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Management has applied critical judgment when applying accounting policies in the preparation
of the accompanying financial statements, as explained in the corresponding accounting
policies.
3.
SIGNIFICANT ACCOUNTING POLICIES
(a)
Changes in accounting estimates
In accordance with the statements made by COFIDE’s Management in 2015, no adjustments
have been made as a result of the harmonization with IFRS, nor due to accounting errors that
require the application of IAS 8 “Accounting Policies, Changes in Accounting Estimates and
Errors”.
In 2014, due to changes in some standards, COFIDE made the following changes in accounting
estimates:
•
Deactivation of the procyclical factor of the provision for impaired loans
On November 27, 2014, the SBS issued Circular Letter No. B-2224-2014, which establishes
that, as of November 1, 2014, the procyclical factor of the provision for impaired loans has been
deactivated (see Note 3 (e)).
•
Changes in rates for the determination of income tax
As of December 31, 2014, Income Tax Law modified the tax on third category income
recipients domiciled in the country over their net income. The effect of this event on the
financial statements as of December 31, 2014 was the increase of deferred income tax revenue
in equity for (in thousands) S/.9,316 and the decrease of deferred income tax revenue in the
statement of income for (in thousands) S/.8,520, respectively (see Note 18 (g)).
(b)
Preparation and presentation currency
COFIDE prepares and presents its financial statements in Peruvian nuevos soles (S/.), which is
the currency determined in the Accounting Manual for Financial Entities.
(c)
Financial instruments
Financial instruments are classified as either financial assets, financial liabilities or as equity in
accordance with the substance of the contractual arrangements from which they originate.
Interests, dividends, gains and losses generated by a financial instrument classified either as
financial asset or liability are recorded as income or expense in the statement of income.
Financial instruments are offset when COFIDE has a legally enforceable right to set off and
Management intends to settle them on a net basis, or realize the asset and pay the liability
simultaneously.
Financial assets and liabilities presented in the statement of financial position correspond to:
cash funds, available for sale investments, loan portfolio, receivables, obligations to the public,
deposits by banks and international financial organizations, debts and financial obligations,
securities, bonds and outstanding obligations, payables, provisions for contingent loans.
Additionally, all derivative products and operations in process, included in other assets and
liabilities, are considered financial instruments.
Accounting policies on the recognition and valuation of these items are described in the
corresponding accounting policies described in this note.