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(r)
Trust activity
Assets held by COFIDE in its capacity as trustee upon request of financial entities and
government entities are not included in the balance sheet. Such assets are controlled in separate
financial statements and presented in the memorandum accounts of COFIDE.
(s)
Foreign currency
COFIDE’s functional currency is the Peruvian Nuevo Sol (S/.). Transactions in currencies other
than the functional currency are deemed to be in foreign currency, and are recognized at the
rates of exchange prevailing at the date of transactions. At the end of each reporting period, the
balances of monetary items denominated in foreign currencies are translated at the rates
prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign
currencies are translated at the rates prevailing at the date when the fair value was determined.
Non-monetary items which are recognized at historical cost in foreign currencies are translated
using rates of exchange prevailing at the date of transactions.
Exchange differences arising on monetary items are recognized in profit or loss in the period in
which they arise, except for exchange differences on monetary items receivable from or payable
to a foreign operation for which settlement is neither planned nor likely to occur in the
foreseeable future (therefore forming part of the net investment in the foreign operation), which
are recognized initially in other comprehensive income and reclassified to profit or loss in the
period of repayment of the monetary items.
(t)
Earnings per share
Earnings per share are calculated by dividing net earnings from shareholders by weighted
averages of outstanding shares during the period. For shares generated by capitalization of
earnings, it is considered, for the calculation of the weighted average that said shares were
always outstanding during the year. As of December 31, 2015 and 2014, COFIDE does not have
financial instruments with dilutive effects; therefore basic and diluted earnings per share are the
same (Note 17).
(u)
Cash and cash equivalents
Regarding cash and cash equivalents, COFIDE applies the indirect method in accordance with
the requirements set forth in IAS 7 – “Statement of cash flows”. Cash and cash equivalents
include the balance of Cash and Demand deposits held in banks.
(v)
Other comprehensive income
As of December 31, 2015 and 2014, the components of the statement of income and other
comprehensive income comprise profit or loss for available for sale investments and cash flow
hedges, net of their pertinent deferred income tax.
4.
ASSETS SUBJECT TO RESTRICTIONS
As of December 31, 2015, COFIDE granted Structured Bonds of Terminales Portuarios Paita as
guarantee for (in thousands) S/.24,246 in order to secure a repurchase agreement with Trust
“FISE 1”, maturing in February 2016.
Also, as of December 31, 2015, COFIDE has guarantee funds for Margin Call in order to secure
operations with interest-rate and currency derivatives held by COFIDE in favor of J. Aron &
Company for (in thousands) US$17,080.