ACCOUNTING POLICY MANUAL IFRS GROUP 3

ACCORDING TO DECREE 2706 OF 2012

"NATURECEUTICALSRX S.A.S."

TAX IDENTIFICATION NUMBER: 901.159.643-8

YEAR 2021
ACCOUNTING POLICIES MANUAL

NATURECEUTICALSRX S.A.S. is a leading company in the cultivation of cannabis and production of oil and
derivatives for medicinal purposes that seeks to improve the health and welfare of people and seeks to
return to human beings their relationship with nature.

What is an accounting policy?

It is a text that establishes, for each item, the criteria for recognition, initial measurement, subsequent
measurement and disclosures of the different items of the Financial Statements:

Recognition answers the question "WHEN?" is recognized. An item is recognized when it meets the
definition of an asset, liability, equity, income or expense, as appropriate.

In that sense, an item is incorporated in the financial statements when:

It is probable that any economic benefit associated with the item coming to or leaving the company.

The item has a cost or value that can be measured reliably (i.e., when it is complete, neutral and free of
error).

Measurement answers the question of HOW MUCH" to recognize.

Initial measurement is ALWAYS at COST (except for listed financial instruments).

Subsequent measurement may be at cost, revalued cost, fair value, net realizable value, recoverable
value.

ASSETS
Only controlled resources resulting from past events that contribute to generating future economic
benefits are recognized as assets.

PAST EVENTS: No expense is deferred when a good or service has been CONSUMED, i.e., when the
beneficiary of the payment has already recognized revenue. In this sense, expenses will not be
recognized as "deferred assets".

This treatment applies to concepts such as contributions to superintendencies, property tax (impuesto
predial), equity tax (impuesto al patrimonio), training expenses. Only the "Deferred" income tax debit
may be recognized as deferred.) NO DEFERRED CHARGES (expenses) SHALL BE RECOGNIZED.

The only deferred asset will be the deferred income tax arising from deductible temporary differences.

INTANGIBLES: Intangibles formed by the COMPANY itself (internal goodwill), such as Good Will, Know
How, trademarks, patents, etc., are not recognized, even if they are registered and valued (IAS 38,
paragraphs 48 and 63), nor will those expenditures of previous periods be recognized as assets (IAS 38, p
71), IFRS SMEs 18.4, -They were income for third parties in previous periods. 9160916

ADVANCE PAYMENTS: Assets are recognized when in a contract (verbal or written) an ADVANCE
PAYMENT is made and THE COMPANY has not received the good or service (IAS 38, p 12b) and IFRS
SMEs 18.1 (b).

In that case, the payee has a LIABILITY and THE COMPANY has a receivable - Prepaid expenses - (IAS 1, p
78b), IFRS SMEs 4.2

INVESTMENT PROPERTY: When it is demonstrated that an asset will be converted into CASH via use or
via SALE, it is recognized as an asset. Unused assets shall be classified as Investment Property - Movable
and immovable property (IAS 8, p 10 and 10.4 of the IFRS for SMEs).

REVENUE: Revenue is recognized only when goods are delivered and/or services are rendered and all
risks and rewards have been transferred to the customer.

All revenue items of THE COMPANY (its revenue is based on the sale of drugs and/or continuing
education services). It should be invoiced immediately in order to avoid that the income is recognized in
a period different from that of the delivery and transfer of the risks associated with the transaction in
question.

LIABILITIES

NATURECEUTICALSRX will recognize as liabilities the obligations, product of past events, with respect to
which it can be proven that there will be an outflow of future economic benefits.

PAST EVENTS: A liability is only recognized WHEN THE COMPANY HAS RECEIVED a good or service (IAS
37, p 18 and Conceptual Framework paragraph 4.46). NATURECEUTICALSRX will NOT recognize
provisions for future events or for signed and unexecuted contracts.

A liability is only recognized WHEN THERE IS AN ACTUAL THIRD PARTY to whom it is owed at the present
time (IAS 37, p 20).

Liabilities are only recognized when they meet the other conditions and when it is more than 50%
probable (can be proven) that a disbursement will actually be made (NO contingencies can be
recognized). Contingencies will not be recognized for lawsuits, unless there is certification of the status
of the process indicating that the probability of losing is greater than 50% or when there is a judgment
against in the first instance.

Costs and expenses payable incurred at the end of the period, such as social benefits, will be recognized
as Accrued Obligations and not as provisions.

GENERAL ACCOUNTING POLICIES

NATURECEUTICALSRX SAS, in order to have standard guidelines that facilitate the processing of
accounting information collected in a given period, and process the information to prepare the financial
statements of economic events, will use any of the following general accounting policies mentioned
below:

Adoption of Applicable Accounting Standards.

NATURECEUTICALSRX to prepare and prepare the financial statements adopted the International
Financial Reporting Standard for Small and Medium-Sized Entities SME as a reference framework as of
June 2016.

Management is primarily responsible for ensuring that these financial statements are prepared and
presented in accordance with the requirements of IFRS for SMEs.

Accounting assumptions

NATURECEUTICALSRX SAS. To prepare its financial statements, it structures them under the following
accounting assumptions:

Accrual basis

NATURECEUTICALSRX will recognize the effects of transactions and other events when they occur (and
not when money or other cash equivalent is received or paid); likewise, they will be recorded in the
accounting books and reported in the statements of the periods to which they relate.

b) Business in progress

The entity prepares its financial statements on the basis that it is in operation and will continue its
operating activities for the foreseeable future. If there is a need to liquidate or cut significantly the scale
of the company's operations, such statements shall be prepared on a different basis and, if so,
information about the basis used in them shall be disclosed.

Basis of measurement

In order to determine the monetary amounts when recognizing the elements of the financial
statements, the entity shall measure them according to the following bases:

a) Historical cost
For the assets of NATURECEUTICALSRX SAS, the historical cost will be the amount of cash or cash
equivalents paid, or the fair value of the consideration given to acquire the asset at the time of
acquisition. For the entity's liabilities, the historical cost will be registered at the value of the proceeds
received in exchange for incurring the debt or, for the amounts of cash and other equivalent items
expected to be paid to satisfy the corresponding debt, in the normal course of the operation.

b) Fair value

NATURECEUTICALSRX shall recognize fair value as the amount for which an asset could be exchanged, or
a liability settled, between an interested and knowledgeable, willing buyer and seller in an arm's length
transaction.

Qualitative characteristics

NATURECEUTICALSRX, when preparing its financial statements, will apply qualitative characteristics to
the financial information, so that it can be adapted to the common needs of the different users, in order
to promote the fulfillment of the entity's objectives and ensure efficiency in the use of such information.

Functional currency

The entity shall express in the headings of the financial statements the use of the functional currency,
which is the COP (Colombian Peso).

Presentation of financial statements

a) Fair presentation

The company shall present reasonably and fairly the financial position, financial performance and cash
flows, disclosing additional information necessary to improve the reasonableness of the information.

b) Compliance with IFRS for SMEs

The entity shall prepare its financial statements based on the International Financial Reporting Standard
for Small and Medium-Sized Entities (IFRS for SMEs), which is the adopted reference framework.
c) Frequency of reporting

The company shall present a complete set of financial statements annually, which shall consist of: a
statement of financial position; a statement of comprehensive income; a statement of changes in
equity; a statement of cash flows; and notes to the company's significant policies.

d) Disclosures in the notes to the financial statements

The notes to the financial statements shall be presented in a systematic manner, making reference to
the company's background, compliance with international standards, similar items that have relative
importance shall be presented separately, the nature of its operations and main activities; the legal
domicile; its legal form, including the provision or provisions of law relevant to its creation or operation
and other brief information on fundamental changes referring to increases or decreases in its productive
capacity, among others.

e) Note to the financial statements regarding accounting policies used by SMEs

NATURECEUTICALSRX SAS; will normally present the notes to the financial statements under the
following order

a. Statement that the financial statements were prepared in accordance with IFRS for SMEs.

b. Prepare a summary of the significant accounting policies that have been applied.

c. Additional information supporting the line items presented in the financial statements in the same
order in which each statement and each line item is presented; and

d. Any other information to be disclosed as deemed appropriate.

To ensure that the note is complete, you should review the balance sheet and income statement for
each major presentation item, and verify the disclosure of the accounting policy.

Changes in accounting policies, methods and practices should be disclosed and the effect on the
financial statements should be disclosed, and their treatment is governed by section 10 of the IFRS for
SMEs.
ACCOUNTING POLICIES

ACCOUNTING POLICIES FOR THE PREPARATION AND PRESENTATION OF THE STATEMENT OF FINANCIAL
POSITION

Presentation of the statement of financial position

An entity shall present the asset and liability elements of the statement of financial position, classified as
current and non-current assets and liabilities as separate categories. (Section 4, p.4.4).

An asset is classified as current when it meets the following criteria: (Section 4, p.4.5).

It expects to be caused or intends to be sold or consumed in a normal operating cycle.

It holds the asset primarily for trading purposes.

The asset will be caused within twelve months after the reporting date.

It is cash or a cash equivalent, unless its use is restricted and it cannot be exchanged or used to settle a
liability for a period of at least twelve months after the reporting date.

An entity classifies all other assets as non-current. When the normal operating cycle is not clearly
identifiable, its duration shall be assumed to be twelve months. (Section 4, p. 4.6)

An entity shall classify a liability as current when: (Section 4, p.4.7).

It expects to settle it in the course of the entity's normal operating cycle;

It holds the liability primarily for the purpose of trading.

The liability must be settled within twelve months after the reporting date;

The entity does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting date.
The enterprise shall classify all other liabilities as non-current. ( Section 4, p.4.8)

ASSETS

POLICIES FOR CASH AND CASH EQUIVALENTS ACCOUNTS

I. OBJECTIVE

To match the accounting balance of the bank account with the values that appear in the statements
issued by banks and similar entities that manage the COMPANY's resources in checking and savings
accounts, in administration and payment trusts, deposits, investment funds and other resources that
meet the definition of cash and cash equivalents. That is to say, resources on demand, with high
liquidity, low risk of variation in their value and convertible into cash in less than 3 months.

II. SCOPE

This policy shall apply to cash and cash equivalents originated in the manufacture and sale of medicines,
in the rendering of services or in other activities carried out by THE COMPANY and everything related to
its corporate purpose.

III. GUIDELINES

Acknowledgement:

NATURECEUTICALSRX will keep its accounting records in functional currency represented by the $COP
(Colombian Peso).

The value contained in coins and bills kept in the COMPANY shall be recognized as cash on hand when:

It is collected for the development of realization of its corporate purpose.

Cash held in duly authorized financial institutions will be recognized as cash in banks.

Highly liquid short-term investments, which are easily convertible into determined amounts of cash,
being subject to an insignificant risk of changes in their value, will be recognized as cash equivalents, for
example, securities deposited in trust entities or securities intermediaries that manage resources
destined to the payment of suppliers, as well as open collective portfolios.

Measurement:

Cash shall be measured by the value certified by the actual counts of coins and bills contained in boxes
THE COMPANY. Differences will be accounted for as accounts receivable to the person responsible for
their handling and administration.

ACCOUNTS RECEIVABLE ACCOUNTING POLICIES.

Recognition:

NATURECEUTICALSRX shall recognize accounts receivable for credit sales and for any transaction it
performs in pursuit of its object and which present collection rights by THE COMPANY.

Initial measurement:

The measurement of revenue from ordinary activities and accounts receivable will be at the value to be
received.

Subsequent Measurement:

Accounts receivable will subsequently be measured at transaction cost for the value of drugs sold or
services rendered in the event that the portfolio falls outside the parameters established in normal
times will be measured at amortized cost under the effective interest method. (Section 11, p. 11.14, At
the end of each reporting period, an entity shall measure financial instruments as follows, without
deducting transaction costs that it may incur on sale or other disposition:
Debt instruments that meet the conditions in paragraph 11.8 shall.

Measured at amortized cost using the effective interest method.

An impairment of accounts receivable, individually or as a group, is recognized if, and only if, there is
objective evidence of impairment as a result of the existence of duly documented risks such as the
expiration of the normal payment period.

Losses expected as a result of future events, regardless of their probability, are not recognized.
Objective evidence that an asset or group of assets is impaired includes observable information on the
following loss-causing events, which should be observed by general management.

Accounting policies for the allowance for doubtful accounts or impairment of value

This accounting policy applies to the following accounts receivable held by THE COMPANY:

Accounts receivable Trade accounts receivable

Accounts receivable from employees.

Taxes and contributions receivable

Accounts receivable from individuals.

Accounts receivable from sundry debtors.

This accounting policy does not apply to the accounts of Advances and Advances given, which are not
considered accounts receivable under the International Financial Reporting Standards - IFRS, because
they do not generate the right to receive cash or another financial instrument. Neither does it apply to
advances made for the payment of taxes, since they would not present a delay in their payment.

The accounting area assesses annually whether there is objective evidence that a financial asset or
group of financial assets is impaired.

An account receivable or group of accounts receivable is impaired and an impairment loss has occurred
if, and only if, given the occurrence of one or more events that occurred after the initial recognition of
the asset and that event or events causing the loss have an impact on the estimated future cash flows of
the financial asset or group of financial assets that can be reliably assessed.
The accounting area will analyze annually, the following events that correspond to objective evidence
that an account receivable or a group of them are possibly impaired:

Significant financial difficulties of the debtor; understanding that they are in liquidation, concordat,
restructuring and intervention.

Violations of contractual clauses, such as defaults or late payments according to each group, as follows:

THE COMPANY for economic or legal reasons related to financial difficulties of the debtor, grants
concessions or advantages that it would not have granted under other circumstances;

If one (1) of the aforementioned indicators is met, there will be evidence that the account receivable or
accounts receivable have lost value and the corresponding loss will be recognized.

THE COMPANY will first evaluate whether there is objective evidence of value impairment for the
accounts receivable, based on the following procedure:

INDIVIDUAL ANALYSIS: This evaluation will be made to those accounts receivable that are individually
significant. NATURECEUTICALSRX will consider an account receivable individually significant when it
exceeds 1 Minimum Legal Monthly Minimum Wage in Force (SMLMV), and which in turn presents the
following maturity:

Accounts receivable from domestic customers with maturity over 360 days.

Sundry debtors: define whether they have impairment and their due date.

Other debtors: define whether they are impaired and their days to maturity.

Likewise, those accounts receivable that show signs of impairment will be evaluated individually.

ACCOUNTING POLICIES FOR INVESTMENT ACCOUNTS

Objective:
To recognize as investments only securities and to value them reasonably.

Recognition:

Marketable financial instruments or "Investments at Fair Value through Profit or Loss" will be recognized
as marketable financial instruments or "Investments at Fair Value through Profit or Loss" will be
recognized for publicly traded equity or debt securities.

Shares and other equity securities that are not of low or no marketability (not listed on stock exchanges)
will be recognized as Available-for-Sale financial instruments or "At Fair Value through Equity (Other
Comprehensive Income)".

Initial measurement:

"Marketable" instruments will be measured at fair value. Transaction costs, such as commissions, are
expenses, are not added to cost, but are recognized as expenses in the period in which they are
acquired.

Instruments "Available-for-Sale" or "At Fair Value through Equity (Other Comprehensive Income)" will
be measured at cost, including transaction costs.

Subsequent Measurement:

"Marketable" or "Investments at Fair Value Through Profit or Loss" investments will be measured at
their Level 1 Fair Value, i.e., their value on a stock exchange or other "active market" as indicated by a
duly authorized commission merchant or price vendor. (Depends on those indicated in the initial
measurement).

Financial instruments that are not listed as CDTS will be measured at fair value in Level 2, i.e., according
to the price of a similar instrument or by other methods of recognized technical value. In any case, the
results of the year are not affected, but the variations are recognized as a higher or lower value of equity
(of the Other Comprehensive Income). The balancing entry of adjustments is a higher or lower value of
the financial instrument, without affecting valuation accounts of valuations or provisions.
4. INVENTORY ACCOUNTING POLICIES.

The following inventory policies are applicable to the company NATURECEUTICALSRX SAS, which does
not carry out agricultural activities and which are part of other standards or policies for their accounting
purposes

Inventory of goods for sale

Initial measurement

The acquisition cost of raw materials shall include the purchase price, import duties and other taxes (not
recoverable later from the tax authorities), transportation, storage, handling and other costs directly
attributable to the acquisition of the materials.

Where the acquisition cost of materials includes discounts, rebates and other similar items, these shall
be deducted in determining such cost. (Section 13, p.13.6)

Where the company purchases inventories on a deferred payment basis, if the purchase agreement
contains a financing element such as, for example, the difference between the purchase price on normal
credit terms and the amount paid, this element is recognized as interest expense over the financing
period.

Subsequent measurement

The entity at the end of each reporting period determines whether inventories are impaired, i.e. if the
carrying amount is not fully recoverable (e.g. due to damage, obsolescence), the inventory is measured
at the lower of cost or net realizable value. This is at selling price less costs to complete and sell and an
impairment loss is recognized. (Section 13, p.13.19)

Work-in-process inventories

The costs of processing inventories shall include: direct labor, systematic allocation of variable or fixed
indirect production costs incurred.(Section 13, p.13.8)
The following shall be recognized as fixed indirect production costs: depreciation and maintenance of
the factory building and equipment, as well as the cost of management and administration of the plant.
(Section 13, p.13.8)

Finished goods inventory

Initial measurement

The company shall measure its finished goods inventories at cost, which shall include all production
costs necessary for the completion of the product. (Section 13, p.13.16)

Inventories shall be classified and included in the statement of financial position as current assets, since
the finished product is held for trading purposes. (Section 4, p.4.5)

Subsequent measurement

Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell,
i.e. net realizable value. (Section 13, p.13.4)

NATURECEUTICALSRX shall use the first-in, first-out (FIFO) method for inventory costing (Section 13,
p.13.18).

A physical inventory shall be taken at the end of each accounting period for each item.

The financial statements shall disclose: The cost formula used to measure inventories, the total carrying
amount of inventories and the carrying amounts according to the appropriate classification for the
entity, the amount of inventories recognized as an expense during the period. (Section 13, p.13.22)

Shall be shown separately amounts of inventories: held for sale in the normal course of operations, in
process of production to be subsequently sold, in the form of materials or supplies to be consumed in
the production process. (Section 4, p.4.11 (c))

Accounting policies for the obsolescence and impairment account of inventories

Initial measurement

NATURECEUTICALSRX, will assess at each reporting date whether there has been an impairment of
inventories by making a comparison between the carrying value of each inventory item with its selling
price less costs to complete and sell.

Upon performing the above assessment, if the inventory reflects an impairment, the carrying amount of
the inventory is reduced to its selling price less costs to complete and sell, and this impairment loss is
recognized in profit or loss. (Section 27, p.27.2)

Subsequent measurement

An entity shall measure at each subsequent reporting period the selling price less costs to complete and
sell inventories.

When an increase in value is identified in the selling price less costs to complete and sell, the amount of
impairment recognized shall be reversed. (Section 27, p. 27.4)

The financial statements shall disclose: The amount of impairment losses recognized or reversed
through profit or loss during the period (Section 13, p.13.22).

Disclose the item or items in the statement of comprehensive income and the income statement in
which impairment losses were reversed; and impairment losses recognized in profit or loss during the
period. (Section 27, p.27.32).

ACCOUNTING POLICIES FOR PROPERTY, PLANT AND EQUIPMENT

An entity shall record as property, plant and equipment tangible assets that are held for use in the
production or supply of goods and are expected to be used for more than one accounting period.
(Section 17, p.17.2)
NATURECEUTICALSRX shall recognize an asset as an item of property, plant and equipment if it is
probable that future economic benefits will flow to the entity and the cost of the asset can be measured
reliably. (Section 17, p.17.4)

Initial Measurement

The company shall initially measure property, plant and equipment at cost, which shall comprise the
acquisition price (legal and brokerage fees, import duties and recoverable taxes, after deducting trade
discounts and rebates), the costs attributable to bringing the asset to the location and condition
necessary for it to be capable of operating as intended; and the initial estimate of costs of dismantling or
removing an asset, as well as the rehabilitation of the site on which it is located, shall form part of the
initial estimate of costs of dismantling or removing an asset. (Section 17, p.17.9 and 17.10).

The cost of an item of property, plant and equipment shall be the cash equivalent price at the date of
recognition. If payment is deferred beyond normal credit terms, the entity shall measure the cost of
property, plant and equipment at the present value of all future payments (Section 17, p.17.13).

Subsequent measurement

The NATURECEUTICALSRX entity shall measure property, plant and equipment subsequent to
recognition at cost less accumulated depreciation and accumulated impairment losses. (Section 17
p.17.15)

If NATURECEUTICALSRX owns property, plant and equipment that contains major components that
reflect different patterns of consumption in their future economic benefits, the initial cost of the
property allocated for each of the elements should be recognized separately. (Section 17. P.17.16)

The company shall derecognize an asset of property, plant and equipment that is on disposal or is not
expected to derive future economic benefits from the disposal or use of the asset. (Section 17, p.17.27)

NATURECEUTICALSRX, shall recognize the gain or loss on derecognition of an asset of property, plant
and equipment in profit or loss in the accounting period in which it occurred. (Section 17, p.17.28)

An entity shall disclose for each classification of property, plant and equipment that management
considers appropriate, the following information: (Section 17, p.17.31)
The measurement basis used, useful life or useful lives of the property, plant and equipment.

The carrying amount of property, plant and equipment, accumulated depreciation and impairment loss
at the beginning and end of the reporting period.

Reconciliation of the amounts at the beginning and end of the reporting period showing: additions,
disposals, impairment losses, depreciation and other changes.

Depreciation of property, plant and equipment

Initial measurement

NATURECEUTICALSRX SAS, will recognize the depreciation charge for property, plant and equipment it
owns, in the result of the accounting period. (Section 17, p.17.17)

The entity shall recognize depreciation of an asset of property, plant and equipment when such asset is
available for use, i.e., it is in the place and in a context necessary to operate in the manner intended by
management. (Section 17, p.17.20)

Subsequent measurement

An entity shall allocate the depreciable amount of property, plant and equipment over its useful life on a
systematic basis in relation to the depreciation method chosen for that property. (Section 17 p.17.18)

NATURECEUTICALSRX shall determine the useful life of property, plant and equipment based on factors
such as expected usage, expected physical wear and tear, obsolescence, limits or restrictions on the use
of the asset, among others. (Section 17, p.17.21)

The company may choose the depreciation method for its property, plant and equipment assets, which
should be the one that best suits the economic benefits expected to be obtained from the asset,
possible methods include: (Section 17, p.17.22)

Straight-line method

Units of production method

Decreasing method

Digit year method

When property, plant and equipment has major components, depreciation shall be recorded for each
item separately, based on the useful life assigned by management, according to the economic benefits
expected from them. (Section 17, p.17.6)

Impairment of property, plant and equipment

Initial measurement

THE COMPANY shall record an impairment loss for property, plant and equipment when the carrying
amount of the asset exceeds its recoverable amount. (Section 27, p.27.1)

THE COMPANY shall recognize any impairment loss for a property, plant and equipment asset in profit
or loss for the accounting period in which it occurs. (Section 27, p.27.6)

NATURECEUTICALSRX shall perform as of the reporting date in the period, a valuation to determine the
existence of impairment; if any, it shall estimate the recoverable amount of the property, plant and
equipment valued. (Section 27, p.27.7)

THE COMPANY shall consider the following factors to indicate the existence of impairment: (Section 27,
p.27.9)

The market value has decreased

Changes to the legal, economic or market environment in which it operates.

Market interest rates have increased

Evidence of obsolescence and physical deterioration

Changes in the use of the asset

Economic performance of the asset is expected to be worse than expected

Subsequent measurement

THE COMPANY shall review and adjust the useful life, depreciation method or residual value of property,
plant and equipment. (Section 27, p.27.10)

NATURECEUTICALSRX shall evaluate at the date on which the financial statements are reported, the
assets of property, plant and equipment for which an impairment loss was recognized in prior periods,
which may have disappeared or decreased. (Section 27, p.27.29)

THE COMPANY shall recognize the reversal of the impairment loss in the income statement for the
accounting period in which the indications that the impairment loss has disappeared or decreased
occurred. (Section 27, p.27.30 b) )

A review of the impairment of property, plant and equipment is recognized when the carrying amount is
increased to a value similar to the recoverable amount, since the valuation indicated that the
recoverable amount had exceeded the carrying amount. (Section 27, p.27.30 b)) )

THE COMPANY shall disclose for each property, plant and equipment asset that has an impairment loss
the following information: (Section 27, p.27.32)

The amount of the impairment loss or reversals recognized in profit or loss for the period.

The line item(s) in the statement of comprehensive income in which the amount of the impairment loss
or reversals recognized is included.

Acquisition of property, plant and equipment under finance leases

Initial measurement

NATURECEUTICALSRX shall recognize the rights (the asset) and obligations (a liability) of property, plant
and equipment acquired under finance lease in its statement of financial position at an amount equal to
the lower of the fair value of the asset or the present value of the minimum lease payments. (Section 20,
p.20.9)
THE COMPANY shall recognize in the amount recognized as an asset, any initial direct costs directly
attributed to the negotiation and arrangement of the lease. (Section 20, p.20.9)

THE COMPANY shall calculate the present value of the minimum payments using the implicit interest
rate, and if this cannot be determined shall use the lessee's incremental borrowing interest rate.
(Section 20, p.20.10)

Subsequent measurement

NATURECEUTICALSRX shall allocate minimum lease payments for property, plant and equipment
between finance charges and reduction of outstanding debt using the effective interest method.
(Section 20, p.20.11)

NATURECEUTICALSRX will allocate the finance charge to each period over the term of the lease to obtain
a constant rate of interest in each period on the balance of the outstanding debt to be repaid. (Section
20, p.20.11)

THE COMPANY shall depreciate the property, plant and equipment asset according to its condition
(Section 20, p.20.12).

THE COMPANY shall depreciate the asset fully over its useful life or the lease term, whichever is shorter,
if it does not reasonably believe that the property, plant and equipment will be obtained at the end of
the lease term. (Section 20 p.20.12)

THE COMPANY shall assess at the reporting date whether the property, plant and equipment is
impaired. (Section 20 p.20.12)

NATURECEUTICALSRX shall disclose on property, plant and equipment acquired under finance leases the
following information: (Section 20, p.20.13 and 20.14 (Section 17, p.17.31))

The carrying amount at the end of the accounting period for which it is being reported

The total future minimum payments for the accounting period being reported and for those of one year,
between one and five years and more than five years; plus a description of the contract arrangements.
The measurement basis used

The useful life or useful lives of the property, plant and equipment.

The carrying amount of property, plant and equipment, accumulated depreciation and impairment loss
at the beginning and end of the reporting period.

Reconciliation of the amounts at the beginning and end of the reporting period showing: additions,
disposals, impairment losses, depreciation and other changes.

Property, plant and equipment granted under finance leases

Initial measurement

THE COMPANY shall recognize in its statement of financial position property, plant and equipment
(other than land and buildings) held under finance lease, as a receivable equal to the value of the gross
investment discounted at the implicit interest rate of the lease. (Section 20, p.20.17)

THE COMPANY shall recognize as gross investment the minimum payments receivable and any residual
value. (Section 20, p.20.17)

THE COMPANY shall include in its finance lease receivable for property, plant and equipment the initial
direct costs which will reduce the amount of revenue recognized over the lease term.

Subsequent measurement

THE COMPANY shall recognize revenue in a manner that reflects a constant periodic rate of return on
the investment. (Section 20, p.20.19)

THE COMPANY shall apply against the gross investment the lease payments relating to the accounting
period presented, which shall reduce both principal and unearned income, excluding service costs.
(Section 20, p.20.19)

THE COMPANY shall disclose the following information on property, plant and equipment leased under
finance leases: (Section 20, p.20.23 (Section 17, p.17.31))
A reconciliation between the gross lease investment and the present value of the minimum lease
payments receivable at the end of the accounting period being reported and for terms of one year,
between one and five years and more than five years;

Unearned income

Description of the lease arrangements set forth in the contract.

Accounting policies for the investment property account

Initial measurement

NATURECEUTICALSRX shall recognize as investment properties: land or buildings held under a finance
lease, intended to earn rentals, capital gains or both. (Section 16, p.16.2)

THE COMPANY shall recognize an asset as investment property within an operating lease arrangement if
the property meets the definition of investment property and its fair value of the right to the property
can be measured without disproportionate cost or effort. (Section 16, p. 16.3)

THE COMPANY shall account for mixed-use property by separating investment property and property,
plant and equipment, if the investment property cannot be measured reliably and without
disproportionate cost or effort in a going concern context, it shall be recorded as a whole of property,
plant and equipment. (Section 16, p.16.4)

Investment property shall be recognized at cost comprising its purchase price and any directly
attributable expenses. (Section 16, p. 16.5)

Subsequent measurement

THE COMPANY shall measure investment property at fair value, provided that it can be measured
reliably and without disproportionate cost or effort in a going concern context, at the reporting date.
(Section 16, p.16.7)

THE COMPANY shall recognize in profit or loss any change in the fair value of investment property.
(Section 16, p.16.7)
THE COMPANY shall recognize investment property at the present value of all future payments if
payment for the purchase of the property is deferred beyond normal credit terms. (Section 16, p.16.5)

THE COMPANY shall account for an investment property as property, plant and equipment when a
reliable fair value measurement is no longer available without disproportionate cost or effort or no
longer meets the definition of investment property, which shall constitute a change in circumstances.
(Section 16, p.16.8 and 16.9)

NATURECEUTICALSRX shall disclose for investment properties it owns, the following information:
(Section 16, p.16.10)

The manner used to determine the fair value measurement of the investment properties.

Whether the fair value measurement is based on an appraisal by an independent appraiser.

Amount of restrictions on the realization of investment properties, collection of income or resources

obtained from their disposal.

Contractual obligations contracted for investment properties

A reconciliation of the carrying amount of investment property at the beginning and end of the
reporting period showing: gains or losses from fair value adjustments, transfer of investment property
to property, plant and equipment, other changes.

ACCOUNTING POLICIES FOR INTANGIBLES

Initial Measurement

THE COMPANY shall recognize an intangible asset only if it is probable to obtain future economic
benefits, its cost or value can be measured reliably and it is not the result of expenditures incurred
internally on an intangible asset. (Section 187, p.18.4)

THE COMPANY shall initially measure an intangible asset at cost. (Section 18, p.18.9)

THE COMPANY shall measure intangible assets that it has acquired separately at acquisition cost
(including import duties and non-recoverable taxes after deducting trade discounts and rebates) and any
other costs directly attributable to preparing the asset for its intended use. (Section 18, p.18.10)
THE COMPANY shall measure at fair value all intangible assets acquired through a government grant on
the date it is received. (Section 18, p.18.12)

THE COMPANY shall measure an intangible asset at fair value when it has been acquired in exchange for
one or more non-monetary assets or a combination of monetary and non-monetary assets. (Section 18,
p.18.13)

THE COMPANY shall measure at the carrying amount of the asset given up, an intangible asset acquired
in exchange for one or more assets or a combination of monetary and non-monetary assets, only if the
transaction is not of a commercial nature and the fair value of neither the asset received nor the asset
given up can be measured reliably. (Section 18, p.18.13)

THE COMPANY shall recognize as an expense expenditure incurred in the development and research
activities of an internally generated intangible asset. (Section 18, p.18.14)

Subsequent measurement

NATURECEUTICALSRX shall measure intangible assets after initial recognition at cost less any
accumulated amortization and impairment loss. (Section 18, p.18.18)

THE COMPANY shall recognize the useful life of an intangible asset as finite, and if it cannot make a
reliable estimate of the useful life, the useful life shall be assumed to be ten years. (Section 18, p.18.19
and 18.20)

THE COMPANY shall recognize as an expense the amortization charge, at the accounting period to which
it reports, which is obtained by distributing the depreciable amount of the intangible asset over its
useful life. (Section 18, p.18.21)

THE COMPANY shall begin amortization of the intangible asset when it is in the location and condition
necessary to be used and ends when the asset is derecognized. (Section 18, p.18.22)

THE COMPANY shall use the straight-line method of amortization, which is expected to reflect the
consumption of future economic benefits derived from intangible assets. (Section 18, p.18.22)
THE COMPANY shall consider a residual value of zero for intangible assets, provided that there is no
commitment to sell at the end of their useful life or an active market for the asset type. (Section 18,
p.18.23)

THE COMPANY shall derecognize an intangible asset and recognize a gain or loss in profit or loss for the
reporting period on disposal or when no future economic benefits are expected to arise from the use or
disposal of the asset. (Section 18, p.18.26)

The following should be disclosed for each class of intangible asset: the useful lives or amortization rates
used, the amortization methods used, the gross carrying amount and any accumulated amortization,
both at the beginning and at the end of each reporting period, the line items, in the statement of
comprehensive income in which any amortization of intangible assets is included, the amount of
impairment losses recognized in profit or loss during the period, the amount of reversals of impairment
losses recognized in profit or loss during the period. (Section 18, p.18.27)

Impairment of an intangible asset

Initial measurement

NATURECEUTICALSRX shall record an impairment loss for an intangible asset when the carrying amount
of that asset exceeds its recoverable amount. (Section 27, p.27.1)

THE COMPANY shall recognize any impairment loss for an intangible asset in profit or loss for the
accounting period in which it occurs. (Section 27, p.27.6)

THE COMPANY shall perform at the reporting date of the period a valuation to determine the existence
of impairment; if impairment exists, it shall estimate the recoverable amount of the intangible asset
being valued. (Section 27, p.27.7)

THE COMPANY shall consider the following factors to indicate the existence of impairment: (Section 27,
p.27.9)

If the market value has decreased or the interest rate has increased.

Changes to the legal, economic or market environment in which it operates

Evidence of obsolescence and changes in the use of the asset

The economic performance of the asset is expected to be worse than expected.

Subsequent measurement

THE COMPANY shall review and adjust the useful life, amortization method or residual value of the
intangible asset if there are indications that the asset is impaired. (Section 27, p.27.10)

THE COMPANY shall evaluate at the date on which the financial statements are reported, the intangible
assets that in previous periods an impairment loss was recognized, which may have disappeared or
decreased. (Section 27, p.27.29)

THE COMPANY shall recognize the reversal of the impairment loss in the result of the accounting period
in which the indications that the impairment has disappeared or decreased (Section 27, p.27.30 b)).

An impairment review of the intangible asset is recognized when the carrying amount is increased to
such an amount of the recoverable amount because the valuation indicated that the recoverable
amount had exceeded the carrying amount. (Section 27, p.27.30 b)

THE COMPANY shall disclose for each intangible asset that has presented an impairment loss the
information of the amount of the impairment loss or reversals recognized in profit or loss for the period
and the line item or items in the statement of comprehensive income in which the amount of the
impairment loss or reversals recognized is included. (Section 27, p.27.32)

ACCOUNTING POLICIES FOR CURRENT AND DEFERRED TAX ASSETS AND LIABILITIES ACCOUNTS

NATURECEUTICALSRX will recognize current and future tax consequences and other events that have
been recognized in the financial statements. These recognized tax amounts comprise deferred tax,
which is the tax payable (liability) or recoverable (asset) in future periods generally as a result of the
entity recovering or settling its assets and liabilities for their current carrying amounts, and the tax effect
of offsetting hitherto unused tax losses or credits from prior periods. (Section 29, p.29.2)

Initial Measurement
A deferred tax asset or liability is recognized for the tax recoverable or payable in future periods as a
result of past transactions or events. This tax arises from the difference between the amounts
recognized for the entity's assets and liabilities in the statement of financial position and their
recognition by the tax authorities, and the offsetting of unused tax losses or credits from prior periods.
(Section 29, p.29.9)

The enterprise shall recognize: (a) a deferred tax liability for all temporary differences that are expected
to increase taxable profit in the future. (b) a deferred tax asset for all temporary differences that are
expected to reduce taxable profit in the future.

that are expected to reduce taxable profit in the future. (c) A deferred tax asset for the offset of unused
tax losses and unused tax credits carry forward from prior periods. (Section 29, p.29.15)

Deferred tax assets and liabilities should be measured using the tax rates that are expected to apply in
the period in which the asset is realized or the liability is settled, based on the rates that at the end of
the reporting period have been enacted or substantively enacted.

Subsequent measurement

A valuation adjustment is recognized for deferred tax assets so that the net carrying amount equals the
maximum amount that is likely to be recovered based on current or future taxable profit. The net
carrying amount of a deferred tax asset is reviewed at each reporting date and the valuation allowance
is adjusted to reflect the current assessment of future taxable profit. (Section 29, p.29.21 and 29.22)

LIABILITIES

ACCOUNTING POLICIES FOR ACCOUNTS PAYABLE AND NOTES PAYABLE

Initial measurement

THE COMPANY shall recognize an account and note payable when it becomes a party to the contract
and, as a result, has a legal obligation to pay it. (Section 11.12)
THE COMPANY shall initially measure an account and note payable at the transaction price including
transaction costs.

THE COMPANY shall measure the account and note payable at the present value of future payments
discounted at a market interest rate for this type of financial liability, provided that the arrangement
constitutes a financing transaction. (Section 11, p.11.13)

Subsequent measurement

THE COMPANY shall measure accounts and notes payable at the end of each period at amortized cost
using the effective interest method, when they are long-term. (Section 11, p.11.14)

THE COMPANY shall measure accounts and notes payable at the end of each reporting period at the
undiscounted amount of cash or other consideration expected to be paid, provided that it does not
constitute a financing transaction.

THE COMPANY shall recognize as the amortized cost of accounts and notes payable the net of the initial
amounts less principal repayments, plus or minus accumulated amortization. (Section 11, p.11.15)

THE COMPANY shall revise the estimates of payments and the carrying amount of accounts and notes
payable shall be adjusted to reflect the revised actual and estimated cash flows. (Section 11, p.11.20)

THE COMPANY shall derecognize an account and note payable when the obligation specified in the
contract has been paid, cancelled or has expired. (Section 11, p.11.36)

THE COMPANY shall disclose as of the date of the accounting period being reported information
concerning: the policies adopted for the quantification of accounts and notes payable, the amount of
trade accounts and notes payable as of that date, and the composition of the account (Section 11,
p.11.40).

POLICIES FOR THE ALLOWANCE ACCOUNT

Initial measurement
THE COMPANY shall recognize a provision when an obligation exists at the reporting date as a result of a
past event, it is probable that an outflow of resources will be required to settle the obligation and the
amount of the obligation can be reliably estimated. (Section 21, p21.4)

THE COMPANY shall recognize a provision as a liability in the statement of financial position and the
amount of the provision as an expense in profit or loss for the accounting period. (Section 21, p.21.5)

THE COMPANY shall measure a provision for the amount that would be payable to settle the obligation
at the end of the reporting period, which is the best estimate of the amount required to settle the
obligation. (Section 21, p.21.7)

THE COMPANY shall measure the provision at the present value of the amounts expected to be required
to settle the obligation when the effect of the time value of money is material. (Section 21, p.21.7)

THE COMPANY shall use the pre-tax discount rate that best reflects current market assessments of the
time value of money. (Section 21, p.21.21.7)

THE COMPANY shall recognize a reimbursement from a third party, which may be part or all of the
amount required to settle the provision, as a separate asset (reimbursement receivable), which shall not
exceed the amount of the provision and shall not be offset against the provision. (Section 21, p.21.9)

Subsequent measurement

THE COMPANY shall subsequently measure the provision by charging against it only those
disbursements for which the provision was originally recognized. (Section 21, p.21.10)

THE COMPANY shall at the end of the reporting period evaluate the provisions and if necessary adjust
their value to reflect the current best estimate of the amount required to settle the obligation. (Section
21, p.21.11)

THE COMPANY shall recognize in expenses in profit or loss for the period, any adjustments made to the
amounts of the provision previously recognized. (Section 21, p.21.11)
THE COMPANY shall recognize in income for the period the reversal of the discount, when the provision
was initially measured at present value, and as a result of the valuation of the provisions, adjustments to
the amounts previously recognized were recognized. (Section 21, p.21.11)

THE COMPANY shall disclose for each of the provisions recognized at the end of the accounting period
the following information: (Section 21, p.21.14).

A reconciliation showing the carrying amount at the beginning and at the end of the period, additions
made, adjustments for changes in the measurement of the discounted amount, amounts charged
against the provision, unused amounts reversed.

Description of the nature of the obligation and uncertainties of the amount

Amount of expected third-party reimbursements

ACCOUNTING POLICIES FOR THE LOAN ACCOUNT

Initial measurement

THE COMPANY shall measure loans initially at the transaction price, i.e., at cost and other expenses
inherent to it. (Section 11 p.11.13)

When the entity enters into a transaction that is financed at a non-market interest rate, it shall initially
measure the loan at the present value of future payments discounted at a market interest rate for a
similar debt transaction. (Section 11 p.11.13)

Subsequent measurement

THE COMPANY shall measure loans at amortized cost, using the cash interest method. (Section 11
p.11.14)

If the company agrees to a financing transaction, the company shall measure the loan at the present
value of future payments discounted at a market interest rate for a similar debt transaction. (Section 11
p.11.14)
A portion of long-term loans shall be classified in current liabilities in an account called short-term loans,
which have maturities equal to or less than twelve months.

THE COMPANY shall measure loans previously recognized in current liabilities at the undiscounted
amount of cash or other consideration expected to be paid. (Section 11, p.11.14)

THE COMPANY shall revise its payment estimates and adjust the carrying amount of the financial liability
to reflect the revised actual cash flows. (Section 11, p.11.20)

The term and conditions of loans held by the entity shall be disclosed, in addition to the agreed interest
rate and, if collateral exists, the value and conditions of the asset pledged as collateral shall be disclosed.
(Section 11, p.11.42)

ACCOUNTING POLICIES FOR THE OBLIGATIONS UNDER FINANCE LEASES ACCOUNT

Initial measurement

THE COMPANY shall recognize a finance lease obligation in its statement of financial position. (Section
20, p.20.9)

The lessee shall initially measure at the lower of the fair value of the leased asset or the present value of
the agreed payments determined at the inception of the lease. (Section 20, p.20.9)

The present value of the minimum lease payments should be calculated using the interest rate implicit
in the lease; if this cannot be determined, the lessee's incremental borrowing rate should be used.
(Section 20, p.20.10)

Subsequent measurement

THE COMPANY shall apportion the minimum lease payments between finance charges and the
reduction of outstanding debt using the effective interest method. (Section 20, p.20.11)
THE COMPANY will apportion the finance charge (interest) to each period over the term of the lease so
as to obtain a constant rate of interest in each period on the balance of the outstanding debt to be
repaid. (Section 20, p.20.11)

THE COMPANY should disclose in the notes the carrying amount, i.e. the cost less disbursements
incurred in the accounting period and make a description of the general arrangements agreed in the
contract, among other important aspects such as term, interest rate, etc. (Section 20, p.20.13)

SHAREHOLDERS' EQUITY

ACCOUNTING POLICIES FOR THE EQUITY ACCOUNT

Initial measurement

Equity is recognized when shares are issued and another party is obligated to provide cash or other
resources to the entity in exchange for those shares. (Section 22, p.22.7)

Equity instruments shall be measured at the fair value of the cash or other resources received or
receivable, net of the direct costs of issuing the equity instruments. (Section 22, p.22.8)

If the payment of the shares is deferred and the time value of money is significant, the initial
measurement shall be made on the basis of present value. (Section 22, p.22.8)

NATURECEUTICALSRX shall account for the costs of a transaction as a deduction from equity of any
related tax benefit. (Section 22, p.22.9)

Subsequent measurement

The entity shall reduce from equity the amount of distributions to owners, net of any related tax benefit.
(Section 22, p.22.17)

Profits shall be recognized at the end of the accounting period.

NATURECEUTICALSRX shall disclose in the notes: the value of the contributions authorized by the entity;
and the conditions approved by the Assembly or by the bylaws.

ACCOUNTING POLICIES FOR THE PREPARATION AND PRESENTATION OF THE STATEMENT OF

COMPREHENSIVE INCOME

Presentation of the statement of comprehensive income

NATURECEUTICALSRX may show the company's performance by preparing:

1. a single statement, by preparing the statement of comprehensive income, in which case it shall
present all items of income and expense recognized in the period. (Section 5, p.5.2, (a) )

2. Two statements, by means of the income statement and the statement of comprehensive income, in
which case the income statement shall present all items of income and expense recognized in the period
except those recognized in total comprehensive income outside profit or loss, as permitted and required
by the IFRS for SMEs. (Section 5, p.5.2, (b) )

A change from a single-statement approach to a two-statement approach or vice versa is a change in

accounting policy. (Section 5, p.5.3)

ACCOUNTING POLICIES FOR THE INCOME STATEMENT

THE COMPANY shall recognize revenue from ordinary activities whenever it is probable that future
economic benefits will flow to the entity, and that revenue can be measured reliably. (Section 2, p.2.27)

Revenue from the entity's ordinary activities shall be measured at the fair value of the consideration
received or receivable, taking into account any amounts for rebates and discounts. (Section 23, p.23.3)

Interest revenue is recognized when there is a resulting difference between the fair value and the
amount of the consideration. (Section 23, p.23.5)
THE COMPANY shall recognize interest revenue using the effective interest method. (Section 23, p.23.29
(a))

Whenever payment of a credit sale is deferred beyond normal commercial terms, it shall be measured
at the present value of future revenues (receipts) discounted at a market rate of interest. (Section 11,
p.11.13)

Revenues from non-operating activities are measured as they accrue, considering the transfer of
benefits and risks to the fair value of the trade.

Deferred revenue is measured at the fair value of the consideration (present value of all future
collections determined using an imputed interest rate). (Section 23,p.23.5)

THE COMPANY shall recognize revenue from ordinary activities from royalties using the accrual or
accrual basis, according to the established agreement. (Section 23, p.23.29 (b))

THE COMPANY shall recognize dividends when the shareholder's right to receive them is established.
(Section 23, p.23.29 (c)

THE COMPANY shall recognize revenue from ordinary activities from royalties using the accrual basis,
according to the established agreement (Section 23, p.23.29 (b)).

THE COMPANY shall recognize dividends when the shareholder's right to receive them is established.
(Section 23, p.23.29 (c))

THE COMPANY shall disclose the amount of the different categories of income recognized during the
period, from: sale of goods; interest; royalties; dividends; commissions; any other type of income.
(Section 23, p.23.30)

ACCOUNTING POLICIES FOR THE COST OF SALES ACCOUNT

THE COMPANY when recognizing transformation costs should include raw materials, labor and indirect
manufacturing costs. (Section 13, p.13.8)
The enterprise shall also include in transformation costs fixed and variable indirect production costs as
long as they meet the definition and have been incurred to transform raw materials into finished goods.
(Section 13, p.13.8)

Cost of sales is recognized when a sale of finished goods is actually made.

Cost of sales is measured at the cost of production of the goods produced, as defined in inventories,
according to the type of good.

THE COMPANY shall disclose information on the formula used in the cost of units produced.

ACCOUNTING POLICIES FOR THE EXPENSE ACCOUNT

THE COMPANY shall recognize an expense when a decrease in future economic benefits arises in the
form of outflows or decreases in the value of assets or the incurrence of obligations, and it can be
measured reliably. (Section 2, p.2.23 (b))

The entity's expenses shall be measured at the cost thereof that can be measured reliably (Section 2,
p.2.30).

THE COMPANY shall choose any of the following classifications for the breakdown of expenses:

1. by nature (Depreciation, purchases of materials, transportation costs, employee benefits, and

advertising cost), (Section 5, p.5.11 (a))

2. By function (as part of cost of sales or cost of distribution or administrative activities).

If the enterprise chooses to classify expenses according to their function, it shall disclose at least their
cost of sales separately from other expenses. (Section 5, p.5.11 (b))
THE COMPANY shall recognize borrowing costs as an expense for the period when incurred. (Section 25,
25.2)

ACCOUNTING POLICIES FOR THE LEGAL RESERVE ACCOUNT

When preparing accounting policies, the type of reserve (legal, labor, etc.) of the company should be
considered.

The calculation of the reserves shall be made in accordance with the legal provisions related thereto, in
the case of the legal reserve and for the other reserves, it shall be made based on the parameters
established by the entity.

The legal reserve will be constituted with seven percent of the profits before taxes and reserve up to
one fifth of the capital stock, for corporations and limited liability companies, for partnerships it will be
five percent of the net profits and the legal limit of said reserve will be one sixth of the capital stock.

If the company agrees to continue to constitute the legal reserve exceeding the established limit, this
part will not be deductible for income tax purposes.

A description shall be made of each reserve included in equity (Section 4, p 4.12 (b)).

ACCOUNTING POLICIES FOR THE PREPARATION AND PRESENTATION OF THE STATEMENT OF CHANGES
IN EQUITY AND STATEMENT OF PROFIT OR LOSS AND RETAINED EARNINGS

Presentation of the statement of changes in equity

The company shall prepare the statement of changes in equity once a year, as a supplement to the set
of financial statements at the end of the accounting period showing: the total comprehensive statement
for the period; the effects on each component of equity the retrospective application or retrospective
restatement recognized; make a reconciliation between the carrying amounts at the beginning and end
of the period for each component of equity disclosing separately the changes from (the result for the
period, each item of other comprehensive income).(Section 6, p. 6.3)
NATURECEUTICALSRX shall elect to present a single statement of profit or loss and retained earnings
instead of the statement of comprehensive income and statement of changes in equity, provided that
the only changes in its equity during the period or periods arise from gains or losses, payment of
dividends, corrections of errors and changes in accounting policies. (Section 3,p.3.18)

Preparation of the statement of changes in stockholders' equity

For the preparation of the statement of changes in equity, the company must show in detail the
contributions of the partners and the distribution of profits obtained in a period, in addition to the
application of retained earnings in previous periods, showing separately the company's equity.

Information to be disclosed in the statement of changes in equity

The company shall disclose for each component a reconciliation between the carrying amounts both at
the beginning and at the end of the accounting period, disclosing changes in relation to:

(a) Profit or loss for the period

b) Each item of other comprehensive income

c) Amount of investments made by owners, and dividends paid to owners.

d) Issuances of shares, transactions of own shares in portfolios, dividends and other distributions to
owners. (Section 6, p.6.3)

The entity shall consider the following items at the time of preparing the statement of income and
retained earnings, in addition to the information required for the statement of comprehensive income
and statement of income:

(a) Retained earnings at the beginning of the reporting period.

b) Dividends declared during the period, paid or payable

c) Restatements of retained earnings for corrections of prior period's errors

d) Restatement of retained earnings due to changes in accounting policy

e) Retained earnings at the end of the reporting period. (Section 6, p.6.5)

ACCOUNTING POLICIES FOR THE PREPARATION AND PRESENTATION OF THE CASH FLOW STATEMENT

Presentation of the cash flow statement

NATURECEUTICALSRX SAS shall prepare the cash flow statement once a year, as a supplement to the set
of financial statements at the end of the accounting period (Section 3, 3.17 (d)).

Preparation of the cash flow statement

For the preparation of the cash flow statement for operating activities, the company shall opt for any of
the methods mentioned below:

(a) The enterprise shall use the indirect method provided that the result is adjusted for the effects of
non-cash transactions, any deferred payments or accruals (or accruals) for receipts and payments for
past or future operations, and for items of income or expense associated with investing or financing
cash flow. (Section 7, p.7.7 (a)).

b) The company shall opt for the direct method provided that the main categories of receipts and
payments are disclosed on a gross basis. (Section 7, p.7.7 (b)).

NATURECEUTICALSRX SAS shall present the cash flow statement for investing and financing activities
under the direct method. (Section 7, p.7.9)

Information to be disclosed in the cash flow statement

The company shall present separately the main categories of gross receipts and payments from
investing and financing activities. It shall also present cash flows from acquisitions and disposals of
subsidiaries or other business units separately and classify them as investing activities. (Section 7,
p.7.10)

The company shall disclose information about cash items and their components; in addition to the
reconciliation of cash and cash equivalents balances.
ACCOUNTING POLICIES FOR EVENTS OCCURRING AFTER THE REPORTING PERIOD

Recognition of events after the balance sheet date

NATURECEUTICALSRX will proceed to modify the amounts recognized in the financial statements,
whenever they involve adjustments to certain situations that affect the financial position and that
become known after the balance sheet date.

THE COMPANY will modify the amounts given as a result of a legal dispute, if a liability is recorded, when
it receives information after the balance sheet date that indicates the impairment of an asset, when it is
demonstrated that the financial statements are incorrect due to fraud or errors, basically the amounts
are modified if the fact is considered material.

Disclosure of facts that do not imply adjustments

THE COMPANY will not proceed to modify the amounts recognized in the financial statements, to reflect
the incidence of events occurring after the balance sheet date, if these do not involve adjustments the
company will only make disclosure in the notes such as: The nature of the event; An estimate of its
financial effects, or a pronouncement on the impossibility of making such an estimate.

Changes in accounting policies

NATURECEUTICALSRX, will account for changes in accounting policies according to any of the following
events:

Change in IFRS requirements for Group 3, will be accounted for in accordance with the transitional
provisions, if any, specified in that amendment.

Any other change in accounting policy shall be accounted for retrospectively.

Disclosures about a change in accounting policy shall be considered when a change in IFRS has an effect
in the current period or any prior period, or may have an effect in future periods, an entity shall disclose
the following:
The nature of the change in accounting policy

For the current period and for each prior period presented, to the extent practicable, the amount of the
adjustment for each financial statement line item affected.

The amount of the adjustment relating to periods prior to those presented, to the extent practicable.

An explanation if it is impracticable to determine the amounts to be disclosed in the paragraphs.

Elaborado por._______________________________

Aprobado por._______________________________

Date of authorization of the accounting policies manual: JANUARY 31, 2021