consolidated financial - Bolsa de Valores de Colombia

Transcription

CONSOLIDATED FINANCIAL
STATEMENTS
(Amounts stated in thousands of Colombian pesos)
for the years end December 31, 2013 and 2012
BOLSA DE VALORES DE COLOMBIA S.A.
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL
STATEMENTS
(Amounts stated in thousands of Colombian pesos)
for the years end December 31, 2013 and 2012
BOLSA DE VALORES DE COLOMBIA S.A.
AND SUBSIDIARIES
4
BOLSA DE VALORES DE COLOMBIA
CONTENTS
Page
INDEPENDENT AUDITORS´ REPORT
1
2
3
8
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
11
CONSOLIDATED STATEMENT AT OF INCOME
12
CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS’ EQUITY
13
CONSOLIDATED STATEMENTS OF CASH FLOWS
14
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
General Information
16
18
Summary of significant accounting policies
2.1. Bases for preparation of the financial statements
2.2. New standards, interpretations and amendments issued, not
in force and effect for the 2013 year end
2.3. Bases for consolidation
2.4. Use of estimates
2.5. Presentation currency and functional currency
2.6. Transactions denominated in foreign currency
2.7. Fair Value
2.8. Compensation of transactions and balances
2.9. Classification of balances into current and non-current
2.10. Financial instruments
2.11. Property and equipment
2.12. Intangible assets
2.13. Other assets
2.14. Employees benefits
2.15. Provisions and contingencies
2.16. Current tax assets and liabilities
2.17. Deferred tax assets and liabilities
2.18. Recognition of revenues and expenses
2.19. Leases/rentals
18
18
Risk management and control system
3.1. Relevant Facts in the financial risk Management 2013
3.2. Financial risk Management
36
36
37
21
22
24
25
25
25
26
26
26
30
30
31
32
33
33
33
34
35
CONSOLIDATED FINANCIAL STATEMENTS
5
CONTENTS
Page
4
6
Reconciliation between equity under COLGAAP and
equity under IFRS
40
5
Cash and cash equivalents
45
6
Other current financial assets
46
7
Related parties
48
8
Trade debtors
51
9
Current tax assets
52
10
Other non-current financial assets
52
11
Other non-current non-financial assets
53
12
Investments held under the equity method
53
13
Other intangible assets
56
14
Property and equipment
57
15
Income taxes
59
16
Other current financial liabilities
62
17
Employee benefits
62
18
Trade creditors and other accounts payable
63
19
Current tax liabilities
64
20
Deferred income
64
21
Long-term employee benefits
64
22
Reserves
65
Page
23 Ordinary revenues
66
24 Investment revenue
66
25 Other gains and losses
66
26 Ordinary expenses
67
27 Finance costs
67
28 Net profit per share
67
29 Contingencies, judgments and others
68
30 Guarantees with third parties, other contingent assets and
liabilities and other commitments
68
31 Subsequent events
68
7
8
9
10
BOLSA DE VALORES DE COLOMBIA S.A. AND SUBSIDIARIES
Consolidated Statement Of Financial Position As At December 31, 2013 And 2012
Amounts stated in thousands of Colombian Pesos
CONCEPT
NOTE
2.013
2.012
Opening January 1, 2.012
ASSETS
Current assets
Cash and cash equivalents
5
11.403.927
8.872.875
5.965.289
Other current financial assets
6
58.315.020
64.861.281
72.687.005
Related parties
7
28.621
275.064
34.505
Trade debtors and other accounts receivable
8
5.900.827
5.336.173
4.176.904
Current tax assets
9
Total current assets
8.006.291
8.309.964
7.503.063
83.654.686
87.655.357
90.366.766
Non-current assets
Other non-current financial assets
10
79.795
137.210
85.222
Other non-current non-financial assets
11
1.343.666
1.048.699
925.642
Investments held under equity method
12
27.152.985
24.223.361
23.230.088
Other intangible assets
13
2.916.123
4.404.855
5.120.391
Property and equipment
14
18.603.064
17.652.999
18.206.696
Income taxes and CREE
15
Total non-current assets
TOTAL ASSETS
2.104.368
764.257
535.224
52.200.001
48.231.381
48.103.263
135.854.687
135.886.738
138.470.029
LIABILITIES
Current liabilities
Other current financial liabilities
16
8.495
8.354
65.590
Employee benefits
17
3.639.843
1.904.539
3.060.964
Trade creditors and other accounts payable
18
5.976.169
4.215.035
2.942.141
7
7.799
1.954
663.413
15
10.382.732
10.704.882
13.012.527
Current tax liabilities
19
Related parties
Total current liabilities
3.996.945
4.071.749
5.114.038
24.011.983
20.906.513
24.858.673
Non-current liabilities
Deferred income
20
3.813
33.281
38.069
Employee benefits
21
721.283
906.604
824.253
15
3.065.227
3.805.684
3.779.672
3.790.323
4.745.569
4.641.994
27.802.306
25.652.082
29.500.667
Subscribed and paid-in capital
18.672.822
18.672.822
18.672.822
Capital surplus
28.030.113
28.030.112
28.030.111
33.543.300
33.551.342
33.442.942
Total non-current liabilities
TOTAL LIABILITIES
Equity attributable to the parent company owners
Reserves
Appraisal surplus
Results for the period
Results from prior period
Total equity attributable to parent company owners
22
53.828
53.828
59.049
23.352.102
28.654.769
28.439.717
2.098.260
-67.181
-972
105.750.425
108.895.692
108.643.669
2.301.956
1.338.964
325.693
TOTAL STOCKHOLDERS’ EQUITY
108.052.381
110.234.656
108.969.362
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
135.854.687
135.886.738
138.470.029
Non-controlling interest
The accompanying notes are an integral part of these financial statements. Approved on behalf of the Management Council.
Juan Pablo Cordoba Garcés
Legal Representative
11
CONSOLIDATED STATEMENT ATOF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the years endeds as of december 31,2013 and 2012
CONCEPT
2013
2012
REVENUES
82.970.423
81.906.444
ORDINARY REVENUES (NOTE 23)
78.711.556
75.472.258
2.638.609
5.896.763
INVESTMENT REVENUES (NOTE 24)
OTHER GAINS AND LOSSES (NOTE 25)
1.620.258
537.423
53.075.026
47.151.615
(53.075.026)
(47.151.615)
29.895.397
34.754.829
INCOME FROM EQUITY METHOD-ASSOCIATES
6.530.493
6.949.977
LOSS FROM EQUITY METHOD JOINT VENTURE
(421.388)
(600.428)
FINANCE COSTS (NOTE 27)
(349.059)
(352.580)
35.655.443
40.751.798
(10.376.834)
(11.133.514)
25.278.609
29.618.284
-
-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
25.278.609
29.618.284
RESULTS ATTRIBUTABLE TO THE
CONTROLLING COMPANY
23.352.102
28.654.769
1.926.507
963.515
1,35
1,59
EXPENSES
ORDINARY EXPENSES (NOTE 26)
OPERATING PROFIT
PROFIT BEGORE TAXES
INCOME TAXES (NOTE 15)
NET PROFIT FOR THE PERIOD
OTHER COMPREHENSIVE INCOME
RESULTS NOT ATTRIBUTABLE TO THE
CONTROLLING COMPANY
EARNINGS PER SHARE (COLOMBIAN PESOS) BASIC
The accompanying notes are an integral part of these financial statements.
Approved on behalf of the Management Council
12
13
$1
-
$1
-
-
-
APPROPRIATIONS
DIVIDENDS PAID TO SHAREHOLDERS
NET PROFIT FOR THE YEAR
VARIATION IN PARTICIPATIONS
NON-CONTROLLING INTEREST
FREEING OF RESERVES
APPROPRIATIONS
DIVIDENDS PAID TO SHAREHOLDERS
NET PROFIT FOR THE YEAR
VARIATION IN PARTICIPATIONS
BALANCE AS OF DECEMBER 31, 2.013
BALANCE AS OF DECEMBER 31, 2.012
$ 28.030.113
$ 9.430.667
-
-
-
-
-
-
$ 9.430.667
-
-
-
-
-
($ 9.134)
$ 9.439.801
LEGAL
RESERVE
$ 1.303.842
-
-
-
-
$ 881.598
-
$ 422.244
-
-
-
-
-
$ 184.120
$ 238.124
MANDATORY
RESERVES
$ 23.698.431
$ 22.808.791
-
-
-
-
$ 7.952.210
($ 8.841.850)
-
-
-
-
$ 8.523.970
($ 8.590.556)
$ 23.765.017
OCCASIONAL
RESERVES
$ 33.551.342
$ 33.543.300
-
-
-
-
$ 8.833.808
($ 8.841.850)
-
-
-
-
$ 8.523.970
($ 8.415.570)
$ 33.442.942
TOTAL RESERVES
$ 53.828
-
-
-
-
-
-
$ 53.828
-
($ 5.221)
-
-
-
-
$ 59.049
EQUITY
REAPPRAISAL
$ 25.450.362
-
-
$ 23.352.102
($ 26.497.370)
($ 8.833.808)
$ 8.841.850
$ 28.587.588
-
$ 5.221
$ 28.654.769
($ 28.336.537)
($ 8.590.180)
$ 8.415.570
$ 28.438.745
NET PROFIT
FOR THE PERIOD AND ACCUMULATED
$ 18.672.822
$ 28.030.112
-
$ 18.672.822
$ 28.030.111
-
BALANCE AS OF JANUARY 1, 2.012
$ 18.672.822
ADDITIONAL PAID-IN
CAPITAL
FREEING OF RESERVES
CAPITAL
STOCK
Consolidated Statements Of Changes In Shareholders’ Equity
For the years ended December 31, 2013 and 2012
$ 105.750.425
-
-
$ 23.352.102
($ 26.497.370)
$1
-
$ 108.895.692
-
-
$ 28.654.769
($ 28.336.537)
($ 66.209)
-
$ 108.643.669
ATTRIBUTABLE
TO THE OWNERS OF THE
CONTROLLING
COMPANY
$ 2.301.956
$ 962.992
-
-
-
-
$ 1.338.964
$ 1.013.271
-
-
-
-
-
$ 325.693
NON-CONTROLLING
PARTICIPATIONS
$ 108.052.381
$ 962.992
-
$ 23.352.102
($ 26.497.370)
$1
-
$ 110.234.656
$ 1.013.271
-
$ 28.654.769
($ 28.336.537)
($ 66.209)
-
$ 108.969.362
TOTAL
STOCKHOLDERS’ EQUITY
Consolidated Statements Of Cash Flows
For the years ended December 31, 2013 and 2012
Dec - 13
Dec - 12
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
CLASSES OF COLLECTIONS PER OPERATING ACTIVITIES
COLLECTIONS COMING FROM THE SALES OF SERVICE PROVISIONS
$ 78.585.068
$ 73.479.724
PAYMENTS TO SUPPLIERS FOR THE SUPPLY OF GOODS AND SERVICES
($ 17.946.542)
($ 18.242.796)
PAYMENTS ON ACCOUNT OF EMPLOYEES
($ 26.429.433)
($ 22.918.881)
$ 487.189
$ 105.368
CLASSES OF PAYMENTS IN CASH COMING FROM OPERATING ACTIVITIES
OTHER PAYMENTS FOR THE OPERATING ACTIVITIES
NET CASH FLOWS COMING FROM OPERATIONS
$ 34.696.282
$ 32.423.415
($ 12.743.210)
($ 13.383.031)
$ 21.953.072
$ 19.040.384
$ 69.155.514
$ 77.944.041
($ 60.261.407)
($ 64.861.280)
($ 3.350.235)
($ 1.018.752)
PURCHASE OF PROPERTY, PLANT AND EQUIPMENT
($ 2.934.941)
($ 1.292.682)
PURCHASE OF INTANGIBLE ASSETS
($ 2.177.895)
($ 4.959.261)
TAXES ON GAINS PAID
NET CASH FLOW FROM OPERATING ACTIVITIES
CASH FLOWS COMING FROM (USED IN) INVESTING ACTIVITIES
OTHER COLLECTIONS FOR SALE, EQUITY OR DEBT INSTRUMENTS OF OTHER
ENTITIES
OTHER PAYMENTS TO ACQUIRE EQUITY OR DEBT INSTRUMENTS OF OTHER
ENTITIES
OTHER PAYMENTS TO ACQUIRE ASSOCIATED PARTICIPATIONS AND/OR JOINT
BUSINESSES
DIVIDENDS RECEIVED
$ 6.532.180
$ 5.975.240
NET CASH FLOW FROM INVESTING ACTIVITIES
$ 6.963.216
$ 11.787.306
($ 26.497.370)
($ 28.336.537)
CASH FLOWS USED IN FINANCING ACTIVITIES
DIVIDENDS PAID
INTEREST RECEIVED
$ 112.134
$ 416.433
NET CASH FLOWS USED IN FINANCING ACTIVITIES
($ 26.385.236)
($ 27.920.104)
NET INCREASE IN CASH AND CASH EQUIVALENTS
$ 2.531.051
$ 2.907.586
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
$ 8.872.875
$ 5.965.289
$ 11.403.927
$ 8.872.875
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
14
15
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2013 and 2012
(Amounts stated in thousands of Colombian pesos, except par value of shares, some US
Dollar amounts, the exchange rates and the salvage value)
1. General Information
Bolsa de Valores de Colombia S.A., (“BVC”), was incorporated through Public Deed No.
1234 dated April 17, 2001 of Notary Public Office Four of Bogotá, D.C., with a duration until
2051 under the corporate name Servicios Integrados Bursátiles S.A. On June 27, 2001, it
changed its corporate name through Public Deed No. 2697, and its corporate purpose is the
organization, regulation, administration and operation of mercantile establishments devoted
to serving as a place for the celebration of businesses on all types of securities and goods
susceptible of stock market transactions, according to the legal and regulatory precepts that
regulate stock markets activities.
As of December 31, 2013 and 2012 the BVC had 223 and 238 collaborators, respectively.
The BVC is under the control and supervision of the Office of the Superintendent of Finance.
Its main domicile is located in Bogotá D.C., and has offices in the cities of Medellín and Cali.
Through an authorization of the General Extraordinary Stockholders’ Meeting held on
16
December 11, 2006, the BVC registered its stock in the National Securities Registry (“Registro
Nacional de Valores”) and in the Bolsa de Valores de Colombia (self-registration) on June 22,
2007, starting negotiations on June 28, 2007.
Currently, the BVC has the following subsidiaries: Infovalmer S.A. with a 100% share (direct
of 90.91% and indirect of 9.09%); Invesbolsa SAS with a 100% share; and SET ICAP FX S.A.
with a 50% share.
INFOVALMER S.A. (FORMERLY, SOFTVAL S.A.) Its main corporate purpose is the delivery
of goods on a rental or commodatum basis for the provision of valuation services of nonstandardized financial instruments, specialized databases and financial calculators, as well as
for the generation and maintenance of public and private debt ratios and benchmarks.
It was authorized to be incorporated as a Price Provider company, through Resolution 0551 of
April 16, 2012 issued by the Office of the Superintendent of Finance in Colombia. In addition,
on September 28, 2012, through Resolution 1531, the aforementioned Superintendence
granted to INFOVALMER the authorization for operation and registration before the National
Securities Market Agents Registry.
In this way, Infovalmer, in its capacity as Price Provider for valuation, shall undertake activities
the purpose of which is to create and issue the valuation methodologies and the operating
bylaws of the valuation systems and the customary and professional provision of the service of
calculation, determination, and purveyance or supply of information for investments valuation,
as well as the activities that shall result to be supplementary to those activities, which include
the provision of services for calculation and analysis of variables or risk factors.
INVESBOLSA SAS. It was incorporated through a private document of the Sole Stockholder
dated March 10, 2010, registered on March 12 under number 01368350 before the Chamber
of Commerce of Bogotá, with the main corporate purpose of incorporating and participating in
companies and entities that directly relate to the activities and services rendered by the BVC,
with the purpose of facilitating, extending or supplementing the social undertaking of the latter.
The company may invest in the capital stock of companies in which the BVC is enabled to
invest according to its legal regime. Likewise, it may conduct any other legal economic activity
both in Colombia and abroad.
SET ICAP FX S.A. (FORMERLY, INTEGRADOS FX S.A.) It is a leader in the exchange market
through the operation of 100% of the transactional market, of registration and information of
the cash market and foreign currency forwards, being positioned as the referral of the foreign
currency market in Colombia.
BVC-ICAP Integration Process: On November 30, 2011, the Bolsa de Valores de Colombia
S.A. (BVC) entered into a Framework Agreement with ICAP COLOMBIA HOLDINGS S.A.S.
and ICAP LATIN AMERICA HOLDINGS B.V. (indirect subsidiaries of ICAP plc), the purpose of
which is to establish the activities, commitments, obligations and responsibilities necessary to
materialize a strategic alliance that shall allow, through their respective affiliates in Colombia
and the secondary transactional Private Debt business that the BVC manages, to provide the
services of administration of mixed negotiation systems and registration of foreign currencies
17
and securities to the Colombian capitals market.
The integration scheme agreed to by the parties mainly consists of the consolidation of the
operating assets of ICAP FX COLOMBIA S.A. into Integrados FX S.A. With this process, the
BVC decreased its ownership share during 2012 passing from 54.85% in 2011 to 50%. Of the
latter investment, BVC holds as direct investment 49.82% and as indirect investment, 0.18%
through Invesbolsa S.A.S. The consolidation process of the Private Debt business into ICAP
Securities Colombia S.A. is scheduled to be carried out during 2014.
The aforementioned integration seeks to generate operating and financial efficiencies,
empower the products that each of the parties currently manages individually and to take
advantage of the synergies of the two organizations, to offer new products to the market and
competitively position the consolidated companies as leaders in the trading of financial assets
in the country. During 2012, it was achieved the consolidation of the businesses of ICAP FX
COLOMBIA and Integrados FX .S.A. by creating the company SET-ICAP FX S.A., through
Public Deed No. 1140 of the Notary Public Office 21 of the Bogotá Venue dated March 29,
2012, registered on April 27, 2012 in the Chamber of Commerce of Bogotá, starting operations
on an integrated fashion as from November 1, 2012.
Additionally, the Bolsa de Valores de Colombia S.A. has the following associates: Cámara de
Riesgo Central de Contraparte with a 24.64% share; Cámara de Compensación de Divisas
with a 25% share; and Deceval with a 22.98% share.
The Bolsa de Valores de Colombia S.A. has a joint business with Derivex S.A. with a direct
participation of 49.95% and indirect participation of 0.5% (through Invesbolsa SAS).
On December 30, 2013, the BVC registered at the Chamber of Commerce of Bogotá under
number 00913750 of Book IX its entrepreneurial group status.
Authorization for the publication of financial statements
These financial statements were authorized by BVC’s Management Council. The owners of
BVC may modify the financial statements after their publication.
2. Summary of significant accounting policies
Below, there is a description of the significant accounting policies adopted in the preparation
of these financial statements. These policies have been applied on a consistent basis for all
the years present, except as otherwise indicated.
Whenever the policy alludes to “BVC”, it refers to the Bolsa de Valores de Colombia S.A. and
its subsidiaries, associates and joint venture companies.
2.1 Bases for preparation of the financial statements
The financial statements have been prepared by Management in accordance with International
Financial Reporting Standards (IFRS) and the International Financial Reporting Interpretations
18
Committee (IFRIC), issued by the International Accounting Standards Board (IASB) and present
the integral, explicit and without reservations, adoption of the aforementioned international
standards.
These are the first financial statements of the BVC prepared according to the IFRS and the
transition date was January 1, 2012. In the initial adoption of IFRS, the Company applied
the following exceptions in the application of the IFRS requirements and in its retrospective
application, as it is applied in the Adoption for the First Time of the International Financial
Reporting Standards.
The financial statements of the BVC have been prepared on the basis of historic cost except
for the reappraisal of certain noncurrent assets and financial instruments measured at fair
value. The preparation of the consolidated financial statements in conformity with International
Financial Reporting Standards (IFRS) requires the use of estimates and requires Management
to exercise its own judgment in the process of application of BVC’s accounting policies.
Application for the first time of the IFRS
Until the 2011 year-end, the BVC only used its financial statements in accordance with
accounting principles generally accepted in Colombia. As from 2012, the BVC additionally
issues its financial statements in conformity with the International Financial Reporting
Standards. On the other hand, according to paragraph 4 of Article 2 of Decree 3024 of
December 27, 2013, the National Government allows the advanced adoption according to the
parameters established in the present norm.
The figures included in these financial statements referred to for the year ended 31 December
2011 have been reconciled to be presented with the same principles and criteria applied in
2012 (see note 4).
Exceptions to the retroactive application
The BVC shall not apply retroactively some IFRS aspects mentioned below:
•
•
Estimates: The estimates made by BVC, on the date of transition to IFRS shall be
coherent with the estimates made for the same date as per the Colombian GAAP (after
making all adjustments necessary to reflect any differences in accounting policies), unless
there is objective evidence that these estimates were incorrect.
Non-controlled participation: The BVC shall apply the following requirements on a
prospective basis as from the date of transition of the IFRS:
•
•
•
The total integral statement of income shall be attributed to the owners of the controlling
company and to the non-controlling shares, inclusive if the non-controlled part of the
result gave place to a debit balance.
For the recording of changes of the controlling party’s share in the ownership of the
subsidiary that give no place to a loss of control.
Recording of a loss of control on a subsidiary and the requirements related to assets
held for sale and discontinued operations.
19
•
Write-off in Financial Assets Account: The BVC shall apply the write-off requirements
in accounts of its financial instruments in a prospective way, for the transactions that take
place as from the date of transition to the IFRS.
•
Classification and Measurement of Financial Assets: The BVC shall evaluate whether
a financial asset meets the conditions of classification contained in IFRS 9, on the basis of
the facts and circumstances that exist on the date of transition to IFRS.
Exemptions to the retroactive application
The BVC shall apply the following options allowed to the retroactive application:
•
Attributed cost to elements of property and equipment, intangibles and investment
Properties1
The BVC applied the exemption to the retroactive application allowed by IFRS 1 to all its
element of Property and Equipment and Intangible Assets. For that purpose, the valorization
(appraisals), inflation adjustments and provisions are considered as part of the asset cost,
assuming that the same are comparable to the fair value.
On the date of transition to IFRS, the elements of Property, Plant and Equipment, investment
property, and intangible assets shall be measured at their fair value and in that way it shall be
considered as the attributed cost or assigned cost on that date. The fair value is the amount
for which an asset could be exchanged between interested and duly-informed parties, in a
transaction conducted under mutual independence conditions.
The value of an appraisal is conducted before or on the transition date, also it can be used
as the cost attributed on the transition date, provided that such value is comparable, on the
appraisal date to the fair value of the good or to its depreciated cost adjusted by an index.
•
Cost attributed for investments in subsidiaries, associates and joint ventures2
The BVC shall apply the exemption to the retroactive application allowed by IFRS 1 for its
permanent investments classified as investments in Subsidiaries, Associates of Joint Ventures.
For that purpose, the BVC shall estimate the fair value of those investments as from the
carrying value under GAAP on the date of the transition balance sheet. Consequently, the
BVC may use the existing carrying values on the transition date derived from the application
of investment valuation standards.
On the date of transition into IFRS a new cost (estimated cost or assigned cost) will be
determined for all investments, which may be:
1. The fair value on the date of transition to IFRS;
1. See paragraph 30 and D5 of the IFRS 1
2. See paragraph 31 and D 15 of IFRS 1
20
2. The carrying value established on the transition date that should have been determined as
per the local standards existing on that date.
•
Retroactive application of business combinations3
The BVC shall apply the exemption to the retroactive application allowed by IFRS 1, to all
acquisitions made before the transition date. As a consequence thereof, the guidelines
established in paragraph C4 of IFRS 1 (Appendix C) will be taken into account, which establish
the guidelines for recognition of the assets and liabilities acquired in the combination.
•
Designation of Financial Instruments previously recognized
On the transition date a previously recognized financial asset or liability should be recognized
as a financial asset or a financial liability recorded at fair value or at amortized cost.
The foregoing means that the financial instruments (investment other than subsidiaries,
associates and joint ventures) held by BVC on the date of transition to IFRS were reclassified
from the held-to-maturity, financial assets or liabilities at fair value with changes in operations and
available-for-sale financial assets categories into the investments at fair value and investments
at amortized cost categories, according to the business model and the characteristics of the
contractual cash flows established by the BVC for the management of its financial resources.
2.2. New standards, interpretations and amendments issued, not in force and effect for
the 2013 year end
2.2.1. Financial instruments IAS 32, presentation of information
•
•
•
Clarifies the requirements for the offsetting of financial assets and financial liabilities,
with the purpose of eliminating inconsistencies of the application of the current offsetting
criterion of IAS 32.
The standard is applicable as from January 1, 2014 and its anticipated adoption is allowed.
For the BVC, they will not have a significant impact on the financial statements in the initial
application.
2.2.2. Financial Instruments IFRS 9
•
•
•
Modifies the classification and measurement of the financial assets. This standard was
subsequently modified in November 2010 to include the treatment and classification of
financial liabilities.
The standard is applicable as from January 1, 2015 and its advanced adoption is allowed.
The BVC opted for the advanced adoption of this standard.
2.2.3. Separated Financial Statements IAS 27, IFRS 10, IFRS 12
•
Consolidated financial statements and information to be disclosed about participation in
3. See paragraph 7 and Appendix C of IFRS 1
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•
•
other entities. Modifications include the definition of an investment entity and introduce
an exception to consolidate certain subsidiaries that belong to investment entities. This
modification requires an investment entity to measure these subsidiaries at fair value with
changes in operations according to IFRS 9 “Financial Instruments” in its consolidated
and separate financial statements. Modifications also introduce new requirements of
information to be disclosed relative to investment entities in IFRS 12 and in IAS 27.
These modifications are applicable as from January 1, 2014.
For BVC the aforementioned modifications and interpretations, which might apply, shall
have no significant impact on the financial statements in their initial applications.
2.3. Bases for consolidation
2.3.1. Subsidiaries or controlled
All the entities on which BVC has the power to direct the financial and operating policies, which,
generally speaking, come accompanied of participation in excess of half of the voting rights,
are dependent. The existence and effect of the potential voting rights currently exercisable
or convertible is considered at the time of evaluating whether or not the BVC controls another
entity. BVC also evaluates the existence of control whenever it does not hold more than
50% of the voting rights, but it is able to direct the financial and operating policies through
a de-facto control. This de-facto control may arise under circumstances where the number
of voting rights of BVC compared to the number and dispersion of the participations of other
stockholders grants the BVC the power to direct the financial and operating policies, etc.
BVC controls an investee company when it is exposed, or is entitled, to variable yields coming
from its involvement in the investee company and it has the capacity of influencing those yields
through its power on the former. BVC controls an investee company if and only if, it gathers
the following elements:
a. Power on the investee company.
b. Exposure, or right, to variable yields coming from its involvement in the investee company.
c. Capacity to use its power on the investee company to influence on the amount of yields of
the investor.
Investee companies are consolidated as from the date when the control is transferred to BVC,
and they are excluded from the consolidation in the date when such control ceases.
Intercompany transactions, balances, revenues and expenses in transactions between BVC
and its affiliates are eliminated. Losses and gains arising from intra-group transactions that
are recognized as assets are also eliminated.
The accounting policies of the dependent companies are uniform with the policies adopted by
the BVC.
Changes in the participations in property in dependent companies with no control change
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Transactions with non-controlling participations that shall not result in control losses are
recorded as equity transactions – that is, as transactions with the owners in their capacity as
such. The difference between the fair value of the consideration paid and the corresponding
proportion acquired on the carrying value of the net assets of the dependent is recorded in net
equity. Gains or losses from the transfer of non-controlling participations are also recognized
in net equity.
2.3.2. Associates
Associates are all the entities over which BVC exercises a significant influence but has no
control which, generally speaking, comes accompanied by participation between 20% and
50% of the voting rights. Investments made in associates are recorded by the equity method.
Under the equity method, an investment is initially recognized at cost, and the carrying value
is increased or decreased to recognize the share of the investor in the results of the investee
after the acquisition date.
If the participation in the ownership of an associate is reduced but the significant influence is
maintained, only the proportional participation of the amounts previously recognized in the
other integral result is reclassified into operations whenever it is appropriate.
The participation of BVC in the losses or gains subsequent to the acquisition of its associates
is recognized in the income statement account and its share in the movements subsequent
to the acquisition in the other integral result is recognized in the other integral result with the
corresponding adjustment to the carrying value of the investment. When BVC’s share in the
losses of an associate is greater than or equal to its share therein, including any other nonsecured account receivable, the BVC does not recognize additional losses, unless it would
have incurred in legal or implicit obligations or made payments on behalf of the associate.
On each date of presentation of financial information, the BVC determines whether there is
any objective evidence that the value of the investment in the associate has been impaired.
If this were the case, the BVC calculates the amount of the loss for value impairment as
the difference between the amount recoverable of the associate and its carrying value and
recognizes the amount in the income statement account.
The dilution gains and losses arisen in investments made in associates are recognized in the
income statement account.
2.3.3. Joint Ventures
A joint venture is a joint agreement through which the parties that have joint control of the
agreement have the right to the net assets of the agreement.
The BVC recognizes its participation in jointly controlled entities applying the equity method,
with independence of also possessing investments in subsidiaries or of designating its financial
statements as consolidated financial statements.
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2.4. Use of estimates
The preparation of the financial statements in accordance with IFRS requires BVC’s
Management to make estimates and presumptions that might affect the amounts recorded of
the financial statements and the accompanying notes. The current or market values may differ
from those estimates.
The following are components on which those estimates are made:
2.4.1. Long-term employee benefits. The current value of these obligations depends upon
certain factors that are determined over an actuarial basis using a series of hypotheses; the
hypothesis used for determining the cost per five-year period includes the discount rate. Any
changes in these hypotheses shall have an effect on the carrying value of the obligations of
long-term benefits.
The BVC determines the appropriate discount rate at the end of each year. This rate is the
interest rate that must be used for determining the current value of the cash outflows that are
expected to be necessary to settle the obligations by five-year periods.
2.4.2. Property and equipment. 1.1.1. The useful life during which assets are depreciated
or amortized is based upon the Management’s judgment of their future use and performance.
The residual value and useful life of each asset re revised, at least, at the end of each annual
period and, if expectations differ from prior estimates, changes shall be recorded as a change
in an accounting estimate, according to IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors.
2.4.3. Intangibles. Impairment tests are conducted using the fair value less cost of sale, if
available, and the calculations of value in use determined by using the best estimates made by
Management of future cash flows, long-term growth rates, and the appropriate discount rates.
The intangibles purchased are valued at the moment of their acquisition using appropriate
methodologies, and they are amortized over their estimated economic useful life, except
in those cases where it is determined that such intangibles have an undefined useful life,
when there is no foreseeable limit on which these intangibles generate net cash flows. These
valuations and the useful lives are based on the best Management estimates about the future
performance and the periods in which it is expected that these assets generate value.
2.4.4. Provisions and contingencies. Using Management’s judgment it is necessary to
evaluate whether the provisions and/or contingencies must be recognized or disclosed, and at
what value. Management bases its decisions on past experience and other factors considered
pertinent on a particular analysis base of each situation.
2.4.5. Accounts receivable. Management’s judgment is required whenever uncollectible
accounts arise. Management bases its estimates on the historic experience and other relevant
factors.
2.4.6. Tax on gains. The recording of the tax on gains requires estimates and judgments to
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be carried out. Whenever differences arise between the tax provision and the final liability
thereof, an adjustment is realized on the difference identified.
2.4.7. Fair value of derivatives and other financial instruments. The fair value of those
financial instruments that are not traded in an active market is determined using valuation
techniques. BVC uses its judgment to select a series of methods and makes hypothesis
mainly based upon the market conditions existing on the date of each balance sheet. BVC
uses a discounted cash flow analysis for several financial assets available for sale that are not
traded in active markets.
2.5. Presentation currency and functional currency
BVC’s presentation currency is the Colombian peso. The functional currency for each
subsidiary company that is part of BVC is the Colombian peso.
The determination of BVC’s functional currency requires the analysis of all facts that are
considered primary factors, and if the result is not conclusive, the secondary factors. The
analysis requires the company to apply its professional judgment given that the primary and
secondary factors can be mixed. To determine its functional currency, the company analyzed
both the primary and the secondary factors, including the currency of the Company’s revenues,
the operating costs in the countries where it operates, and the debt and capital financing
sources.
2.6. Transactions denominated in foreign currency
The transactions in a currency other than BVC’s functional currency (i.e., foreign currency)
are translated by using the exchange rate in force and effect as of the transaction date. On
the date of each statement of Financial Position, the monetary assets and liabilities stated in
foreign currencies are translated using the closing exchange rates of the statement of financial
position. Foreign-currency denominated gains and losses that result from the liquidation of
these transactions and of the translation using the closing exchange rates of foreign-currency
denominated monetary assets and liabilities, are recognized in the consolidated integral
statement of income.
As of December 31, 2013 the exchange rate used was Col$ 1,926.83 and as of December
31, 2012 the USD exchange rate used was Col$ 1,768.23 and as of January 1, 2012, the
exchange rate used was Col$ 1,942.70 (per USD). The exchange differences are recorded in
the corresponding asset/liability, or in operations as applicable.
2.7. Fair Value
Fair value is the price that would be received from the sale of an asset or paid for the transfer
of a liability in an orderly transaction between market participants in the measurement date.
The BVC uses a three-level hierarchy to classify the importance of factors used in the
measurement of the fair value of assets and liabilities. The three levels of the fair-value
hierarchy are as follows:
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Level 1. Quotation (not adjusted) prices in active markets for identical assets and liabilities.
Level 2. Data other than quotation price included within level 1 that are observable for the
assets or liabilities, both directly (i.e., the prices), and indirectly (i.e., derived from prices).
Level 3. The valuations in this level are the entry data not observable for the assets or
liabilities. The entry non-observable data are used for measuring the fair value as long as
these observable relevant entry data are not available, taking into account, in this fashion,
situations in which there is little, if any, market activity for the assets or liabilities on the date
of measurement.
2.8. Compensation of transactions and balances
As a general rule, neither the assets and liabilities, nor the revenues and expenses are offset
in the financial statements, except in those cases where the offsetting is required or is allowed
by any standard and this presentation is the reflection of the essence of the transaction.
The revenues or expenses sourced in transactions that, either contractually or by imperative
of a legal norm, contemplate the possibility of compensation and the BVC has the intention to
liquidate by its net amount or of realizing the asset and simultaneously proceed to the payment
of the liability, are presented net in the income statement account.
2.9. Classification of balances into current and non-current
The BVC uses the following criteria to classify their balances:
a. Current assets, are those assets with maturity lower than or equal to twelve (12) months
or that is pretended to be sold or realized during the transition of the normal cycle of the
operation of the different activities or businesses its develops.
b. Non-current assets, those assets the maturity of which exceed twelve (12) months.
c. Current liabilities, those liabilities with maturity lower than or equal to twelve (12) months or
that is pretended to be liquidated during the transition of the normal cycle of the operation of
the different activities or businesses its develops.
d. Non-current liabilities are those liabilities the maturity of which exceeds twelve (12) months.
2.10. Financial instruments
In the initial recognition, the BVC shall measure a financial asset or liability at their fair value
plus or less, in the case of a financial asset or a financial liability that is not recorded at fair
value with changes in operations, the transaction costs that are directly attributable to the
acquisition of the financial asset or liability.
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2.10.1 Subsequent measurement of financial assets
All financial assets currently are in two classifications: those measured at amortized cost and
those measured at fair value. The classification is made at the moment when the financial
asset is initially recognized, that is, when the BVC becomes a part of the contractual norms of
the instrument.
2.10.2 Debt instruments
A debt instrument that meets the two following conditions can be measured by its amortized
cost (net of any impairment loss):
•
Business Model Test: The objective of BVC’s business model is to maintain the financial
asset to obtain the contractual cash flows (instead of selling the instrument before its
contractual maturity of realizing the changes of fair value).
•
Characteristics of cash flow of the test: The contractual conditions of the financial asset
give place to the dates specified in the cash flows that are only payments of the principal
and interest on the outstanding principal.
All other BVC debt instruments are measured at fair value with changes in operations.
2.10.3 Fair Value Option
Without detriment to the foregoing, in the initial recognition the BVC may designate a financial
asset as measured at fair value with changes in results if by doing so it eliminates or significantly
reduces an incoherence of measurement or recognition “accounting asymmetry” that would
arise in another case of the measurement of the assets or liabilities or the recognition of the
gains or losses thereof on different bases.
2.10.4 Investments in equity instruments
In its initial recognition, the BVC may realize an irrevocable election to present in another
integral result the subsequent changes in fair value of an investment in an equity instrument
that, being within the scope of this IFRS, is not maintained to negotiate.
The BVC recognizes in the statement of income the dividends coming from that investment
when it is established the right to receive payment of the dividend, according to the Revenues
from Ordinary Activities standard.
2.10.5 Subsequent measurement of the financial liabilities
The BVC classifies its financial liabilities into two categories of measurement: fair value with
changes in operations and amortized cost. And all other financial liabilities are valued at their
amortized cost unless the fair value option is applied.
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2.10.6 Option to designate a financial liability at fair value with changes in operations
In the initial recognition, the BVC may irrevocably designate a financial liability as measured
at fair value with changes in operations or whenever doing so gives place to more relevant
information, because:
a) With that, any incoherence is eliminated or significantly reduced in the measurement or
in the “accounting asymmetry” recognition that otherwise would arise when using different
criteria to measure liabilities, or to recognize gains and losses in the same on different bases;
b) A group of financial liabilities or of financial assets and financial liabilities is managed and its
performance is assessed according to the fair value basis, according to an investment strategy
or documented risk management strategy, and information on that group is internally provided,
on the basis of the key management personnel of the entity.
A financial liability that does not meet any one of these requirements still may be designated
as measured at fair value with changes in operations when it contains one or more implicit
derivatives that require separation.
2.10.7 Write-off of financial assets
The basic premise for the model of write-off in accounts consists of determining whether they
have to be applied to one part or to the entire financial asset that is considered for the write-off
in accounts if it meets any of the following three (3) conditions:
•
•
•
The cash flows specifically identified of an asset or a group of similar financial assets.
A full proportional participation (pro rata) of the cash flows coming from an asset or a group
of similar financial assets.
A full proportional participation (pro rata) of the cash flows coming specifically identified of
a financial asset (or a group of similar financial assets).
Once the asset in consideration for the write-off in accounts has been determined, an
assessment is made with respect to whether the asset has been transferred, and if that is so,
whether the transfer of such assets is subsequently eligible for the write-off in accounts.
An asset is transferred, either if the BVC has transferred the contractual rights to receive
the cash flows, or the entity has withheld the contractual rights to receive the cash flows of
the financial asset, but has assumed a contractual obligation to pay the cash flows within an
agreement that meets the following conditions:
•
•
•
The BVC has no obligation to pay any amounts to the eventual addressee unless it gathers
the equivalent amounts in the original asset.
According to the transfer contract conditions, the BVC is not allowed to sell or pledge the
original asset.
The BVC has the obligation to remit those cash flows with no delay.
Once the BVC has determined that the asset has been transferred, then it is determined
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whether all risks and benefits inherent to the ownership of the asset have been substantially
transferred. If the risks and benefits have been substantially transferred, the asset is written-off.
If all risks and benefits have not been substantially transferred, it shall continue to recognize it.
Whether or not the BVC has retained the control of the transferred asset shall depend upon
the capacity of the receiver of the transfer to sell it. If the receiver of the transfer has the
practical capacity of selling it in its entirety to a non-related third party, and it is capable of
exercising it unilaterally, without the need to impose additional restrictions on the transfer, the
entity has not retained control. In any other cases, the BVC has retained control.
2.10.8 Write-off of financial liabilities
A financial liability must be eliminated from the balance sheet if, and only if, the obligation
specified in the contract has been extinguished either liquidated or cancelled, or it has expired.
When any barter has occurred between a lender and a borrower of debt instruments with
substantially different conditions, or a substantial modification of the terms of an existing
financial liability has been produced, this transaction is recorded as a cancellation (full
payment) of the original financial liability and the recognition of a new financial liability. A gain
or loss of cancellation of the original financial liability is recognized in the results for the period.
2.10.9 Derivatives
All derivatives, including those related to unquoted capital investments, are valued at their fair
value. Value changes are recognized in results for the period unless the BVC has elected to
treat the derivative as a hedging instrument.
2.10.10 Embedded derivatives
An embedded derivative is a component of a hybrid contract which also includes a host contract
that is not a derivative with the effect that some of the cash flows of the combined instrument
vary in a similar fashion to a non-hosted derivative. An embedded derivative provokes that
some of all the cash flows that otherwise would be required by the contract are modified
according to a specific interest rate, the price of a financial instrument, an exchange rate, a
price index or interest-rate index, a rating or any other credit index, or as a function of another
variable, which in case it is not financial it is not specific for one of the parties to the contract.
A derivative that is attached to a financial instrument but that is contractually transferable in
an independent fashion or has a different counterparty from that of the instrument, is not an
implicit derivative but a separate financial instrument.
2.10.11 Reclassification
For the financial assets, it is required that the reclassification between fair value with changes
in results for the period and the amortized cost, be performed, if, and only if, the BVC changes
its business model for the management of financial assets, by reclassifying the financial assets
affected.
If the reclassification is adequate, it has to be made in a prospective fashion from the
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reclassification date. An entity shall not adjust any gains previously recognized, the losses or
interest.
2.11. Property and equipment
Property and equipment are tangible assets that: (a) the BVC holds for its use in the production
or supply of goods and services, to rent them to third parties or for administrative purposes;
and (b) are expected to be used for more than one period.
Property and equipment elements both in the initial recognition and in their subsequent
measurement are recorded at cost, less accumulated depreciation and less value impairment
losses.
The cost of property and equipment elements includes their acquisition price plus all costs
directly related to the location of the asset and its tune-up to put it into operating conditions
as foreseen by Management. Additionally, the financing interest cost directly attributable to
the acquisition or construction of assets that require a substantial period of time before being
ready to be used or sold is considered as cost of the Property and Equipment elements.
Subsequent costs corresponding to improvements, extensions, among others, are included in
the value of the initial asset or are recognized as a separate asset only whenever it is probable
that future economic benefits associated to property and equipment elements shall flow to the
BVC and the cost of the element can be reliably determined.
Repair, preservation and maintenance costs are expensed in the period when they are
produced. As of the closing date or whenever there is indication that an impairment may exist
in the value of assets, the recoverable value (fair value less costs of sale or value at use,
whichever is greater) thereof is compared to their net book value. Any recording or reversal of
a value loss arising as a consequence of this comparison is recorded with charge or credit to
operations as applicable. Depreciation of property and equipment is calculated by using the
straight-line method over their estimated useful lives.
The BVC shall review on an annual basis the estimates made for useful life, salvage value
and depreciation method and shall conduct asset impairment tests when there is evidence that
such assets have been impaired.
2.12. Intangible assets
An intangible asset is an identifiable, non-monetary, without physical appearance asset.
2.12.1 Acquired Software
The licenses acquired for information technology programs acquired are capitalized on the
basis of the costs that have been incurred in to obtain and prepare them to use the specific
program. These costs are amortized over the estimated useful life of the recognized asset.
Any charges related to the maintenance of IT programs are recognized as expenses when
incurred.
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2.12.2 In-house developed intangibles
With the purpose of evaluating the viability of recognizing an internally generated intangible
asset, BVC classifies the expenditures of projects in the following phases:
a. Research phase. Costs incurred in this phase are recognized as expenses for the period.
b. Development phase. Cost consists of the addition of the disbursements incurred in from
the moment the following conditions for their capitalization are complied with, provided that it
is demonstrated:
•
•
•
•
•
•
Technical feasibility of the project
Intention to complete the asset for use or sale
Ability to use or sale of the asset
Availability of adequate technical, economic, or any other type of resources to put the
asset in conditions of being used and/or sold
Asset’s probability of generating future economic benefits
Ability to measure reliably the expenditure attributable to the intangible asset during its
development.
The cost of developing information systems programs recognized as assets is amortized over
their estimated useful lives.
In periods subsequent to the initial recognition of the intangibles asset, they are measured by
the cost model, i.e., cost less accrued amortization, less accrued impairment losses.
2.12.3 Amortization of intangibles
The amortization of Intangibles Assets (licenses and software) is defined by the economically
useful time of the asset, which is defined by the IT manager in the case of software and by the
project manager in the case of projects.
In the case that a license provides the service of use over a period lower than that of the
amortization policies, the amount must be independently amortized until the date of productive
use.
For the management of Intangible Assets (projects under course) the BVC shall apply the
declining balance method for the Intangible Assets (Projects) and/or the linear amortization
over the economically useful time of the asset, which is defined by the IT manager in the case
of software, and by the project manager in the case of projects. All costs incurred in during
the organization, construction, installation, assembly and start-up stages are considered
expenses.
2.13. Other assets
Prepaid expenses are rights to access future services, which are amortized over the term of
the contract that covers such services. This item includes the assets that do not meet the
classification criteria of assets already mentioned.
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2.14. Employees benefits
The benefits to employees include all types of retributions that the BVC provides to the workers
in exchange for their services.
The short-term benefits to employees are benefits to employees (other than compensation
for dismissal) the payment of which has to be liquidated over the twelve (12) month-period
subsequent to the closing of the period in which the employees should have provided the
services that grant them those benefits.
Benefits to employees include the following:
a. Short-term benefits to employees. Include wages, salaries and social security contributions,
annual paid leave, sick leave, participation in gains or incentives (if paid within the twelve
months following the period end), and non-monetary benefits (such as medical care, housing,
automobiles and subsidized or free goods or services) for current employees.
The accrual basis accounting of the short-term benefits to employees is generally immediate,
because it is not necessary to present any actuarial hypothesis to measure the obligations or
the corresponding costs, and therefore, there is no possibility whatsoever of actuarial gains
or losses. Further, obligations for short-term benefits to employees are measured without
discounting the resulting amounts.
b. Benefits for termination (dismissal). These are benefits payable to employees as a
consequence of BVC’s decision to terminate the employment contract before the normal
retirement date; or the employee’s decision of voluntarily accepting the conclusion of the
employment relationship in exchange for those benefits.
The BVC recognizes benefits for termination as a liability and as an expense when, and only
when, it is committed in a proven fashion to terminate the link that unites them with an employee
or group of employees before the normal retirement date; or to pay benefits for termination
(dismissal) as a result of an offer made to promote the voluntary termination by the employees.
c. Long-term benefits to employees. They include: length of service bonus, five-year periods,
paid leaves after long service periods or sabbaticals; jubilees or other benefits after a long time
of service; benefits for extended disability, and, if they do not have to be fully paid within the
following twelve-month period, at the end of the period, the share in gains, incentives and the
deferred compensation.
In this case, the actuarial gains and losses are immediately recognized; and the entire cost of
the past service is immediately recognized.
BVC has no post-employment benefit, defined contributions plans and defined benefits plans.
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2.15. Provisions and contingencies
A provision is a liability for which there is uncertainty regarding its amount or timing.
Provisions are recognized whenever:
a. The BVC has a current obligation, whether legal or implicit, as a result of a past event;
b. It is probable that it will be necessary the withdrawal of resources to paid-out the obligation;
and
c. The amount can be reliably estimated.
Provisions are measured by the present value of the disbursements expected to be necessary
to settle the obligation using Management´s best estimate. The discount rate used for
determining the present value reflects the current market assessments, on the date of the
Statement of Financial Position, of the value of money throughout the time, as well as the
specific risk related to the particular liability.
A contingent liability is a likely obligation that arises from past events and the existence of
which has to be confirmed just because there are or there are not one or more uncertain future
events that are not entirely under BVC’s control; or a current obligations arisen from past
events, that has not been recognized in books, because: (i) it is not likely that a withdrawal of
resources including economic benefits is going to be required to satisfy it; or (ii) the amount of
the obligation cannot be measured with enough reliability.
2.16. Current tax assets and liabilities
Current tax is the tax that is expected to be paid on the fiscal gains of the year, using the current
tax rates in force on the date of the Statement of Financial Position, and any adjustments to
the tax payable, with respect to taxes of previous years.
Current tax liabilities must be recognized as a liability as long as they have not been settled
down. If the tax amount less tax withholdings and the advanced payment of the prior period,
plus the advanced payment of the future period is greater than the fiscal obligations, the
excess amount must be recognized as asset.
Fiscal-type current liabilities (assets), whether coming from the current period or from previous
periods, must be measured by the amounts that are expected to be paid to (or recovered from)
the fiscal authorities, using the regulation and tax rates approved, or the approval process of
which is practically ended, at the end of the reporting period.
2.17. Deferred tax assets and liabilities
Deferred tax assets and liabilities must be measured using the fiscal rates expected to be
applied in the period where the asset is realized or the liability is paid-off based upon the rates
(and fiscal laws).
Deferred tax assets and liabilities are calculated by using the liability method based upon
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the balance sheet, which establishes the temporary differences between the carrying value
of the assets and the liabilities for financial reporting purposes and the amounts used for
fiscal purposes. The amount of deferred taxes is always based upon the foreseen form of
realization or on the fashion in which the carrying value of assets and liabilities is liquidated,
using the tax rates in force and effect on the balance sheet date.
Deferred tax liabilities are the amounts of taxes on gains payable in future periods, related to
the imposable temporary differences4, whereas the deferred tax assets are the tax on gains
amounts to be recoverable in future periods, related to:
a. The deductible temporary differences
b. The offsetting of losses obtained in previous periods, that have yet to be subject to a fiscal
deduction
c. The compensation of unused credits coming from previous periods.
The fiscal base of an asset or liability is the amount attributed to such asset or liability for fiscal
purposes.
The fiscal base of an asset is the amount that will be deductible from the economic benefits
that, for fiscal purposes, the BVC shall obtain in the future, when it shall recover the carrying
value of that asset. If such economic benefits are not taxed, the fiscal base shall be equal to
their carrying value.
The fiscal bases of a liability is equal to their carrying value less any amounts that, eventually,
are fiscally deductible with respect to such item in future periods. In the case of ordinary
revenues received in advance (deferred income), the fiscal base of the corresponding liability
is its carrying value, less any eventual amount that shall not be taxable in future periods.
2.18. Recognition of revenues and expenses
The BVC recognizes revenues whenever the amount thereof can be reliably valued, and it is
probable that the future economic benefits shall influence the same, as described below:
a. Provision of services: Service rendering revenues are recognized when, in development
of an agreement, a series of activities have been executed that satisfy the requirements and
demands from the client.
b. Financial yields: Financial yields are recognized at the moment when the right to their
perception arises, using the effective interest rate method.
c. Dividends and participations: This type of revenue is recognized when the right to receive
it is established.
d. Valuation of instruments classified at amortized cost and at fair value: These revenues are
recognized at the moment of appearing the positive variation of the market price of the species
4. Temporary differences are differences between fiscal and book gain that are generated in a period and are
reverted in another or other subsequent ones. The temporary differences are those that exist between the fiscal
base of an asset or liability, and their carrying value in the statement of financial position. The fiscal base of an
asset or liability is the amount attribute, for fiscal purposes, to such asset or liability.
34
held, provided by a duly-authorized, recognized and accredited procuring system.
e. Other revenues: All other revenues are recognized when the right to receive them is
determined.
Revenues are measured at the fair value of the consideration received or to be received
and represents the amounts to be received for the services provided in the normal course of
business, net of all related discounts and taxes.
Expenses are recognized when it occurs the decrease of an asset or the increase of a liability
that can be reliably measured.
2.19. Leases/rentals
When the BVC is the lessee/tenant – financial lease
For the leases/rentals where the entity has substantially all risks and benefits inherent to the
ownership, they are classified as financial leases. The financial leases are capitalized at the
beginning of the lease/rental at fair value of the property or asset leased, or at the present
value of the minimum rental payments, whichever is lower.
Each lease payment is distributed between the liability and the financial burdens to obtain a
constant interest rate on the outstanding balance of the debt. The corresponding obligations
for lease, net of financial burdens, are included in Other Financial Liabilities. The interest
element of the financial cost is charged to the statement of income during the lease period in
such a way that a constant periodical interest rate is obtained on the remaining liability balance
for each period or exercise. The asset acquired under a financial lease regime, is depreciated
over its useful life or the contract term, whichever is lower.
When the BVC is the lessor – operating lease
The leases where the lessor keeps a significant part of the risks and advantages arising
from the ownership of the good are classified as operating leases. Payments on account of
operating lease (net of any incentives received from the lessor) are charged in the statement
of income on a linear basis during the lease term.
When the BVC is the lessor
When assets are leased under a financial lease, the current value of the lease payments
are recognized as a financial account receivable. The difference between the gross amount
receivable and the current value of that amount is recognized as financial yield of the principal.
Financial lease revenues are recognized during the lease period according to the net
investment method, which reflects a constant periodical yield rate.
Assets leased to third parties under operating lease contracts are included in the property,
plant and equipment item or in investment properties, as applicable.
Revenues derived from operating lease are recognized in a linear fashion during the term of
the lease.
35
3. Risk management and control system
According to the International Financial Reporting Standards – IFRS, the Risk Manager
performs the evaluation, follow-up and report of compliance with the policies and limits of the
different risks to which BVC’s portfolio is exposed.
The BVC has an administration mandate for the investments portfolio, which has policies
and procedures and that is approved by the Risks Committee and by the Administration and
Finance Committee of the Management Council.
BVC’s Financial Risks Manual contains the rules for acting that the Treasury must follow with
the purpose of maximizing the profitability within organization-defined risk profile. Within the
basic administration principles, the purpose is to maintain a conservative profile or credit and
market risks, diversified investments in the in the percentages of the ranges defined for each
asset and reasonable liquidity.
3.1 Relevant Facts in the financial risk Management 2013
As a control measure of the credit risk, BVC’s portfolio has counterpart quotas to limit the
exposure of the issuers individually and by economic groups in such a way that it is achieved the
diversification of investments. The management of the portfolio is responsibility of the BVC’s
treasury, adequately met the issuer targets established for performance of the investments.
Together with the foregoing, the minimum rating determined by BVC to make investments in
securities is AA+, a policy, likewise targeted to minimizing the credit risk through high quality
and low risk counterparties.
Regarding the market risk, BVC’s portfolio is mainly exposed to the volatility on interest rates,
given that its investments are totally in fixed-yield investments. There are no investments
made in foreign currency or variable yield.
The risk profile of BVC’s investments is conservative; for that reason, the objective is to
maximize profitability according to risk parameters established. Within the measures used
to control the market risk for the variation in interest rates, it is the modified duration and
the Value at Risk (VaR). In this fashion, the average term of investments is controlled and,
accordingly, the value at risk or likely loss in certain market conditions and a determined time
horizon are limited.
On the other hand, BVC has a portfolio management integral model that includes reference
indexes for each asset type, risk management and profitability, as well as management tools
that allow carrying out the indexation per asset type.
In this sense, the BVC’s risk and treasury divisions worked on the design of a new investment
portfolio management model, which includes the redefinition of reference indexes, and the
introduction of new financial assets, among other improvements.
36
The new management model will be presented in the first quarter of 2014 to the Risks
Committee and to the Administration and Finance Committee of BVC for approval and
subsequent implementation.
Regarding the risk management of products, BVC focused on the improvement of the risk model
for time transactions over variable-yield securities. In this sense, the eligibility of securities
that are subject to term transactions was strengthened; write-off or hedging percentages
were optimized; admissible collateral was restricted. The changes made seek to improve the
management of those risks the investors of these products are exposed to, generating trust
and dynamism in the market.
The new risk model was implemented in the TTV transactions on shares and it is expected to
be implemented during the first quarter of 2014 in the Repo transactions.
With respect to the management of financial risks related to variable-yield and fixed-yield
market risks, the BVC conducted follow-up to the limits SCBs are subject for the realization of
term transactions, as well as the administration of the guarantees for this type of transactions.
3.2. Financial risk Management
3.2.1. Credit Risk
The credit risk is present whenever the counterparties are not willing or unable to fulfil their
contractual obligations. Its effect is measured by the cost of replacement of cash flows if
the other part fails to perform. In general terms, the credit risk can also lead to losses when
debtors are degraded in their ratings by the rating agencies, thus generating a decrease in the
market value of the securities.
As a credit risk control measure, the BVC’s portfolio has counterpart quotas to limit the
exposure of issuers individually and by economic groups, in such a way that investments are
diversified.
Together with the foregoing. The minimum rating determined by the BVC to make investments
in securities is AA+, a policy likewise oriented to minimize the credit risk through highsoundness counterparts. Below, there is a summary of the credit risk exposure per each
issuer (investment amount) and the credit quality of the investment (credit risk rating):
ISSUER
REPUBLICA DE COLOMBIA
INVESTMENT
AMOUNT
CREDIT RISK
% PORTFOLIO
16.264
Nación
28,32%
HELM BANK S. A.
8.660
AA+
15,08%
BANCO DE BOGOTA
4.059
AAA
7,07%
BANCO DE OCCIDENTE
4.037
AAA
7,03%
LEASING BANCOLDEX
3.093
AAA
5,39%
37
ISSUER
INVESTMENT
AMOUNT
CREDIT RISK
% PORTFOLIO
BANCO GNB SUDAMERIS
3.031
AA+
5,28%
LEASING BANCOLOMBIA S. A.
2.541
AAA
4,43%
CORPORACIÓN FINANCIERA
CORFICOLOMBIANA S. A.
2.024
AAA
3,52%
BANCO CORPBANCA
2.021
AAA
3,52%
BBVA BANCO GANADERO
2.016
AAA
3,51%
BANCO POPULAR
1.501
AAA
2,61%
CITIBANK COLOMBIA
1.059
AAA
1,84%
BANCO DAVIVIENDA
1.025
AAA
1,79%
BANCO PICHINCHA S. A.
1.024
AA+
1,78%
FINANCIERA DE DESARROLLO
TERRITORIAL S. A.
1.022
AAA
1,78%
BANCO FALABELLA
1.015
AA+
1,77%
HSBC COLOMBIA S. A.
1.013
AAA
1,76%
FATORING BANCOLOMBIA S. A. CFC
1.012
AAA
1,76%
BANCO FINANDINA
1.008
AA+
1,76%
TOTAL GENERAL
57.425
3.2.2 Market risk
Market risk is the probability of incurring in market-value losses in the trading portfolio of
financial instruments of an entity, provoked by movements of the financial markets variables.
BVC’s portfolio could be mainly affected by the volatility of interest rates, given that the
investments are entirely represented by fixed-yield instruments in Colombian currency.
Volatility is the magnitude measure of the movements of risk factors, i.e., of the financial
markets variables such as the interest rate.
This volatility of the interest rates has an impact on the valuation that is understood as the
estimation of the “market value” of a financial instrument as a function of the value that is taken
by the risk factors related to this financial instrument.
On a daily basis, BVC performs the valuation of security investments at fair value (market
prices), taking into account the parameters established in International Financial Reporting
Standards – IFRS; and complying with the specific norms issued by the Controlling and
Supervisory Entities and other Bodies, fully authorized by the National Government.
38
Within the measures used for controlling the market risk for the interest rates variation are the
modified duration and the Value at Risk (VaR). In this way, the medium term of investments is
controlled and, therefore, the value at risk or maximum expected loss is limited throughout a
target time period within a given interval of confidence.
As a market risk policy, the investments portfolio is assumed at a maximum 2% of the portfolio
amount in monthly Value at Risk (VaR), calculated with a 99% confidence level, greater that
the 2% of BVC’s portfolio value. During 2013, the limit established was not exceeded despite
the volatility presented in the fixed-yield market by the middle of the year.
In addition to the above, the limit established for the modified duration of the investments
portfolio is 1.5. At yearend, the total modified duration of the investments was 1.26, which is
within the limit determined.
The following are mechanisms used by the Risk Manager to guarantee the strengthening of
the internal control system with the purpose of preventing market undue conducts:
•
Presentation of reports to the Management Council and the Risks Committee.
•
Evaluation of periodical reports from Middle Office about the transactions conducted
by Front Office, in terms of compliance with policies and follow-up to the Benchmark
established by the investments portfolio management. The latter with the purpose of
guaranteeing that all operations are conducted within the authorized conditions.
•
Adoption of profitability and risk measures before the reference portfolio established.
3.2.3. Liquidity risk
Is the risk of not being able to fully, timely and efficiently comply with the expected and
unexpected cash flows, current and future, without affecting BVC’s course of daily operations
or financial condition. This risk (obtaining funds [“fondeo”] liquidity risk) is represented by the
insufficiency of available liquid assets for that and/or in the need to assume unusual costs for
obtaining funds (“fondeo”). In turn, the capacity of entities to generate or unmake financial
situations at market prices is limited either because there is no adequate depth of the market
or because drastic changes are presented in the rates and prices (market liquidity risk).
With the purpose of attending the short-term need of resources, given the behavior and
dynamism of payments due to the obligations contracted by BVC, the Financial and Investments
Committee reviews on a monthly basis the current and estimated revenues and expenses flow.
It is worth highlighting that the treasury conducts a matching of assets and liabilities with
the purpose of counting with the resources necessary for payment of the main obligations.
The company’s most representative liabilities are the tax liabilities; the table below shows the
maturity dates of those liabilities:
39
PAYMENT DATE
PAYMENT AMOUNT
$ Million
January 17, 2014
2.355
February 18, 2014
3.461
April 15, 2014
3.747
May 19, 2014
535
June 17, 2014
3.747
September 15, 2014
TOTAL
535
14.380
Regarding BVC’s cash, as of the 2013 closing it amounted to $5,714 million Colombian pesos.
It is worth mentioning that these funds generate financial yields given that the financial entities
where these resources are managed give preferential treatment in interest rate.
On the other hand, the tendency is for the securities that form the portfolio to present adequate
liquidity levels that allow making the liquidation thereof if necessary, without significantly
affecting the portfolio’s profitability.
The BVC has no loans but liquidity derived from the transactions conducted with the investments
portfolio.
4. Reconciliation between equity under COLGAAP and equity under IFRS
The process of consolidation of financial statements of the companies that form the BVC was
performed based upon the guidelines presented by the International Accounting Standard IAS 27 and IFRS 10.
This consolidation process requires the combination of financial statements of the controlling
company and its subsidiaries line-by-line, adding those items that represent asset, liabilities,
revenues and expenses of a similar content.
For the consolidated financial statements to present BVC’s financial information as if it were
only one economic entity, the procedure was as follows:
1. The carrying value of the controlling company’s investment in each of the subsidiaries was
eliminated, together with the equity portion that belongs to the controlling company in each of
the subsidiaries.
2. Non-controlling participations in the results of consolidated subsidiaries referring to the
period being reported were identified; and
3. It was separately identified the non-controlling participations in the net assets of the
consolidated subsidiaries from those of the controlling company’s participation therein.
40
Reconciliation of equity as of January 1, 2012 (opening balance sheet)
DESCRIPTION
OTHER NON-CURRENT FINANCIAL ASSETS
OTHER NON-CURRENT NON-FINANCIAL ASSETS
INVESTMENTS IN COMPANIES
INVESTMENTS UNDER EQUITY METHOD
INVESTMENTS IN SUBSIDIARIES AND JOINT VENTURES
INTANGIBLES
INTANGIBLE ASSETS OTHER THAN GOODWILL
EFFECT OF
TRANSITION TO IFRS
FORMER GAAP
IFRS
$ 115
($ 30)
$ 85
-
$ 926
$ 926
$ 58.424
($ 58.424)
-
-
$ 23.230
$ 23.230
-
-
-
$ 156
($ 156)
-
-
$ 5.120
$ 5.120
$ 18.207
PROPERTY AND EQUIPMENT
$ 6.956
$ 11.251
DEFERRED CHARGES
$ 9.046
($ 9.046)
-
$ 11.037
($ 11.037)
-
REVALUATION
DEFERRED TAX ASSETS
-
$ 535
$ 535
NON-CURRENT ASSETS
$ 85.734
($ 37.631)
$ 48.103
OTHER CURRENT FINANCIAL ASSETS
$ 34.958
$ 37.729
$ 72.687
$ 5.970
($ 5)
$ 5.965
$ 13.049
($ 8.838)
$ 4.211
-
$ 7.503
$ 7.503
CASH AND CASH EQUIVALENTS
TRADE DEBTORS AND OTHER ACCOUNTS RECEIVABLE
CURRENT TAX ASSETS
PREPAID EXPENSES
CURRENT ASSETS
TOTAL ASSETS
$ 810
$ 54.787
($ 810)
$ 35.579
-
$ 90.366
$ 140.521
($ 2.052)
$ 400
($ 334)
$ 66
EMPLOYEE BENEFITS
$ 1.254
$ 2.631
$ 3.885
TRADE CREDITORS AND OTHER ACCOUNTS PAYABLE
$ 4.130
($ 525)
$ 3.605
-
$ 13.012
$ 13.012
$ 4.972
$ 142
$ 5.114
$ 38
-
$ 38
$ 16.080
($ 16.080)
-
$ 189
($ 189)
-
-
$ 3.780
$ 3.780
OTHER FINANCIAL LIABILITIES
INCOME TAXES
CURRENT TAX LIABILITIES
DEFERRED INCOME
ACCRUED LIABILITIES AND PROVISIONS
DEPOSITS RECEIVED
DEFERRED TAX LIABILITIES
TOTAL LIABILITIES
CAPITAL STOCK – VALUE
SUBSCRIBED AND PAID-IN CAPITAL
$ 27.063
$ 19.133
$ 19.133
$ 2.437
($ 460)
($ 460)
$ 138.469
$ 29.500
$ 18.673
$ 18.673
CAPITAL SURPLUS OR DEFICIT
$ 32.133
($ 4.103)
$ 28.030
ADDITIONAL PAID-IN CAPITAL, PREMIUM IN PLACEMENT OF SHARES, QUOTAS OR
PARTNERSHIP INTEREST
$ 21.096
-
$ 21.096
REVALUATION OF AVAILABLE-FOR-SALE INVESTMENTS
$ 3.336
($ 3.336)
-
REVALUATION OF PROPERTY AND EQUIPMENT (A)
$ 9.379
($ 9.379)
-
($ 1.678)
$ 1.678
-
GAINS (LOSSES) OPENING BALANCE SHEET (B)
-
($ 6.113)
($ 6.113)
OPENING BALANCE SHEET – INVESTMENTS MADE IN SUBSIDIARIES, ASSOCIATES AND
JOINT VENTURES
-
$ 1.620
$ 1.620
-
$ 11.427
MANDATORY RESERVES
$ 9.806
($ 128)
$ 9.678
OCCASIONAL RESERVES
$ 23.775
($ 10)
$ 23.765
NEGATIVE VALORIZATION (DB)
OPENING BALANCE SHEET – PROPERTY AND EQUIPMENT (A)
RESERVES
EQUITY REAPPRAISAL
$ 33.581
$ 108
($ 138)
($ 49)
$ 11.427
$ 33.443
$ 59
41
DESCRIPTION
CAPITAL STOCK
EFFECT OF
TRANSITION TO IFRS
FORMER GAAP
IFRS
$ 66
($ 30)
MANDATORY RESERVES
$8
-
$8
OCCASIONAL RESERVES
-
($ 4)
($ 4)
ACCRUED PROFITS
$ 36
RESULTS FOR THE PERIOD
$ 28.505
$ 34
($ 15)
($ 64)
$ 28.441
$ 19
PROFIT FOR THE PERIOD
$ 28.506
($ 64)
$ 28.442
LOSS FOR THE PERIOD
($ 1)
-
($ 1)
ACCRUED LOSSES
($ 2)
-
ACCRUED RESULTS
($ 2)
MINORITY INTEREST
-
($ 2)
($ 2)
-
$ 325
$ 325
CAPITAL STOCK
-
$ 139
$ 139
-
$ 48
$ 48
RESERVES
-
$ 138
$ 138
TOTAL EQUITY
$ 113.458
($ 4.489)
$ 108.969
a. The opening balance sheet showed an equity increase in BVC amounting to $2.047 million.
The adjustments that affected the component were derived as a result of:
•
The recognition of the greater value of the land and buildings appraisal as attributed cost,
amounting to $3.085 million.
•
The reversal of the land cots of GAAP for recognition of fair value in IFRS, amounting to
($476 million).
•
The reversal of the appraisal surplus of the buildings recognized under GAAP, amounting
to ($8.455 million).
•
The recognition of the fair value of the buildings in Bogotá and Medellín (Attributed Cost –
Appraisal of December 2011), amounting to $7.893 million.
b. These adjustments include the following:
•
42
Adjustments to the individual Opening Balance Sheet amounting to ($5.958 million) with
the following explanations:
•
$1.236 million for adjustment in Subsidiaries, Associates and Joint Ventures. This
adjustment results for using the intrinsic value of investments as attributed cost.
•
($3.508 million) for the recognition of the deferred tax that arises as a consequence
of the temporary difference for utilization of the fair value as cost attributed of the
lands and buildings.
•
($2.850 million) recognition of the total tax on equity as an expense for the period
where the fiscal obligations arises.
•
(824 million) for the recognition of the actuarial estimate of the long-term benefits to
employees – five-year terms.
•
28 million for the recognition of assets for the financial component of loans made
to employees.
•
Adjustment in the individual opening balance sheet of Infovalmer amounting to ($37
million) derived from the elimination of the deferred charge corresponding to pre-operating
and the recognition of the deferred tax that arises from the temporary difference after such
elimination.
•
Adjustment in the individual opening balance sheet of Invesbolsa amounting to ($3 million)
derived from the elimination of the deferred charge corresponding to pre-operating and
the recognition of the deferred tax that arises from the temporary difference after such
elimination.
c. The adjustment corresponding to investments associated to joint ventures are the result of
the recognition of the difference between fair value (equity adjusted to IFRS) and the carrying
value. A summary by company is as follows:
•
(397 million) corresponding to Derivex S.A. investment in joint venture
•
3.061 million on behalf of Deceval. Associated investment.
•
0,6 million on behalf of XM Expertos en Mercados S.A. Investment in financial instrument
•
236 million of Cámara de Compensación de Divisas. Associated investment.
•
(1.278 million) of Cámara Central de Riesgo Contraparte. Associated investment.
Reconciliation of equity as of December 31, 2012 (Transition period)
DESCRIPTION
OTHER NON-CURRENT FINANCIAL ASSETS
OTHER NON-CURRENT NON-FINANCIAL ASSETS
INVESTMENTS IN COMPANIES
INVESTMENTS UNDER EQUITY METHOD
INVESTMENTS IN SUBSIDIARIES AND JOINT VENTURES
INTANGIBLES
INTANGIBLE ASSETS OTHER THAN GOODWILL
FORMER GAAP
EFFECT OF TRANSITION
INTO IFRS
IFRS
$ 150
($ 13)
$ 137
-
$ 1.049
$ 1.049
$ 57.272
($ 57.272)
-
-
$ 24.223
$ 24.223
-
-
-
$ 310
($ 310)
-
-
$ 4.405
$ 4.405
PROPERTY AND EQUIPMENT
$ 6.155
$ 11.498
$ 17.653
DEFERRED CHARGES
$ 7.080
($ 7.080)
-
$ 15.245
($ 15.245)
-
DEFERRED TAX ASSETS
-
$ 764
$ 764
NON-CURRENT ASSETS
$ 86.212
($ 37.981)
$ 48.231
VALORIZATION
43
DESCRIPTION
OTHER CURRENT FINANCIAL ASSETS
CASH AND CASH EQUIVALENTS
TRADE DEBTORS AND OTHER ACCOUNTS RECEIVABLE
CURRENT TAX ASSETS
PREPAID EXPENSES
FORMER GAAP
EFFECT OF TRANSITION
INTO IFRS
IFRS
$ 29.117
$ 35.744
$ 64.861
$ 8.874
($ 1)
$ 8.873
$ 14.031
($ 8.420)
$ 5.611
-
$ 8.310
$ 8.310
$ 1.211
($ 1.211)
-
$ 53.233
$ 34.422
$ 87.655
$ 139.445
($ 3.559)
$ 135.886
-
$8
$8
EMPLOYEE BENEFITS
$ 1.490
$ 1.321
$ 2.811
TRADE CREDITORS AND OTHER ACCOUNTS PAYABLE
$ 4.564
($ 347)
$ 4.217
-
$ 10.705
$ 10.705
$ 3.805
$ 267
$ 4.072
$ 33
-
$ 33
$ 11.259
($ 11.259)
-
$ 131
($ 131)
-
-
$ 3.806
$ 3.806
TOTAL LIABILITIES
$ 21.282
$ 4.370
$ 25.652
CAPITAL STOCK – VALUE
$ 19.563
($ 890)
$ 18.673
SUBSCRIBED AND PAID-IN CAPITAL
$ 19.563
($ 890)
$ 18.673
$ 36.345
($ 8.315)
$ 28.030
PADDITIONAL PAID-IN CAPITAL, PREMIUM IN PLACEMENT OF SHARES, QUOTAS OR PARTNERSHIP INTEREST
$ 21.096
-
$ 21.096
$ 5.018
($ 5.018)
-
REVALUATION OF PROPERTY AND EQUIPMENT (A)
$ 11.937
($ 11.937)
-
NEGATIVE REVALUATION (DB)
($ 1.706)
$ 1.706
-
-
($ 6.113)
($ 6.113)
CURRENT ASSETS
TOTAL ASSETS
OTHER FINANCIAL LIABILITIES
INCOME TAXES
CURRENT TAX LIABILITIES
DEFERRED INCOME
ACCRUED LIABILITIES AND PROVISIONS
DEPOSITS RECEIVED
DEFERRED TAX LIABILITIES
REVALUATION OF AVAILABLE-FOR-SALE INVESTMENTS
GAINS (LOSSES) OPENING BALANCE SHEET (B)
OPENING BALANCE SHEET – INVESTMENTS MADE IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES (C)
-
$ 1.620
$ 1.620
OPENING BALANCE SHEET – PROPERTY AND EQUIPMENT (A)
-
$ 11.427
$ 11.427
$ 33.551
RESERVES
$ 33.705
($ 154)
MANDATORY RESERVES
$ 9.995
($ 142)
$ 9.853
OCCASIONAL RESERVES
$ 23.710
($ 12)
$ 23.698
EQUITY REAPPRAISAL
CAPITAL STOCK
MANDATORY RESERVES
$ 108
($ 54)
$ 54
$ 66
($ 33)
$ 33
$8
($ 4)
$4
$ 34
($ 17)
$ 17
$ 28.445
$ 210
$ 28.655
PROFIT FOR THE PERIOD
$ 28.446
$ 209
$ 28.655
LOSS FOR THE PERIOD
($ 1)
$1
-
ACCRUED RESULTS
($ 3)
($ 64)
($ 67)
ACCRUED LOSSES
($ 3)
($ 64)
($ 67)
-
$ 1.338
$ 1.338
$ 168
ACCRUED PROFITS
MINORITY INTEREST
CAPITAL STOCK
-
$ 168
-
$ 54
$ 54
RESERVES
-
$ 153
$ 153
TOTAL EQUITY
-
$ 963
$ 963
$ 118.163
($ 7.929)
$ 110.234
Below, we show a reconciliation starting from the profit under local GAAP to get to the profit
under international standards (IFRS) for the 2012 cut-off:
44
CONSOLIDATED PROFIT GAAP
$ 26.591.804
REVERSAL OF ELIMINATIONS GAAP
$ 508.998
Combined GAAP
$ 27.100.802
REVERSAL OF RESULTS OF ENTITIES THAT ARE CONSOLIDATED UNDER GAAP AND UNDER IFRS
THEY ARE INVESTMENTS IN ASSOCIATES
$ 1.344.700
TOTAL IFRS COMBINED
$ 28.445.502
PLUS:
EFFECT OF EQUITY METHOD
$ 374.825
REVERSAL OF PROVISIONS OF INVESTMENTS MADE IN INVESBOLSA
$ 220
NET EFFECT BETWEEN THE REVERSAL OF THE DEPRECIATION METHOD UNDER GAAP AND THE
NEW CALCULATION OF DEPRECIATION UNDER IFRS
DEFERRED TAXES INFOVALMER
$ 62.905
$ 23.121
ADJUSTMENT TO WRITE-OFF TAX ON EQUITY RECORDED IN THE LOCAL BALANCE SHEET
DEFERRED TAX ASSET THAT ARISES AS A RESULT OF THE ACTUARIAL ESTIMATE
$ 1.164.730
$ 1.164
REVENUES FROM ACCOUNTS RECEIVABLE FROM WORKERS
$ 15.920
LESS:
ADJUSTMENTS TO RECOGNIZE DEFERRED TAXES DUE TO TEMPORARY DIFFERENCES ARISING
FROM CAPITALIZATION IN THE PP&E COST – BUILDINGS
WRITE-OFF OF DEFERRED FROM INFOVALMER (PRE-OPERATING)
$ 70.000
ADJUSTMENT TO RECOGNIZE THE FINANCIAL EXPENSE (IMPLICIT FINANCIAL COMPONENT OF THE
TAX ON EQUITY)
RECOGNITION OF THE ACTUARIAL ESTIMATE FOR LONG-TERM BENEFITS TO EMPLOYEES
$ 317.751
$ 82.352
$ 963.515
IFRS Profit
$ 28.654.769
For elaboration of the Transition Balance Sheet, the BVC shall apply the policy guidelines
contained in IFRS, except for some exceptions and exemptions allowed to the retroactive
application contained in IFRS 1, and that allow options for the initial measurement on the
transition date.
5. Cash and cash equivalents
CONCEPT
BANKS
2013
2012
$ 9.371.099
$ 3.656.992
ORDINARY MUTUAL FUNDS
$ 716.284
$ 3.626.398
LOCAL CURRENCY
$ 753.000
$ 837.368
FOREIGN CURRENCY
$ 548.395
$ 731.892
$ 9.549
$ 15.125
GENERAL CASH – FOREIGN CURRENCY
PETTY CASH
TOTAL
$ 5.600
$ 5.100
$ 11.403.927
$ 8.872.875
45
6. Other current financial assets
The other financial assets correspond to investments measured as fair value the business
model of which is that of negotiation.
CONCEPTO
2013
2012
MARKETABLE INVESTMENTS IN PRIVATE DEBT SECURITIES
$ 37.056.328
$ 35.996.476
MARKETABLE INVESTMENTS IN INTERNAL PUBLIC DEBT SECURITIES
$ 20.371.078
$ 28.039.481
$ 887.614
$ 483.500
-
$ 341.824
$ 58.315.020
$ 64.861.281
MARKETABLE INVESTMENTS IN EQUITY SECURITIES
TRUST RIGHTS AND OTHERS (1)
TOTAL
(1) For 2012, they correspond to trust rights that are in an Autonomous Equity with Fiduciaria
Corficolombiana with the purpose of covering for initial operating expenses of the company
SET ICAP (global source of market information and comments for professionals in the
international financial markets).
BREAKDOWN OF MARKETABLE SECURITIES OF INTERNAL PRIVATE AND PUBLIC DEBT
CLASS OF SECURITY
2013
2012
CDT'S
$ 37.056.328
$ 35.996.476
TES PESOS
$ 13.427.375
$ 16.467.165
$ 4.106.860
$ 6.501.182
BONDS
TES UVR
TOTAL
$ 2.836.843
$ 5.071.134
$ 57.427.406
$ 64.035.957
Below, there is a summary of the marketable securities of public and private debt, classified
by the proximity to their maturity date:
SECURITIES AS OF 2013
CORPORATE BONDS
CDT'S
46
MATURITY OF
1 - 3 YEARS
MATURITY OF
3 - 6 YEARS
MATURITY
GREATER THAN 6
YEARS
TOTAL
$ 4.106.860
$ 4.106.860
$ 37.056.328
$ 37.056.328
TES PESOS
$ 6.660.770
$ 1.229.430
$ 5.537.175
$ 13.427.375
TES UVR
$ 1.511.197
$ 781.947
$ 543.699
$ 2.836.843
$ 49.335.155
$ 2.011.377
$ 6.080.874
$ 57.427.406
SECURITIES AS OF 2012
MATURITY OF
1 - 3 YEARS
CORPORATE BONDS
CDT'S
$ 5.414.192
$ 1.086.990
$ 35.996.477
PUBLIC DEBT
SECURITIES
MATURITY
GREATER THAN 6
YEARS
MATURITY OF
3 - 6 YEARS
$ 8.674.569
$ 50.085.237
TOTAL
-
$ 6.501.182
-
-
$ 35.996.477
$ 4.335.262
$ 8.528.467
$ 21.538.298
$ 5.422.252
$ 8.528.467
$ 64.035.957
Average interest rates managed for portfolio investments during 2013 were as follows for the
different traded securities:
SHORT TERM
SECURITIES
SPOT RATE
LONG TERM
VALUATION RATE
TOTAL
VALUATION
RATE
SPOT RATE
SPOT RATE
VALUATION
RATE
BONDS
4,90%
4,59%
6,91%
5,44%
5,91%
5,01%
CDT´S
4,78%
4,44%
5%
4,32%
4,81%
4,42%
TES PESOS
6,88%
5,54%
6,88%
5,54%
TES UVR
3,21%
2,49%
3,21%
2,49%
Assets measured at fair value by hierarchy
SIGNIFICANT
NONOBSERVABLE
ENTRY DATA
(LEVEL 3)
DECEMBER
2013
QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS (LEVEL
1)
ENERGY SECTOR
$ 15.685
-
-
$ 15.685
TOTAL EQUITY SECURITIES OR TITLES
$ 15.685
-
-
$ 15.685
SECURITIES GUARANTEED BY FINANCIAL
SECTOR ENTITIES
$ 37.056.328
$ 37.056.328
-
-
PUBLIC DEBT SECURITIES OF THE
COLOMBIAN GOVERNMENT
$ 20.371.078
$ 20.371.078
-
-
$ 871.929
$ 871.929
-
-
$ 58.299.335
$ 58.299.335
-
-
DESCRIPTION
OTHER
SIGNIFICANT
DELIVERY DATA
(LEVEL 2)
OTHER EQUITY SECURITIES OR TITLES (A):
DEBT SECURITIES:
PRIVATE CAPITAL FUNDS
TOTAL DEBT SECURITIES
47
7. Related parties
Accounts receivable - BVC:
ACCOUNTS RECEIVABLE - 2013
THIRD PARTY
TOTAL
CURRENT
BETWEEN
0 - 30 DAYS
BETWEEN
31 - 60
DAYS
BETWEEN
61 - 90
DAYS
BETWEEN
90 - 180 DAYS
BETWEEN
180 - 360
DAYS
BETWEEN
180 - 360
DAYS
DERIVEX
$ 28.621
$ 28.621
-
-
-
-
-
-
TOTAL
$ 28.621
$ 28.621
-
-
-
-
-
-
ACCOUNTS RECEIVABLE - 2012
THIRD PARTY
DERIVEX
CÁMARA CENTRAL DE
RIESGO CONTRAPARTE
XM COMPAÑÍA DE
EXPERTOS EN
MERCADOS S.A.
TOTAL
TOTAL
CURRENT
BETWEEN
0 - 30
DAYS
BETWEEN
31 - 60
DAYS
BETWEEN
61 - 90
DAYS
BETWEEN
90 - 180
DAYS
BETWEEN
180 - 360
DAYS
BETWEEN
180 - 360
DAYS
$ 274.758
$ 245.996
$ 28.762
-
-
-
-
-
$ 48
-
$ 48
-
-
-
-
-
$ 258
$ 258
-
-
-
-
-
-
$ 275.064
$ 246.254
$ 28.810
-
-
-
-
-
Accounts payable - BVC:
ACCOUNTS PAYABLE - 2013
THIRD PARTY
TOTAL
CURRENT
BETWEEN
0 - 30 DAYS
BETWEEN
31 - 60
DAYS
BETWEEN
61 - 90
DAYS
BETWEEN
90 - 180 DAYS
BETWEEN
180 - 360
DAYS
BETWEEN
180 - 360
DAYS
DECEVAL
$ 5.990
$ 5.990
-
-
-
-
-
-
OTHER
$ 1.809
$ 1.809
-
-
-
-
-
-
TOTAL
$ 7.799
$ 7.799
-
-
-
-
-
-
BETWEEN
90 - 180 DAYS
BETWEEN
180 - 360
DAYS
ACCOUNTS PAYABLE - 2012
THIRD PARTY
TOTAL
CURRENT
BETWEEN
0 - 30 DAYS
BETWEEN
31 - 60
DAYS
BETWEEN
61 - 90
DAYS
BETWEEN
180 - 360
DAYS
$4
$4
-
-
-
-
-
-
OTHER
$ 1.950
$ 1.950
-
-
-
-
-
-
TOTAL
$ 1.954
$ 1.954
-
-
-
-
-
-
INFOVALMER
48
2013
ENTITY
RELATIONSHIP
ACCOUNT
RECEIVABLE
COMMERCIAL
ACTIVITIES
2012
ACCOUNTS
PAYABLE
INVESTMENT
YIELDS
ACCOUNT
RECEIVABLE
COMMERCIAL
ACTIVITIES
ACCOUNTS
PAYABLE
INVESTMENT
YIELDS
DECEVAL
ASSOCIATE
-
$ 5.990
-
-
CÁMARA CENTRAL DE
RIESGO CONTRAPARTE
ASSOCIATE
-
-
$ 48
-
$ 28.621
-
$ 274.758
-
-
-
$ 258
-
-
$ 1.809
-
$ 1.954
$ 28.621
$ 7.799
$ 275.064
$ 1.954
DERIVEX S.A.
JOINT VENTURE
XM EXPERTOS EN
MERCADOS S.A.
FINANCIAL
INSTRUMENT
OTHER
STOCKHOLDERS
TOTAL
2012
ENTITY
RELATIONSHIP
CÁMARA CENTRAL DE
RIESGO CONTRAPARTE
DERIVEX S.A.
Associate
Joint Venture
ACCOUNT
RECEIVABLE
COMMERCIAL
ACTIVITIES
2011
ACCOUNTS
PAYABLE
INVESTMENT
YIELDS
ACCOUNT
RECEIVABLE
COMMERCIAL
ACTIVITIES
ACCOUNTS
PAYABLE
INVESTMENT
YIELDS
$ 48
-
-
-
$ 274.758
-
$ 34.505
-
XM EXPERTOS EN
MERCADOS S.A.
Instrument
$ 258
-
-
-
INFOVALMER
Associate
-
$4
-
-
-
$ 1.950
-
$ 663.413
$ 275.064
$ 1.954
$ 34.505
$ 663.413
OTHER
Shareholders
Transactions with related parties and their effects on BVC’s operations:
COMPANY
RELATIONSHIP
TRANSACTION
IT SERVICES
DERIVEX S.A.
JOINT
VENTURE
2013
2012
EFFECTS ON
OPERATIONS
(REVENUE)
/ EXPENSE
EFFECTS ON
OPERATIONS
(REVENUE)
/ EXPENSE
($ 221.386)
($ 406.221)
EXPENSE REIMBURSEMENT
-
($ 440)
CAO LEASE
-
($ 4.036)
FURNITURE LEASE
($ 12.198)
($ 8.163)
ADMINISTRATIVE SERVICES
($ 31.054)
($ 34.569)
TRAINING SESSIONS
$ 3.053
-
JURIDICAL SERVICES
($ 31.995)
($ 31.995)
49
COMPANY
RELATIONSHIP
DECEVAL
ASSOCIATE
TRANSACTION
EFFECTS ON
OPERATIONS
(REVENUE)
/ EXPENSE
EFFECTS ON
OPERATIONS
(REVENUE)
/ EXPENSE
ADMINISTRATIVE SERVICES
-
($ 3.760)
CUSTODY OF SECURITIES
-
$ 39.287
-
$ 7.500
PRIOR EXERCISES EXPENSES
-
$ 857
PROVISION OF CUSTODY OF
SECURITIES
CÁMARA CENTRAL DE
RIESGO CONTRAPARTE
ASSOCIATE
FURNITURE LEASE
-
($ 29.652)
CÁMARA DE COMPENSACIÓN
DE DIVISAS
ASSOCIATE
FURNITURE LEASE
-
($ 13.013)
($ 293.580)
($ 484.205)
TOTAL
Determination of BVC’s Key Personnel
The general directorate of BVC includes the following:
Name of Officer
Rafael Aparicio Escallon
Board of Directors’ Position
President
Santiago Javier Montenegro
Management Council Board Member
Carlos Eduardo Jaimes Jaimes
Sergio Restrepo Isaza
Roberto Junguito Bonnet
Aura Marleny Arcila Giraldo
German Salazar Castro
Javier Jaramillo Velasquez
Julian Dominguez Rivera
Juan Camilo Vallejo Arango
Sergio Clavijo Vergara
Diego Jimenez Posada
Juan Luis Franco Arroyave
The fees paid to board of directors’ members during 2013 amounted to $603.648 and during
2012, amounted to $505.496.
The remuneration charged to operations of BVC’s key management team amounts to
$10,210,947 for the period ended as of December 31, 2013 and to $9.935.960 as of
December 2012. BVC has established for its executives an incentive plan for compliance
with individual objectives of contribution to the companies’ results; these incentives are
structured in a range of minimum and maximum gross remunerations and are paid once a year.
50
8. Trade debtors
CONCEPT
2013
2012
Clients (1)
$ 3.868.411
$ 2.853.672
Stock and Agricultural Exchanges Brokers (2)
$ 1.007.515
$ 1.116.333
Issuers of securities and titles on agricultural and agro-industrial products (3)
$ 125.304
$ 420.691
Advanced payments and advances
$ 339.632
$ 238.074
Accounts receivable from workers
$ 536.184
$ 589.191
$ 23.215
$ 119.792
Sundry debtors
Doubtful accounts
$ 257.681
$ 970.342
Impairment of the value of trade debtors and other accounts receivable (4)
($ 257.115)
($ 971.922)
Total
$ 5.900.827
$ 5.336.173
1) The clients account includes affiliates enrolled to the electronic and trading systems for
the fixed-yield markets, which include registration with confirmation, standardized derivatives
and Financial Compliance Term Operations (“Operaciones a Plazo de Cumplimiento
Financieros – OPFC”).
2) The stock brokers account includes the members that, by regulation, access the variable
yield market on an exclusive basis.
3) The securities registration and maintenance account corresponds to the balances of the
market issuers registered at the Stock Exchange (“Bolsa”).
4) The allowance for doubtful accounts was calculated based upon BVC’s internal policy,
according to what was described in Note 1. During 2013, write-offs were made against the
portfolio of receivables provisioned amounting to $644 million, mainly of the client Interbolsa
S.A.
Stratified portfolio:
BETWEEN
1 - 30
DAYS
BETWEEN
31 - 60
DAYS
BETWEEN
61 - 90
DAYS
BETWEEN
90 - 180
DAYS
BETWEEN
181 - 360
DAYS
MORE
THAN
360 DAYS
$ 2.284.485
$ 2.673.318
$ 58.007
$ 32.396
$ 557
$ 67.725
$ 142.424
$ 899.030
-
$ 899.030
-
-
-
-
-
PROVISIONS –
IMPAIRMENT
($ 257.115)
-
($ 45.505)
($ 580)
($ 324)
($ 557)
($ 67.725)
($ 142.424)
TOTAL
$ 5.900.827
$ 2.284.485
$ 3.526.843
$ 57.427
$ 32.072
-
-
-
2013
TOTAL
TRADE DEBTORS
$ 5.258.912
OTHER
ACCOUNTS
RECEIVABLE
CURRENT
(< 30 DAYS)
51
BETWEEN
1 - 30
DAYS
BETWEEN
31 - 60
DAYS
BETWEEN
61 - 90
DAYS
BETWEEN
90 - 180
DAYS
BETWEEN
181 - 360
DAYS
MORE
THAN
360 DAYS
$ 2.777.613
$ 1.612.946
$ 466.960
$ 272.296
$ 46.967
$ 48.349
$ 135.906
$ 947.058
$ 947.058
-
-
-
-
-
-
($ 971.922
($ 40.140)
($ 58.352)
($ 413.841)
($ 228.367)
($ 46.967)
($48.349)
($135.906)
$ 5.336.173
$ 3.684.531
$ 1.554.594
$ 53.119
$ 43.929
-
-
-
2012
TOTAL
TRADE DEBTORS
$ 5.361.037
OTHER
ACCOUNTS
RECEIVABLE
PROVISIONS –
IMPAIRMENT
TOTAL
CURRENT
(< 30 DAYS)
Movement of the provision:
CONCEPT
INITIAL BALANCE
PROVISION FOR THE PERIOD
WRITE-OFFS DURING THE PERIOD
TOTAL
2013
2012
$ 971.922
$ 282.857
$ 75.604
$ 925.862
($ 790.411)
($ 236.797)
$ 257.115
$ 971.922
2013
2012
9. Current tax assets
CONCEPT
INCOME TAX ADVANCED PAYMENT
$ 5.172.935
$ 5.857.193
SELF-WITHHOLDINGS
$ 2.764.047
$ 2.392.055
ICT ADVANCED PAYMENT
$ 37.182
$ 9.311
FINANCIAL YIELDS - 7%
$ 14.092
$ 33.713
SURPLUS IN PRIVATE TAX SETTLEMENT
$ 17.692
$ 17.692
OTHER
$ 343
-
TOTAL
$ 8.006.291
$ 8.309.964
10. Other non-current financial assets
CONCEPT
2013
2012
SERVICES RENDERED TO EMPLOYEES
$ 79.795
$ 137.210
TOTAL
$ 79.795
$ 137.210
The above balances of $79,795 and $137,210 as of December 31, 2013 and 2012
corresponding to accounts receivable from two BVC collaborators on account of bonus for
compliance targets.
52
11. Other non-current non-financial assets
CONCEPT
2013
SERVICES - SOFTWARE MAINTENANCE (1)
2012
$ 1.189.299
INSURANCE AND BAILMENTS (2)
RIGHTS OF SHARES IN SOCIAL CLUBS
WORKS OF ART
CONTRIBUTIONS AND AFFILIATIONS
LEGAL EXPENSES FOR RENEWALS
TOTAL
$ 573.240
$ 5.080
$ 355.572
$ 131.701
$ 100.000
$ 14.816
$ 14.816
$ 567
$ 3.400
$ 2.203
$ 1.671
$ 1.343.666
$ 1.048.699
(1) The services mainly correspond to software maintenance and licenses with expiration in
June 2013 for an amount of $408 million.
(2) Insurance contracted with term expiring in June 2014.
12. Investments held under the equity method
CONCEPT
2013
DECEVAL S.A.
2012
$ 15.447.670
$ 15.975.101
CÁMARA CENTRAL DE RIESGO CONTRAPARTE
$ 9.912.034
$ 7.100.438
CÁMARA DE COMPENSACIÓN DE DIVISAS
$ 1.080.457
$ 1.013.611
DERIVEX
TOTAL
$ 712.824
$ 134.211
$ 27.152.985
$ 24.223.361
The following is a summary of BVC’s investments in associated companies as of December 31, 2013:
2013
COMPANY
DECEVAL
CÁMARA CENTRAL DE
RIESGO CONTRAPARTE
DE DIVISAS
DERIVEX
TOTAL
INVESTMENT
ATTRIBUTED
COST
RESULTS
FOR THE
PERIOD
DIVIDENDS
RECEIVED
RESULTS OF
PREVIOUS
PERIODS
SEE
INVESTMENT
PERIOD
CLOSING
EQUITY
VARIATION
$ 15.517.774
($ 12.185.692)
$ 5.777.287
$ 6.338.301
-
$ 15.447.670
$ 9.150.160
-
$ 461.361
$ 300.513
-
$ 9.912.034
$ 796.198
($ 318.750)
$ 291.845
$ 311.163
$1
$ 1.080.457
$ 1.734.639
-
($ 421.387)
($ 600.428)
-
$ 712.824
$ 27.198.771
($ 12.504.442)
$ 6.109.106
$ 6.349.550
$1
$ 27.152.985
53
2012
COMPANY
DECEVAL
INVESTMENT
ATTRIBUTED
COST
RESULTS
FOR THE
PERIOD
DIVIDENDS
RECEIVED
RESULTS OF
PREVIOUS
PERIODS
SEE
INVESTMENT
PERIOD
CLOSING
EQUITY
VARIATION
$ 15.517.774
($ 5.880.974)
$ 6.338.301
-
-
$ 15.975.101
$ 6.799.925
-
$ 300.513
-
-
$ 7.100.438
DE DIVISAS
$ 796.198
($ 93.750)
$ 311.163
-
-
$ 1.013.611
DERIVEX
$ 734.639
-
($ 600.428)
-
-
$ 134.211
$ 23.848.536
($ 5.974.724)
$ 6.349.550
-
-
$ 24.223.361
CÁMARA CENTRAL DE
RIESGO CONTRAPARTE
TOTAL
The tables below show BVC’s participation in the periods ended as of December 31, 2013 and 2012:
2013
COMPANY
PERCENTAGE OF
SHARE
NUMBER OF SHARES
DERIVEX S.A.
979.020
49.95%
DECEVAL
110.763
22.98%
11.156.768.883
27.64%
625.000.000
25.00%
10.000
0.07%
XM COMPAÑÍA DE EXPERTOS EN MERCADOS S.A.
2012
COMPANY
DERIVEX S.A.
DECEVAL
XM COMPAÑÍA DE EXPERTOS EN MERCADOS S.A.
54
NUMBER OF SHARES
PERCENTAGE
OF SHARE
944.055
49.95%
110.763
22.98%
9.919.803.014
2457%
625.000.000
25.00%
10.000
0.07%
Financial and operational information of subsidiary entities and joint ventures:
2013
COMPANY
PERCENTAGE
OF SHARE
ASSETS
LIABILITIES
EQUITY
RESULTS FOR
THE PERIOD
DECEVAL S.A.
22,98%
$ 91.168.989
$ 24.356.460
$ 66.812.529
$ 25.140.500
CÁMARA CENTRAL DE RIESGO
CONTRAPARTE
27,64%
$ 31.058.121
$ 1.180.350
$ 29.877.771
$ 1.669.266
CÁMARA DE COMPENSACIÓN DE
DIVISAS
25.00%
$ 4.897.330
$ 575.500
$ 4.321.830
$ 1.167.380
DERIVEX
49,95%
$ 1.633.265
$ 108.320
$ 1.524.945
($ 842.776)
2012
COMPANY
PERCENTAGE
OF SHARE
ASSETS
LIABILITIES
EQUITY
RESULTS FOR
THE PERIOD
DECEVAL S.A.
22,98%
$ 92.014.134
$ 23.156.472
$ 68.857.662
$ 27.581.812
CÁMARA CENTRAL DE RIESGO
CONTRAPARTE
24.57%
$ 29.654.559
$ 1.446.054
$ 28.208.505
$ 1.223.089
CÁMARA DE COMPENSACIÓN DE
DIVISAS
25.00%
$ 4.668.563
$ 614.117
$ 4.054.446
$ 1.244.654
DERIVEX
49,95%
$ 1.593.616
$ 425.603
$ 1.168.013
($ 1.200.856)
DECEVAL S.A. Custodies, manages, records, compensates and liquidates the transactions
on securities traded at BVC through a high-technology and security computerized system,
mitigating the risks of physical management in transfers, records and exercise of equity rights.
During 2013 and 2012 the BVC kept its ownership share of 22.98%.
CÁMARA DE RIESGO CENTRAL DE CONTRAPARTE S.A. (CRCC). (CRCC). Compensates
and liquidates acting as central counterpart of operations, reducing or eliminating the risks of
non-compliance with the obligations of all standardized derivative transactions of the BVC.
During 2013 the BVC increased its ownership share from 24.57% in 2012 to 27.64% in 2013.
CÁMARA DE COMPENSACIÓN DE DIVISAS S.A. (CCDC). Manages the foreign-currency
compensation and liquidation system for compliance with cash transactions between
exchange market intermediaries, reducing the risks associated to compliance with exchange
transactions: of liquidity, market, operational and legal. The BVC holds an ownership share
of 25% for 2013 and 2012.
DERIVEX S.A. It was incorporated through public deed No. 718 of the Sole Notary Public
Office of Sabaneta Antioquia dated on June 2, 2010, registered on June 10, 2010 before the
Chamber of Commerce of Bogotá. It manages the first standardized derivatives market of
energy commodities in association with XM Compañía de Expertos en Mercados S.A. E.S.P
as strategic ally. DERIVEX entered into operation in October 2010. The participation of BVC
is kept in 49.95% for the years 2013 and 2012.
55
In fulfilment of Article three of Resolution 1619 of 2011, whereby the Office of the Superintendent
of Finance in Colombia authorized the Bylaws of Issue and Placement of 90,000 ordinary
shares of Derivex; the General Stockholders’ Meeting through minute 005 of November 16,
2012, approved the issuance and placement of seventy thousand (70,000) ordinary shares of
those that Derivex has in reserve with a par value of one thousand Colombian pesos (legal
tender), with a premium on placement of shares amounting to sixteen thousand one hundred
and forty-two Colombian pesos with eighty-five cents ($16,142.85) per share, the destination
of which was to increase the equity account denominated “premium in placement of shares”.
13. Other intangible assets
2013
CONCEPT
SOFTWARE LICENSE - APLICA (1)
SOFTWARE LICENSE - MILA (1)
Initial
Balance
Additions
$ 141.095
Amortization
$ 574.419
Final Balance
($ 346.562)
$ 368.952
$ 5.768
-
($ 5.653)
$ 115
AFFILIATES PROGRAMS
$ 360.117
-
($ 45.546)
$ 314.571
SOFTWARE AGORA (1)
$ 860.691
-
($ 850.215)
$ 10.476
SAP-ERP
$ 1.256.508
-
($ 1.167.564)
$ 88.944
OTHER LICENSES
$ 1.780.676
$ 30.099
($ 748.607)
$ 1.062.168
DISBURSEMENT DEVELOPMENT PHASE
TOTAL
-
$ 1.070.897
-
$ 1.070.897
$ 4.404.855
$ 1.675.415
($ 3.164.147)
$ 2.916.123
2012
CONCEPT
Initial
Balance
Additions
SOFTWARE LICENSE - APLICA (1)
$ 265.466
SOFTWARE LICENSE - MILA (1)
AFFILIATES PROGRAMS
SOFTWARE AGORA (1)
Amortization
Final Balance
-
($ 124.371)
$ 141.095
$ 266.673
$ 39.312
($ 300.217)
$ 5.768
$ 132.234
$ 309.598
($ 81.715)
$ 360.117
-
$ 3.741.545
($ 2.880.854)
$ 860.691
SAP-ERP
-
$ 3.300.305
($ 2.043.797)
$ 1.256.508
OTHER LICENSES
-
$ 2.071.944
($ 291.268)
$ 1.780.676
DISBURSEMENTS DEVELOPMENT PHASE
$ 4.456.018
($ 4.456.018)
-
-
TOTAL
$ 5.120.391
$ 5.006.686
($ 5.722.222)
$ 4.404.855
56
(1) Software licenses of greater amounts acquired are being amortized during the time for which
they have been acquired without exceeding three years, whereas the software developed
such as SAP, AGORA and MILA, which corresponds to projects is amortized by the declining
balance method at five (5) years.
Below, there is a summary of the movement of intangible assets:
2013
MOVEMENTS IN INTANGIBLE ASSETS
PATENTS,
TRADEMARKS
AND OTHER
RIGHTS, NET
INITIAL BALANCE AS OF JANUARY 1, 2.013
IT PROGRAMS,
NET
-
ADDITIONS
AMORTIZATION
OTHER
IDENTIFIABLE
INTANGIBLE
ASSETS, NET
IDENTIFIABLE
INTANGIBLE
ASSETS, NET
$ 4.404.855
-
$ 4.404.855
$ 604.518
$ 1.070.897
$ 1.675.415
($ 3.164.147)
FINAL BALANCE AS OF DECEMBER 31, 2.013
-
($ 3.164.147)
$ 1.845.226
$ 1.070.897
$ 2.916.123
2012
MOVEMENTS IN INTANGIBLE ASSETS
PATENTS,
TRADEMARKS
AND OTHER
RIGHTS, NET
INITIAL BALANCE AS OF JANUARY 1, 2.012
IT PROGRAMS,
NET
-
ADDITIONS
OTHER
IDENTIFIABLE
INTANGIBLE
ASSETS, NET
$ 664.373
IDENTIFIABLE
INTANGIBLE
ASSETS, NET
$ 4.456.018
$ 9.462.703
DISPOSALS
$ 9.462.703
($ 4.456.018)
AMORTIZATION
($ 5.722.221)
FINAL BALANCE AS OF DECEMBER 31, 2.012
-
$ 5.120.391
($ 4.456.018)
($ 5.722.221)
$ 4.404.855
-
$ 4.404.855
14. Property and equipment
2013
CONCEPT
BUILDINGS
LAND
COMMUNICATIONS AND COMPUTER EQUIPMENT
OFFICE EQUIPMENT
MOTOR VEHICLES
LEASEHOLD IMPROVEMENTS
TOTAL
ATTRIBUTABLE COST
DEPRECIATION
NET
$ 10.387.655
($ 480.174)
$ 9.907.481
$ 4.008.050
-
$ 4.008.050
$ 10.544.732
($ 6.671.074)
$ 3.873.658
$ 2.789.819
($ 1.977.016)
$ 812.803
$ 179.880
($ 179.880)
-
$ 119.703
($ 118.631)
$ 1.072
$ 28.029.838
($ 9.426.775)
$ 18.603.064
57
2012
CONCEPT
ATTRIBUTABLE COST
BUILDINGS
DEPRECIATION
$ 10.317.655
NET
($ 239.691)
$ 10.077.964
LAND
$ 4.008.050
-
$ 4.008.050
COMMUNICATIONS AND COMPUTER EQUIPMENT
$ 8.258.520
($ 5.653.511)
$ 2.605.009
OFFICE EQUIPMENT
$ 2.626.671
($ 1.704.293)
$ 922.378
MOTOR VEHICLES
$ 179.880
($ 149.900)
$ 29.980
LEASEHOLD IMPROVEMENTS
$ 115.415
($ 105.797)
$ 9.618
$ 25.506.191
($ 7.853.192)
$ 17.652.999
TOTAL
The depreciation method used for all property and equipment is the straight line.
The useful lives determined are:
a. Buildings
b. Office equipment, furniture and fixtures
c. Electronic equipment
d. Data processing equipment
e. Telecommunications equipment
f. Motor vehicles
50 years
10 years
10 years
5 years
5 years
5 years
The table below shows the movements of property and equipment for 2013 and 2012
2013
MOVEMENTS
IN INTANGIBLE
ASSETS
INITIAL
BALANCE AS
AT JANUARY 1,
2.013
ADDITIONS
BUILDINGS
$ 10.077.964
COMPUTER AND
COMMUNICATIONS
EQUIPMENT
LAND
$ 4.008.050
$ 70.000
DISPOSALS
OFFICE
EQUIPMENT
$ 2.605.009
$ 922.379
$ 2.406.014
$ 193.798
MOTOR
VEHICLES
LEASED
ASSETS
$ 29.980
TOTAL
$ 9.618
$ 17.652.999
$ 4.288
$ 2.674.100
$ 1.070
$ 30.000
$ 240.483
-
$ 1.136.295
$ 273.374
$ 29.980
$ 12.834
$ 1.692.965
TOTAL CHANGES
($ 170.483)
-
$ 1.268.648
($ 109.576)
($ 29.980)
($ 8.546)
$ 950.064
BALANCE AS
OF DECEMBER
31, 2.013
$ 9.907.481
$ 4.008.050
$ 3.873.658
$ 812.803
-
$ 1.072
$ 18.603.064
DEPRECIATION
58
$ 31.071
2012
MOVEMENTS
IN INTANGIBLE
ASSETS
INITIAL
BALANCE AS
AT JANUARY 1,
2.012
BUILDINGS
$ 10.317.655
COMPUTER AND
COMMUNICATIONS
EQUIPMENT
LAND
$ 4.008.050
ADDITIONS
DISPOSALS
DEPRECIATION
TOTAL CHANGES
BALANCE AS
OF DECEMBER
31, 2.013
OFFICE
EQUIPMENT
$ 2.657.819
$ 1.089.892
$ 1.087.305
$ 94.634
MOTOR
VEHICLES
$ 65.956
LEASED
ASSETS
TOTAL
$ 67.325
$ 18.206.697
$ 1.181.939
$ 2.935
$ 9.379
$ 239.691
-
$ 1.137.180
$ 252.769
$ 35.976
$ 57.707
$ 1.723.323
$ 12.314
($ 239.691)
-
($ 52.810
($ 167.514)
($ 35.976)
($ 57.707)
($ 553.698)
$ 10.077.964
$ 4.008.050
$ 2.605.009
$ 922.378
$ 29.980
$ 9.618
$ 17.652.999
15. Income taxes
The income tax provision as of December 31, 2013 and 2012 was determined based upon
the net income using 34% and 33% tax rates, respectively, prior a cleansing of the book
(commercial) profit.
The following is the reconciliation between the book income and the estimated taxable income:
CONCEPT
2013
PROFIT BEFORE TAXES
2012
$ 35.655.443
$ 40.751.797
NON-DEDUCTIBLE EXPENSES
$ 1.631.727
$ 4.113.101
NON-DEDUCTIBLE TAXES
$ 1.368.887
($ 2.460)
PERMANENT DIFFERENCES
DIVIDENDS NOT TAXED
($ 6.532.180)
($ 5.975.240)
RECOVERY OF EXPENSES
($ 672.354)
($ 939.995)
TAX ON EQUITY
($ 933.968)
($ 846.979)
PRESUMPTIVE INTEREST
TOTAL DIFFERENCES NOT DEDUCTIBLE FROM THE FISCAL GAIN
($ 33.021)
($ 15.920)
($ 5.170.909)
($ 3.667.493)
$ 941.582
($ 1.255.962)
TEMPORARY DIFFERENCES
VALUATION OF INVESTMENTS
TRADE DEBTORS IMPAIRMENT
$ 695.982
($ 9.686)
CURRENT TAXES
$ 129.665
($ 41.867)
-
($ 1.501.933)
$ 2.506.380
-
AMORTIZATION OF INTANGIBLES OTHER THAN GOODWILL
SHORT-TERM BENEFITS TO EMPLOYEES
CREDITORS AND ACCOUNTS PAYABLE
INTEREST LOANS MADE TO EMPLOYEES
DEPRECIATION
$ 512.286
-
$ 44.175
($ 15.920)
($ 20.338)
($ 62.905)
59
CONCEPT
LONG-TERM BENEFITS TO EMPLOYEES
PRE-OPERATING (ICAP-FX)
SUNDRY (BD INFOVALMER)
TOTAL TEMPORARY DIFFERENCES
NET INCOME
SPECIAL NET INCOME (2)
NET TAXABLE INCOME
PRESUMPTIVE (MINIMUM TAXABLE) INCOME 1)
INCOME TAX 34% 2.013 - 33% 2.012
EXCESS INCOME TAX PRIOR YEAR
2013
2012
($ 185.321)
$ 82.351
$ 310.216
-
$ 759.359
-
$ 5.693.985
($ 2.805.922)
$ 36.178.517
$ 34.278.382
$ 399.600
-
$ 36.578.117
$ 34.278.382
$ 53
-
$ 12.436.560
$ 11.311.866
20.736
-
TOTAL INCOME TAX 34% 2.013 - 33% 2.012
$ 12.457.296
$ 11.311.866
DEFERRED TAX
($ 2.080.462)
($ 178.352)
TOTAL INCOME TAX
$ 10.376.834
$ 11.133.514
(1) As of December 31, 2013 there is a fiscal credit for presumptive (minimum taxable) income
corresponding to the subsidiary Invesbolsa.
(2) In the liquidation of the income tax, it was included as special net income the recognition
of the proportional part of the premium in placement of shares paid by XM Compañía de
Expertos in the investment Derivex S.A.
The income tax returns of 2013 and 2012 may be revised by the fiscal authorities within the
two years following their filing.
Below, the reconciliation between the average effective rate and the applicable tax rate:
CONCEPT
2013
2012
Book Gains
35.655.443
40.751.797
TAX – AT A 34% TAX RATE (33% IN 2.012)
12.122.850
13.448.093
554.787
1.357.323
NON-DEDUCTIBLE TAXES
465.422
(812)
(2.220.941)
(1.971.829)
FISCAL EFFECT OF EXPENSES NOT DEDUCTIBLE WHEN CALCULATING THE FISCAL GAINS:
DIVIDENDS NOT TAXED
RECOVERY OF EXPENSES
TAX ON EQUITY
PRESUMPTIVE INTEREST
FISCAL EFFECT OF DEDUCTIBLE EXPENSES FOR TEMPORARY DIFFERENCES WHEN
CALCULATING THE FISCAL GAIN:
60
(228.600)
(310.198)
($ 317.549)
($ 279.503)
($ 11.227)
($ 5.254)
($ 1.758.108)
($ 1.210.273)
CONCEPT
2013
2012
VALUATION OF INVESTMENTS
$ 320.138
($ 414.467)
TRADE DEBTORS IMPAIRMENT
$ 236.634
($ 3.196)
CURRENT TAXES
$ 44.086
AMORTIZATION OF INTANGIBLES OTHER THAN GOODWILL
($ 13.816)
($ 495.638)
SHORT-TERM BENEFITS TO EMPLOYEES
$ 852.169
-
CREDITORS AND ACCOUNTS PAYABLE
$ 174.177
-
INTEREST ON LOANS TO EMPLOYEES
$ 15.020
-
DEPRECIATION
($ 6.915)
($ 5.254)
LONG-TERM BENEFITS TO EMPLOYEES
($ 63.009)
($ 20.759)
PRE-OPERATING (ICAP-FX)
$ 105.455
$ 27.176
SUNDRY (BD INFOVALMER)
$ 394.046
-
$ 2.071.801
($ 925.954)
$ 18
-
PRESUMPTIVE (MINIMUM TAXABLE) INCOME
EXCESS INCOME PREVIOUS YEARS (ICAP- FX)
$ 20.736
-
DEFERRED TAXES
($ 2.080.462)
($ 178.352)
EXPENSES FOR TAX ON GAINS
$ 10.376.834
$ 11.133.514
Additionally, the company recorded a total of deferred tax assets, which are detailed in the
table below:
CONCEPT
INVESTMENTS
DEFERRED INCOME TAX – TRADE DEBTORS
INDUSTRY AND COMMERCE TAX
OTHER ASSETS (ADVERTISING AND PRE-OPERATIVE)
TOTAL
2013
2012
$ 320.138
$ 414.467
$ 1.088.017
$ 299.179
$ 44.086
$ 7.884
$ 652.127
$ 42.727
$ 2.104.368
$ 764.257
The deferred tax liability is:
CONCEPT
ADJUSTMENT FOR VALORIZATION CAPITALIZATION
LOANS TO EMPLOYEES
TOTAL
2013
2012
$ 3.065.227
$ 3.791.106
-
$ 14.578
$ 3.065.227
$ 3.805.684
The recording of the deferred tax liability is due to the use of the fair value of land and buildings
as attributed cost on the transition date and to the recognition of the financial component
of the loans to employees. These adjustments generate an increase in the amount of the
aforementioned asset components, thus affecting the fiscal and accounting bases, being
greater the latter, and therefore, generating the liability under question as of 2013 and 2012.
61
The amounts charged to operations corresponding to income tax provision for 2013 and 2012
are:
CONCEPT
CURRENT INCOME TAX
DEFERRED INCOME TAX
CREE TAX CURRENT YEAR
DEFERRED INCOME TAX
TOTAL
2013
2012
($ 9.301.400)
($ 11.336.534)
$ 1.760.956
$ 203.020
($ 3.155.891)
-
$ 319.501
-
($ 10.376.834)
($ 11.133.514)
2013
2012
The tax liability of each company is as follows:
CONCEPT
BVC
SET ICAP
$ 9.579.329
$ 10.164.485
$ 305.742
$ 538.918
INVESBOLSA
$ 18
$ 381
INFOVALMER
$ 497.644
$ 1.098
$10.382.732
$10.704.882
TOTAL
16. Other current financial liabilities
CONCEPT
2013
2012
AGORA LIQUIDATOR (1)
$ 4.899
$ 8.354
COLCAP
$3.596
-
TOTAL
$ 8.495
$ 8.354
(1) Amount received on account of the company Ágora 360 S.A. which was liquidated in
December 2011, corresponding to the cancellation of bank accounts available at the moment
of winding-up. BVC was designated to look after these resources and cover payments that
could eventually arise.
17. Employee benefits
CONCEPT
CONSOLIDATED VACATIONS
2013
2012
$ 1.022.544
$ 1.050.621
CONSOLIDATED SEVERANCE, CURRENT PORTION
$ 429.102
$ 381.511
LABOR INDEMNITIES
$ 123.058
$ 123.058
INTEREST ON SEVERANCE
$ 48.364
$ 43.772
PAYROLL PAYABLE
$ 42.533
$ 14.373
EXTRALEGAL BENEFITS
$ 1.974.242
$ 291.204
TOTAL
$ 3.639.843
$ 1.904.539
Labor obligations present the consolidation of social benefits, which were made in conformity
with the internal policies harmonized with the labor law currently in force.
62
18. Trade creditors and other accounts payable
CONCEPT
2013
2012
COSTS AND EXPENSES PAYABLE (1)
$ 4.728.977
$ 3.327.935
OTHER (2)
$ 1.161.596
$ 802.602
SUNDRY CREDITORS
$ 14.945
$ 25.906
PAYROLL DISCOUNTS AND CONTRIBUTIONS
$ 70.651
$ 58.592
$ 5.976.169
$ 4.215.035
TOTAL
(1) The costs and expenses payable item includes foreign currency obligations as of December
31, 2012 that amounted to USD$ 597,785.68 and as of December 31, 2011 amounted to
USD$ 132.61, which at the corresponding year-end rate was equivalent to $1,057,022 and
$258, respectively.
(2) Correspond to the balance owed on account of fees, general services, and other concepts.
Below, there is a summary of aging accounts payable:
TOTAL
CURRENT
(< 30
DAYS)
COSTS AND
EXPENSES
PAYABLE
$ 4.728.977
$ 4.127.989
$ 569.161
$ 1.631
-
OTHER
$ 1.161.597
-
$ 1.161.596
-
SUNDRY
CREDITORS
$ 14.945
-
$ 14.945
PAYROLL
DISCOUNTS AND
CONTRIBUTIONS
$ 70.651
-
$ 5.976.169
2013
TOTAL
2012
COSTS AND
EXPENSES
PAYABLE
OTHER
SUNDRY
CREDITORS
PAYROLL
DISCOUNTS AND
CONTRIBUTIONS
TOTAL
BETWEEN
181 - 360
DAYS
MORE
THAN
360 DAYS
$ 16
$ 9.192
$ 20.988
-
-
-
-
-
-
-
-
-
$ 70.651
-
-
-
-
-
$ 4.127.989
$ 1.816.353
$ 1.631
-
$ 16
$ 9.192
$ 20.988
TOTAL
CURRENT
(< 30
DAYS)
BETWEEN
1 - 30 DAYS
BETWEEN
181 - 360
DAYS
MORE
THAN
360 DAYS
$ 3.327.936
$ 1.956.131
$ 1.219.615
$ 44.896
$ 3.651
$ 25.953
$ 24.826
$ 52.864
$ 860.142
-
$ 860.142
-
-
-
-
-
$ 25.906
-
$ 25.906
-
-
-
-
-
$ 1.051
-
$ 1.051
-
-
-
-
-
$ 4.215.035
$ 1.956.131
$ 2.106.714
$ 44.896
$ 3.651
$ 25.953
$ 24.826
$ 52.864
BETWEEN
1 - 30 DAYS
BETWEEN
31 - 60
DAYS
BETWEEN
61 - 90
DAYS
BETWEEN
31 - 60
DAYS
BETWEEN
90 - 180
DAYS
BETWEEN
61 - 90
DAYS
BETWEEN
90 - 180
DAYS
63
19. Current tax liabilities
CONCEPT
2013
2012
TAX ON EQUITY (1)
$ 1.642.345
$ 2.003.461
VALUE ADDED TAX PAYABLE
$ 1.343.932
$ 1.003.055
$ 741.200
$ 654.217
$ 84.210
$ 234.124
$ 156.958
$ 150.460
WITHHOLDING TAX
VALUE ADDED TAX WITHHELD
INDUSTRY AND COMMERCE TAX
INDUSTRY AND COMMERCE TAX WITHHELD
TOTAL
$ 28.300
$ 26.432
$ 3.996.945
$ 4.071.749
(1) The value corresponding to the tax on equity reflects the present value of the instalments
payable. The effective rate used was 14.8% corresponding to the weighted average cost of
the BVC’s capital (WACC).
20. Deferred income
CONCEPT
2013
2012
INFOVAL ANNUAL CHARGE
-
$ 19.191
VENDORS MONTHLY FIXED CHARGE
-
$ 8.465
MAINTENANCE FIXED-YIELD SECURITIES
-
$ 5.625
ANNUAL CHARGE SAE-DMA
$ 3.813
-
TOTAL
$ 3.813
$ 33.281
The deferred income corresponds to the value of unique quotas received from clients that
grants them access to services and future benefits.
21. Long-term employee benefits
CONCEPT
2013
2012
FIVE-YEAR TERMS
$ 721.283
$ 906.604
TOTAL
$ 721.283
$ 906.604
BVC has subscribed agreements of long-term extralegal labor benefits with its employees (fiveyear terms). Consequently, it has been determined that in future periods there is the probability
of release of own resources with the purpose of honoring the payments corresponding to
those obligations, the maturity of which is undetermined.
64
With the information available, and by virtue of the increase in probability of payment linked
to the advance of time, the values that better represent the debt under question have been
estimated through actuarial estimate procedures. (The disclosure is extended with the
information obtained from the actuarial estimate)
22. Reserves
CONCEPT
LEGAL RESERVE
2013
$ 9.430.667
2012
$ 9.430.667
MANDATORY RESERVES
$ 1.303.842
$ 422.243
OCCASIONAL RESERVES
$ 22.808.791
$ 23.698.432
$ 33.543.300
$ 33.551.342
Legal Reserve
According to current legal norms in force in Colombia a legal reserve must be created which
shall amount to at least 50% of the subscribed capital, formed with 10% of the profits settled
from each exercise. It can be applicable the reduction of the reserve below the minimum limit
whenever it has the objective of wiping out accrued losses in excess of retained earnings or
prior exercises or whenever the amount freed is devoted to capitalize the BVC through the
distribution of dividends in shares.
For 2013, it was not necessary to create a Legal Reserve on the 2012 profits, because the
legal reserve is equivalent to 50% of the subscribed capital since 2009. As of December 31,
2013 and 2012 the accumulated amount of the legal reserve amounts to $9,430,667.
Mandatory reserves
According to fiscal norms, a reserve must be created for the difference between the market
value and the linear value of the investments portfolio. As of December 31, 2013, this reserve
amounted to $1,303,842 and to $422,243 for 2012.
Occasional reserves
Reserves for working capital accumulated as of December 31, 2013 of the Parent Company
amounted to $22,808,791, which includes the value corresponding to BVC amounting to
$22,797,897, whereas as of December 31, 2012, for the Parent Company amounted to
$23,698,432.
65
23. Ordinary revenues
CONCEPT
2013
2012
EQUITIES
$ 22.302.208
$ 26.568.052
FIXED INCOME
$ 11.088.293
$ 12.789.587
REGISTRATION AND MAINTENANCE OF SECURITIES
$ 12.511.098
$ 11.575.917
OPERATIONS
$ 13.130.211
$ 4.910.318
INFORMATION PUBLICATION AND SUBSCRIPTION
$ 4.857.925
$ 3.514.189
SPECIAL OPERATIONS
$ 2.403.827
$ 3.452.577
TERMINALS
$ 2.756.710
$ 3.227.242
DERIVATIVES
$ 3.020.140
$ 2.910.646
INFOVAL
$ 376.064
$ 2.207.562
$ 1.409.122
$ 1.486.336
$ 871.447
$ 1.393.210
-
$ 1.008.876
$ 3.879.999
$ 406.270
TTV´S
$ 22.030
$ 21.476
PROVISION RECOVERIES
$ 82.482
-
$ 78.711.556
$ 75.472.258
SAE
EDUCATION
LIQUIDATION OF FOREIGN CURRENCIES
OTHER REVENUES
TOTAL
24. Investment revenue
CONCEPT
INVESTMENTS VALUATION
FINANCIAL REVENUES
DIVIDENDS AND PARTICIPATIONS
TOTAL
2013
2012
$ 2.285.556
$ 5.257.036
$ 350.590
$ 639.211
$ 2.463
$ 516
$ 2.638.609
$ 5.896.763
25. Other gains and losses
CONCEPT
RECOVERIES
SUNDRY
EXCHANGE DIFFERENCE
PROFIT ON SALE OF ASSETS
DEBTORS IMPAIRMENT
2012
$ 1.238.351
$ 1.632.927
$ 557.119
$ 153.887
$ 88.111
$ 3.056
-
$ (75.604)
$ (925.862)
SUNDRY EXPENSES
$ (377.878)
$(296.520)
$ (139.402)
$ (112.502)
$ (288)
$ (11.274)
$ 1.620.258
$ 537.423
LOSS IN THE SALE AND RETIREMENT OF PROPERTY AND EQUIPMENT
TOTAL
66
2013
$ 423.560
26. Ordinary expenses
CONCEPT
PERSONNEL EXPENSES
2013
2012
$ 28.180.497
$ 21.675.028
AMORTIZATION
$ 3.679.462
$ 5.732.504
SERVICES AND MAINTENANCE
$ 7.105.652
$ 6.081.795
FEES
$ 5.108.236
$ 4.833.951
TAXES
$ 1.695.711
$ 1.828.306
DEPRECIATION
$ 1.680.131
$ 1.665.615
DISCLOSURE AND ADVERTISING
$ 1.311.478
$ 1.257.789
LEASES
$ 1.320.902
$ 1.102.998
TRAVEL EXPENSES
$ 898.358
$ 873.643
CONTRIBUTIONS AND AFFILIATIONS
$ 697.624
$ 646.355
INSURANCE
$ 360.029
$ 337.555
SUNDRY
$ 524.048
$ 360.832
PUBLIC RELATIONS
$ 265.089
$ 247.335
ASSEMBLY AND SYMPOSIA
$ 109.653
$ 157.675
RECONDITIONING AND INSTALLATIONS
$ 27.670
$ 78.257
STATIONERY, FIXTURES AND PHOTOCOPIES
$ 70.089
$ 70.143
LEGAL EXPENSES
$ 40.397
$ 39.645
PROVISIONS
TOTAL
-
$ 162.189
$ 53.075.026
$ 47.151.615
27. Finance costs
CONCEPT
FINANCIAL
2013
2012
$ 238.456
$ 222.779
EXCHANGE DIFFERENCE
$ 110.603
$ 129.801
TOTAL
$ 349.059
$ 352.580
28. Net profit per share
The profit per basic share is calculated by dividing the profit attributable to the stockholders
by the weighted average number of outstanding common shares during the year, excluding all
common shares acquired or held as treasury stock, if any.
CONCEPT
NET PROFIT
OUTSTANDING SHARES
NET PROFIT PER SHARE
2013
2012
$ 25.278.609.809
$ 29.618.283.715
18.672.822.217
18.672.822.217
$ 1,35
$ 1,59
67
29. Contingencies, judgments and others
As of December 31, 2013 there are the following lawsuits filed against the BVC:
RESPONSIBLE
LAWYER
DATE
NOTIFICATION
LAWYER
CLAIM
PROBABILITY
VALU
COOPERATIVA
FINANCIERA DE
ANTIOQUIA JUZGADO CIVIL
COURT 11 OF
MEDELLÍN
JUAN PABLO
CÁRDENAS
(EXTERNAL)
5/06/2006
Address: Calle 72 No. 6 - 30
Piso 11 Telephone 5432808 5434264
City: Bogotá D.C.
$ 3.522.600.000 +
interest on
Remot
$ 3.938.321
NORMAN
ALEXANDER
ALDANA - CIVIL
COURT 7 OF
BOGOTÁ
NESTOR
HUMBERTO
MARTÍNEZ
(EXTERNAL)
08/11/2007
Address: Carrera 7 No. 71 - 21
Of. 607 T-B
Telephone 3174485 Fax:
3173032
City: Bogotá D.C.
$ 684.950.000 +
and moral
Remot
$ 739.400
SARASTI Y CIA. S
EN C. Y RODRIGO
SARASTI - JCIVIL
COURT 37 OF
BOGOTÁ
JUAN PABLO
CÁRDENAS
(EXTERNAL)
05/08/2010
Address: Calle 72 No. 6 - 30
Piso 11 Telephone 5432808 5434264
City: Bogotá D.C.
$ 1.280.000.000 +
cessan
Remot
$ 1.387.492
PROCES
TOTAL
$ 6.065.213
30. Guarantees with third parties, other contingent assets and liabilities
and other commitments
The collaterals for stock exchange transactions are only executed in favor of third parties in
case of any breach in the transactions. These collaterals are not under custody by BVC in the
respective clearing houses.
31. Subsequent events
Between December 31, 2013, closing date of these financial statements and their presentation
date, no significant financial-accounting events have occurred that might affect BVC’s financial
structure or the construction of the financial statements.
68

consolidated financial - Bolsa de Valores de Colombia

Transcription

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