34.2 FINANCIAL RISKS – The policies applied by the Company to manage the financial risks it is exposed to are detailed below
34.2.1 Classification category of financial instruments The table below shows assets and liabilities amount of statement of financial position, classified by categories in accordance with IAS 39:
Memoria Anual 2016 Annual Report
410
Investments at fair value through profit or loss
Loans and accounts receivable
Held-to- maturity investments Total
Liabilities at amortized cost
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000) Assets Cash and bank deposits - 168,021 - - 168,021 Time deposits - 96,360 - - 96,360 Fair value through profit or loss investments 68,736 - - - 68,736 Available-for-sale investments, net - - 608,613 - 608,613 Held-to-maturity investment - - - 2,446,677 2,446,677 Accounts receivables from insurance operations, net - 182,007 - - 182,007 Accounts receivables to reinsurers and coinsurers, net - 57,777 - - 57,777 Other accounts receivable, net (*) - 111,032 - - 111,032 Total assets 68,736 615,197 608,613 2,446,677 3,739,223 Liabilities Overdrafts and borrowings - - - - - 121,130 Taxes, interests and other payables (**) - - - - - 96,086 Accounts payable to intermediaries - - - - - 30,934 Accounts payable to insured parties - - - - - 19,025 Accounts payable to reinsurers and coinsurers - - - - - 186,866 Total liabilities - - - - - 454,041
(**) The difference with the balance shown in note 18 corresponds mainly to the fact it is not considered the account payables for “Taxes and contributions”, “Holidays, participations and others”, “Compensation for time of service” and “Income tax payable”.
Held-to- maturity investments Total
Liabilities at amortized cost
S/(000) S/(000) S/(000) S/(000) S/(000) S/(000)
Cash and bank deposits
-
204,084
-
-
204,084
-
Time deposits
-
93,053
-
-
93,053
-
64,772
-
-
-
64,772
-
-
-
511,001
-
511,001
-
Fair value through profit or loss investments Available-for-sale investments, net
Held-to-maturity investments - - - 2,182,836 2,182,836 Accounts receivables from insurance operations, net
-
247,328
-
-
247,328
-
Accounts receivables to reinsurers and coinsurers, net
-
33,561
-
-
33,561
-
Other accounts receivable, net
-
66,373
-
-
66,373
-
Total assets
64,772 644,399 511,001 2,182,836 3,403,008 -
Liabilities Overdrafts and borrowings - - - - - 111,678 Taxes, interests and other payables
-
-
-
-
-
69,898
Accounts payable to intermediaries - - - - - 25,818 Accounts payable to insured parties
-
-
-
-
-
18,314
Accounts payable to reinsurers and coinsurers
-
-
-
-
-
148,157
Total liabilities - - - - - 373,865
34.2.2 Credit risk – The Group is exposed to credit risk, that is the risk that a counterparty will be unable to pay amounts in full when due. The Group has several policies in place to manage credit risk which are applied to all financial assets. For these purposes, minimum risk rating levels have been established and are adhered to when investing in said financial assets.
(i) Assets exposure by credit rating (a) As of December 31, 2016 and 2015, Cash and cash equivalent are comprised of cash and short-term deposits, due to Management considers they are not represent credit or interest rates significant risks; therefore, it’s estimated that its carrying value does not differ from its estimated market value.
(*) The difference with the balance corresponds mainly to a financial instrument generated by the sale of the property located in the district of Miraflores, due to the fact that for this transaction, the Company has a liquid guarantee (letter of guarantee) in amount Approximately S/40,898,000, which was issued in favor of the Company by a foreign bank, thus reducing the respective credit risk. The difference with the balance shown in note 8 corresponds mainly to the fact it is not considered the account receivable for “Advancement granted related company” and “Advancement to supplier”.
Available- for-sale investments
Assets
As of December 31, 2016 Available -for-sale investments
Loans and accounts receivable
Memoria Anual 2016 Annual Report
Investments at fair value through profit or loss
As of December 31, 2015
411