AMPER, SA and Subsidiaries Consolidated Financial Statements for ...

Derecognition and modification of financial liabilities
The Group derecognizes all or part of a financial liability when the obligations inherent in the
liability have been satisfied or when it has been legally released from the main responsibility
included in the liability, either by virtue of a court ruling or by the creditor.
The exchange of debt instruments between the Group and the counterparty, or a significant
modification of liabilities that have been initially recognized, are accounted for as a cancellation of
the original financial liability and the recognition of a new financial liability, provided the
instruments have substantially different terms.
The Group deems that the terms are substantially different if the discounted present value of the
cash flows under the new terms, including any fees paid net of any fees received and discounted
using the original effective interest rate, vary by at least 10 per cent with respect to the discounted
present value of the remaining cash flows of the original financial liability.
If the exchange is recorded as a cancellation of the original financial liability, any costs or fees
incurred are recognized in the income statement as part of the gain or loss of the cancellation.
Otherwise, any costs or fees incurred are adjusted to the book value of the liability and are
amortized using the straight-line method over the remaining term of the modified liability.
The Group recognizes the difference between the book value of all or part of a financial liability
that has been cancelled or transferred to a third party and the consideration paid, including any
assets transferred other than cash or the liability assumed in the income statement.
The Group has contracted confirming services with several financial institutions to manage
payment to suppliers. The Group uses the above criteria to assess whether it should derecognize
the original liability with commercial creditors and recognize a new liability with the financial
institutions. Commercial liabilities, whose settlement is being handled by financial institutions, are
shown under the heading of trade and other accounts payable, to the extent that the Group has
only transferred the management of the payment to the financial institutions, and continues to be
the primary obligator for payment of the debt before trade creditors.
In turn, debts maintained with financial institutions as a result of the sale of commercial liabilities
are recognized under the entry, commercial debt paid in advance by credit institutions, in the
trade and other accounts payable item of the consolidated balance sheet.
Derivatives and hedging operations
The derivatives held by the Group mainly correspond to interest rate hedging operations and set
out to eliminate (or significantly reduce) these risks in underlying hedged transactions.
The Group opted to designate these instruments wherever possible (compliant with the
requirements of IAS 39) as hedging instruments in hedging relationships. For a derivative to be
considered for hedge accounting (according to NIC39), the Group needs to hedge the risk of
changes in the value of assets and liabilities due to price fluctuations, the interest and/or
exchange rates to which the position or balance be hedged is subject ("fair value hedges").
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