CONCHA Y TORO WINERY INC | CIK:0000930543 | 3

  • Filed: 4/27/2018
  • Entity registrant name: CONCHA Y TORO WINERY INC (CIK: 0000930543)
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    • ifrs-full:DisclosureOfFinancialInstrumentsExplanatory

    17.1       Category of Financial Instruments by nature

      a) Fair values, based on categories of financial instruments, compared against the current and non-current book value included in the consolidated statement of financial position are presented as follows:

     

    As of December 31, 2017
                At amortized cost        
    Classification   Group   Type   Book Value
    ThCh$    		     Fair value
    ThCh$    		     At fair value
    ThCh$    		  
    Financial assets   Cash and cash equivalents   Balances in Banks     21,158,613       21,158,613       —  
            Short-term deposits     10,003,733       10,003,733       —  
        Trade receivables and other accounts receivable   Current     187,422,436       187,422,436       —  
            Non-current     742,414       742,414       —  
    Other financial assets   Accounts receivable from related entities   Current     11,379,684       11,379,684       —  
        Financial assets available for sale   Current shares     —       —       2,425,216  
        Financial assets at fair value with change in income   Current derivatives     —       —       7,656  
        Hedge assets   Current derivatives     —       —       7,832,335  
            Non-current derivatives     —       —       25,591,638  
    Financial liabilities   Bank loans   Current     113,957,750       114,136,596       —  
            Non-current     25,959,595       26,086,278       —  
        Obligations with the public (bonds)   Current     23,144,728       23,622,746       —  
            Non-current     98,259,850       93,975,665       —  
        Finance lease   Current     37,037       —       —  
            Non-current     460,338       —       —  
        Financial liabilities at fair value with change in income   Current derivatives     —       —       55,759  
        Hedge liabilities   Current derivatives     —       —       3,257,209  
            Non-current derivatives     —       —       3,130,342  
    Other financial liabilities   Trade and other payable   Current trading creditors     76,352,397       76,352,397       —  
            Other current accounts payable     44,401,385       44,401,385       —  
        Accounts payable to related entities   Current     7,361,779       7,361,779       —  
             Non-current     292,555       292,555       —  

      

      b) Fair values, based on categories of financial instruments, compared against the current and non-current book value included in the consolidated statement of financial position are presented as follows:

     

    As of December 31, 2016
                At amortized cost        
                Book Value     Fair value      At fair value  
    Classification   Group   Type   ThCh$     ThCh$     ThCh$  
    Financial assets   Cash and cash equivalents   Balances in Banks     22,035,392       22,035,392       —  
            Short-term deposits     25,178,125       25,178,125       —  
        Trade receivables and other accounts receivable   Current     180,332,662       180,332,662       —  
            Non-current     4,624,317       4,624,317       —  
    Other financial assets   Accounts receivable from related entities   Current     12,954,739       12,954,739       —  
        Financial assets available for sale   Current shares     —       —       2,554,984  
        Financial assets at fair value with change in income   Current derivatives     —       —       259,436  
        Hedge assets   Current derivatives     —       —       2,626,811  
            Non-current derivatives     —       —       18,303,296  
        Other financial assets   Current     50,859       50,859       —  
    Financial liabilities   Bank loans   Current     80,010,080       81,093,632       —  
            Non-current     26,453,065       27,127,844       —  
        Obligations with the public (bonds)   Current     14,042,688       14,526,824       —  
            Non-current     118,565,920       115,129,438       —  
        Financial liabilities at fair value with change in income   Current derivatives     —       —       2,315,741  
        Hedge liabilities   Current derivatives     —       —       5,630,537  
            Non-current derivatives     —       —       3,973,051  
    Other financial liabilities   Trade and other payable   Current trading creditors     76,055,889       76,055,889       —  
            Other current accounts payable     42,555,644       42,555,644       —  
        Accounts payable to related entities   Current     5,256,371       5,256,371       —  
            Non-current     319,601       319,601       —  

      

      17.2 Derivative Instruments
         

    In conformity with the risk management policy, Viña Concha y Toro contracts exchange rate derivatives and interest rate derivatives, which are classified as follows:

      - Fair Value Hedge

     

      - Cash Flow Hedge

     

      - Net Investment Hedges

     

      - Non-hedge derivatives (Those derivatives which do not qualify under the hedging accounting)

     

      a) Assets and Liabilities by hedging derivative instrument

     

    The balances of financial derivatives qualified as hedge instruments were recognized in the consolidated statement of financial position as assets and liabilities as per the following detail:

     

              As of December 31, 2017     As of December 31, 2016  
              Assets     Liabilities     Assets     Liabilities  
    Assets and liabilities for hedging         Current     Non-current     Current     Non-current     Current     Non-current     Current     Non-current  
    derivative instruments     Instrument     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$  
    Exchange rate hedges:             7,832,335       25,591,638       3,257,209       3,130,342       2,626,811       18,303,296       5,630,537       3,973,051  
    Cash flows hedges      Swap       2,217,902       7,719,608       797,783       2,928,173       1,441,388       5,553,687       571,738       —  
    Net investment hedges      Swap       —       3,768,816       2,347,813       —       —       976,672       3,237,893       3,237,893  
    Fair value hedges      Forward       1,726,743       —       69,404       —       843,420       —       824,027       —  
    Cash flow hedges      Forward       2,951,253       14,103,214       25,240       202,169       —       11,772,937       483,194       735,158  
    Net investment hedges      Forward       936,437       —       16,969       —       342,003       —       513,685       —  
    Total             7,832,335       25,591,638       3,257,209       3,130,342       2,626,811       18,303,296       5,630,537       3,973,051  

      

      b) Assets and liabilities for derivative instruments with changes in fair value through income (non-hedging)
         

    Derivative operations which are recorded at fair value with changes in income were recognized in the statement of financial position as assets and liabilities as per the following detail:

     

              As of December 31, 2017           As of December 31, 2016        
              Assets           Liabilities           Assets           Liabilities        
    Assets and liabilities for derivative   Instrument     Current     Non-current     Current     Non-current     Current     Non-current     Current     Non-current  
    instruments at fair value with change in income         ThCh$     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$  
    Non-hedge derivative instruments             7,656       —       55,759       —       259,436       —       2,315,741       —  
    Derivative instruments      Forward       7,656       —       55,759       —       259,436       —       2,315,741       —  
    Total             7,656       —       55,759       —       259,436       —       2,315,741       —  

     

      c) Other information on instruments
         

    A detail of financial derivatives contracted as of December 31, 2017 and 2016, its fair value and its breakdown by maturity on contractual values is detailed as follows:

     

        As of December 31, 2017  
                                Contractual values              
              Fair value     Year 2018     Year 2019     Year 2020     Subsequent     Total  
    Detail per maturity     Instrument     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$  
    Exchange rate hedges             27,036,422       198,583,592       91,959,668       50,800,120       140,075,729       481,419,110  
    Cash flow hedges      Swap       6,211,554       21,235,992       22,485,899       10,300,122       38,086,768       92,108,781  
    Net investment hedge      Swap       1,421,003       5,094,576       11,388,733       —       6,403,587       22,886,896  
    Fair value hedge      Forward       1,657,339       75,145,307       —       —       —       75,145,307  
    Cash flow hedges      Forward       16,827,058       63,138,503       58,085,036       40,499,998       95,585,374       257,308,912  
    Net investment hedge      Forward       919,468       33,969,214       —       —       —       33,969,214  
    Non-hedge derivatives             (48,103 )     3,545,025       —       —       —       3,545,025  
    Non-hedge derivatives             (48,103 )     3,545,025       —       —       —       3,545,025  
     Total             26,988,319       202,128,617       91,959,668       50,800,120       140,075,729       484,964,135  

      

        As of December 31, 2016  
                              Contractual values              
            Fair value     Year 2018     Year 2019     Year 2020     Subsequent     Total  
    Detail per maturity   Instrument   ThCh$     ThCh$     ThCh$     ThCh$     ThCh$     ThCh$  
    Exchange rate hedges         11,326,519       158,683,581       88,500,685       82,358,639       271,179,876       600,722,781  
    Cash flow hedges   Swap     6,423,337       12,293,988       20,017,058       21,738,624       8,499,243       62,548,913  
    Net investment hedge   Swap     (5,499,114 )     5,686,064       5,548,053       12,402,464       —       23,636,581  
    Fair value hedge   Forward     19,393       87,373,303       —       —       87,373,303       174,746,606  
    Cash flow hedges   Forward     10,554,585       15,477,400       62,935,574       48,217,551       137,454,505       264,085,030  
    Net investment hedge   Forward     (171,682 )     37,852,825       —       —       37,852,825       75,705,650  
    Non-hedge derivatives         (2,056,305 )     30,846,010       —       —       30,846,010       61,692,020  
    Non-hedge derivatives         (2,056,305 )     30,846,010       —       —       30,846,010       61,692,020  
    Total         9,270,214       189,529,591       88,500,685       82,358,639       302,025,886       662,414,800  

     

      d) Cash flow transfer
         

    A detail of cash flows transfers as of December 31, 2017 and 2016 is shown as follows:

        Changes between December 31, 2016 and
     December 31,2017    		     Changes between December 31, 2015 and
     December 31,2016    		  
    Cash Flow hedges   Forward in ThCh$     Swap  in ThCh$     Total in ThCh$     Forward  in ThCh$     Swap  in ThCh$     Total  in ThCh$  
    Opening balance     10,554,584       6,423,338       16,977,922       (37,523,502 )     4,643,883       (32,879,619 )
    Valuation of existing contracts, opening balance     3,220,636       590,047       3,810,683       42,502,317       1,808,931       44,311,248  
    Valuation of new contracts     7,667,925       67,820       7,735,745       1,219,495       —       1,219,495  
    Transfer to profit or loss during the period     (4,616,088 )     (869,650 )     (5,485,738 )     4,356,274       (29,476 )     4,326,798  
    Closing balance     16,827,057       6,211,555       23,038,612       10,554,584       6,423,338       16,977,922  

      

      17.3 Fair value hierarchy
         

    The detail of the fair value of financial instruments recorded at fair value in the consolidated statement of financial position is as follows (Note 2.6.9):

     

    As of December 31, 2017
              Level 1     Level 2     Level 3  
    Financial instruments measured at fair value   ThCh$     ThCh$     ThCh$     ThCh$  
    Financial assets                                
    Fair value hedge derivatives     1,726,743       —       1,726,743       —  
    Cash flow hedge derivatives     26,991,977       —       26,991,978       —  
    Net investment hedge derivatives     4,705,253       —       4,705,253       —  
    Derivatives not designated as hedge accounting     7,656       —       7,656       —  
    Financial assets available for sale     2,425,216       2,195,667       —       229,549  
    Total financial assets     35,856,845       2,195,667       33,431,630       229,549  
    Finanacial liabilities                                
    Fair value hedge derivatives     69,404       —       69,404       —  
    Cash flow hedge derivatives     3,953,365       —       3,953,365       —  
    Net investment hedge derivatives     2,364,782       —       2,364,782       —  
    Derivatives not designated as hedge accounting     55,759       —       55,759       —  
    Total financial liabilities     6,443,310       —       6,443,310       —  

     

    As of December 31, 2016
              Level 1     Level 2     Level 3  
    Financial instruments measured at fair value   ThCh$     ThCh$     ThCh$     ThCh$  
    Financial assets                                
    Fair value hedge derivatives     843,420       —       843,420       —  
    Cash flow hedge derivatives     18,768,012       —       18,768,013       —  
    Net investment hedge derivatives     1,318,675       —       1,318,675       —  
    Derivatives not designated as hedge accounting     259,436       —       259,436       —  
    Financial assets available for sale     2,554,984       2,375,435       —       179,549  
     Total financial assets     23,744,527       2,375,435       21,189,544       179,549  
    Finanacial liabilities                                
    Fair value hedge derivatives     824,027       —       824,027       —  
    Cash flow hedge derivatives     1,790,090       —       1,790,090       —  
    Net investment hedge derivatives     6,989,471       —       6,989,471       —  
    Derivatives not designated as hedge accounting     2,315,741       —       2,315,741       —  
     Total financial liabilities     11,919,329       —       11,919,329       —