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ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
(TERPEL S.A. ORGANIZATION AND SUBORDINATES)
Consolidated financial statements in COP$
December 31, 2015 and 2014
(With the Statutory Auditor’s Report)
2
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
(TERPEL S.A. ORGANIZATION AND SUBORDINATES)
3
CONTENTS
Consolidated statements of financial position, classified
Consolidated statements of income by function
Consolidated statements of comprehensive income
Consolidated statements of changes in equity, Net
Consolidated statements of cash flows, direct method
Notes to consolidated statements
4
COP$ : amounts expressed in Colombian pesos
USD$ : amounts expressed in US dollars
M$ : amounts expressed in thousands of Colombian pesos
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Index of Consolidated financial statements
Note Page
Consolidated statements of financial position, Classified 5
Consolidated statements of income by function 7
Consolidated statements of comprehensive income 8
Consolidated statements of changes in equity, Net 9
Consolidated statements of cash flows, direct method 11
Notes to consolidated statements
1 General Information 12
5
2 Basis of preparation of Consolidated financial statements 12
2.1 Technical standards framework 12
2.2 Measurement basis 13
2.3 Foreign currency transactions 14
2.4 Basis of consolidation 14
3 Applied accounting criteria 17
(a) Financial assets and liabilities 18
(b) Issued capital 19
(c) Inventories 19
(d) Intangible assets not capital gain 20
(e) Capital gain 21
(f) Impairment 21
(g) Properties, plant and equipment 23
(h) Investment properties 24
(i) Accounting provisions 24
(j) Employee benefits 25
(k) Classification of current and non-current balances 25
(l) Income tax and deferred taxes 26
(m) Distribution of dividends 27
(n) Income recognition 27
(o) Expenses by function 28
(p) Leases 28
(q) Consolidated statement of cash flows 29
(r) Cash and cash equivalents 29
(s) Borrowing costs 30
(t) Earnings per share 30
(u) Operation segments 30
(v) New standards and interpretations not adopted yet 31
4 Financial Risk Management 37
5 Accounting estimates and judgments 45
6 Cash and cash equivalents 45
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Index of Consolidated financial statements
Notes Page
7 Financial instruments 46
8 Financial assets at a fair value with changes in net income 46
9 Other non-financial assets 47
10 Commercial debtors and other accounts receivable 47
11 Balances and transactions with related entities 48
12 Inventories 50
6
13 Assets and liabilities by current taxes 50
14 Investments accounted using the equity method 51
15 Intangible assets not capital gain 52
16 Capital gain 53
17 Properties, plant and equipment 55
18 Investment properties 57
19 Operational Leasing 58
20 Deferred taxes 58
21 Other current and non-current financial liabilities 61
22 Commercial accounts payable and other accounts payable 63
23 Current and non-current accounting provisions for employee benefits 63
24 Other current and non-current accounting provisions 64
25 Equity 65
26 Earnings per share 67
27 Income on ordinary activities 67
28 Cost of sales 67
29 Geographic segments 68
30 Expenses by nature 70
31 Other expenses by function 71
32 Financial result 72
33 Capital gains tax 73
34 Contingencies 74
35 Commitments 75
36 Subsequent events 75
37 Explanation of the transition of accounting standards and of financial information (IFRS)
75
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Consolidated statements of financial position, Classified
December 31, 2015 and 2014
7
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Consolidated statements of financial position, Classified
December 31, 2015 and 2014
Nota 2015 2014 1 enero 2014
Assets M$ M$ M$
Current assets:
Cash and cash equivalents 6 287.991.889 298.577.233 278.265.738
Other non-financial assets 9 78.087.117 71.064.066 4.153.514
Trade debtor and other accounts payable 10 425.930.362 449.691.089 543.092.964
Accounts payable from related parties 11 284.469 970.911 53.085
Inventory 12 511.184.914 471.547.262 515.832.135
Tax assets 13 26.333.175 27.111.675 6.666.456
Total Current assets 1.329.811.926 1.318.962.236 1.348.063.892
Non-current assets:
Financial assets at fair value through profit or loss 8 1.252.312 1.222.537 3.166.104
Other non-financial assets 9 306.505 721.111 1.185.537
Trade debtor and other accounts payable 10 39.335.312 34.167.416 5.288.006
Investments accounted using the
equity method 14 6.244.090 4.649.899 35.740.245
Intangible assets other than capital gain 15 463.168.261 509.131.377 589.764.292
Capital gain 16 351.312.537 344.675.854 306.031.991
Properties, plant and equipment 17 1.676.825.586 1.315.261.406 1.112.695.441
Investment property 18 6.036.210 6.072.057 5.982.135
Deferred Tax Asset 20 18.555.169 19.879.495 23.131.094
Total Non-current assets 2.563.035.982 2.235.781.152 2.082.984.845
Total assets 3.892.847.908 3.554.743.388 3.431.048.737
The accompanying notes are an integral part of these consolidated financial statements.
Sylvia Escovar GómezLegal Representative
Member of KPMG Ltda.(See my report of Feburary 23, 2016)
Julián Andrés Viracachá M.
T.P. 144154-TAccountant
Milton Alejandro Garzón ForeroFiscal AuditorT.P. 92144-T
8
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Consolidated statements of income by function
For the fiscal year ending on December 31, 2015 and 2014
Nota 2015 2014 01 enero 2014
Liability and Equity M$ M$ M$
Current liabilities:
Other financial liabilities 21 105.511.756 485.209.407 274.560.471
Trade account payable and others
account payable 22 638.513.262 560.135.691 546.580.887
Accounts payable from related parties
and associates non-current 11 - - 5.920.092
Other provision 24 341.289 243.963 1.466.286
Tax Liabilities 13 113.301.788 118.663.509 133.601.201
Provision of employee benefits 23 2.060.139 461.156 406.185
Total Current liabilities 859.728.234 1.164.713.726 962.535.122
Non-Current liabilities:
Other financial liabilities 21 1.343.134.378 850.107.804 835.465.556
Deferred Tax liabilities 20 225.065.125 200.124.844 186.696.543
Provision of employee benefits 23 873.478 834.868 956.788
Total Non-Current liabilities 1.569.072.981 1.051.067.516 1.023.118.887
Total liabilities 2.428.801.215 2.215.781.242 1.985.654.009
Equity 25
Issued Capital 195.999.466 195.999.466 191.915.421
Share Premium 219.365.731 219.365.731 664.534.946
Surplus equity method 27.066.698 (54.680.378) (108.320.792)
Reserves 155.575.328 161.450.873 179.920.314
Retained earnings 865.507.246 816.418.412 516.905.461
Equity attributable to owners 1.463.514.469 1.338.554.104 1.444.955.350
Non-controlling interest 532.224 408.042 439.378
Total equity 1.464.046.693 1.338.962.146 1.445.394.728
Total Liability and Equity 3.892.847.908 3.554.743.388 3.431.048.737
The accompanying notes are an integral part of these consolidated financial statements.
Sylvia Escovar Gómez
Legal Representative
(See my report of Feburary 23, 2016)
Julián Andrés Viracachá M.
Accountant
T.P. 144154-T
Milton Alejandro Garzón Forero
Fiscal Auditor
T.P. 92144-T
Member of KPMG Ltda.
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ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Consolidated statements of comprehensive income
for the fiscal year ending on December 31, 2015 and 2014
Nota 2015 2014
M$ M$
Income from ordinary activities 27 14.235.502.200 15.004.008.050
Cost of sales 28 (13.024.104.540) (13.887.904.229)
Gross Profits 1.211.397.660 1.116.103.821
Other incomes, by function 23.556.150 27.317.880
Distribution Cost 30 (695.847.983) (623.254.348)
Administrative Expenses 30 (201.897.262) (173.909.760)
Other Expenses 31 (60.020.789) (61.110.712)
Financial Income 32 9.935.898 6.987.782
Financial expenses 32 (87.129.126) (77.061.198)
Share of profits of the corporate group and joint
business which are accounted.
using equity method 14 1.575.710 994.073
Translation differences 32 6.195.163 8.126.187
Profit before income tax 207.765.421 224.193.725
Income tax expense 33 (101.744.673) (97.285.713) - -
Net Income 106.020.748 126.908.012
Net income attributable to:Net income attributable to
owners 105.958.219 126.896.560
Net income attributable to non-controlling
interests 62.529 11.452
Net income 106.020.748 126.908.012
Basic earnings per share 584,38 699,51
The accompanying notes are an integral part of these consolidated financial statements
Sylvia Escovar Gómez Julián Andrés Viracachá M.
Legal Representative Accountant
T.P. 144154-T
(See my report of Feburary 23, 2016)
Milton Alejandro Garzón Forero
Fiscal Auditor
T.P. 92144-T
Member of KPMG Ltda.
10
2015 2014
M$ M$
Net Income 106.020.748 126.908.012
Profits (loss) of Translation differences before taxes
80.017.978 44.290.688
Actuarial gain on defined benefit plans 5.850 -
Total other components of other comprehensive income
before taxes 80.023.828 44.290.688
Total comprehensive income 186.044.576 171.198.700
Total comprehensive income attributable to:
owners 185.920.394 171.130.987
attributable to non-controlling 124.182 67.713
Total comprehensive income 186.044.576 171.198.700
The accompanying notes are an integral part of these consolidated financial statements
Sylvia Escovar Gómez Julián Andrés Viracachá M.
Legal Representative Accountant
T.P. 144154-T
(See my report of Feburary 23, 2016)
Milton Alejandro Garzón Forero
Fiscal Auditor
T.P. 92144-T
Member of KPMG Ltda.
11
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Consolidated statements of changes in equity, Net
for the fiscal year ending on December 31, 2015 and 2014
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Consolidated statements of changes in equity, Net
for the fiscal year ending on December 31, 2015 and 2014
December 31, 2014 Share Capital Issue Premium
Legal and
statutory
reserves
Surplus equity
method
Retained
earnings
Net worth
attributable to
owners
Non-controlling
interests Total Net worth
M$ M$ M$ M$ M$ M$ M$ M$
Opening Balance at January 1, 2014 191.915.421 664.534.946 179.920.314 (108.320.792) 516.905.461 1.444.955.350 439.378 1.445.394.728
Other comprehensive income - - - 44.234.427 - 44.234.427 56.261 44.290.688
Net Income - - - - 126.896.560 126.896.560 11.452 126.908.012
Total comprehensive income - - - 44.234.427 126.896.560 171.130.987 67.713 171.198.700
Fusion Effect 4.084.045 (445.169.215) (18.469.441) 9.528.599 272.616.391 (177.409.621) (99.049) (177.508.670)
Equity method - - - (122.612) - (122.612) - (122.612)
Dividends declared - - - - (100.000.000) (100.000.000) - (100.000.000)
Total Equity increase (decrease) 4.084.045 (445.169.215) (18.469.441) 53.640.414 299.512.951 (106.401.246) (31.336) (106.432.582)
Ending balance at December 31, 2014 195.999.466 219.365.731 161.450.873 (54.680.378) 816.418.412 1.338.554.104 408.042 1.338.962.146
The accompanying notes are an integral part of these consolidated financial statements
Sylvia Escovar Gómez
Legal Representative
Issued Capital Other Reserves
Julián Andrés Viracachá M. Milton Alejandro Garzón Forero
Accountant Fiscal Auditor
T.P. 144154-T T.P. 92144-T
Member of KPMG Ltda.
(See my report of Feburary 23, 2016)
12
December 31, 2015 Capital en
acciones
Prima de
emisión
Legal and
statutory
reserves
Surplus equity
method
Reserves
Employee
Benefits
Retained
earnings
Net worth
attributable to
owners
Non-controlling
interests
Total Net
Worth
M$ M$ M$ M$ M$ M$ M$ M$ M$
Opening Balance at January 1, 2015 195.999.466 219.365.731 161.450.873 (54.680.378) - 816.418.412 1.338.554.104 408.042 1.338.962.146
Other comprehensive income - - - 79.956.519 5.656 - 79.962.175 61.653 80.023.828
Net Income - - - - - 105.958.219 105.958.219 62.529 106.020.748
Total comprehensive income 79.956.519 5.656 105.958.219 185.920.394 124.182 186.044.576
Equity method - - - 1.784.901 - (33.736) 1.751.165 - 1.751.165
Reserve releases - - (5.875.545) - - 5.875.545 - - -
Dividends declared - - - - - (62.711.194) (62.711.194) - (62.711.194)
Total Equity increase (decrease) - - (5.875.545) 81.741.420 5.656 49.088.834 124.960.365 124.182 125.084.547
Ending balance at December 31, 2015 195.999.466 219.365.731 155.575.328 27.061.042 5.656 865.507.246 1.463.514.469 532.224 1.464.046.693
The accompanying notes are an integral part of these consolidated financial statements
Sylvia Escovar Gómez
Legal Representative
Capital emitido Otras reservas
(See my report of Feburary 23, 2016)
Member of KPMG Ltda.
Julián Andrés Viracachá M. Milton Alejandro Garzón Forero
Accountant Fiscal Auditor
T.P. 144154-T T.P. 92144-T
13
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Consolidated statements of cash flows, direct method
for the fiscal year ending on December 31, 2015 and 2014
2015 2014
M$ M$
Cash Flows from Operating Activities:
Payments from sales of good and services 14.399.660.249 14.636.571.392
Payments from premium and benefits, annuity and others 680.579 591.418
Other payments from Operating Activities 13.761.949 8.389.722
Payment to suppliers for goods and services (13.667.074.454) (13.931.368.337)
Payments to employees or on behalf of employees (110.383.023) (102.272.427)
Payments to premium and benefits, annuity (8.075.448) (7.853.104)
and other policy benefits
Other payments from Operating Activities (13.149.169) (8.248.994)
Dividends received 1.353.299 1.358.522
Interest payments (339.876) (490.358)
Interest received 5.323.093 4.729.173
Income taxes paid (153.672.563) (174.796.505)
Others cash inflow (outflow) (1.063.467) 2.301.615
Net Cash Flow from Operating Activities 467.021.169 428.912.117
Cash Flows from Investing Activities:
Proceeds from sales of properties, plants and equipment 3.889.930 4.059.185
Purchase from sales of properties, plants and equipment (321.370.432) (213.371.319)
Purchase of intangible assets (79.154.997) (81.602.531)
Cash advances and loans made to a third-party (2.753.507) (3.471.041)
Interest received 4.315.814 3.096.437
Others cash inflow 1.228.152 17.893
Net Cash Flow from Investing Activities (393.845.040) (291.271.376)
Cash Flows from Financing Activities:
Borrow from related entities 567.266 599.032
Proceeds from long term borrowings 469.107.715 17.762.077
Proceeds from short term borrowings 168.007.820 214.499.423
Payment of borrows (571.557.057) (213.850.677)
Payment of liabilities for leasing (5.511.405) (5.323.886)
Payment of dividends (62.689.708) (73.756.698)
nterest Paid (92.683.233) (62.418.476)
Others cash outflow (5.248.359) (4.949.374)
Net Cash Flow from Financing Activities (100.006.961) (127.438.579)
Net increase(decrease) in cash and cash equivalents
before the effect of changes in the exchange rate (26.830.832) 10.202.162
The effect of changes in the exchange rate in cash and cash equivalents 16.245.488 8.349.713
Net increase(decrease) in cash and cash equivalents (10.585.344) 18.551.875
Cash and cash equivalents at beginning of the year 298.577.233 280.025.358
Cash and cash equivalents at end of the year 287.991.889 298.577.233
The accompanying notes are an integral part of these consolidated financial statements.
Sylvia Escovar Gómez Julián Andrés Viracachá M.
Legal Representative Accountant
T.P. 144154-T
(See my report of Feburary 23, 2016)
Milton Alejandro Garzón Forero
Fiscal Auditor
T.P. 92144-T
Member of KPMG Ltda.
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
14
(Expressed in thousands of Colombian pesos, unless otherwise instructed)
Note 1. General information
Reporting entity
Terpel S.A. (herein after the “Company”) is a company with its registered office in Colombia.
The address of its registered office is Carrera 7 No. 75-51, in the city of Bogota, Colombia. The
company was incorporated in accordance with Colombian laws in November 2001 via public
instrument 6038 drawn up at the 6th Notary Public Office of Bogota circuit and its duration
expires on December 31, 2090.
The company's Consolidated financial statements up to December 2015 include the company
and its subordinates (together “the Group” and individually as “ entities of the group”), and also
the participation of the group in entities that control together. Subordinates, joint businesses and
percentages of participation are shown in note 2.4.
The company's main corporate object is to purchase, sell, any kind of acquisition, importation,
distribution and supply of hydrocarbons and their derivatives, as well as refining, transporting,
storing and packing. The object also includes the purchase, sale, importation, exportation,
distribution, supply, storage and transportation via land, the sea or rivers, via multi-purpose
pipelines, oil pipes, gas pipelines, propaneducts for natural gas or propane gas, or any other
combustible product derived or not from hydrocarbons.
Merging process
The general shareholders’ assembly of Organización Terpel S.A. In a meeting held on January
29th 2014 through minutes number 37 approved the merger by absorption presented by the
administration in which Organización Terpel S.A. is the absorbing company, and Proenergía
Internacional S.A., Sociedad de Inversiones de Energía S.A. and Terpel del Centro S.A. are the
absorbed companies. On August 1, 2014, the Colombian Superintendence of Finances
authorized the merger process into one company named “Organización Terpel S.A.,” through
resolution No. 1368. It authorized the merger project to form just one company which was Note
rized through public instrument No. 01320 drawn up at the 16th Public Notary Office of Bogota
Circuit on August 15, 2014.
Accordingly, it occurred that Proenergía Internacional S.A., Sociedad de Inversiones de Energía
S.A. and Terpel del Centro S.A. had a direct or indirect interest in Organización Terpel S.A. of
46.22%, 88.89% and 28.7%, respectively. Therefore, the structure the company chose was
named an ascending merger which is characterized when an affiliate company absorbs the parent
company. The net effect of the merger was M$177.508.668.
Note 2. Basis of preparation of financial statements
2.1. Technical standards framework
These Consolidated financial statements have been prepared in accordance with the accounting
and financial reporting standards accepted in Colombia (IFRS), established in law 1314 of 2009,
governed by single regulation decree number 2420 of 2015 modified by decree 2496 of 2015.
IFRS are based on International standards.
Note 2. Basis of preparation of financial statements, continued
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
15
2.1. Technical standards framework, continued
Financial reporting (IFRS), and the interpretations issued by the International Accounting
Standards Board – IASB; the basic rules correspond to the rules translated to Spanish and issued
on January 1, 2012 and the amendments made during 2012 by the IASB.
For legal purposes in Colombia, principal financial statements are separate financial statements.
These are the first consolidated financial statements prepared in accordance with the IFRS; to
make the conversion to the new technical standards framework, the company has contemplated
the exceptions and exemptions established in the IFRS 1- adopting the international financial
reporting standards described in note 37.
Until December 31, 2014, the group prepared its Consolidated financial statements in accordance
with generally accepted accounting principles (GAAP) in Colombia. This financial information
corresponds to prior periods included in these consolidated financial statements; it is to be used
for comparison, and it has been modified and presented in accordance with the new technical
standards framework. The effects of the changes between GAAP applied at the closing of the
fiscal year ending on December 31, 2013, and IFRS are explained in the detailed considerations
in note 37.
Consolidated financial statements and its attached notes were submitted before the audit
committee through minutes 41 of February 22, 2016. Likewise, they were approved by the board
of directors in accordance with minutes 183 of February 23, 2016 and by the legal representative
so that they may be submitted before the general shareholders’ assembly to be approved or
modified.
2.2. Measurement basis
The Group’s consolidated financial statements have been prepared based on historical cost.
Some of the group's assets, properties, plant and equipment were revalued in the catching up
process of the new technical standards framework. The preparation of consolidated financial
statements in accordance with IFRS requires the use of some critical accounting estimates. It
also requires the administration to apply its judgment in a process of implementing the group's
accounting policies.
Note 5 reveals the areas that imply a greater degree of judgment or complexity or the areas where
positions and estimates are significant for consolidated financial statements.
Note 2. Basis of preparation of financial statements, continued
2.3. Foreign currency transactions
• functional currency and presentation currency
The items included in the group's consolidated financial statements are expressed in the currency
of the primary economic environment of the place where the company operates (Colombian
pesos). Consolidated financial statements are presented "in thousands of Colombian pesos"
which is the group's functional and presentation currency. All the information is presented in
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
16
thousands of Colombian pesos and has been rounded off to the nearest unit (M$), except when
otherwise indicated.
• transactions and balances
Transaction in a currency which is not the functional currency of the company is converted to
the functional currency using the average types of exchange rates in effect on the date of a
transaction.
Balances of assets and liabilities given in foreign currency on the date of the report are converted
to the functional currency at the exchange rate on that date.
2.4. Basis of consolidation
The subordinates, joint businesses and their participation percentages are included in these
Consolidated financial statements as follows:
Note 2. Basis of preparation of financial statements, continued
2.4. Basis of consolidation, consolidation
Consolidated company
Taxpayer Identification
NumberDirect Indirect Total
Organización Terpel Chile S.A. 76004261-7 99,99 0,01 100,00
Inversiones Organización Terpel Chile S.A. 76127612-3 99,99 0,01 100,00
Lutexsa Industrial Comercial Cía Ltda. 990962170001 - 99,99 99,99
Combustibles Ecológicos Mexicanos S.A. de C.V. CEM970905VB3 96,67 - 96,67
Gazel Perú S.A.C. 20511995028 100,00 - 100,00
Petrolera Nacional S.A. 1019-225-108400 DV-92. 100,00 - 100,00
Orlyn S.A. 630483123250 - 100,00 100,00
Fuel Petroleum Service S.A. 466889-1-433695 - 100,00 100,00
Transmarine Transportation & Burging S.A. 227411-1-399369 - 100,00 100,00
Vonport Corp. 2564344-1-828346 - 100,00 100,00
Terpel Energía S.A.S. E.S.P (Antes Terpel
Combustibles S.A.S. en liquidación).900433032-9 100,00
- 100,00
Terpel República Dominicana S.R.L. 1-30-78033-1 100,00 - 100,00
Operaciones y Servicios de Combustibles S.A.S. 900491889-0 - 100,00 100,00
Masser S.A.S. (Antes Operaciones y Tiendas S.A.S.) 900761009-5 - 100,00 100,00
PGN Norte S.A.C. 20521921618 25,00 25,00 50,00
PGN Sur S.A.C. 20521021880 25,00 25,00 50,00
Adesgae Cia Ltda. 1792605504001 - 99,99 99,99
Percentage of Participation
31-12-2015
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
17
In 2015, the main variations of the consolidation perimeter correspond to:
• Adesgae Cia Ltda.: A subordinate of Lutexa Industrial Comercial Cía Ltda. which was
incorporated to manage the EDS' minority operations.
• GNC Inversiones S.A.S. (being liquidated): The general shareholders’ assembly in a
meeting on November 13, 2015 through minutes 15 approved the final payment of liabilities and
asset repossession to make definite the liquidation and cancellation of the company's business
registration. As a result of the liquidation of 100% of Gazel Peru S.A.C.'s shares and 82.21%
(96.67% running total) Combustibles Ecológicos Mexicanos S.A. de C.V.'s shares were
repossessed as equity repayment made to shareholder, Organización Terpel S.A.
• Terpel Energía S.A.S. E.S.P.: The General shareholders’ assembly in a meeting on
September 24, 2015, and through Minutes No. 10 decided to reactivate the Terpel Combustibles
S.A.S. company which is in liquidation changing the company name to Terpel Energía S.A.S.
E.S.P., whose main corporate purpose is to generate and commercialize electric Power.
Note 2. Basis of preparation of financial statements, continued
2.4. Basis of consolidation, continued
A) Subordinates
Consolidated company
Taxpayer Identification
NumberDirect Indirect Total
Organización Terpel Chile S.A. 76004261-7 99,99 0,01 100,00
Inversiones Organización Terpel Chile S.A. 76127612-3 99,99 0,01 100,00
Lutexsa Industrial Comercial Cía Ltda. 990962170001 - 99,99 99,99
GNC Inversiones S.A.S. (En Liquidación). 900.036.599-1 100,00 - 100,00
Combustibles Ecológicos Mexicanos S.A. de C.V. CEM970905VB3 14,46 82,21 96,67
Gazel Perú S.A.C. 20511995028 - 100,00 100,00
Petrolera Nacional S.A. 1019-225-108400 DV-92. 100,00 100,00
Orlyn S.A. 630483123250 - 100,00 100,00
Fuel Petroleum Service S.A. 466889-1-433695 - 100,00 100,00
Transmarine Transportation & Burging S.A. 227411-1-399369 - 100,00 100,00
Vonport Corp. 2564344-1-828346 - 100,00 100,00
Terpel Energía S.A.S. E.S.P (Antes Terpel
Combustibles S.A.S. en liquidación).900433032-9 100,00 - 100,00
Terpel República Dominicana S.R.L. 1-30-78033-1 100,00 - 100,00
Operaciones y Servicios de Combustibles S.A.S. 900491889-0 48,39 51,61 100,00
Masser S.A.S (Antes Operaciones y Tiendas S.A.S.). 900761009-5 - 100,00 100,00
PGN Norte S.A.C. 20521921618 25,00 25,00 50,00
PGN Sur S.A.C. 20521021880 25,00 25,00 50,00
Percentage of Participation
31-12-2014
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
18
Subordinates are entities controlled by the group. The group controls an acquired company when
it is exposed or has a right to variable yields resulting from its implication in the acquired
company and has the capability of influencing those yields using its power on the acquired
company. The subordinate company’s financial statements are included in consolidated financial
statements from the date when the company took control until the end of that control.
b) losing control
When there is a loss of control, the group derecognizes its accounting subordinate's assets and
liabilities, non-controlling participations, other component of the equity related to the
subordinate. Any profit or loss resulting from a loss of control is recognized in the results. The
group keeps some participation in the above subordinate, it will be valuated at the fair value on
the date the group loses control. Afterwards, this participation the company keeps will be
accounted for by the equity method, or as a non-derivative financial asset (see Note 3 (a.1)),
depending on the level of influence the group has kept.
c) participation in investments accounted by the equity method
The Group's participation in investments accounted by the equity method includes participation
in joint businesses. A joint business is an agreement in which the group has joint control of the
business or when the group only has rights to the net assets of the agreement and no rights to its
assets and obligations for its liabilities.
Joint business Investments are initially recognized at cost, and then, depending on the equity
method. Investment costs include transaction costs.
Consolidated financial statements include the group's participation in profits or losses and other
comprehensive income accounted by the group's equity method after making adjustments to
align the business' accounting policies with the group's from the date on which a significant
influence begins until it ends. When the Group share of losses exceeds the group's equity in an
investment recognized by the equity method, the carrying value of this equity including any
long-term investment is reduced to zero, and the group stops recognizing any other losses except
when the group has an obligation or has made payments on behalf of the company it has a stake
in.
d) transactions eliminated in the consolidation
The balances and transactions conducted with other entities of the group including any
unrealized income or expense arising from those transactions are eliminated in the process of
Note 2. Basis of preparation of financial statements, continued
2.4. Basis of consolidation, continued
d) transactions eliminated in the consolidation, continued
consolidation. Unrealized earnings resulting from transactions with companies whose
investment is recognized by the equity method are eliminated from the investment in proportion
to the group's interest. Unrealized losses are eliminated in the same manner as unrealized
earnings, yet it is done in as much as that there is no evidence of impairment.
e) The Group's Entities
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
19
The income and the financial situation of all of the group's entities which have a functional
currency different from the presentation currency are translated to the presentation currency as
follows:
- assets and liabilities are translated to the exchange rate in effect on the date of the
statement of financial position.
- the earnings and expenses of each of the income accounts are translated to the average
exchange rates unless it is not a fair approximation.
The difference resulting from applying at the closing of each fiscal year the exchange rates in
effect and to income and expenses average exchange rates are recognized in equity as a
difference in translation and on the other comprehensive income.
A subordinate's cash flow in foreign currency will be converted at the average exchange rate for
the term reported. Received and paid dividends will be converted at the exchange rate on the day
the cash flow took place.
When the group loses control of a foreign business, a significant influence or joint control, by
the company's disposition, the amount corresponding to the foreign currency translation reserve
(FCTR) is transferred to income as part of a profit or loss by elimination. When one of the
subordinates has a partial disposition which includes an operation abroad but still keeps control,
the share corresponding to this cumulative amount of uncontrolled interest is reassigned.
When the group alienates just part of its investment in an associate or joint business which
includes an operation abroad but still keep significant influence or joint control, the share
corresponding to the total amount is reclassified as income.|.
Note 3. Applied accounting criteria
The accounting policies established herein have been applied consistently in the preparation of
the consolidated statement of the opening financial position and of consolidated financial
statements
Note 3. Applied accounting criteria, continued
Prepared in accordance with the accounting and the financial information standards accepted in
Colombia (in Spanish, CASIFRS), unless indicated otherwise.
a) Financial assets and liabilities
Initially, the group recognizes loans and receivables and debt securities issued on the date they
originate.
The group derecognizes a financial asset when contractual rights expire on the cash flows of the
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
20
financial asset, or when it transfers the right to receive contractual cash flows in a transaction in
which all risks and advantages of the ownership of the financial asset are substantially
transferred, or not transferred and does not keep all the risks and advantages related to the
ownership and has no control of the transferred assets.
The group derecognizes a financial liability when its contractual obligations are paid or
cancelled, or which may have expired.
A financial asset and a financial liability will be a balancing object in such a way that its net
value is presented in the consolidated statement of the financial position, only and only if, the
group has the enforceable right to compensate the value is recognized and has the intention to
liquidate it by the net value, or realize the asset and settle the liability simultaneously.
(a.1) designation, recognition and measurement
The group designated its Financial Assets into the following categories: A fair value at an
amortized cost. The assignation was determined based on the entity's business model to manage
its financial instruments and the characteristics of their contractual cash flows.
(a.1.1) fair price
• financial assets at a fair price with a change in results
financial assets at a fair price with a change in results are financial assets kept to negotiate. A
financial asset is classified in this category if it is mainly acquired to be sold in the short-term.
Financial derivatives are also designated as acquired for trading, unless they are designated as
accounting hedges. Financial Assets in this category are designated as current assets.
(a.1.2) amortized cost
• loans and receivables
These are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market, which are not intended for trading in the short-term. They are included in
Note 3. Applied accounting criteria, continued
(a.1.2) amortized cost, continued
current assets except those maturing more than twelve months from date of the consolidated
statement of financial position which are designated as non-current assets. At first, these assets
are recognized for their fair value, and later for their amortized cost using the effective interest
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
21
method. Nevertheless, business operation credits maturing in under a year and which do not have
contractual interests, and personal credits, dividends receivable and capital calls on equity
instruments, the amount of which the company expects to receive in the short term, can be
valuated for their nominal value when the effect of not updating cash flows is not significant.
• non derivative Financial liabilities
the Group designates non derivative Financial liabilities in the other Financial liabilities
category. At first, these held Financial liabilities are recognized at fair value plus any directly
attributable transaction costs. After the initial recognition, these Financial liabilities are valued
at the amortized cost using the effective interest method.
Trading operation liabilities maturing in over a year and which do not have contractual interest,
the amount of which the company expects to pay in the short-term can be evaluated for their
nominal value when the effect of not updating cash flows is not significant.
Other Financial liabilities consist of loans and obligations, issued debt securities, commercial
accounts payable and other accounts payable. Bank overdrafts are payable on demand, are an
integrated part of the group's cash management, are included as a cash component and cash
equivalents for the cash flow statement.
b) Issued capital
Share capital consists of common shares which are recorded under equity (see Note 25).
c) Inventories
Inventories are valuated at cost or at the net realizable value, whichever is less. Inventory costs
are based on a weighted average. Regarding manufactured products and products being
processed, general production costs are based on a normal operating capacity, but does not
include interest costs or the difference in change; these are recognized in the results of the
corresponding period.
the net realizable value is the sales value estimated during the normal course of business, without
finishing costs and the costs estimated necessary to make a sale.
Note 3. Applied accounting criteria, continued
d) Intangible assets not capital gain
(d.1) computer programs
The licenses acquired for computer programs are capitalized based on the cost the company
incurs in to acquire and prepare them to be used in a specific program.
Expenses related to computer program maintenance are recognized as an expense when the
company incurs in them. Costs directly related to the development of exclusive identifiable
controlled computer programs will probably generate economic benefits surpassing the cost for
more than one year are recognized as intangible assets. Direct costs include the expenses of the
personnel developing the computer programs and an adequate percentage of general expenses.
The cost of the development of computer programs recognized as assets are amortized during
their estimated useful lives, which do not surpass 5 years.
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
22
(d.2) flagging and conversion rights
While conducting its operations, the group incurs in costs to acquire customer relationships.
These calls respond individually or jointly to any of the following situations:
• Cash disbursement (a capital premium).
• contribution to upgrade service stations.
• delivery of equipment or items for service stations.
• contribution to convert gasoline engines to gas.
After executing these costs, the company signs contracts with third-party beneficiaries of these
payments; obtaining a flagging right with which it may exhibit the names of the group's brands
in service stations and the exclusivity of the sale of products to service station owners (retailers)
and the owners of vehicles who transformed to gas.
Equipment and items delivered to customers are to be used solely to exploit the Terpel brand
during the term of the contract.
(d.3) other intangible assets
other intangible assets the group acquires and which have a definite useful life are valued at cost
minus the cumulative amortization and accumulated losses resulting from impairment.
(d.4) subsequent expenditures
subsequent expenditures are only capitalized when economic benefits increase
Note 3. Applied accounting criteria, continued
d) Intangible assets not capital gain, continued
(d.4) subsequent expenditures, continued
futures are incorporated into the specific asset related to them. All other disbursements including
disbursements to generate capital gains and brands internally are recognized in the results when
the company incurs in them
(d.5) Amortization
Amortization is based on the cost of an asset. Intangible assets are amortized in the results based
on a linear amortization method during the estimated useful life of intangible assets, except
capital gain.
The estimated useful life for the periods presented in consolidated statement of the financial
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
23
position are as follows:
• computer programs 3 - 5 years
• other intangible assets 8 - 12 years
• flagging rights 3 – 10 years
flagging rights are amortized in accordance with a calculated rate between the values purchased
by a service station and the volume to which they are contractually committed. For conversions,
it is the relation between real consumption and consumptions to which they are contractually
committed. Amortization methods utilized and residual values are revised in each Financial year,
and they are adjusted if necessary.
e) Capital gain
The capital gain which arises during the acquisition of subordinates is included in the intangible
assets. Capital gain is valued at cost minus accumulated impairment losses. Regarding the
Investments accounted in accordance with the equity method, the carrying value of the capital
gain is included in the carrying value of the investment, and any impairment loss is distributed
to the carrying value of the investment accounted in accordance with the equity method as a
whole.
Capital gain is assigned to the cash generating units (CGU), to test impairment losses. The
assignment is conducted in those CGUs which are expected to benefit from the business
combination in which that capital gain arose.
f) Impairment
(f.1) non derivative financial assets
A financial asset which is not recorded at a fair value with changes in results including an interest
in an investment accounted under the equity method is valuated on the date of each financial
position statement to determine if there is objective evidence of impairment. A financial asset is
impaired if there is objective evidence of impairment resulting from one or more loss events
which occurred after
Note 3. Applied accounting criteria, continued
f) Impairment, continued
(f.1) non derivative financial assets, continued
The initial recognition of the asset, and that or those loss events have had a negative effect on
future cash flows of the asset which may be estimated reliably.
The objective evidence that the financial assets are impaired includes an evaluation of the
historical trend of non-compliance probabilities, an opportunity to recover and the sum of the
loss incurred, adjusted according to the criteria of management related to current economic and
credit conditions make it likely that the real losses will be higher or lower than those suggested
by historical trends.
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
24
When evaluating impairment, the Group considers the following among other aspects:
• Existence of a debtor's significant financial difficulties.
• probability that the group will not receive payments in accordance with original sales
terms.
• probabilities that the debtor may go bankrupt or enter into financial reorganization.
• defaults or arrears on payments, or
• When the group has exhausted all collection instances of a debt in a reasonable lapse of
time.
Losses are recognized in results and are reflected in an accounting provision against loans and
receivables or investment instruments measured at fair value. Interest on unimpaired assets
continues being recognized. When an event happens after an impairment, interests continue to
be recognized. When an event occurs after an impairment has been recognized, it decreases in
the amount of impairment loss, and introverts affecting the results of the period.
(f.2) non-financial assets
The accounting value of the group's non-financial assets, among them some assets of properties,
the plant, equipment, Inventories and deferred taxes are reviewed on the date of each
consolidated statement of financial position to determine if there is any sign of impairment. Then,
if there are signs of impairment, the company estimates the recoverable amount of that asset.
Intangible assets with an indefinite useful life are evaluated yearly. An impairment loss is
recognized if the carrying value of an asset or of the cash generating unit (CGU) it is assigned
to exceeds its recoverable value.
The recoverable amount of an asset or of a CGU is the highest value between value in use and
its fair value minus sales cost. To determine the value in use, two major future cash flows are
discounted from its present value using a discount rate that reflects current market evaluations
on the temporary value of money and the specific risks that the asset or CGU may have. For
impairment evaluation purposes, the assets that cannot be tested individually or grouped in the
smallest group of assets which generate cash flows from continuous use are
Note 3. Applied accounting criteria, continued
f) Impairment, continued
(f.2) non-financial assets, continued
independent of the cash inflows from other assets or CGUs. Impairment losses are recognized in
the results. On the other hand, impairment losses recognized related to CGUs are assigned first
to reduce the carrying value of any capital gain assigned in the units (or CGU groups), and then
reduce the carrying value of other assets in the unit (or CGU groups) on a pro rata basis. An
impairment loss related to capital gain is not reversed. For other assets, an impairment loss in as
much as that the carrying value of an asset does not exceed the determined carrying value, net
of depreciation or amortization if no impairment loss were recognized.
g) Properties, plant and equipment
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
25
It mainly includes land, plant and equipment, buildings and ongoing constructions. The items of
the properties, plant and equipment are recognized for their cost minus the accumulated
depreciation and impairment losses. The costs include amounts that are directly attributable to
the acquisition of the asset.
The cost of the properties, plant and equipment was determined in reference to the revaluation
of previous GAAP. Brooke decided to apply an optional exemption to use this revaluation as an
attributed cost on January 1, 2014, which is the transition date. (See Note 37- 4.3b). Further
measurement of the items above the properties, plant and equipment is at cost.
Further costs are included in the initial value of the asset or are recognized as a separate asset
only when it is probable that future economic benefits associated to the items of the properties,
plant and equipment will flow to the group, and the cost of the item can be determined reliably.
Maintenance work or major equipment repairs, in which there are important replacement parts
will be capitalized if it is possible to identify in accounting the equipment subject to the repair
so that equipment repaired can be derecognized as new equipment and the cost the company
incurred in; on the other hand, they are recognized in the income statement as an expense of the
period in which it was incurred.
the items of the properties, plant and equipment depreciate from the date they are installed and
made ready to use, or in case of assets constructed internally from the date on which the asset is
completed and it is in conditions to be used, using a linear method based on the estimated useful
life of each component. Land does not depreciate.
The estimated useful life for current periods comparative of significant line items of properties,
plant and equipment are as follows:
Note 3. Applied accounting criteria, continued
g) Properties, plant and equipment, continued
Constructions and buildings 50 years
Plants and equipment
Oil piplines, plant and network 50 years
Machinery and equipment – Tanks in supply plant 50 years
Machinery and equipment – Tanks located in EDS 30 years
Machinery and equipment – Unlike tanks located in the plants 20 years
Machinery and equipment – Unlike tanks located in EDS 15 years
Fixed installations and accessories, net
Furniture and Fixtures, and office equipment 10 years
Technology equipment, net
Computing and Telecommunication equipment 5 years
Medical-scientific equipment 5 years
Automotive equipment, net
Transport fleet and equipment different from Refueller 5 years
Transport fleet and equipment for Refueller 12 years
Fluvial transport fleet and equipment 5 years
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
26
Depreciation method, useful lives and residual values are revised in each fiscal year and they are
adjusted if necessary.
Losses and profits from the sale of fixed assets are calculated comparing income obtained with
net carrying value. These are included in the statement of income.
g) Investment properties
Investment properties is real estate held for the purpose of obtaining income by leasing it or to obtain
capital appreciation of an investment or both things at the same time, yet the properties are not to be
sold during the normal course of business, and in the supply of goods or services, or administrative
purposes. Investment properties are valued under the cost model.
The cost includes the mountains that are directly attributable to the acquisition of an investment
property.
Any profit or loss for the sale of an investment (estimated as the difference between the obtained
sales price, availability and the carrying value of the item) is recognized in the results.
When the use of real estate changes, it is reclassified as properties, plant and equipment, its
carrying value on the date of the reclassification becomes its cost for subsequent accounting.
h) Accounting provisions
The group recognizes an accounting provision if as a result of a past event, it has a legal or implicit
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
may be necessary to liquidate the obligation. Accounting Provisions are
Note 3. Applied accounting criteria, continued
i) Accounting provisions, continued
It determines a discount in future expected cash flow from the interest rate that the current market
evaluation reflects on the value of money in time and the specific risks of the obligation. The
reversal of the effect of that discount is recognized as a financial cost.
j) Employee benefits
Short-term employee benefit obligations are measured using a non-discounted base and are
recognized as expenses in as much as that a related service is provided. An obligation is
recognized by the amount the company expects to pay under short-term cash bonds or employee
participation plans in profits if the group has plans for employee participation in profits, and if
the group has a current legal or constructive obligation to pay this amount as a result of a service
provided by an employee in the past, and the obligation can be reliably estimated.
(j.1) retirement pensions
The obligation for retirement pensions represents the present value of all future expenditures
that the group must pay those employees who fulfill certain requirements of the law regarding
age, time on the job and others, and it is determined based on actuarial studies and prepared in
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
27
compliance with legal standards.
(j.2) workers' vacation
The expense for workers vacation is recognized using the accrual method, and it is recorded at
its nominal value.
(j.3) bonds
An expense for bonds is recognized when there is a decision made by the management making
bonds effective. A provision is recognized when the group is contractually obligated or when
practice in the past has created a constructive obligation and when a reliable estimate of the
obligation can be conducted.
Note 23 presents the amount corresponding to the obligations of employees' benefits.
k) Classification of current and non-current balances
The group presents as separate categories in consolidated statement of financial position current
and non-current assets, current and non-current liabilities. Consolidated statement of financial
position, the company designates assets and liabilities depending on their maturity. Current
assets and liabilities must fulfill the Following conditions:
• It is expected to realize the asset and settle the liability in its normal operating cycle,
12 months starting on the date of its liquidation.
• this assets or liabilities are mainly held for negotiation purposes.
Note 3. Applied accounting criteria, continued
k) Classification of current and non-current balances, continued
a. An asset is cash or cash equivalent unless it is restricted and cannot be exchanged or
used to pay a liability for a minimum 12-month fiscal year after the fiscal year it reports.
b. it does not have an unconditional right to postpone the payment of a liability during at
least the 12 months following tne date of period being reported.
All the other headings will be designated as non-current assets and liabilities. Deferred tax
assets or liabilities are designated as non-current.
l) Income tax and deferred taxes
Income tax expenses consist of a current tax and a deferred tax. Current and deferred taxes are
recognized in the results.
(l.1) current tax
An expense or income from taxes consists of an income tax and a current and deferred tax for
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
28
equality.
A current tax is the amount to pay or recover for income tax and equality tax (in Spanish, CREE).
Taxes are calculated based on enacted tax laws or substantially enacted on the date of the financial
position statement. General management regularly evaluates the position assumed income tax
returns regarding situations in which tax laws are the object of interpretation, and if necessary, it
establishes accounting provisions regarding the amounts it expects to pay tax authorities.
(l.2) deferred tax
A deferred tax is recognized by the existing temporary differences between the carrying value of
assets and liabilities for financial information purposes and the amount used for tax purposes. A
deferred tax is not recognized by existing temporary differences between the carrying value of
assets and liabilities for financial information purposes and the amount used for tax purposes. A
deferred tax is not recognized for:
• the initial recognition of an asset or a liability in a transaction that is not a business
combination, and which did not affect either the profits or accounting or taxable losses.
• differences related to investments in subordinates, associates, orange joint businesses
and as much as the group gun control when reversing the temporary differences, and they will
not probably be reversed in the future.
• the temporary taxable differences which arise from the initial recognition of a capital
gain.
Measuring deferred taxes reflects the fiscal consequences which would derive from the way the
entity expects to recover or liquidate the amount in the carrying value of its assets and liabilities
at the end of the period being reported.
Note 3. Applied accounting criteria, continued
l) Income tax and deferred taxes, continued
(l.2) deferred tax, continued
A deferred tax is is recognized taxable rates expected to apply to Temporary differences when
they are reversed based on the laws that have been approved or which are about to be approved
on the date of the statement of financial position.
A deferred tax asset is recognized by a non-used tax loss, tax credits and temporary deductible
differences in as much as that it is probable that its future taxable earnings will be available to
be used against them. A deferred tax asset is revised on every date of the statement of financial
position and it is reduced in as much as that it is not probable to realize benefits for related
taxes.
Distribution of dividends
The distribution of dividends the company's shareholders is recognized as a liability in the fiscal
year in which the Dividends are approved by the company's shareholders.
Income recognition
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
29
(n.1) sales of goods
Earnings from the sale of goods during the course of ordinary business are recognized at a fair value
of the consideration received or which will be received, net refunds, discounts, bonds or commercial
discounts. Earnings are recognized when the derivative risks and significant advantages of the
ownership of the goods are transferred to the customer, and it is probable that economic benefits
associated with a transaction, cost incurred or which will be incurred in so that the transaction can
be measured reliably and the group does not hold for itself any implication in the current
management of the sold goods.
(n.2) sale of services
Income from providing services is recognized in the results of the period once the services have
been provided.
(n.3) interest income
Interest income is recognized using the effective interest method.
(n.4) dividend income
dividend income is recognized when the right to receive a payment is established.
Note 3. Applied accounting criteria, continued
l) Expenses by function
In consolidated statements of income (results), expenses are designated in accordance with their
function as part of the sales cost, and the costs of distribution and administration operations
revealing separately sales from other expenses. The costs of distribution operations are those in
which the company incurs to sell the group's products and services.
m) Leases
(p.1) leased assets
Agreement to lease goods which substantially transfer to the group all the risks and advantages
related to ownership are designated financial leases. In the initial recognition, a lease is measured
at the lowest value between its fair value and the present value of minimum lease payments.
Assets held on the other leases are designated as operating leases and they are not recognized in
the Group's consolidated statement of financial position.
(p.2) lease payments
Payments made on the operating leases are recognized in the results under the lineal method
during the duration of the lease.
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
30
Payments made under a financial lease are distributed among financial expenses which are
recorded in the results, and a decrease in outstanding liabilities.
(p.3) determining if an agreement contains a lease
When a contract is described, the group determines if the contract corresponds to or contains a
lease, and if the following two criteria are met, it will be as follows:
• the performance of the contract depends on the use of a specific asset or specific assets;
• the contract contains a right to use an asset or assets.
When describing or reevaluating a contract, the group separates payments and other
considerations required by the contract among which they correspond to a lease and are related
with other elements based on relative fair values.
(p.3) determining if an agreement contains at lease
If the group concludes that financial lease it is impractical to separate payments reliably, an asset
and a liability are recognized for the amount equal to the fair value of the underlying asset.
Afterwards, the liability is decreased as payments are made
Note 3. Applied accounting criteria, continued
p) Leases
(p.3) determining if an agreement contains a lease, continued
and the financial cost allocated to a liability using an incremental interest rate is recognized
q) Consolidated statement of cash flows
A consolidated statement of cash flows gathers all the cash movements made during a fiscal
year, determined by the direct method. In consolidated statement of cash flows, the following
expressions are used:
• cash flows: Cash inflows and outflows or other equivalent terms, which are highly liquid
in nature with an original 3-month term or less and subject to an insignificant risk of value
changes.
• operating activities: They are activities that constitute the Group's main source of
ordinary income, and other activities that cannot be designated as investment or financing.
• Investment activities: This is an acquisition, transfer, alienation or disposal using other
means of non-current assets and other investments not included in cash and cash equivalents.
• financing activities: Activities that produce changes in size and the composition of total
equity and financial liabilities.
In addition, overdrafts will be part of cash management. Therefore, they are included as components
of cash or cash equivalents with their corresponding disclosure.
Interests and dividends
Regarding the presentation of Consolidated cash flows, the group designates cash flows
corresponding to interest as operating activities, investment activities or financing activities
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
31
depending on the origin provided that the origin of each transaction can be identified. In general, the
obligations acquired are destined to cover the Group's operating-activity obligations. Interests paid
in a period will be revealed including those which have been recognized as an expense in the result
of the period or the ones that have been capitalized in accordance with the guidelines established in
IAS 23-Borrowing costs.
Paid dividends are designated in the cash flow of financing activities in accordance with information
reporting guidelines of the parent company.
r) Cash and cash equivalents
Cash and cash equivalents include cash in hand, term deposits in credit entities, other highly liquid
short-term investments with an original 3-month or less maturity. In addition, overdrafts will be part
of cash management. Therefore, they are included as cash components and cash equivalents with
their corresponding disclosure.
Note 3. Applied accounting criteria, continued
s) Borrowing costs
General and specific debt interest costs are directly attributable to acquisition, construction or
production of qualified assets which are assets that require a substantial period before being ready
for the use which they are destined to or a sale, added to the costs of these assets up to the moment
in which those assets are prepared for their intended use or sale. When there are earnings from
investments obtained from the temporary investment of specific loans, the company has to invest in
qualified assets. They are deduced from interest costs eligible for capitalization.
All other interest costs are recognized as income or expenses in the period in which the company
incurs.
t) Earnings per share
The group calculates basic earnings per share, finds the quotient between net earnings (loss) of the
period attributable to the company and the weighted average number of outstanding ordinary shares
of a company during the same period.
Potential ordinary shares will be treated as diluted when and only when, their translation to ordinary
shares could reduce earnings per share of the activities which continue.
When the potential ordinary shares of subordinates, a joint business or of the associates have a diluted
effect on earnings per basic share of the organization, they must be included in the estimate of
earnings per diluted shares.
u) Operation segments
Operation segments
An operation segment is a component of the company in view:
• that the company conducts business operations from which it can obtain earnings from
ordinary activities and incur in expenses (including earnings from ordinary activities and
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
32
the expenses for transactions with other components belonging to the company itself).
• that the operating results are regulated by the maximum decision-making authority for
the operation of the entity, to decide about the resources which must be assigned to the
segment and evaluate performance.
• that there is discrete financial information available.
The operation segment has a person in charge who is directly accountable to the maximum
Authority in decision-making of the operation, and regularly stays in contact the authority
to discuss operation activities, financial results, and forecasts for segment plans. This
segment the group defined is detailed in Note 29.
Note 3. Applied accounting criteria, continued
v) New standards and interpretations not adopted yet
i. new applicable standards starting on January 1, 2016.
On December 14, 2015, decreed 2420 was issued, “Single Regulatory Decree of the accounting
financial information standards and the assurance of information and other Provisions are
issued” (modified by decree 2496 of December 2015), and it includes the standards that have
been issued by the IASB and adopted in Colombia and which will be in effect starting on January
1, 2016.
Financial
Information
Standard
Subject of the
amendment
Detail
IFRIC 21 –
Encumbrances
(May of 2013)
Interpretation of IAS
37
Contributes a guide regarding the cases in which a
liability must be recognized for encumbrances in
accordance to what is set forth in IAS 37. The
IFRIC can be applied to any situation that generates
a current obligation to pay taxes or encumbrances
to the government.
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
33
Yearly improvements
2010 – 2012 Cycle
(December 2013)
These amendments
reflect subjects
discussed by the
IASB, which were
later on included as
IFRS modifications
IFRS 2 - payments based on shares: Definition
of the conditions of the acquisition of rights.
IFRS 3 - Business combinations: Accounting
of contingent considerations in a business
combination.
IFRS 8 - Operation segments: Auditioning of
operation segments and considering the total
assets of the reportable segments of the
entities’ assets.
IAS 16 - Properties, plant and equipment /
Yearly improvements
2010 – 2012 Cycle
(December 2013)
These amendments
reflect subjects
discussed by
IASB, which were
later on included as
IFRS modifications
IAS 38 - Intangible assets: revaluation
method- proportional method to re-express
cumulative depreciation.
IAS 24 - information to be disclosed by
related parties: key executive personnel.
IAS 38 - Intangible asset module of the
revaluation.
Note 3. Applied accounting criteria, continued
w) New standards and interpretations not adopted yet, continued
Other Issued Standards
According to what is established in decree 2496 of December 2015, the following are the
applicable standards issued in 2017 (except for IFRS 15, applicable on January 1, 2018).
Financial
Information
Standard
Subject of the amendment
Detail
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
34
IAS 1 –
Presentation of
financial
statements
Disclosure initiative.
Regarding the presentation of
financial statements, an
amendment clarifies
disclosure requirements.
Some relevant matters indicated in the
amendments are as follows:
• requirements of materiality IAS 1.
• it indicates that the specific lines in the
income statement, of comprehensive results
and financial position changes which can be
disaggregated.
• flexibility regarding the order in which
they are presented in the notes of the
financial statements.
Yearly
improvements
2011 – 2013
Cycle
(December 2013)
The nature of yearly
improvements is to clear up or
correct, and they do not
propose new principles or
changes to the existing ones.
IFRS 3 - business combinations: Scope
Exceptions for mixed Enterprises and the scope
of application of paragraph 52 (accept portfolio);
and
IFRS 13 - fair value measurement,
compensation of financial assets and
liabilities related to the market risk or the
counterpart's credit risk.
IAS 40 - Investment properties:
Clarification of the inter relation of IFRS
3 business combinations and IAS 40
Investment properties when designating
the property as an investment property or
investment properties.
IAS 16 -
Properties, plant
and equipment
Clarifying acceptable
depreciation methods Entities are not allowed to use a depreciation
method based on income for the items of
property, and equipment.
Note 3. Applied accounting criteria, continued
x) New standards and interpretations not adopted yet, continued
ii. Other standards issued, continued
Financial
Information
Standard
Subject of the amendment
Detail
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
35
IFRS 9 –
Financial
instruments
Financial instruments (in its
2014 revised version).
The replacement project refers to the
following phases:
• Phase 1: Classification and
measurement of financial assets and
liabilities.
• Phase 2: Impairment methodology.
• Phase 3: Hedging accounting.
In July 2014, IASB form of the accounting of
financial instruments completed the reform of
the accounting of financial instruments and
issued IFRS 9 - financial instrument
accounting (in its 2014 revised version),
which will replace IAS 39
IFRS 11 – Joint
operations
Accounting for acquisitions of
interest in joint operations.
Provides indications regarding the accounting
of the acquisition of an interest in a joint
operation which has activities that constitute a
business, in accordance with the definition of
IFRS 3 - business combinations.
Entities must implement the modifications
prospectively of the acquisitions of interests
in joint operations (into which the activities of
the joint operations constitute a business in
accordance with what is defined in IFRS 3).
IFRS 14 –
deferred
regulatory
accounts
Deferral accounts of regulated
activities. It is an optional standard that allows an entity
when it adopts for the first time the IFRS and
whose activities are subject to the regulation
of rates, to continue applying most of the
above accounting policies for regulated
deferred accounts.
Note 3. Applied accounting criteria, continued
y) New standards and interpretations not adopted yet, continued
ii. Other standards issued, continued
Financial
Information
Standard
Subject of the amendment
Detail
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
36
IFRS 10 -
consolidated
financial
statements
IFRS 12 -
information to
disclose
regarding
interests in other
entities
IAS 28 -
Investment
entities
Application of the exception for
consolidation. It clarifies that the exception of the
preparation of Consolidated financial
statements applies for a controlling entity
which is the subordinate of an investment
when the investment entity measures all
its subordinates at a fair value in
accordance with IFRS 10.
It allows an investor in an associate or a
joint business the application of the
equity method if it is a subordinate of an
investment entity that measures all its
subordinates at a fair value.
IAS 38 –
Intangible assets
Clarifying acceptable
amortization methods.
It establishes conditions related to the
amortization of intangible assets as:
a) when an intangible asset is expressed
as a measure of income.
b) when it can be demonstrated that the
income and the consumption of economic
benefits of the intangible assets are
closely related.
IFRS 10 -
Consolidated
financial
statements
IAS 28 -
Investment
entities
Sale or property contribution
between an investor and its
associate or joint business.
They deal with whatever is related to
IFRS 10 and IAS 28 in the treatment of
losing control of a subordinate which is
sold or contributed to an associate or a
joint business.
It clarifies that the earning or loss
resulting from the sale or contribution of
assets represents a business, as defined in
IFRS 3, between an investor and its
associate or joint business and is totally
recognized.
Note 3. Applied accounting criteria, continued
z) New standards and interpretations not adopted yet, continued
ii. Other standards issued, continued
Financial
Information
Standard
Subject of the amendment
Detail
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
37
IAS 27 - Separate
financial statements
Equity Method in separate
financial statements.
The use of the equity method is allowed to
account for Investments in subordinates,
joint businesses and associates in their
separate financial statements.
Modifications clarify that when a holding
entity ceases to be an investment entity or
becomes and investment entity the change
must be accounted for from the date on
which the change takes place.
IFRS 15 –
earnings from
contracts with
customers
earnings from contracts with
customers
It establishes a five-step model
applied to earnings from contracts
with customers.
It will replace the following standards and
the interpretations of income after the date
on which it comes into effect:
IAS 18 - Income;
IAS 11 - Construction contracts;
IFRIC 13 - customer loyalty
programs;
IFRIC 15 - real estate Construction
agreements;
IFRIC 18 - transfer of customers'
assets and
SIC 31 - barter transactions which
include advertising services.
Note 3. Applied accounting criteria, continued
v) New standards and interpretations not adopted yet, continued
ii. Other standards issued, continued
Financial
Information
Standard
Subject of the amendment
Detail
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
38
IAS 16 - properties,
plant and equipment
IAS 41 -
Agriculture
Producing plants.
It defines the concept of producing plant
and requires the biological assets that meet
this definition to be accounted as property,
plant and equipment in accordance with
IAS 16, instead of IAS 41. Regarding
modifications, producing plans can be
measured using the cost method or the
revaluation model established in IAS 16.
Products that grow in producing plans
continue being accounted for in compliance
with IAS 41.
Yearly
improvements
2012 - 2014 Cycle
These amendments reflect
subjects discussed by IASB,
which were later included as
IFRS modifications
- IFRS 5 - not current assets held for sale
and discontinued operations in asset
disposal method changes.
- IFRS 7 - financial instruments:
Information to disclose (with modifications
resulting from modifications to IFRS 1)
- modifications related to service contracts.
- applicability of modifications to IFRS 7 in
the disclosure of compensation on the
condensed intermediate financial
statements.
- IAS 19 - employees' benefits. Discount
rate: Regional market matters.
- IAS 34 - intermediate financial
information: Disclosure of information
included in any other place on the
intermediate financial report.
The group is evaluating the impact that these standards will have when they are put into effect.
Note 4. Financial Risk Management
The group is exposed to the following risks related to the use of financial instruments.
- market risk
- credit risk
- liquidity risk
This note presents information regarding the group's exposure to each one of the aforementioned risks,
and the group's purposes, policies and procedures to measure and manage risks, and manage the group's
capital.
Risk management framework
The board of directors of the company supervises the group's policies via its control body. These internal
policies seek to identify, analyze and monitor controls to mitigate financial, operational and compliance
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
39
risks. The group assures its compliance through its standards, management procedures and its good
corporate governance policies.
4.1. market risk
Risk management considers an individual analysis of each identified risk exposure situation; that analysis
determines if financial hedging instruments are contracted or not, if there are natural hedging
mechanisms, or simply, the company assumes the risk associated to not considering it critical for the
business and the operation.
a) foreign exchange risk
One of the market risks that the group faces is foreign exchange risk (peso/dollar), a product of
importation operations of lubricant bases for the local market and exportations of finished products.
Since both operations are denominated in dollars, there is natural hedging of most of this risk at the level
of the statement of financial position statement. Regarding cash flow, the risk is minimal because foreign
currency operations represent less than 1% of the fiscal year performed on December 31, 2015 and 2014.
Each country operates with locally accepted currency and financial indebtedness is also taken in local
currency to avoid exchange exposure. The treasuries of the different countries cover 100% of their
operation. Operations in Colombia are conducted in Colombian pesos accept for customer billings in
dollars with a monthly average of US$5.000.000, and these resources are destined to pay for suppliers
abroad in the same currency. Based on the above there is no currency risk.
The CNG trading business is exposed to an exchange risk in as much as that the cost of gas consists of
70% of rates established in dollars, for supplies, transportation and trading. In as much as that the
exchange rate fluctuates, the cost of gas in Colombian pesos also varies. For the sake of maintaining the
competitiveness of the price of CNG in comparison with gasoline, an increase in the exchange rate which
results in a higher cost impact negatively the business margin.
Note 4. Financial Risk Management, continued
4.1. market risk, continued
a) interest rate risk
78% of the debt acquired issuing Bonds in February 2013 and February 2015 pays interest at
CPI indexed rates. The risk of increase in the cost of the debt resulting from an increase in the
CPI would be partly compensated to pay yearly adjustment of the wholesale margin which must
increase on June 1st each year with an annual CPI increase of the last 12 months in accordance
with decree 90675 of 2014. 4.
Mainly cash surpluses are kept in savings account and/or collective portfolios at sight; the profitability
rate corresponds to the market rate
Short and long-term loans on December 31, 2015 and 2014 are held at the best market condition, either
at a fixed or variable rate. Loans are taken out with the option of prepaying without penalties, and this
allows the structuring of the debt at any moment if market conditions change. The group does not have
interest rate hedging.
At the end of the period, reporting the situation of the type of interest of the group's financial
instruments that bear interest is as follows:
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
40
Analysis of the sensitivity of the fair value for fixed-rate instruments
The group does not account for financial liabilities at a fixed rate at the fair value with result
changes, and does not use derivatives (financial interest rate swap), as hedging instruments.
Therefore, a variation in the type of interest at the end of the period being reported is not
reasonably possible.
Analysis of the sensitivity of the cash flow for variable-rate instruments
The group's debt on December 31, 2015 was M$1,448,646,134 (M$1,335,317,211 in 2014) of
which 18% was at a fixed rate at 82% at a variable rate (21% was at a fixed rate and 79% at a
variable rate in 2014).
The debt for the issuing of bonds in Colombia at a variable rate was referred to a 12-month CPI;
on December 31, 2015, it increased to M$865,728,618 (M$460,885,207 on December 31, 2014).
A variation of 100 base points in this indicator at the end of
Note 4. Financial Risk Management, continued
4.1. Market risk, continued
b) a) interest rate risk, continued
a reported period is considered reasonably possible.
The debt taken out in Panama is indexed at Libor rate and the debt in Mexico equals 4.3% of the
total debt variable and is indexed at TIEE. A variation in Libor and in TIEE, would not have a
significant effect on consolidated financial statements. The debt in Peru represents 1.5% of the
Group’s total debt and is taken at a fixed rate.
2015 2014
M$ M$
Fixed rate instrument:
Financial Liabilities (259.632.278) 280.416.614
Total (259.632.278) 280.416.614
Variable rate instrument:
Financial assets 30.818.261 68.863.946
Financial Liabilities (1.189.013.856) 1.054.900.597
Total (1.158.195.595) 1.123.764.543
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
41
In as much, an increase of 100 points in the CPI to calculate the wholesale margin would imply
a recovery of M$4,500,000 which partly covers the impact of the financial liabilities of
M$8.149.305.
Capital Management
The board of directors’ policy is to maintain a solid capital base to conserve investors, creditors
and the market's trust, and support the future development of the business. The board of directors
also monitors the return on Capital and the level of dividends paid to shareholders.
The Group's debt-equity index at the end of the fiscal years of 2015 and 2014 was as follows:
Note 4. Financial Risk Management, continued
4.2. Credit Risk
Credit risk is the risk of financial loss the group faces if a customer or counterpart does not fulfill its
contractual obligations on a financial instrument, and the principle originates in cash and cash
equivalents, and the commercials and other accounts receivable and cash and cash equivalents.
Working capital loans or rotating credits are granted, specifically aimed at the purchase of inventories
of the products the group trades. Every credit granted by the group must meet the information
requirements established in accordance with the type of customer and the guarantee submitted. The
documentation presented must guarantee that the group has all the necessary information to know its
Impact in profits
Increase 100 pb Decrease 100 pb
M$ M$
December 31, 2015
Variable rate instrument:
Financial Liabilities (8.163.364) 8.283.773
(8.163.364) 8.283.773
December 31, 2014
Variable rate instrument:
Financial Liabilities (8.149.305) 7.974.295
(8.149.305) 7.974.295
2015 2014
M$ M$
Total Liabilities 2.428.801.215 2.215.781.242
Less: Cash and cash equivalents (287.991.889) (298.577.233)
Net Debt 2.140.809.326 1.917.204.009
Total Equity 1.464.046.693 1.338.962.146
Debt-equity ratio 1,46 1,43
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
42
customers, their general, commercial data and identification; likewise, it guarantees a general
knowledge of the customer's financial position.
In addition to the guarantees demanded from customers, the group has contracted accredited
insurance that partly covers the credit risk with customers when their guarantee does not cover their
credit line. In December 2015 and 2014, 54% and 45% respectively of the portfolio had a guarantee.
a) commercial debtors and other account receivables
The group's exposure to credit risk is principally affected by the individual characteristics of each
customer, segment and Country.
Currently the group has not granted Financial guarantees to support third-party obligations.
In the framework of the groups risk policy, a financial analysis of each new customer must be conducted
individually based on external ratings or on a connection and the start of commercial relation. Credit
lines and limits are established for each customer, and they are approved in accordance with the levels
of authorization established by the board of directors; these customer credit lines are permanently
reviewed and they are adjusted according to a customer's solvency and business need.
Every semester, customers' assets are reviewed in centers to monitor if customers' financial position has
deteriorated.
Note 4. Financial Risk Management, continued
4.2. Credit risk, continued
a) Commercial debtors and other accounts receivable, continued
The report obtained from this review allows the company to determine the need to obtain an
additional guarantee, decide regarding credit cancellation or a change of sales modality to
prepaid; in case of high-risk, the company can decide to cancel a commercial relationship.
The treasury and Financial Risk manager's office along with the manager's office of each business
line monitor the economic and political environment in the countries where it operates to be
prompt in decision-making regarding the credits granted to be affected by changes or decisions.
The company has made transactions with more than 58% of the group's customers for more than
four years, and no impairment losses have been recognized against these customers. When
Credit Risk esposure
2015 2014
M$ M$
Trade debtor and other accounts payable 465.265.674 483.858.505
Cash and cash equivalents 287.991.889 298.577.233
753.257.563 782.435.738
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
43
monitoring customers credit risk, they are grouped according to credit characteristics, commercial
debtors, and other accounts receivable are mainly related with the group's wholesale customers.
Customers classified “high risk” are included in a list of restricted customers, and they are
monitored by the financial resources manager's office. The case manager is in charge of risk
management, and future sales use the prepaid method and/or demand real future payment
guarantees.
The group has established the requirement of a guarantee which backs the obligations in case of
non-payment. This guarantee is constituted by some customers and sectors that allow it
commercially.
The group establishes an impairment provision based on a monthly monitoring of commercial
debtors and other accounts receivable of each of the businesses the group conducts which allows
it to have visibility of the accounts that begin to present recovery risk and to conduct our
respective accounting search individually.
The group does not have significant credit for its concentrations. The group has policies to assure
that product wholesale sales are made to customers with suitable credit histories. Retail customer
sales are made in cash or using credit cards. The Group's maximum credit risk exposure is with
commercial debtors and other accounts receivable at the end of the period which was reported by
geographical region.
Note 4. Financial Risk Management, continued
4.2. Credit risk, continued
a) Commercial debtors and other accounts receivable, continued
b) Cash and cash equivalents
The Group had cash and cash equivalents for M$287,991,889 on December 31, 2015
(M$298,577,233 on December 31, 2014), which represent their maximum exposure to credit risk
for those assets. Cash and cash equivalents are kept in Banks and financial institutions which are
ranked in accordance with the following:
2015 2014
M$ M$
Colombia 576.399.873 654.731.509
Panama 107.520.415 75.230.172
Ecuador 25.505.022 17.265.367
Mexico 10.056.122 8.733.683
Peru 4.912.841 5.464.151
Republica Dominicana 27.767.262 20.239.985
Chile 1.096.028 770.871
753.257.563 782.435.738
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
44
Note 4. Financial Risk Management, continued
4.2. Credit risk, continued
guarantees
The group policy is to submit Financial guarantees to its subordinates and in some cases when
required by legal topics.
4.3. liquidity risk
liquidity risk is the risk in which the group has trouble to fulfill its obligations associated with its
Financial liabilities which are liquidated by the delivery of cash or other Financial assets. The group
monitors its risks every day using the treasury's position and prevision, from which it obtains
obligations and cash surpluses to determine the source and the destination of resources.
The purpose of the group is to maintain balance between the continuity of financing and flexibility
using bank overdrafts, bank loans and/or leasing contracts, among others.
The group seeks to maintain the level of its cash and cash equivalents and of other investments at
sight, in an amount that allows it clear financial liabilities within a thirty-day term.
The profile of the current debt allows the company to maintain its cash position to cover the surface
of the debt in accordance with their maturity schedules.
On December 31, 2015, the group has credit lines approved for USD$915 million, of which the
company has used USD$95 million and still has USD$820 million available which could be used for
overdrafts, treasury credits, and for short and long-term financing. Financing rates are agreed on at
the moment of acquiring an obligation depending on market conditions. On December 31, 2014, the
Country Bank Rating Rating Organization
Banco Agrario AAA BRC Standard & Poor´s
Banco de Bogotá AAA BRC Standard & Poor´s
Bancolombia AAA BRC Standard & Poor´s
BBVA AAA RAC Fitvh Ratings
Corredores Asociados AAA BRC Standard & Poor´s
Davivienda AAA RAC Fitvh Ratings
GNB Sudameris - HSBC AA+ BRC Standard & Poor´s
JP Morgan AAA RAC Fitvh Ratings
Interbank AAA Cass & Asociados S.A.
BBVA Continental A+ Equilibrium Clasificadora de Riesto S.A.
Banco Financiero del Perú AAA Cass & Asociados S.A.
Banco Interamericado de Finanzas AA+ Cass & Asociados S.A.
Banco Internacional AAA- Bank Watch Ratings S.A.
Banco de Guayaquil AAA PCR Pacific Credit Ratings
Banco Nacional de Panamá AA+ RAC Fitvh Ratings
Banco de Bogotá (Panamá) AAA Investor Services S.A. (BRC)
Citibank N.A. A BRC Standard & Poor´s
México Banamex AAA BRC Standard & Poor´s
Citibank AAA RAC Fitvh Ratings
Scotiabank AAA RAC Fitvh RatingsRepública Dominicana
Colombia
Perú
Ecuador
Panamá
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
45
group had credit lines approved for USD$1,086 million, of which it had used USD$250 million and
had USD$836 million available.
The following are the remaining contractual maturity schedules of financial liabilities at the end of
the period being reported including estimated interest payments:
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
46
Note 4. Financial Risk Management, continued
4.3. Liquidity risk, continued
• the projection of bond interests is calculated using the latest CPI (consumer Price Index) for 12
months corresponding to 2015 and 2014; this is, that it varies in as much as that the CPI fluctuates,
except for series A bonds at a fixed rate.
• the flows disclosed in the above table represent not discounted contractual cash flows related to
derivative financial liabilities held for risk management and which generally do not close before a
contractual maturity date.
• payments of interest for variable rate loans and bonds included in the above table reflect the
interest rates at market terms at the end of period and these amounts can change if the interest rates
change.
Note 5. Accounting estimates and judgments
Preparing consolidated financial statements in accordance with accounting and financial reporting
standards accepted in Colombia require the administration to make judgments, estimates which
affect the application of accounting policies and the amounts of assets, liabilities and contingent
liabilities on the date of the statement of financial position and earnings and expenses for the year.
Real Results can defer these estimates call.
Relevant estimates and assumptions are revised regularly. The revisions of accounting estimates are
recognized in the period in which the estimate is revised pending any other future period that is
affected.
Information regarding clinical judgment in the application of accounting policies which have the
most important effect on the financial statements, is described in the following notes:
Financial Liabilities 2015
Book values Total One month or less 1 - 3 months 3 - 12 months 1 - 5 yearsMore than 5
years
Bonds 1.107.668.437 1.932.987.490 - 31.670.280 70.351.905 693.471.126 1.137.494.179
Liabilities for leasing 296.877.851 316.354.136 1.830.205 90.632.960 6.070.166 217.820.805 -
Bank unsecured loan 44.099.846 59.921.432 776.887 1.553.848 6.992.343 36.449.289 14.149.065
1.448.646.134 2.309.263.058 2.607.092 123.857.088 83.414.414 947.741.220 1.151.643.244
Financial Liabilities 2014
Book values Total One month or less 1 - 3 months 3 - 12 months 1 - 5 yearsMore than 5
years
Bonds 702.758.992 1.013.174.835 - 14.181.797 30.364.550 265.962.024 702.666.464
Liabilities for leasing 48.385.505 67.141.982 788.678 1.577.237 7.099.603 35.547.319 22.129.145
Bank unsecured loan 584.172.714 610.407.701 6.958.279 452.236.140 36.443.382 114.769.900 -
1.335.317.211 1.690.724.518 7.746.957 467.995.174 73.907.535 416.279.243 724.795.609
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
47
Note 3(f) Impairment: Estimates and assumptions of the calculation of impairment for cash
generating units.
Note 17 Properties, plant and equipment: Used for Life estimates which are revised each fiscal year.
Note 24 other current and non-current accounting provisions: Estimates for the amount to be
disbursed.
Note 6. Cash and cash equivalents
The group's cash and cash equivalents are made up as follows:
a) The detail of foreign currency of the previous balance is as follows:
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Cash flow 31.999.841 33.156.924 31.299.239
Bank balance 223.836.223 196.556.363 221.132.825
Short-term deposit 30.818.261 68.863.946 25.833.674
Overnight investment 1.337.564 - -
Total 287.991.889 298.577.233 278.265.738
31/12/2015 31/12/2014 01/01/2014
Currency: M$ M$ M$
Dollar 68.471.000 39.928.088 43.330.345
Colombian pesos 211.514.356 252.261.676 229.700.183
Other Currency 8.006.533 6.387.469 5.235.210
Total 287.991.889 298.577.233 278.265.738
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
48
Note 7. Financial instruments
a) Classification of Financial instruments by nature and category
The detail of asset financial instruments, classified by nature and category on December 31, 2015
and 2014 is as follows:
Note 8. Financial assets at a fair value with changes in results
Non-current financial assets at a fair value with changes in results include:
Accounting Provisions have not been identified for value impairment losses in these Financial assets.
Headings of the condensed Fair Value Depreciable cost 31/12/2015 31/12/2014 01/01/2014
financial statements M$ M$ Total Total Total
M$ M$ M$
Financial assets at fair value through profit or loss 1.252.312 - 1.252.312 1.222.537 3.166.104 Trade debtor and other accounts payable - 465.265.674 465.265.674 483.858.505 548.380.970 Accounts payable from related parties - 284.469 284.469 970.911 53.085 Cash and cash equivalents - 287.991.889 287.991.889 298.577.233 278.265.738
Total 1.252.312 753.542.032 754.794.344 784.629.186 829.865.897
Headings of the condensed Depreciable cost 31/12/2015 31/12/2014 01/01/2014
financial statements M$ Total Total Total
M$ M$ M$
Trade debtor and other accounts payable 638.513.262 638.513.262 560.135.691 546.580.887 Other financial liabilities 1.448.646.134 1.448.646.134 1.335.317.211 1.110.026.027
Total 2.087.159.396 2.087.159.396 1.895.452.902 1.656.606.914
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Equity Instruments (shares) 1.252.312 1.222.537 3.166.104
Total 1.252.312 1.222.537 3.166.104
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
49
Note 9. Other non-financial assets
Note 10. Commercial debtors and other accounts receivable
Note 10. Commercial debtors and other accounts receivable, continued
The movements of the debtor impairment provision were as follows:
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Current:
Prepaid expenses 2.408.354 2.781.512 3.084.945
Rent 6.202.978 3.070.076 1.068.569
Advance to suppliers 69.475.785 65.212.478 -
Totals 78.087.117 71.064.066 4.153.514
Non- Current:
Rent 81.643 491.823 951.823
Other several assets 224.862 229.288 233.714
Totals 306.505 721.111 1.185.537
Note 10 Trade debtor and other accounts payable
31/12/15 31/12/14 1/01/14
M$ M$ M$
Trade debtor 419.486.456 468.594.253 484.728.399
Less: Provision for impairment of Trade debtor
(14.156.774) (21.305.677) (9.927.094)
Trade debtor, net 405.329.682 447.288.576 474.801.305
Other accounts payable 59.935.992 36.569.929 73.811.667
Less: Provision for impairment of
other accounts payable - - (232.002)
Other accounts payable, net 59.935.992 36.569.929 73.579.665
Totals 465.265.674 483.858.505 548.380.970
Less: Non-current (39.335.312) (34.167.416) (5.288.006)
Total Trade debtor and other accounts payable
425.930.362 449.691.089 543.092.964
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
50
Note 11. Balances and transactions with related entities
a) Commercial debtors represent the enforceable rights which originate in the normal course of
business and other accounts receivable from sales, services or loans outside the normal course
of business.
b) The Constitution and reversal of the value impairment of accounts receivable has been included
as “doubtful expense provisions” in a consolidated statement of income in the item for
management expenses.
c) The amortized cost of these financial instruments does not differ significantly from its fair
value.
d) Accounts receivable and accounts payable to related entities that the group has are short-term,
so its nominal value is recognized without having the effect of a financial component, and the
contractual flows are done for just one amount; in other words, they are not paid in installments.
They are paid in full. On the date of these consolidated financial statements, there are no
guarantees granted associated with balances between related companies, or accounting
provisions for doubtful debts.
Note 11. Balances and transactions with related entities, continued
e) Accounts payable to related entities
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Opening balance (21.305.677) (10.159.096) (10.159.096)
5.344.840 (12.192.566) -
Uncollectible accounts receivable discharged 2.008.950 1.228.153 -
Other adjustments (204.887) (182.168) -
Ending balance (14.156.774) (21.305.677) (10.159.096)
Provision for impairment of accounts receivable (reversal
of provision)
31/12/2015 31/12/2014 01/01/2014
Taxpayer
Identification
Number Company Country
Nature of the
relation Controller M$ M$ M$
99.520.000-7Compañía de Petróleos de
Chile COPEC S.A.Chile Parent Empresas Copec S.A. 110.899 181.093 8.708
20521921618 PGN Gasnorte S.A.C. Perú Joint Business - 173.570 628.529 -
8908020209 Terpel del Centro S.A. Colombia Subsidiary Organización Terpel S.A. - - 4.931
8300807182Sociedad de Inversiones de
Energia S.A.Colombia Parent
Compañía de Petróleos
de Chile COPEC S.A.- - 19.723
9003015197Proenergia Internacional S.A.
Colombia ParentCompañía de Petróleos
de Chile COPEC S.A.- - 19.723
20521921880 PGN Gasur S.A.C. Perú Joint Business - - 161.289 -
Totales 284.469 970.911 53.085
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
51
f) Board of directors and manager's office key personnel
i. remuneration received by Key Personnel of the general manager's office and the
company's administration
i. Loans for administrative personnel
The following is a description of the contractual conditions that there are with loans made to be at the
administrative personnel:
Terms
Maximum term: 7 years with a reference Market capture reference rate, minus 200 basic points*, with a
4% minimum basic points*, with a 4% minimum.
* this rate is applied while the officer is hired to work with the group. Repayment of capital with fixed
Creditor
31/12/15 31/12/14 1/01/14
Taxpayer
Identification
Number Company Country
Nature of the
relation Controller M$ M$ M$
8908020209 Terpel del Centro S.A. Colombia Parent Organización Terpel S.A - - 1.185.054
8300807182Sociedad de Inversiones de
Energia S.A.Colombia Parent
Compañía de Petróleos
de Chile COPEC S.A.- - 4.735.038
Totales - - 5.920.092
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Remuneration and Bonuses 9.549.213 8.127.301 4.089.833
Other remuneration 361.957 511.289 332.245
Total 9.911.170 8.638.590 4.422.078
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Opening Balance 580.951 689.356 859.109
Reduction (135.931) (108.405) (169.753)
Ending Balance 445.020 580.951 689.356
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
52
monthly installments.
Note 12 Inventories
Inventory costs recognized in the sales costs on December 31, 2015 reach M$13,024,104,540
(M$13,887,904,229 on December 31, 2014).
On December 31, 2015 and 2014, an obsolescence provision was recorded for M$265,220 and
M$1,139,053, respectively.
Note 13. Assets and liabilities by current Texas
Current taxes are compensated in assets and liabilities, only and only if they refer to the same legal
entity and regarding the same jurisdiction.
Assets for current taxes on December 31, 2015 and 2014 include the following:
Current tax liabilities on December 31, 2015 and 2014 included the following:
Note 14. Investment accounted for using the equity method
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Raw material 16.035.874 10.944.052 19.351.307
Merchandise 466.534.418 441.063.221 475.571.452
Work in progress 996.652 3.598.966 1.255.886
Finished goods 15.168.719 6.862.561 5.316.579
Other inventories 12.449.251 9.078.462 14.336.911
Totals 511.184.914 471.547.262 515.832.135
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Industry and commerce tax 4.917.973 4.487.077 159.011
Real estate taxes in advance 104.427 84.536 3.585.667
Withholding taxes and other taxes in advance (Colombia) - - 2.402.538
Other refundable taxes 21.310.775 22.540.062 519.240
Totals 26.333.175 27.111.675 6.666.456
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Provision of first category tax 1.096.641 20.642.863 23.359.725
Contribution Credit 605 639 -
Tax On Fuel Surcharge (Colombia) 90.034.303 79.892.956 76.253.885
Other taxes 11.925.617 7.510.120 27.126.107
Industry and commerce tax 10.244.622 10.616.931 6.861.484
Totals 113.301.788 118.663.509 133.601.201
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
53
Interest in joint businesses art integrated by the patrimonial value method.
There was a detail of the companies the group participates in accounted for by the equity method, and
movements in the companies for the years ending on December 31, 2015 and 2014:
a) Movement of investments in joint businesses and associates
The amount of other increases corresponds to the conversion difference.
Note 15. Intangible assets not capital gain
b) Detail and movement of the main types of intangible assets
Country of
origin
Operating
Currency
Percentage
Of
Participatio
Balance at
01-01-2015
Participation
in Gain
(Losses)
Dividends
declared
Translation
differences
Balance at
12-31-2015
% M$ M$ M$ M$ M$
PGN Gasnorte S.A.C. Perú PEN$ 50,00 2.580.052 858.578 (339.766) 440.880 3.539.744
PGN Gasur S.A.C. Perú PEN$ 50,00 2.069.847 717.132 (390.782) 308.149 2.704.346
Totales 4.649.899 1.575.710 (730.548) 749.029 6.244.090
Country of
origin
Operating
Currency
Percentage
Of
Participatio
Balance at
01-01-2014
Participation
in Gain
(Losses)
Dividends
declared
Translation
differences
and others
Balance at
12-31-2014
% M$ M$ M$ M$ M$
PGN Gasnorte S.A.C. Perú PEN$ 50,00 1.868.656 393.911 - 317.485 2.580.052
PGN Gasur S.A.C. Perú PEN$ 50,00 1.548.333 600.162 (318.491) 239.843 2.069.847
Terpel del Centro S.A. Colombia COP$ 34,61 32.323.256 - - (32.323.256) -
Totales 35.740.245 994.073 (318.491) (31.765.928) 4.649.899
Joint business
Saldo al 31/12/2014
Joint business
Balance at December 31, 2015
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Other Investments accounted using the equity method
Opening Balance 4.649.899 35.740.245 35.740.245
Chances in Joint Business Investments
Participation in Gain 1.575.710 994.073 -
Dividends declared (730.548) (318.491) -
Other increases (decrease) 749.029 (31.765.928) -
Total Joint Business Investments 1.594.191 (31.090.346) -
Ending Balance 6.244.090 4.649.899 35.740.245
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
54
Of the total amortization charge of the period from January 1 to December 31, 2015 for M$130,666,689
(M$136,761,384 during the same period in 2014), the company has accounted for M$107,803,461
(M$115,334,408 in 2014) in the distribution costs and M$22,863,228 (M$21,426,976 in 2014) in
management expenses.
Note 16. Capital gain
As of December 31, 2015
M$ M$ M$ M$ M$
Opening balance at 2015 150.818.447 9.989.468 345.250.624 3.072.838 509.131.377
Additions - 1.092.412 75.642.060 - 76.734.472
Discharge - - (647.305) - (647.305)
Amortization (16.908.408) (5.090.852) (107.189.803) (1.477.626) (130.666.689)
Other increases (decreases) - 2.119.257 2.385.699 - 4.504.956
Translation differences effects - 1.016.257 2.710.482 384.711 4.111.450
Total Changes (16.908.408) (862.926) (27.098.867) (1.092.915) (45.963.116)
Ending Balance December 31, 2015 133.910.039 9.126.542 318.151.757 1.979.923 463.168.261
Al 31 diciembre de 2014
M$ M$ M$ M$ M$
Opening balance at 2014 203.902.896 6.591.165 375.592.906 3.677.325 589.764.292
Additions - 577.913 79.680.609 6.194 80.264.716
Discharge - - (2.915.686) - (2.915.686)
Amortization (16.908.408) (4.965.218) (113.897.383) (990.375) (136.761.384)
Other increases (decreases) (36.176.041) 7.277.216 4.607.219 11.261 (24.280.345)
Translation differences effects 508.392 2.182.959 368.433 3.059.784
Total Changes (53.084.449) 3.398.303 (30.342.282) (604.487) (80.632.915)
Ending Balance December 31, 2014 150.818.447 9.989.468 345.250.624 3.072.838 509.131.377
Total
Identifiable
Intangible
assets
, net
Movements of Identifiable
Intangible assets
Trademarks,
Patents and
others
Software, net Right flag
Other
Identifiable
Intangible assets
, net
Total
Identifiable
Intangible
assets
, net
Movements of Identifiable
Intangible assets
Trademarks,
Patents and
others
Software, net Right flag
Other
Identifiable
Intangible assets
, net
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
55
The following is the movement of capital gain generated in the acquisition of the company, Gazel S.A.S.
and the acquisition of service stations(SS) for the fiscal years closing on December 31, 2015 and 2014:
Impairment test for cash generating units that include capital gain
Total carrying value of the capital gain assigned to the CGUs are as follows:
a) CGU- Gas Natural Vehicular
On December 31, 2015 and 2014, to test capital gain generated by acquiring Gazel S.A.S., the
fair value was determined minus sales costs, using the value of methodology found in free cash
flow (FCL), for which, the cash flow associated with the CNG business, and the flows were
discounted at a weighted average capital cost (WACC), bearing in mind the capital structure that
Gazel had at the time of the merger. In these valuations, a terminal value of the capital gain is
considered in the last period a terminal value of Capital gain. Considering that the impairment
test must be applied on Capital gain. When there is no capital gain, all the balance is valuated
along with the respective carrying value of property, plant and equipment, closing on September
2015 and 2014. This is why a terminal value is projected to reflect the perpetuity of business cash
flows. Cash flows corresponding to the period after these five years, extrapolate using a rate that
does not surpass the average growth of the Colombian economy.
The projections comprise of horizon of a 5-year evaluation in accordance with IAS 36 asset value
Impairment. The hypotheses on which the financial budgets are based 4 2015 have consisted of a 0.5%
average of CNG volume growths, with a gross margin of around 37% and an average 19% EBITDA
margin.
Note 16. Capital gain, continued
a) CGU for Natural Compacted Gas for Vehicles, continued
For 2014, the hypotheses used were at the level of a 3.9% average CNG volume growth with a gross
margin of 38.7% and an EBITDA margin of 18 and 19% (a $196/m³ average). In no case and
Added value Movements 31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Opening balance 344.675.854 306.031.991 306.031.991
Additions 5.632.618 38.026.272 -
Translation differences 1.004.065 617.591 -
Ending Balance 351.312.537 344.675.854 306.031.991
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Natural gas vehicle (Gazel) 306.031.991 306.031.991 306.031.991
Service Station (Liquids) 45.280.546 38.643.863 -
Total 351.312.537 344.675.854 306.031.991
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
56
considering high-sensitivity and according to the values of the key hypotheses, there would be hints
of capital gain impairment.
The administration determined the gross margins budgeted based on the expectations of Market
development and the projections of the cost of gas.
Because of the above, a financial evaluation confirms that they are no traces of impairment of the
assets of the CNG business.
b) CGU service stations (Líquid SS)
On December 31, 2015 and 2014 Determining recoverable capital gain value was conducted using
the value methodology in free cash flow (FCF), and for this the company couch the cash flow
associated with each service station, which are discounted from the average Capital cost of the
company. This valuation considered a terminal value in the last period.
All the balance of the capital gain is evaluated along with its respective carrying value of property,
plant and equipment with a cutoff date of September 2015 and 2014. This is why a terminal value is
projected to reflect the perpetuity of the business' cash flows.
A 5-year horizon was used to project the flows associated with each station in accordance with IAS
36 Impairment of asset values.
A 5-year horizon was used to project flows associated with each station in accordance with IAS 36
Impairment of asset value. The hypotheses on which the financial budgets for the 2015 growth in
volumes of liquid combustibles of 6,2% in average, gross margin of about 10% and the average
EBITDA margin of 7%.
The value resulting from the assessment of the evaluation of each service station results in the
attention of free discounted cash flows, which must be compared with the carrying value, supporting
that there is no value impairments of acquiring a service station.
31/12/2015 31/12/2014 01/01/2014
Discount rate 9,86% 9,76% 10,01%
Growth rate of terminal value 1,00% 1,00% 1,00%
31/12/2015 31/12/2014 01/01/2014
Discount rate 9,89% 10,25% 10,11%
Growth rate of terminal value 1,00% 1,00% 1,00%
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to the Consolidated Financial Statements on December 31, 2015 and 2014
57
Note 17. Properties, plant and equipment
The details and the movements of the different categories of properties, plant and equipment presented below:
Note 17. Properties, plant and equipment, continued
The details and the movements of the different categories of properties, plant and equipment presented below:
Construction Plants and
Informatics
technology
Fixed
Installations Motor Improvement of
Total
properties,
As of December 31, 2015 Construction in And Buildings, equipment, equipment, accessories, Vehicles leased
plant and
equipment,
progress Land net net net net net assets net
M$ M$ M$ M$ M$ M$ M$ M$ M$
Opening balance at January 1, 2015 283.147.028 341.140.930 279.119.662 345.364.004 11.962.008 13.985.991 23.627.286 16.914.497 1.315.261.406
Movements
Additions 322.220.705 - 1.744.890 3.210.041 535.852 396.220 305.402 3.869.472 332.282.582
Transferences to (from) construction in
progress (170.813.881) 72.373.730 47.015.308 47.847.164 1.555.920 2.166.058 3.188.176 568.961 3.901.436
Discharge - (3.898.882) (568.395) (1.304.299) (34.726) (1.133) (85.110) (606.333) (6.498.878)
Depreciation expense - - (15.313.824) (39.643.983) (4.674.949) (3.677.935) (7.378.783) (1.719.061) (72.408.535)
Increases (decrease) in foreign
currency exchange 39.567.489 29.837.270 13.019.901 19.298.614 1.000.909 242.627 3.064.838 3.420.818 109.452.466
Other increases (decrease) (5.176.457) - (13.027) 29.426 (4.689) (1.345) 2.844 (1.643) (5.164.891)
Total movements 185.797.856 98.312.118 45.884.853 29.436.963 (1.621.683) (875.508) (902.633) 5.532.214 361.564.180
Ending balance at December 31, 2015 468.944.884 439.453.048 325.004.515 374.800.967 10.340.325 13.110.483 22.724.653 22.446.711 1.676.825.586
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
58
Of the total charge for depreciation of the fiscal year ending on December 31, 2015 for M$72,408,535 (M$62,064,043 for the fiscal year finished
on December 31, 2014), M$64.405.337 have been accounted (M$54.300.057 en 2014) in the distribution cost, and M$7,502,678 (M$7,171,705 in
2014) in administration expenses and M$500,520 (M$592,281 in 2014) in the sales costs.
As part of the cost of properties, plant and equipment, the company includes capitalized borrowing costs , related to the adquisition and
construction of service stations which on December 31, 2015 rose to M$14,284,740 (M$4,830,635 in 2014), with a weighted average
capitalization rate of 0.36% in 2015 (0.42% in 2014).
Construction Plants and
Informatics
technology
Fixed
Installations Motor Improvement of
Total
properties,
As of December 31, 2014 Construction in And Buildings, equipment, equipment, accessories, Vehicles leased plant and
progress Land net net net net net assets net
M$ M$ M$ M$ M$ M$ M$ M$ M$
Opening balance at January 1, 2014 137.972.165 317.546.129 257.025.909 330.340.995 8.233.785 14.211.598 34.601.993 12.762.867 1.112.695.441
Movements
Additions 223.905.778 6.633.427 1.120.145 10.279.488 1.808.644 237.659 537.830 2.013.167 246.536.138
Transferences to (from) construction in
progress (86.068.953) 875.937 25.272.869 31.167.480 6.451.303 2.307.233 2.155.204 8.137 (17.830.790)
Discharge - (1.058.577) (167.193) (4.872.520) (13.415) (36.250) (7.746.503) 723.760 (13.170.698)
Depreciation expense - - (12.748.038) (33.739.125) (4.876.569) (2.882.833) (6.908.201) (909.277) (62.064.043)
Increases (decrease) in foreign
currency exchange 7.338.038 17.144.014 8.503.314 12.189.213 358.260 148.584 986.963 1.586.365 48.254.751
Other increases (decrease) - - 112.656 (1.527) - - - 729.478 840.607
Total movements 145.174.863 23.594.801 22.093.753 15.023.009 3.728.223 (225.607) (10.974.707) 4.151.630 202.565.965
Ending balance at December 31, 2014 283.147.028 341.140.930 279.119.662 345.364.004 11.962.008 13.985.991 23.627.286 16.914.497 1.315.261.406
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
59
Note 17. Properties, plant and equipment, continued
a) Properties, plant and equipment in financial leasing
The value found in future payments derived from said contracts are as follows:
The difference between minimum future payments and the present value correspond to the interest
generated by the obligations: Interests were calculated based on the interest rate of each contract
which coincides with the discount rate.
Note 18. Investment properties
Investment properties on December 31, 2015 and 2014 consist of the following:
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Leasing of Properties, plant and equipment, net
Leasing of lands 21.011.504 22.116.263 24.666.263
Leasing of buildings 26.659.100 28.111.473 28.523.232
Machinery and equipment 7.332.530 10.182.371 10.196.447
Motor Vehicles 63.005 473.833 450.743
Fixed installations and accessories 3.961.716 4.716.328 5.470.940 -
59.027.855 65.600.268 69.307.625
Future
minimum
payment
Present
Value
Future
minimum
payment
Present
Value
Future
minimum
payment
Present
Value
M$ M$ M$ M$ M$ M$
Less than one year 9.323.078 5.344.680 9.465.516 5.378.198 9.617.115 5.193.708
Between one to five years 36.449.289 25.944.207 35.547.321 23.745.106 41.900.888 26.336.799
More than 5 years 14.149.065 12.810.959 22.129.145 19.262.200 21.977.422 19.259.235
Total 59.921.432 44.099.846 67.141.982 48.385.504 73.495.425 50.789.742
31/12/2015 31/12/2014 01/01/2014
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Opening balance 6.072.057 5.982.135 6.019.717
Additions - 125.532 4.788
Discharge - - (4.788)
Depreciation (35.847) (35.610) (37.582)
Total changes in Investments properties (35.847) 89.922 (37.582)
Ending balance 6.036.210 6.072.057 5.982.135
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
60
Note 18. Investment properties, continued
Organización Terpel S.A., and correspond to the terrains, lots and constructions which the company holds
for an undetermined future use. They are not being used in the operation, nor does the company have the
intention to sell in the short term.
On the date of the presentation of consolidated financial statements, the group had not identified traces of
impairment that effect the value of investment properties. On December 31, 2015 and 2014, the fair value
of the investment properties is M$6,311,775 and M$6,044,476 respectively.
Note 19. Operational Leasing
At the end of the period being reported, future minimal lease payments derived from non-cancelable
operational leases are as follows:
The group leases tanks at the puente aranda plant (Exxon Mobil) to receive the group's
products and store them. The term of the contract is 9 years. Payments for this leasing increase
every year in accordance with the changes of the Consumer Price Index (CPI).
The group leases a large number of integrated printers for all its installations. The term of the
contract is 3 years with a renewal option after that date. Lease payments increase every year din
accordance with the changes of the Consumer Price Index (CPI).
Note 20. Deferred taxes
a) deferred tax assets and liabilities
deferred tax assets and liabilities are compensated if the company has legally recognized the
right to compensate current tax and deferred tax assets and liabilities. They refer to the same
fiscal Authority. The amounts already compensated are as follows:
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Less than one year 7.078.702 7.421.283 1.226.781
Between one to three years 565.933 1.166.901 -
7.644.635 8.588.184 1.226.781
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
61
Note 20. Deferred taxes
a) deferred tax assets and liabilities
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Deferred taxes assets:
Depreciation 1.510.479 1.478.731 663.991
Inventories 39.245 - -
Provision of uncollectable accounts 1.451.150 1.328.615 731.381
Vacations - - 42.003
Prepaid income - - 71.430
Obligations of employee benefits 28.343 - 161.342
Valuation of financial instruments 4.219 42.629 -
Tax losses 3.011.874 3.759.650 5.419.311
Provisions 12.509.859 13.203.173 16.033.138
Others - 66.697 8.498
Total deferred taxes assets 18.555.169 19.879.495 23.131.094
Deferred taxes liability:
Depreciation of properties, plant and equipment 81.049.398 74.912.760 73.086.878
Provisions 357.124 195.320 93.698
Post-employment benefits obligations 53.569 138.004 -
Intangible assets 134.839.018 117.490.926 108.768.431
Others 8.766.016 7.387.834 4.747.536
Total Deferred taxes liability 225.065.125 200.124.844 186.696.543
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
62
Note 20. Deferred taxes, continued
b) Deferred tax movements
Concept
Balance at
January 1,
2014
Recognized in
incomes
Recognized
directly in
equity
Recognized in
other
comprehensive
income
Balance at
December 31,
2014
Recognized in
incomes
Recognized
directly in
equity
Recognized in
other
comprehensive
income
Balance at
December 31,
2015
Deferred taxes assets:
Depreciations 663.991 532.455 - 282.285 1.478.731 53.536 - (21.788) 1.510.479
Inventories - - - - - 66.179 - (26.934) 39.245
Provision of uncollectable accounts 731.381 666.344 - (69.110) 1.328.615 122.535 - - 1.451.150
Vacations 42.003 (27.451) - (14.552) - - - - -
Prepaid Income 71.430 (46.681) - (24.749) - - - - -
Obligations of employee benefits 161.342 (105.441) - (55.901) - 47.795 - (19.452) 28.343
Valuation of financial instruments - 27.859 - 14.770 42.629 (64.770) - 26.360 4.219
Tax losses 5.419.311 (1.694.712) - 35.051 3.759.650 (2.164.100) - 1.416.324 3.011.874
Provisions 16.033.138 (5.099.701) 1.931.182 338.554 13.203.173 (617.898) - (75.416) 12.509.859
Others 8.498 37.778 - 20.421 66.697 (112.469) - 45.772 -
Total Deferred taxes assets 23.131.094 (5.709.550) 1.931.182 526.769 19.879.495 (2.669.192) - 1.344.866 18.555.169
Deferred taxes liability:
Depreciation of properties, plant and equipment(73.086.878) (2.574.234) - 748.352 (74.912.760) (5.713.457) - (423.181) (81.049.398)
Provisions (93.698) (66.235) - (35.387) (195.320) (86.824) - (74.980) (357.124)
Post-employment benefits obligations - 46.815 - (184.819) (138.004) 120.673 - (36.238) (53.569)
Intangible assets (108.768.431) (6.239.050) - (2.483.445) (117.490.926) (14.339.960) (319.906) (2.688.226) (134.839.018)
Others (4.747.536) (2.048.356) - (591.942) (7.387.834) (340.052) - (1.038.130) (8.766.016)
Total Deferred taxes liability (186.696.543) (10.881.060) - (2.547.241) (200.124.844) (20.359.620) (319.906) (4.260.755) (225.065.125)
Deferred taxes, net (163.565.449) (16.590.610) 1.931.182 (2.020.472) (180.245.349) (23.028.812) (319.906) (2.915.889) (206.509.956)
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
63
Note 21. Other current and non-current financial liabilities
On the date of the closing of consolidated financial statements, obligations with banks and financial
institutions and obligations with the public via bonds issued in Colombian pesos. They are detailed as
follows:
Loans with credit entities and bonds
The carrying value of financial obligations are as follows:
(1) The fair value of the bonds on December 31, 2015 was M$1,044,510,673, (M$672,972,674 for
2014) which is an estimate in accordance with the market information provided by Bancolombia bank;
the amount is less and the rates they offer are higher than those that Organización Terpel S.A. has as
a compensation for the interests that the holder has received.
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Current:
Loan with credit institutions 90.513.522 475.882.946 266.029.582
Bonus 9.653.554 3.948.262 3.337.181
Leasing 5.344.680 5.378.199 5.193.708
Total 105.511.756 485.209.407 274.560.471
Non-current:
Loan with credit institutions 206.364.329 108.289.769 91.218.933
Bonus 1.098.014.883 698.810.730 698.650.589
Leasing 38.755.166 43.007.305 45.596.034
Totals 1.343.134.378 850.107.804 835.465.556
Total obligations with financial institutions 1.448.646.134 1.335.317.211 1.110.026.027
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Liability of Depreciable cost
Bonus (1) 1.107.668.437 702.758.992 701.987.773
Bank Loan 296.877.851 584.172.715 357.248.512
Leasing 44.099.846 48.385.504 50.789.742
Total 1.448.646.134 1.335.317.211 1.110.026.027
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
64
Note 21. Other current and non-current financial liabilities, continued
Loans with credit entities and bonds, continued
The following is a detailed description of ordinary bonds on December 31, 2015 and 2014
Through resolutions 0319 of February 19, 2013 and 0009 of January 7, 2015, the Colombian
superintendence of finances authorized the registration of ordinary bonds issued by the company in
the National Register of Securities and issuers (In Spanish, RNVE).
Outstanding bonds of 2015 were issued with a M$400,000 par value, (M$700,000 in 2013), the amount
authorized was M$700,000 for 2015 and 2013 and the total amount issued was M$400,000,
(M$700,000 in 2013), the issue did not have a discount premium, and the resources of the issue at
100% were destined for the substitution of liabilities with local banks.
The carrying value of the Group's loans with credit entities is denominated in the following
currencies:
31/12/2015 31/12/2014 01/01/2014
Type of Bonus
Effective
Annual Interest
Rate M$ M$ M$
Series 7 years fixed rate 5,65% 240.697.345 240.631.314 240.567.276
Series 5 years CPI E.A. IPC + 2,86% 114.994.170 114.944.462 114.898.677
Series 10 years CPI E.A IPC + 3,09% 246.893.458 246.848.344 246.805.454
Series 18 years CPI E.A. IPC + 3,38% 96.394.431 96.386.610 96.379.182
Series 7 years CPI E.A. IPC + 3,04% 150.577.740 - -
Series 15 years CPI E.A. IPC + 4,06% 248.457.739 - -
1.098.014.883 698.810.730 698.650.589
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Currency:
American Dollar 215.837.765 702.758.991 79.521.357
Colombian Pesos 1.148.205.779 584.172.715 981.604.747
Other currency 84.602.590 48.385.505 48.899.923
Totals 1.448.646.134 1.335.317.211 1.110.026.027
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
65
Note 22. Trade accounts payable and other accounts payable
Trade accounts payable and other accounts payable at the closing, are detailed as follows:
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Cuentas por pagar comerciales 502.668.317 472.460.437 462.401.629
Otras cuentas por pagar 135.844.945 87.675.254 84.179.258
Total 638.513.262 560.135.691 546.580.887
The detail of commercial creditors and other accounts payable on December 31, 2015 and 2014 is as
follows:
Note 23. Current and not current accounting provisions for employee benefits
The Group on December 31, 2015, compared with December 31, 2014 had obligations for employee
benefits as follows:
a) employee labor benefits
El movimiento de la provisión para employee benefits ha sido el siguiente:
Note 23. Currrent and not current accounting provisions for employee benefits, continued
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Trade accounts payable 502.668.317 472.460.437 462.401.629
Other Accounts payable 135.844.945 87.675.254 84.179.258
Total 638.513.262 560.135.691 546.580.887
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Current
employee benefits 2.060.139 461.156 406.185
Total 2.060.139 461.156 406.185
No Current
employee benefits 873.478 834.868 956.788
Total 873.478 834.868 956.788
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
66
The following are the main actuarial hypotheses:
Note 24. Other current and not current accounting provisions
The breaking down of this item on December 31, 2015 and 2014 is as follows:
a) Current accounting provisions
(1) The balance of current accounting provisions corresponds to a claim on the part of ACODECO to
the subordinate company Petrolera Nacional S.A. (Panama) for alleged monopolistic practices .
Note 24. Other current and not current accounting provisions, continued
b) Movements in accounting provisions
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Opening balance 1.296.024 1.362.973 989.431
Current Service Cost 2.060.140 461.156 406.185
Benefits paid (851.711) (207.197) (112.427)
Increases (decrease) in foreign currency exchange 429.164 (320.908) 79.784
Ending balance 2.933.617 1.296.024 1.362.973
31/12/2015 31/12/2014 01/01/2014
% % %
Annual Interest Rate 4,80 4,00 4,00
Inflation 2,88 3,66 3,17
Wage increas 7,00 4,60 4,51
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Provision of legal claims (1) 341.289 243.963 1.466.286
Total Current 341.289 243.963 1.466.286
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
67
Note 25. Equity
a) Corporate Capital
On December 31, 2015 and 2014 the corporate capital is represented by 195,999,466 shares with a
par value of COP$1.000 each, totally subscribed and paid.
the corporate capital of Organización Terpel S.A. is a s follows:
b) Cumulate Earnings
Note 25. Equity, continued
c) Reserves
As of December 31, 2015
Other
Provisions movements By legal claims provisions Total
M$ M$ M$
Opening balance at January 1, 2015 243.963 - 243.963
Increase in existing provisions 70.985 26.341 97.326
Ending balance at December 31, 2015 314.948 26.341 341.289
As of December 31, 2014
Other
Provisions movements By legal claims provisions Total
M$ M$ M$
Opening balance at January 1, 2014 192.683 1.273.603 1.466.286
Increase(decrease) in existing provisions 51.280 (1.273.603) (1.222.323)
Ending balance at December 31, 2014 243.963 - 243.963
2015 2014 01/01/2014
N° of Shares 200.000.000 200.000.000 200.000.000
Subscribed an paid-in capital 195.999.466 195.999.466 191.915.421
Nominal value (COP$) 1.000 1.000 1.000
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Opening balance 816.418.412 516.905.461 516.905.461
profit and loss 105.958.219 126.896.560 -
Dividends paid (62.711.194) (100.000.000) -
Fusion effect (note 1) - 272.616.391 -
Other increases 5.841.809 -
Ending balance 865.507.246 816.418.412 516.905.461
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
68
Nature and purpose of the reserves
Surplus equity method
It includes all the differences in foreign currency that arise from the conversion of the financial
statements of joint operations abroad and the effective portion if there is any difference in foreign currency
arising from a net investment in a business abroad.
Legal statutory Reserves
Legal reserves: It is a reserve created obligated by law to protect company equity in case of losses.
The reserve must equal 50% of the prescribed capital, and it will be formed by 10% of the profits of
each period.
Statutory Reserve: It is a reserve the shareholders have agreed on in the company bylaws, and once
they are approved by the maximum corporate body, and their enforcement is therefore obligatory as
long as the bylaws are not amended, and they are eliminated, or until they reach the amount
established in the bylaws.
Note 25. Equity, continued
d) Dividends decreed
On March 24, 2015, The general shareholders’' assembly of Organización Terpel S.A. agreed to
distribute an ordinary unencumbered dividend on 181,424,505 outstanding shares, at a rate of
COP$345,66 per share. In total the dividends decreed in 2015 were M$62,711,194.
At December 31, 2015 Legal and
statutory reserves
M$ M$ M$
At January 1,2015 161.450.873 (54.680.378) -
Release of reserves (5.875.545) - -
translation adjustment - 79.956.519 -
Equity method - 1.784.901 5.656
Balance at December 31, 2015 155.575.328 27.061.042 5.656
Legal and
At December 31, 2014 statutory reserves
M$ M$
At January 1,2014 179.920.314 (108.320.792)
Fusion effect (18.469.441) 9.528.599
translation adjustment - 44.234.427
Equity method - (122.612)
Balance at December 31, 2014 161.450.873 (54.680.378)
Surplus equity
method
Surplus equity
method
Reserves of
employees
benefit
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
69
On March 20, 2014, the general shareholders' assembly of Organización Terpel S.A. Agreed to deliver
an ordinary unencumbered dividend on 191,876,941 outstanding shares, a rate of COP$521,16737
per share. In total, the dividends decreed in 2014 were M$100.000.000.
Note 26. Earnings per share
The estimate of basic earnings per share on December 31, 2015 and 2014, was adjusted by the effect
of transactions, which even if they modified the number of outstanding shares, they did not represent
a change in resources. The number of outstanding shares on December 31, 2015 and 2014 for
calculation purposes was 181,424,505.
On December 31, 2015 and 2014, the company has its own shares reacquired by 14,574,961, l which
reduces the number of outstanding shares to 181,424,505.
Note 27. Income from ordinary activities
Income from ordinary activities on December 31, 2015 and 2014, are detailed as follows:
Note 28. Sales cost
Below is a detailed list of the company’s sales costs:
Note 29. Geographic segments
Geographic segments are represented by the joint operations that the group has in Colombia, Panama,
31/12/2015 31/12/2014
M$ M$
Sales of good 14.027.804.127 14.841.131.827
and services 207.698.073 162.876.223
Total 14.235.502.200 15.004.008.050
For the year ended
31/12/2015 31/12/2014
M$ M$
Fuel cost 12.843.319.627 13.742.106.559
Lubricants cost 180.784.913 126.463.629
Other direct costs - 19.334.041
Total 13.024.104.540 13.887.904.229
For the year ended
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
70
Ecuador, Peru, Mexico, the Dominican Republic and Chile.
Most important customers
Income obtained from the main customers belonging to Industry, aviation, service stations and
lubricants of the group's segments, represent M$111,881,901 in 2015, (M$107,954,735 in 2014).
Customers 31/12/2015 31/12/2014
M$ M$
Aerovias del Continente Americano S.A. 82.337.843 82.189.091
Cencosud Colombia S.A. 19.622.269 20.279.919
Consorcio Express SAS. 5.864.679 5.309.858
Carbones del Cerrejon Limited 4.057.110 175.867
Total 111.881.901 107.954.735
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
71
Note 29. Geographic segments, continued
Information related to the results of each segment which has to be reported is included further on. Performance is measured
on the base of the profit by the segment before income taxes, depending how it is included in internal Administration reports
reviewed by the vice presidents and general managers of each segment. Profit per segment is used to measure performance
because the administration thinks that this information per segment is the most relevant to measure the results of certain
segments related with other entities that operate in these industries.
Geographic information segments.
(*) Ordinary activity income comes principally the commercial is of fuels in service stations, industry, aviation and lubricants.
Colombia Panamá Otros países Total Segmentos Colombia Panamá Other countries Total Segments
income from ordinary activities (*) 12.106.280.860 1.239.824.951 889.396.389 14.235.502.200 12.497.093.158 1.640.146.318 866.768.574 15.004.008.050
Cost of sales (11.155.768.575) (1.098.403.038) (769.932.927) (13.024.104.540) (11.583.649.006) (1.519.871.781) (784.383.442) (13.887.904.229)
Gross earning 950.512.285 141.421.913 119.463.462 1.211.397.660 913.444.152 120.274.537 82.385.132 1.116.103.821
Distribution Cost (546.295.128) (108.501.249) (41.051.606) (695.847.983) (517.799.313) (83.992.548) (21.462.487) (623.254.348)
Administrative expenses (124.700.463) (19.173.889) (58.022.910) (201.897.262) (109.450.489) (15.156.301) (49.302.970) (173.909.760)
Depreciation and amortizations 168.092.461 20.902.391 13.579.851 202.574.703 174.149.250 13.411.711 10.672.185 198.233.146
EBITDA 447.609.155 34.649.166 33.968.797 516.227.118 460.343.600 34.537.399 22.291.860 517.172.859
Total Assets 3.044.237.698 562.061.561 286.548.649 3.892.847.908 3.333.789.136 125.436.252 95.518.000 3.554.743.388
Total Liabilities 1.947.501.920 318.954.910 162.344.385 2.428.801.215 1.895.148.874 210.296.956 110.335.412 2.215.781.242
31/12/2015 31/12/2014
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
72
Note 30. Expenses by Nature
a) administration expenses
(*) Law 1739 of December 23, 2014 in its first article creates as of January 1, 2015 an extraordinary
tax named wealth tax, which will be temporary for the taxable years of 2015, 2016 and 2017. This
tax will be charged yearly on January 1st every year.
Organización Terpel recorded the wealth tax in the results of the fiscal year, the value for 2015 was
M$10,680,085 which was paid in two payments; the first payment was paid in May 2015 for an
amount of M$5,336,671 and the second payment was made in September 2015 for an amount of
M$5.343.414.
31/12/2015 31/12/2014
M$ M$
Staff Costs
Salaries and wages 44.445.223 41.003.634
Social security and other charges 6.708.132 7.575.315
Other staff costs 10.441.857 8.517.632
Total 61.595.212 57.096.581
Depreciation, amortizations
Depreciation 7.502.678 7.171.705
amortizations 22.863.228 21.426.976
Total 30.365.906 28.598.681
Other Administrative expenses
Publicity 458.440 1.056.109
Rent 8.131.279 7.106.012
Fees 18.769.064 20.659.725
Taxes 15.917.827 6.589.474
Insurance 9.369.938 9.137.809
Public Service 14.545.246 14.513.905
Maintenance 6.889.753 4.624.422
Travel expenses 2.108.454 2.495.096
Miscellaneous expenses (*) 33.746.143 22.031.946
Total 109.936.144 88.214.498
Total Administrative expenses 201.897.262 173.909.760
For the year ended
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
73
Note 30. Expenses by Nature, continued
Distribution costs
Note 31 Otros expenses by function
31/12/2015 31/12/2014
M$ M$
Staff cost
Salaries and wages 71.517.145 59.674.129
Social security and other charges 11.234.565 10.640.927
Other staff costs 6.755.482 4.603.745
Total 89.507.192 74.918.801
Depreciation, amortizations
Depreciation 64.405.337 54.300.057
Amortization 107.803.461 115.334.408
Total 172.208.798 169.634.465
Other Distribution Cost
Publicity 39.082.374 41.084.826
Rent 60.647.066 53.882.953
Taxes 45.833.658 41.783.935
Public Service 140.507.551 132.820.740
Maintenance and Repairs 60.445.413 48.624.997
Oher Distribution Cost 87.615.931 60.503.631
Total 434.131.993 378.701.082
Total Distribution Cost 695.847.983 623.254.348
For the year ended
31/12/2015 31/12/2014
M$ M$
Other expenses by function
Losses in sales of goods 2.139.152 2.191.834
Extraordinary expenses 50.749.882 51.011.607
Miscellaneous expenses 7.131.755 7.907.271
Total 60.020.789 61.110.712
For the year ended
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
74
Note 32. Financial result
a) Income and financial costs
b) Difference in exchange
31/12/2015 31/12/2014
M$ M$
Financial Income
Interests of loans and accounts payable 7.682.149 6.361.147
Other incomes 2.253.749 626.635
Total Financial Income 9.935.898 6.987.782
Costos financieros
Interests of loans and other financial obligations 77.859.840 67.953.635
Other Financial expenses 9.269.286 9.107.563
Total Financial expenses 87.129.126 77.061.198
For the year ended
31/12/2015 31/12/2014M$ M$
Generated by assets
Cash and cash equivalents (157.940) (173.320)
Trade debtor - other accounts payable 8.819.020 4.575.620
Accounts payable from related parties 2.964.302 4.480.407
Other Assets - 7.691
Total 11.625.382 8.890.398
Generated by liabilities
Trade creditor y other accounts payable (4.297.769) (315.952)
Accounts payable from related parties - (152.050)
Loan with credit institutions including bonus (1.132.450) (296.209)
Total (5.430.219) (764.211)
Translation differences, neto 6.195.163 8.126.187
For the year ended
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
75
Note 33. Income tax
a) expenses for income taxes by current and deferred parts
b) expense on income tax for foreign and National parts
31/12/2015 31/12/2014
M$ M$
Current tax expenses 78.715.861 80.695.103
Current tax expenses, net, total 78.715.861 80.695.103
Deferred tax expenses related to the creation and reversal of
of temporary differences 23.028.812 16.590.610
Deferred tax expenses, net, total 23.028.812 16.590.610
Total income tax expenses 101.744.673 97.285.713
For the year ended
31/12/2015 31/12/2014
M$ M$
National current tax 11.422.974 73.917.287
Foreign current tax 67.292.887 6.777.816
Total current tax 78.715.861 80.695.103
Foreign Deferred tax 2.246.425 (119.769)
National Deferred tax 20.782.387 16.710.379
Total Deferred tax expenses, net 23.028.812 16.590.610
current tax expenses 101.744.673 97.285.713
For the year ended
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
76
Note 33. Income tax, continued
Conciliation of expenses for taxes using the legal rate with the expense for taxes using the effective
rate
Organización Terpel has decided based on article 66 of law 1739 of 2014 not to take as a fiscal base
the difference in the exchange in foreign investment, and therefore not apply any effect on the 2014
financial statements via and expense for income tax; this is based on the favorability principle which
in accordance with statements and our review made by the Consultants would apply to this case.
Note 34. Contingencies
Estimates and judgments are continuously evaluated, and they are based on historical experience and
other factors including expectations of future events considered reasonable under the circumstances.
At the closing of Consolidated financial statements, the following contingencies exist for
Organización Terpel and its subsidiaries:
a) Plaintiff: PGN Gasnorte S.A.C.
Defendant: Municipalidad metropolitana de Lima and Protransporte
Concept of the contingency: Breach of Transfer Contract by Gasocentro Norte
Current stage: Being qualified
Estimated date of final verdict: At end of the first semester of 2016
Total M$ 10.494.175
Probability of success: Remote
Note 34. Contingencies, continued
On June 1, 2015, the court order as the term to submit the expertise offered. In accordance with what the
31/12/2015 31/12/2014
% M$ % M$
Profit before taxes 207.765.421 224.193.725
Taxes expenses using legal rates 41,88% 87.015.952 36,51% 81.850.843
Tax effect of ordinary income not taxable -5,47% (11.369.272) -0,97% (2.174.760)
Tax effect of non-deductible expenses 10,83% 22.497.058 8,23% 18.443.027
Tax effect of used tax losses not recognized previously 0,00% - 0,14% 310.332
Tax effect of assets new evaluation of deferred taxes not recognized -0,31% (638.481) -0,13% (301.613)
Tax effect of taxes provides in excess of previous year 1,01% 2.106.232 3,73% 8.357.115
Taxation calculates with the rate applicable 0,00% - -2,94% (6.600.177)
Other increases(decreases) charged by taxes 1,03% 2.133.184 -1,16% (2.599.054)
Total Adjustment of Taxes expenses using legal rates 7,09% 14.728.721 6,88% 15.434.870
Total income tax expenses, net 48,97% 101.744.673 43,39% 97.285.713
For the year ended
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
77
court establishes: a) July 14, 2016 the term to present expertise which an engineer specialist in public
transportation will present regarding the existence from August 2010 up to the date an arbitrary Court
lawsuit is filed, for public transportation routes authorized to operate infections that affect the sense and
the effect of the rule of intangibility 14 in the transfer contract and an ordinance N° 682. b) on July 3,
2016 the term to submit expertise on loss of profit expires (gross margin not perceive by the grantor's
non-compliance of the concession agreement) and emerging damage (higher interest than Gasnorte which
is obligated to pay interbank and less earnings that Gasnorte made as a result of constant non-
compliances).
Note 35. Commitments
During the fiscal year ending on December 31, 2015 and 2014, the group closed contracts for the
construction of service stations and complementary businesses which the company expects will be
liquidated in the following Financial year.
Note 36. Subsequent events
From December 31, 2015 and the date on which these Consolidated financial statements were issued,
there has been no significant subsequent effects which could affect them.
Note 37. Explanation of the transition to IFRS
1. Relevant matters regarding the financial statements on December 31, 2015
As Note 2 indicates, these are the group's first Consolidated financial statements prepared in accordance
with standards approved in Colombia. According to what IFRS 1 indicates, when adopting for the first
time the International Financial Reporting Standards, the main adjustments made are presented like the
considerations and transition-related conciliations:
a) in equity in accordance with previous GAAP on January 1,2014 (transition date) and on
December 31, 2014, the last period presented applying the previous GAAP.
b) between the results under the previous GAAP and the comprehensive total result under
IFRS.
When preparing these considerations, the group has considered the standards currently approved
and which are applicable to the company, like also the exceptions and exemptions foreseen in
the
Note 37. Explanation of the transition to IFRS
1. Relevant matters regarding financial statements on December 31, 2015
Prevailing laws which include decree 2420 of December 2015, modified by decree 2496 of
December 2015.
the accounting policies established in Note 3 have been implemented in the preparation of these
consolidated financial statements fiscal year ending on December 31, 2015. Of the comparative
31/12/2015 31/12/2014 01/01/2014
M$ M$ M$
Service station 40.601.000 51.797.000 27.225.000
Complimentary business 6.504.000 6.158.000 6.345.000
47.105.000 57.955.000 33.570.000
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
78
information presented in these consolidated financial statements for the fiscal year ending on
December 31, 2014 and in the preparation of consolidated statement of the initial financial
situation adapted to IFRS on January 1, 2014 (the group's transition date).
2. Obligatory exceptions to the application of the new technical accounting standards
framework
2.1. Estimates
Estimates are conducted in accordance with IFRS on December 31, 2014, they are coherent with
estimates on the same date in accordance with previous GAAP. Changes in estimates because of
Correction of errors or accounting policies which are not uniform are presented as follows.
On December 31, 2014, the group conducted an estimate of the depreciation of its properties, plant
and equipment based on the physical standards using useful lives different from the ones applicable
under IFRS. The effect of the change in the estimate of useful life was M$289,774,919.
3. exemptions
3.1. Business combinations
In accordance with IFRS 1, an entity can use the following exceptions referred for business
combinations:
• do not apply IFRS 3 retroactively to business combinations conducted in the past (before
the date of the transition to IFRS), and will conserve the amount it had on the financial statements
drawing up in accordance with previous GAAP.
• exclude the opening statement of financial position as items recognized in accordance
with previous GAAP which do not fulfill all the conditions to be recognized as IFRS.
• apply prospectively IFRS 3 do business combinations from a specific date
Based on the above and to draw up the opening balance on January 1, 2014, the group decided to
apply prospectively IFRS 3 to business combination from a specific date and cost the identification
of new intangible assets as relationships with dealers for M$236,717,706and the Gazel brand for
M$32,459,594.
Note 37. Explanation of the transition to IFRS, continued
3. exemptions, continued
3.2. Attributed Cost
In accordance with IFRS 1 an entity can choose on the date of transition to IFRS the measurement
of an item of properties, plant and equipment for its fair values, and use these fair value as the
attributed cost on that date.
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
79
An entity that adopts for the first time IFRS can choose to use a revaluation according to previous
GAAP of an item of properties, plant and equipment, and it can be either on the date of transition
or before as an attributed cost on the date of the revaluation if it was substantially comparable
on that date:
(a) fair value; or
(b) at cost, or a depreciated cost in accordance with IFRS, adjusted to reflect for instance on
changes in a general or specific price Index.
To apply IFRS, the group shows paragraph b and determine the attributed cost using the last
appraisal done on the property, plant and equipment, in addition useful lives were established
under IFRS.
The group can choose to determine if an agreement contains a lease agreement using previous
GAAP as required by the IFRIC 4.
Under the previous GAAP, some leases were designated as operating leases based on the fact that
the legal title was not transferred at the end of the lease. Under the IFRS, those leases were
designated as financial leases and related assets. They were recognized in the group's statement
of financial position.
The effects are an increase in properties, plant and equipment, loans and obligations, and a charge
for a related depreciation (M$16,710,145 for the year ending on December 31, 2014) and in
Financial costs, and then Financial costs, and the decrease of spending for leasing M$3,947,841
for the year ending on December 31, 2014).
3.3. Investments insubordinates, joint businesses and Associates
Although starting on the date of the application of IFRS, the company must bear in mind what is
established in the technical standards framework of Decree 2784 of 2012 and its modifications,
because of regulative hierarchy, the company must also consider that article 35 of law 222 of
1995 stays in effect as long as it is not modified, and this requires that “ investments in
subordinates be accounted for in the parent company's ledgers or in the controlling company's
ledger using the "equity participation method” and investments in Associates and in joint
businesses must be accounted for at cost in separate financial statements.
Note 37. Explanation of the transition to IFRS, continued
4. Explanation of the transition to IFRS
When preparing the first consolidated statement of financial position under IFRS, the group has
adjusted the amounts reported in financial statements prepared in accordance with previous
GAAP. An explanation on how the transition from previous GAAP to IFRS has affected its
financial position and results, in relation with the comparison of accounting policies applied, the
group in relation with the comparison of the applied accounting policies submimts it in the
following tables and the attached notes.
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
80
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
81
Note 37. Explanation of the transition to IFRS, continued
4.1. equity conciliation consolidated on January 01, 2014 (date of transition) and on December 31, 2014 (final date of the last period applying
the previous GAAP)
PCGA anterioresEfecto de
transiciónNCIF PCGA anteriores
Efecto de
transiciónNCIF
M$ M$ M$ M$ M$ M$
Assets
Current Assets: 1.389.112.349 (41.048.457) 1.348.063.892 1.389.954.822 (70.992.586) 1.318.962.236
Non-Current Assets: 2.395.012.550 (312.027.705) 2.082.984.845 2.383.280.552 (147.499.400) 2.235.781.152
Total Assets 3.784.124.899 (353.076.162) 3.431.048.737 3.773.235.374 (218.491.986) 3.554.743.388
Liability
Current Liability 1.014.284.274 (51.749.152) 962.535.122 1.163.495.122 1.218.604 1.164.713.726
Non-Current Liability 870.177.194 152.941.693 1.023.118.887 971.590.667 79.476.849 1.051.067.516
Total Liability 1.884.461.468 101.192.541 1.985.654.009 2.135.085.789 80.695.453 2.215.781.242
Equity
Equity attributable to owners 1.899.663.431 (454.708.081) 1.444.955.350 1.638.149.585 (299.595.481) 1.338.554.104
Non-controlling interest - 439.378 439.378 - 408.042 408.042
Total Equity 1.899.663.431 (454.268.703) 1.445.394.728 1.638.149.585 (299.187.439) 1.338.962.146
Total Liability and Equity 3.784.124.899 (353.076.162) 3.431.048.737 3.773.235.374 (218.491.986) 3.554.743.388
01/01/2014 31/12/2014
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
82
Note 37. Explanation of the transition to IFRS, continued
4.1. equity conciliation consolidated on January 01, 2014 (date of transition) and on December 31,
2014 (final date of the last period applying the previous GAAP), continued
4.2. conciliation between the total comprehensive result consolidated under previous GAAP and the
total comprehensive result consolidated under IFRS
At January 1 At December 31,
2014 de 2014
Equity according to previous GAAP 1.899.663.430 1.638.149.585
Reference Adjustment transaction:
(a) Prepaid expenses (2.279.257) (1.763.645)
(b) Attributable costs of properties, plant and equipment 308.408.244 319.351.782
(c) Leasing (17.366.797) (15.146.004)
(d) Business credit (612.485.124) (597.606.516)
(d) Business credit of Gazel 306.031.991 306.031.991
(d) Intangible assets different than added value (Brand- relation with dealers) 167.726.855 150.818.447
(e) Differed charges (23.349.042) (23.955.590)
(f) Investment on subordinate, joint business and associates (158.680.782) (1.415.516)
(g) Deferred taxes (72.158.099) (70.074.147)
(h) Capitalization of transaction costs , bonus issue 1.349.412 1.189.267
(i) Provisions (1.273.604) -
(j) Valorization of properties, plant and equipment (348.012.811) (364.406.484)
(j) Valorization of investments (2.619.067) (2.619.067)
(k) minority interest 439.378 408.042
Equity under NCIF 1.445.394.727 1.338.962.145
At December 31,
de 2014
Total comprehensive income according to previous PCGA 126.427.758
Adjustment of transition:
PGNT and PGNS incomes (8.686.998)
PGNT and PGNS costs and expenses 6.698.859
Amortization of Deferred Charge 3.737.151
Amortization of intangibles (13.966.838)
Provisions 3.645
Operating leases 3.947.841
Depreciation of properties, plant and equipment previous PCGA 11.068.946
Amortization of right flag 1.815.321
Adjustment of consolidated expenses previous GAAP (136.114)
Costs of transaction costs , bonus issue (160.144)
Profit of properties, plant and equipment sales (7.141.536)
Return on investments (2.255)
Return on provison of final income statement (Gazel) 1.273.604
Deferred tax adjustment NIIF 14.986.773
Equity method, joint business PGNT and PGNS 994.073
Translation foreign companies 44.290.688
Total comprehensive income under NCIF 185.150.774 171.198.700
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
83
4.3. Notes explaining the adjustment done in the transition process to IFRS
a) expenses paid in advance
In accordance with previous GAAP, the group recorded advanced payments as subscriptions, equipment
maintenance, property taxes, and other expenses these Concepts do meet the recognition criteria under
IFRS. These have been derecognized and charged to accumulated profits as an amount in the ledgers of
M$2,279,257 on January 01,2014 (M$41,763,646 on December 31, 2014)
b) attributed cost to properties, plant and equipment
In accordance with previous GAAP properties, plant and equipment are recorded at cost (adjusted for
inflation until December 31, 2006) and they depreciate based on the straight-line method on estimated
useful lives accepted in Colombia. In accordance with the adoption of IFRS for the first time, the company
usually attributed cost which is an amount use as a substitute of the cost all the depreciated cost on a
determinate date. He attributed cost was determined using the last appraisal conducted by the group in
December 2010, in addition in agreement with the knowledge of a technical field regarding the economic
life of the assets. Useful lives were established under IFRS. The amount that affected the accumulated
profits is M$308,408,244 on January 01,2014 (M$319.351.783 on December 31, 2014).
c) financial leases
under the previous GAAP some Financial leases are recorded in accordance with the legal form of the
contract and they are recognized as operations depending on the legal form of the contract, recognizing
lease expenses and recognizing in each of the four periods and in recognizing lease expense. In accordance
with the rent lease, they are recognized as operating expenses. In accordance with the analysis carried out
under IFRS, the contracts fulfill all conditions to be recognized as Financial leases. The amount in the
ledgers that affected the accumulated profits is M$17,366,797 on January 01,2014 (M$15,146,004 on
December 31, 2014), these amounts include the recognition of property, plant and equipment with
depreciation and a financial obligation.
d) mercantile credits
Under GAAP, the group has recognized in its consolidated statement of financial position
mercantile credits generated by the purchase of companies that belong to the same group. In
accordance with the analysis conducted under IFRS, they do not meet the recognition criteria and
they are eliminated affecting accumulated profits for an amount of M$101,174,476 on January
01, 2014. In addition, the company based on the exemption of a business combination decided to
apply prospectively IFRS 3 in relation to Gazel's mercantile credit for M$511,310,618. It was
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
84
reassigned and identified as intangible assets bearing the Gazel brand and then relations with
dealers for an amount of M$167,726,855 on January 01, 2014 (M$150,818,447 on December 31,
2014) and a new Mercantile credit the value of M$303,031,991 on January 01, 2014 and on
December 31, 2014.
Note 37. Explanation of the transition to IFRS, continued
4.3. Notes explaining the adjustment done in the transition process to IFRS, continued
e) deferred charges
Some charges deferred under GAAP to not meet the recognition criteria as assets because they correspond
to expenses which are being amortized, but since the goods and services have already been consumed, the
company proceeds to derecognize this concept affecting the accumulated profits with an amount in the
Ledger of M$23,349,043 on January 01, 2014 (M$23,955,590 on December 31, 2014).
f) investments insubordinate, joint businesses and Associates
Under previous GAAP, it is recorded in the investment account as adjustments for inflation, accounting
provisions and rights in Social Clubs. These are concepts which under IFRS do not meet the recognition
criteria. Therefore, the company proceeds to derecognize the account in accordance with IFRS 1 –
adopting for the first time, in addition the company had an investment in an associate which presented
differences in its Financial statement under previous GAAP and under IFRS. This associate merged with
Organización Terpel in August 2014. The amount in the ledgers of this adjustment with an effect on
accumulated profits is M$158,680,782 on January 01, 2014 (M$1,415,516 on December 31, 2014).
g) deferred tax
Adjustments for deferred taxes originated as a result of the application of IFRS because of changes in
assets and liabilities. A deferred tax has an effect on accumulated profits, and the amount in the ledgers
is M$72,158,099 on January 01, 2014 (M$70,074,147 on December 31, 2014).
h) capitalization cost transactional issuing of bonds
In March 2013, Organización Terpel S.A. Issued bonds (debt), in which the company incurred in some
costs to issue them. Costs which under previous GAAP are directly recorded in the expense and under
International standards these can be capitalized in accordance with IFRS 9.5.1.1, “a financial liability will
be recognized for its fair value more or less transaction costs which are directly attributable to the
acquisition or the issuing of a financial liability”. “transaction costs include fees, commissions and taxes".
ORGANIZACIÓN TERPEL S.A. Y SUBORDINADAS
Notes to Consolidated Financial Statements on December 31, 2015 and 2014
85
The recognition of transactional cost has an effect on accumulated profits for an amount in the ledgers of
M$1,349,411 on January 01, 2014 (M$1,189,267 on December 31, 2014).
i) recognizing accounting provisions
A provision is recognized because of the deductions on the income tax return in 2010, based on the
USGAAP Fin 48 standard which is not recognized under previous GAAP. The amount recognized against
accumulated utilities is M$1,273,604 on January 01, 2014
Note 37. Explanation of the transition to IFRS, continued
4.3. Notes explaining the adjustment done in the transition process to IFRS, continued
j) valuation of Investments and properties, plant and equipment
Under Previous GAAP, the valuations of Investments and properties, plant and equipment are recorded
in evaluation account of the asset against an equity account in the application process of IFRS. These
concepts are eliminated against accumulated profits, and the amount in the Ledger is M$350,631,878 on
January 01, 2014 (M$367,025,549 on December 31, 2014).