LATAM AIRLINES GROUP S.A. | CIK:0001047716 | 3

  • Filed: 4/5/2018
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    • ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory

    NOTE 29 - FOREIGN CURRENCY AND EXCHANGE RATE DIFFERENCES

     

    The functional currency of LATAM Airlines Group S.A. is the US dollar, also it has subsidiaries whose functional currency is different to the US dollar, such as the chilean peso, argentine peso, colombian peso, brazilian real and guaraní.

     

    The functional currency is defined as the currency of the primary economic environment in which an entity operates and in each entity and all other currencies are defined as foreign currency.

     

    Considering the above, the balances by currency mentioned in this note correspond to the sum of foreign currency of each of the entities that make LATAM Airlines Group S.A. and Subsidiaries.

     

    (a) Foreign currency

     

    The foreign currency detail of balances of monetary items in current and non-current assets is as follows:

     

        As of     As of  
        December 31,     December 31,  
    Current assets   2017     2016  
        ThUS$     ThUS$  
                 
    Cash and cash equivalents     260,092       201,416  
    Argentine peso     7,309       4,438  
    Brazilian real     14,242       9,705  
    Chilean peso     81,693       30,221  
    Colombian peso     1,105       1,137  
    Euro     11,746       1,695  
    U.S. dollar     108,327       128,694  
    Other currency     35,670       25,526  
                     
    Other financial assets, current     36,484       14,573  
    Argentine peso     21       12  
    Brazilian real     17       734  
    Chilean peso     26,605       585  
    Colombian peso     150       -  
    U.S. dollar     9,343       12,879  
    Other currency     348       363  

     

        As of     As of  
        December 31,     December 31,  
    Current assets   2017     2016  
        ThUS$     ThUS$  
                 
    Other non - financial assets, current     107,170       107,789  
    Argentine peso     16,507       16,086  
    Brazilian real     19,686       20,158  
    Chilean peso     34,258       1,619  
    Colombian peso     340       713  
    Euro     2,722       1,563  
    U.S. dollar     21,907       50,157  
    Other currency     11,750       17,493  
                     
    Trade and other accounts receivable, current     373,447       251,204  
    Argentine peso     49,680       54,356  
    Brazilian real     22,006       30,675  
    Chilean peso     82,369       90,482  
    Colombian peso     1,169       9,720  
    Euro     48,286       21,923  
    U.S. dollar     34,268       14,086  
    Other currency     135,669       29,962  
                     
    Accounts receivable from related entities, current     958       554  
    Chilean peso     735       554  
    U.S. dollar     223       -  
                     
    Tax current assets     33,575       28,198  
    Argentine peso     1,679       1,798  
    Brazilian real     3,934       2,462  
    Chilean peso     3,317       6,333  
    Colombian peso     660       1,418  
    Euro     179       273  
    U.S. dollar     327       177  
    Peruvian sol     21,948       14,387  
    Other currency     1,531       1,350  
                     
    Total current assets     811,726       603,734  
    Argentine peso     75,196       76,690  
    Brazilian real     59,885       63,734  
    Chilean peso     228,977       129,794  
    Colombian peso     3,424       12,988  
    Euro     62,933       25,454  
    U.S. Dollar     174,395       205,993  
    Other currency     206,916       89,081  

     

        As of     As of  
        December 31,     December 31,  
    Non-current assets   2017     2016  
        ThUS$     ThUS$  
                 
    Other financial assets, non-current     20,975       26,772  
    Brazilian real     3,831       2,769  
    Chilean peso     74       83  
    Colombian peso     281       285  
    Euro     7,853       6,966  
    U.S. dollar     7,273       14,920  
    Other currency     1,663       1,749  
                     
    Other non - financial assets, non-current     9,108       19,069  
    Argentine peso     172       142  
    Brazilian real     6,368       6,029  
    U.S. dollar     38       8,309  
    Other currency     2,530       4,589  
                     
    Accounts receivable, non-current     6,887       7,356  
    Chilean peso     6,887       7,356  
                     
    Deferred tax assets     2,081       2,110  
    Colombian peso     86       117  
    Other currency     1,995       1,993  
                     
    Total  non-current assets     39,051       55,307  
    Argentine peso     172       142  
    Brazilian real     10,199       8,798  
    Chilean peso     6,961       7,439  
    Colombian peso     367       402  
    Euro     7,853       6,966  
    U.S. dollar     7,311       23,229  
    Other currency     6,188       8,331  

     

    The foreign currency detail of balances of monetary items in current liabilities and non-current is as follows:

     

        Up to 90 days     91 days to 1 year  
        As of     As of     As of     As of  
        December 31,     December 31,     December 31,     December 31,  
    Current liabilities   2017     2016     2017     2016  
        ThUS$     ThUS$     ThUS$     ThUS$  
                             
    Other financial liabilities, current     36,000       287,175       115,182       455,086  
    Chilean peso     21,542       55,962       79,032       108,010  
    U.S. dollar     14,458       231,213       36,150       347,076  
                                     
    Trade and other accounts payables, current     919,373       585,149       33,707       16,097  
    Argentine peso     122,452       20,838       8,636       907  
    Brazilian real     28,810       40,740       669       27  
    Chilean peso     233,202       60,701       11,311       12,255  
    Colombian peso     2,964       9,049       855       578  
    Euro     58,081       23,445       9,165       5  
    U.S. dollar     409,380       374,431       1,154       962  
    Peruvian sol     39,064       33,701       825       1,093  
    Mexican peso     2,732       1,535       115       -  
    Pound sterling     5,839       1,769       199       246  
    Uruguayan peso     1,890       6,899       -       -  
    Other currency     14,959       12,041       778       24  
                                     
    Accounts payable to related entities, current     760       220       -       -  
    Chilean peso     546       23       -       -  
    U.S. dollar     4       8       -       -  
    Other currency     210       189       -       -  
                                     
    Other provisions, current     959       511       -       -  
    Chilean peso     30       28       -       -  
    Other currency     929       483       -       -  
                                     
    Tax liabilities, current     -       (204 )     174       2,501  
    Argentine peso     -       -       174       2,501  
    Brazilian real     -       (3 )     -       -  
    Chilean peso     -       (25 )     -       -  
    Other currency     -       (176 )     -       -  

     

        Up to 90 days     91 days to 1 year  
        As of     As of     As of     As of  
        December 31,     December 31,     December 31,     December 31,  
    Current liabilities   2017     2016     2017     2016  
        ThUS$     ThUS$     ThUS$     ThUS$  
                             
    Other non-financial liabilities, current     25,190       33,439       -       -  
    Argentine peso     393       13,463       -       -  
    Brazilian real     542       430       -       -  
    Chilean peso     11,283       14,999       -       -  
    Colombian peso     837       578       -       -  
    Euro     5,954       168       -       -  
    U.S. dollar     3,160       684       -       -  
    Other currency     3,021       3,117       -       -  
                                     
    Total current liabilities     982,282       906,290       149,063       473,684  
    Argentine peso     122,845       34,301       8,810       3,408  
    Brazilian real     29,352       41,167       669       27  
    Chilean peso     266,603       131,688       90,343       120,265  
    Colombian peso     3,801       9,627       855       578  
    Euro     64,035       23,613       9,165       5  
    U.S. dollar     427,002       606,336       37,304       348,038  
    Other currency     68,644       59,558       1,917       1,363  

     

        More than 1 to 3 years     More than 3 to 5 years     More than 5 years  
        As of     As of     As of     As of     As of     As of  
        December 31,     December 31,     December 31,     December 31,     December 31,     December 31,  
    Non-current liabilities   2017     2016     2017     2016     2017     2016  
        ThUS$     ThUS$     ThUS$     ThUS$     ThUS$     ThUS$  
                                         
    Other financial liabilities, non-current     276,436       178,793       263,798       747,218       189,500       41,785  
    Chilean peso     41,548       59,177       189,500       16,189       189,500       -  
    U.S. dollar     234,888       119,616       74,298       731,029       -       41,785  
                                                     
    Accounts payable, non-current     362,964       195,629       -       -       -       -  
    Chilean peso     13,251       10,474       -       -       -       -  
    U.S. dollar     348,329       183,904       -       -       -       -  
    Other currency     1,384       1,251       -       -       -       -  
                                                     
    Other provisions, non-current     41,514       39,513       -       -       -       -  
    Argentine peso     940       635       -       -       -       -  
    Brazillian real     24,074       23,541       -       -       -       -  
    Chilean peso     -       38       -       -       -       -  
    Colombian peso     551       569       -       -       -       -  
    Euro     9,883       8,664       -       -       -       -  
    U.S. dollar     6,066       6,066       -       -       -       -  
                                                     
    Provisions for employees benefits, non-current     77,579       68,774       -       -       -       -  
    Brazilian real     -       28       -       -       -       -  
    Chilean peso     73,399       68,380       -       -       -       -  
    U.S. dollar     4,180       366       -       -       -       -  
                                                     
    Other non-financial liabilities, non-current     -       3       -       -       -       -  
    Colombian peso     -       3       -       -       -       -  
                                                     
    Total non-current liabilities     758,493       482,712       263,798       747,218       189,500       41,785  
    Argentine peso     940       635       -       -       -       -  
    Brazilian real     24,074       23,569       -       -       -       -  
    Chilean peso     128,198       138,069       189,500       16,189       189,500       -  
    Colombian peso     551       572       -       -       -       -  
    Euro     9,883       8,664       -       -       -       -  
    U.S. dollar     593,463       309,952       74,298       731,029       -       41,785  
    Other currency     1,384       1,251       -       -       -       -  

     

        As of     As of  
        December 31,     December 31,  
    General summary of foreign currency:   2017     2016  
        ThUS$     ThUS$  
                 
    Total assets     850,777       659,041  
    Argentine peso     75,368       76,832  
    Brazilian real     70,084       72,532  
    Chilean peso     235,938       137,233  
    Colombian peso     3,791       13,390  
    Euro     70,786       32,420  
    U.S. dollar     181,706       229,222  
    Other currency     213,104       97,412  
                     
    Total liabilities     2,343,136       2,651,689  
    Argentine peso     132,595       38,344  
    Brazilian real     54,095       64,763  
    Chilean peso     864,144       406,211  
    Colombian peso     5,207       10,777  
    Euro     83,083       32,282  
    U.S. dollar     1,132,067       2,037,140  
    Other currency     71,945       62,172  
                     
    Net position                
    Argentine peso     (57,227 )     38,488  
    Brazilian real     15,989       7,769  
    Chilean peso     (628,206 )     (268,978 )
    Colombian peso     (1,416 )     2,613  
    Euro     (12,297 )     138  
    U.S. dollar     (950,361 )     (1,807,918 )
    Other currency     141,159       35,240  

     

    (b) Exchange differences

     

    Exchange differences recognized in income, except for financial instruments measured at fair value through profit or loss, for the period ended December 31, 2017, 2016 and 2015, generated a charge of ThUS $ 18,718, a credit of ThUS $ 121,651 and a charge of ThUS $ 467,896, respectively.

     

    Exchange differences recognized in equity as reserves for exchange differences for conversion, for the period ended December 31, 2017, 2016 and 2015, generated a charge of ThUS $ 47,495, a credit of ThUS $ 494,362 and a charge of ThUS $1, 409,439, respectively.

     

    The following shows the current exchange rates for the U.S. dollar, on the dates indicated:

     

        As of December 31,  
        2017     2016     2015     2014  
                             
    Argentine peso     18.57       15.84       12.97       8.55  
    Brazilian real     3.31       3.25       3.98       2.66  
    Chilean peso     614.75       669.47       710.16       606.75  
    Colombian peso     2,984.77       3,000.25       3,183.00       2,389.50  
    Euro     0.83       0.95       0.92       0.82  
    Strong bolivar     3,345.00       673.76       198.70       12.00  
    Australian dollar     1.28       1.38       1.37       1.22  
    Boliviano     6.86       6.86       6.85       6.86  
    Mexican peso     19.66       20.63       17.34       14.74  
    New Zealand dollar     1.41       1.44       1.46       1.28  
    Peruvian Sol     3.24       3.35       3.41       2.99  
    Uruguayan peso     28.74       29.28       29.88       24.25