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As of December 31, 2015 and 2014, period when cash flows of the hedge are expected to
occur, the effect in the statement of income, net of deferred income tax is as follows:
Up to 1 year
From 1 to 3
years
From 3 to 5
years
Over 5 years
S/.000
S/.000
S/.000
S/.000
Cash outflow
(liability) 2015
21,393
42,785
42,785
44,485
Cash outflow
(liability) 2014
22,244
44,485
44,485
44,485
In January 2015, fifteen currency swaps and one interest-rate swap were early settled, and
as a result, unrealized loss of accumulated cash flow hedges were transferred to the
statement of income that date for (in thousands) S/.7,070. Therefore, during 2015 and
2014, accumulated balance of cash flow hedges, presented as other comprehensive income
in profit/loss for effective hedges, is being realized within the term of the underlying
financial instrument (unrealized profit/loss, net of deferred income tax, was (in thousands)
a net unrealized profit for S/.5,588 and net unrealized loss for S/.12,489, respectively; see
cash flow hedges in the statement of changes in equity).
As of December 31, 2015 and 2014, COFIDE holds 4 and 19 currency swaps,
respectively, according to the SBS authorizations, which classify as cash flow hedges of
debts. By means of such operation, in economic terms, the debt held by COFIDE is
hedged.
Additionally, as of December 31, 2015 and 2014, COFIDE holds one interest-rate swap in
order to hedge the variable rate component of certain debts, which mature in 2019.
COFIDE has a methodology of measurement of the degree of ineffectiveness of hedges of
derivative financial instruments that are undertaken with such objective. As of December
31, 2015 and 2014, COFIDE has not presented a decrease in relation to ineffectiveness of
these hedges in the statement of income.
(ii)
Instruments whose fair value is similar to carrying amount.- For financial assets and
liabilities that are short-term, among which cash, inter-bank funds and other similar
are classified.
(iii)
Financial instruments at fixed rates
Financial asset at fixed rates (loans portfolio, obligations with the public and deposits of
financial entities) – According to SBS Multiple Official Letter 1575-2014, fair value of
these items correspond to their carrying amount.
Financial liabilities at fixed rates – These liability instruments may be quoted or not in
active markets. For bonds issued by COFIDE and quoted in active markets, fair value
corresponds to quote market value.
For liabilities that are not traded in an active market (debts granted and bonds issued by
COFIDE) fair value is calculated based on discounted value of future flows using original
effective interest rate.