BUENAVENTURA MINING CO INC (ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory)

7.	Trade and other receivables, net

(a)

This caption is made up as follows:

	2017		2016
	US$(000)		US$(000)
Trade receivables, net (b)
Domestic clients		102,119		89,811
Foreign clients		119,388		77,254
Related entities, note 29(b)		7,348		7,760
		228,855		174,825
Allowance for doubtful accounts (f)		(22,823)		(22,644)

		206,032		152,181
Other receivables
Value added tax credit		74,785		96,204
Accounts payables to third parties		27,406		26,705
Refund applications of value added tax (c)		18,450		17,037
Tax deposits (d)		9,733		13,479
Due from for sales of assets, note 16(e)		5,371		5,204
Claims to third parties		3,851		113
Claims to tax authority		2,752		2,492
Restricted bank accounts (e)		2,372		2,087
Accounts receivable from hedge instruments		2,300		-
Advances to suppliers		1,977		908
Related entities, note 29(b)		732		126,669
Other minors		4,675		1,021

		154,404		291,919
Allowance for doubtful accounts (f)		(9,361)		(8,963)
		145,043		282,956
Total trade and other receivables, net		351,075		435,137
Classification by maturity:
Current portion		306,884		269,089
Non-current portion		44,191		166,048

Total trade and other receivables, net		351,075		435,137

Classification by nature:
Financial receivables		255,088		319,454
Non-financial receivables		95,987		115,683

Total trade and other receivables, net		351,075		435,137

(b)

Trade accounts receivable are denominated in U.S. dollars, are neither due nor impaired, do not yield interest and have no specific guarantees.

(c)

This item mainly corresponds current year applications pending to be refunded as of December 31, 2017. In November 2013, Buenaventura filed claims procedures by S/19,500,000 (equivalent to US$5,817,000), in connection with undue offsets made by the Tax Authorities against tax debts of prior years. As of December 31, 2017, the resolution of the appeal process related to the S/19,500,000 claim is pending.

In the opinion of the Management and Group’s legal advisors, the tax offset made by the Tax Authorities have no legal support, so there are enough arguments to obtain a favorable outcome in the claim process initiated by Buenaventura.

(d)

Corresponds to deposits held in the Peruvian State bank which only can be used to offset tax obligations that companies have with the Tax Authorities.

(e)

These balances correspond to restricted bank accounts for payment of financial obligations held by the subsidiary Empresa de Generación Huanza S.A. (hereafter “Huanza”), according to the finance lease signed with Banco de Crédito del Perú in 2009.

(f)

Below is presented the movement in the allowance for doubtful accounts:

	2017		2016		2015
	US$(000)		US$(000)		US$(000)

Beginning balance		31,607		26,520		25,636
Provision of the period, note 24		676		5,087		903
Reversals of the period		(99)		-		(19)
Final balance		32,184		31,607		26,520

Trade receivables		22,823		22,644		21,741
Other receivables		9,361		8,963		4,779
		32,184		31,607		26,520

In the opinion of the Group’s Management, the balance of the provision for doubtful accounts is sufficient to cover adequately the risks of failure to date of the consolidated statement of financial position.

BUENAVENTURA MINING CO INC | CIK:0001013131 |

ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory