Prevailing exchange rate	[2]	37.90	37.90	37.90	37.90	37.90	21.49	21.49	21.49	21.49	21.49
Total cash and cash equivalents | £					£ 57					£ 32

[1] Expressed in thousands of foreign currency.

[2] Exchange rate of the Argentine Peso as of June 30, 2018 and 2017 as reported by the Argentina Central Bank.

XML

Subsequent events (Details Narrative) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands	Jul. 30, 2018 USD ($) m² a	Jul. 11, 2018 $ / shares	Jul. 11, 2018 ARS ($) shares	Jun. 30, 2018 $ / shares	Dec. 18, 2012 $ / shares
Disclosure of non-adjusting events after reporting period [line items]
Par value of shares (in argentine pesos per share) | $ / shares				$ 1	$ 0.1
Description of devaluation of currency	<p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Devaluation against the US dollar and other currencies close to 31%, as compared to the exchange rate as of the end of the year.</font></p>
Non-adjusting events after reporting period [Member] | La Malteria S.A. [Member]
Disclosure of non-adjusting events after reporting period [line items]
Authorised capital | $			$ 1
Numbe of authorised shares | shares			100,000
Par value of shares (in argentine pesos per share) | $ / shares		$ 1
Number of shares purchase/subscribed | shares			95,000
Non-adjusting events after reporting period [Member] | Malteria Hudson [Member]
Disclosure of non-adjusting events after reporting period [line items]
Description of acquired location	<p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Intersection of route 2 and Buenos Aires - La Plata highway, in the City of Hudson, province of Buenos Aires.</font></p>
Non-adjusting events after reporting period [Member] | Malteria Hudson [Member] | USD
Disclosure of non-adjusting events after reporting period [line items]
Area of surface property acquire	147,895
Area of built surface aquire	40,000
Consideration amount | $	$ 7
Non-adjusting events after reporting period [Member] | Malteria Hudson [Member] | USD | Non-Related Third Party [Member] | Bottom of Range [Member]
Disclosure of non-adjusting events after reporting period [line items]
Percentage of option granted	15.00%
Non-adjusting events after reporting period [Member] | Malteria Hudson [Member] | USD | Non-Related Third Party [Member] | Top of Range [Member]
Disclosure of non-adjusting events after reporting period [line items]
Percentage of option granted	30.00%
Non-adjusting events after reporting period [Member] | Malteria Hudson [Member] | USD | Purchase Agreement [Member]
Disclosure of non-adjusting events after reporting period [line items]
Area of surface property acquire	49,000
Area of built surface aquire	57,000
Consideration amount | $	$ 720,825
Total constructive capacity of approximately | a	177,000