Critical Accounting Estimates and Judgements (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Sensitivity Analysis Based on 10% Increase/Decrease in Assumptions of Gross Margin, Discount Rate, Terminal Growth Rate (Details)

At December 31, 2016 and 2017 the Group has performed a sensitivity analysis increasing or decreasing the assumptions of gross margin, discount rate and revenue and terminal growth rate by a 10%, with all the other variables held constant, as follows:

	Difference between recoverable amount and carrying amounts
	2016			2017
Goodwill
Gross margin		(10%)	+10%		(10%)	+10%
Mining construction services		19.18%	71.19%		—	—
Engineering and construction		(42.68%)	17.85%		81.31%	143.63%
Electromechanical		32.16%	74.41%		197.30%	620.85%
IT equipment and services		200.93%	289.04%		0.32%	38.87%
Telecommunication services		(110.85%)	176.40%		465.17%	1339.26%
Discount rate:		(10%)	+10%		(10%)	+10%
Mining construction services		65.94%	28.99%		—	—
Engineering and construction		8.22%	(27.56%)		146.07%	86.86%
Electromechanical		74.42%	36.77%		478.08%	354.39%
IT equipment and services		285.63%	212.65%		30.06%	11.25%
Telecommunication services		70.31%	4.59%		2190.66%	1967.37%
Terminal growth rate:		(10%)	+10%		(10%)	+10%
Mining construction services		42.92%	47.55%		—	—
Engineering and construction		(16.49%)	(7.84%)		107.41%	117.91%
Electromechanical		51.14%	55.62%		402.19%	416.25%
IT equipment and services		243.21%	247.06%		18.54%	20.52%
Telecommunication services		26.14%	39.94%		2232.86%	2394.81%
Trademarks
Revenue growth rate:		(10%)	+10%		(10%)	+10%
Morelco		22.37%	42.03%		16.37%	(4.79%)
Vial yVives - DSD		17.01%	43.01%		(40.72%)	(63.32%)
Adexus		(8.18%)	(9.91%)		22.10%	(0.10%)
Discount rate:		(10%)	+10%		(10%)	+10%
Morelco		53.35%	15.66%		(7.21%)	22.92%
Vial yVives - DSD		56.88%	10.88%		(58.56%)	(45.65%)
Adexus		15.42%	(10.59%)		(2.13%)	28.02%
Terminal growth rate:		(10%)	+10%		(10%)	+10%
Morelco		29.19%	34.94%		8.61%	3.17%
Vial yVives - DSD		23.19%	37.83%		(51.36%)	(54.47%)
Adexus		(0.12%)	1.89%		13.27%	8.86%

Summary of Sensitivity Analysis Performed Considering a 10% Increase/Decrease in Group's Gross Margins

As of December 31, 2015, 2016 and 2017, a sensitivity analysis was performed considering a 10% increase/decrease in the Group’s gross margins, as follows:

	2015			2016			2017
Sales		5,501,537			3,945,599			3,253,199
Gross profit		159,158			194,378			224,040
%		2.89			4.93			6.89
Plus 10%		3.18			5.42			7.58
Increase in pre-tax profit		15,787			19,473			22,552
		174,949			213,851			246,592
Less 10%		2.60			4.44			6.20
Decrease in pre-tax profit		(15,787	)		(19,473	)		(22,552	)
		143,371			174,905			201,488

Disclosure of Adjustments of Financial Statements

as a result, the following adjustments were included in the financial statements of our subsidiary GyM S.A., resulting in a loss of S/15.2 million:

	S/000
Income for debt forgiveness (i)		431,484
Indemnification income		33,600
Work in progress impairment (ii)		(410,199	)
Other provisions		(24,915	)
Inventories impairment (iii)		(33,824	)
Financial expenses		(7,004	)
Property, plant and equipment impairment		(4,143	)
Others (liability) asset, net		(164	)
		(15,165	)

(i) The extinguished trade accounts payable relates to the recognition of the construction project estimated margin recorded as a liability (Note 2.25.i)

(ii) The recoverable of work in progress relates to the minimum secured payment to be obtained from GSP.

(iii) Inventories were specialized in nature assets and cannot be traded in an active market that could not be sold in an active market.