25. | Related party disclosure |
Transactions with related entities -
During the years 2017, 2016 and 2015, the Company carried out the following transactions with its parent company Inversiones ASPI S.A. and its affiliates:
2017 | 2016 | 2015 | ||||||||||
S/(000) | S/(000) | S/(000) | ||||||||||
Income | ||||||||||||
Inversiones ASPI S.A. (ASPI) | ||||||||||||
Income from office lease | 12 | 13 | 12 | |||||||||
Fees for management and administrative services | 595 | 1,095 | 497 | |||||||||
Servicios Corporativos Pacasmayo S.A.C. (Sercopa) | ||||||||||||
Income from office lease | 3 | 13 | 12 | |||||||||
Fees for management and administrative services | 2 | 8 | 8 | |||||||||
Compañía Minera Ares S.A.C. (Ares) | ||||||||||||
Income from land lease, note 27 | 336 | 326 | 330 | |||||||||
Income from office lease | 315 | 348 | 310 | |||||||||
Fossal S.A.A. (Fossal) | ||||||||||||
Income from office lease | 16 | — | — | |||||||||
Fees for management and administrative services | 46 | — | — | |||||||||
Fosfatos del Pacífico S.A. (Fospac) | ||||||||||||
Income from office lease | 40 | — | — | |||||||||
Fees for management and administrative services | 917 | — | — | |||||||||
Expense | ||||||||||||
Security services provided by Compañía Minera Ares | 1,195 | 1,301 | 1,146 | |||||||||
Other | ||||||||||||
Purchase of investments shares to Inversiones ASPI S.A. | — | — | 48,585 | |||||||||
Investment shares on Fossal S.A.A. from spin-off, note 1.1 and 9 | 21,206 | — | — |
As a result of these transactions, the Company had the following rights and obligations with Inversiones ASPI S.A. and its affiliates as of December 31, 2017 and 2016:
2017 | 2016 | |||||||||||||||
Accounts
receivable |
Accounts
payable |
Accounts
receivable |
Accounts payable |
|||||||||||||
S/(000) | S/(000) | S/(000) | S/(000) | |||||||||||||
Inversiones ASPI S.A. | 641 | — | 109 | — | ||||||||||||
Compañía Minera Ares S.A.C. | 339 | 516 | 569 | — | ||||||||||||
Other | 392 | — | 26 | — | ||||||||||||
1,372 | 516 | 704 | — |
Additionally, as of December 31, 2017, the Company has dividends payable to its Parent of S/24,054,000.
Terms and conditions of transactions with related parties -
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances with related parties at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the years ended as of December 31, 2017, 2016 and 2015, the Group has not recorded impairment of receivables relating to amounts owed by relating parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
Compensation of key management personnel of the Group –
The compensation paid to key management personnel includes expenses for profit-sharing, compensation and other concepts for members of the Board of Directors and the key management. As of December 31, 2017, the total short term compensation amounted to S/22,705,000 (2016: S/21,752,000, 2015: S/23,074,000) and the total long term compensation amounted to S/11,401,000 (2016: S/16,088,000, 2015: S/14,159,000). The Company does not compensate Management with post-employment or contract termination benefits or share-based payments.