XML 66 R21.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Investment Property, Property, Plant and Equipment, and Right-of-Use Assets
 12 Months Ended
Dec. 31, 2023
Investment Property, Property, Plant and Equipment, and Right-of-Use Assets [Abstract]  
Investment Property, Property, Plant and Equipment, and Right-of-Use Assets
15.Investment Property, Property, Plant and Equipment, and Right-of-Use Assets

 

A.Investment property, net

 

(i)The movement of investment properties and their related accumulated depreciation for the years ended December 31, 2021, 2022 and 2023 are as follows:

 

In thousands of soles  Note  Land   Buildings   Work in
progress		   Total 
Cost                       
Balance at January 1, 2021     2,505    43,443    20    45,968 
Additions      
-
    28    124    152 
Transfers      10,692    30,458    
-
    41,150 
Reclassifications      
-
    123    (123)   
-
 
Translations adjustments      (9)   (39)   
-
    (48)
At December 31, 2021      13,188    74,013    21    87,222 
Balance at January 1, 2022      13,188    74,013    21    87,222 
Additions      
-
    53    
-
    53 
Disposals      
-
    (1,409)   
-
    (1,409)
Reclassifications      
-
    13,691    
-
    13,691 
At December 31, 2022      13,188    86,348    21    99,557 
Balance at January 1, 2023      13,188    86,348    21    99,557 
Additions      
-
    193    
-
    193 
Reclassifications      
-
    5,711    (21)   5,690 
At December 31, 2023      13,188    92,252    
-
    105,440 
                        
Accumulated depreciation                       
Balance at January 1, 2021      
-
    (19,895)   
-
    (19,895)
Depreciation charge      
-
    (4,316)   
-
    (4,316)
At December 31, 2021      
-
    (24,211)   
-
    (24,211)
Balance at January 1, 2022      
-
    (24,211)   
-
    (24,211)
Depreciation      
-
    (3,971)   
-
    (3,971)
Disposals      
-
    4,240    
-
    4,240 
Reclassifications      
-
    (13,691)   
-
    (13,691)
At December 31, 2022      
-
    (37,633)   
-
    (37,633)
Balance at January 1, 2023      
-
    (37,633)   
-
    (37,633)
Depreciation (note 25.iii)  25.iii   
-
    (3,857)   
-
    (3,857)
Reclassifications      
-
    (5,690)   
-
    (5,690)
At December 31, 2023      
-
    (47,180)   
-
    (47,180)
Carrying amounts                       
At January 1, 2021      2,505    23,548    20    26,073 
At December 31, 2021      13,188    49,802    21    63,011 
At December 31, 2022      13,188    48,715    21    61,924 
At December 31, 2023      13,188    45,072    
-
    58,260 

 

(ii)Depreciation of investment properties is distributed in the consolidated statement profit or loss as follows:

 

In thousands of soles  Note  2021   2022   2023 
Cost of services and goods  25(iii)   2,353    2,007    1,893 
Administrative expenses  25(iii)   1,963    1,964    1,964 
       4,316    3,971    3,857 

 

(iii)Investment properties are stated at cost, net of accumulated depreciation and have the following composition:

 

           Year of      Methodology
           Acquisition      Of
           or   Level of  Valuation
In thousands of soles  2022   2023   construction   Hierarchy  2022 / 2023
Investment properties built                  
“Agustino Plaza” Shopping Center (iii.a)   19,823    18,203   2011   Level 3  Appraisal
Lease office - Surquillo (iii.b)   40,594    38,630   2009   Level 3  Appraisal
Others   1,507    1,427           
    61,924    58,260           

 

(iii.a)The subsidiary Viva Negocio Inmobiliario S.A.C. is owner of “Agustino Plaza” Shopping Center located in the District of El Agustino. The fair value was calculated by an independent appraiser amounted to S/ 62.6 million equivalent to US$ 16.7 million as of December 31, 2023 (S/ 70.8 million equivalent to US$ 18.4 million as of December 31, 2022). This investment property has been leased under an operating lease with third parties. The net carrying amount amounts to S/18.2 million (S/ 19.8 million at December 31, 2022).

 

As of December 31, 2022 and 2023 there are liens on the Banco Interamericano de Desarrollo and Banco de Credito del Peru, respectively.

 

(iii.b)The Company is owner of the property located at Av. Paseo de la Republica 4675, Surquillo, the fair value was calculated by an independent appraiser and amounted to S/ 77.2 million, equivalent to US$ 20.1 million (S/ 73.7 million, equivalent to US$ 19 million in 2022). As of December 31, 2023, the net book balance amounts to S/ 38.6 million (S/ 40.6 as of December 31, 2022). In December 2021, the Management decided to lease the property transferring it from ‘property, plant, and equipment’ to ‘investment property’. The net carrying amount at the closing of the year was S/ 42.6 million).

 

As of December 31, 2022 and 2023 the assets present liens related to the trust with the syndicated line.

 

(iv)Below are the minimum ranges, maximum ranges and the average of the price per square meter:

 

   Minimum   Maximum    
   range   range   Average 
   US$ per M2   US$ per M2   US$ per M2 
“Agustino Plaza” Shopping Center   1,000    1,400    1,133 
Lease office - Surquillo   2,231    5,000    3,060 

 

(v)The following is a sensitivity analysis of the evaluation of the investment property in relation to changes in the following factors considered relevant to management:

 

In thousands of soles  2022   2023 
3%   130    164 
(3%)   (130)   (164)

 

(vi)The nominal amounts of future fixed minimum rental income are as follows (operating leases) of the Corporation’s investment properties:

 

In thousands of soles  2022   2023 
Within 1 year   3,728    2,446 
After 1 year but no more than 5 years   28,241    23,420 
More than 5 years   33,438    32,075 

 

The fair value of the assets is determined based on the value assigned by an external appraiser.

 

The external appraiser uses the comparable market method, according to which the fair value of a property is estimated based on comparable transactions. The unit of comparison applied by the Corporation is the price per square meter.

 

(vii)The net gain from investment properties as of December 31, 2021, 2022 and 2023 consists of the following:

 

In thousands of soles  2021   2022   2023 
Lease income from investment properties   6,806    6,537    14,058 

 

B.Property, plant, and equipment, net

 

The movement of property, plant, and equipment and related accumulated depreciation for the years ended December 31, 2021, 2022 and 2023 are as follows:

 

In thousands of soles  Land   Buildings   Machinery   Vehicles   Furniture and Fixtures   Other equipment   Replacement and
in-transit
units		   Work in progress   Total 
Cost                                             
Balance at January 1, 2021   10,879    133,101    755,838    64,683    52,810    156,111    11,957    20,481    1,205,860 
Additions (i)   85    131    15,786    519    661    5,175    2,572    13,262    38,191 
Sale of assets (ii)   
-
    (714)   (126,417)   (2,775)   (392)   (2,266)   
-
    
-
    (132,564)
Disposals   
-
    (2,638)   (15,632)   (925)   (1,078)   (2,781)   
-
    
-
    (23,054)
Subsidiary deconsolidation   
-
    (18,926)   
-
    (712)   (2,556)   (67,930)   
-
    
-
    (90,124)
Reclassifications   9,925    6,317    235,219    159,546    (15,801)   (30,238)   (2,679)   (32,020)   330,269 
Transfers   (10,692)   (44,149)   (219)   62    
-
    
-
    
-
    (218)   (55,216)
Translations adjustments   (479)   (556)   (9,526)   (1,276)   (63)   (364)   
-
    
-
    (12,264)
At December 31, 2021   9,718    72,566    855,049    219,122    33,581    57,707    11,850    1,505    1,261,098 
Balance at January 1, 2022   9,718    72,566    855,049    219,122    33,581    57,707    11,850    1,505    1,261,098 
Additions (i)   
-
    2,442    29,465    370    783    6,933    
-
    23,162    63,155 
Sale of assets (ii)   
-
    (75)   (32,314)   (7,179)   (513)   (1,249)   (474)   
-
    (41,804)
Disposals   
-
    (5,055)   (12,358)   (3,299)   (289)   (2,084)   
-
    
-
    (23,085)
Reclassifications   
-
    
-
    (845)   
-
    
-
    
-
    
-
    
-
    (845)
Transfers   
-
    (2,875)   (25)   1,147    3,253    (1,188)   
-
    (84)   228 
Translations adjustments   (641)   (8,288)   (9,770)   (2,989)   (2,473)   (782)   404    
-
    (24,539)
At December 31, 2022   9,077    58,715    829,202    207,172    34,342    59,337    11,780    24,583    1,234,208 
Balance at January 1, 2023   9,077    58,715    829,202    207,172    34,342    59,337    11,780    24,583    1,234,208 
Additions (i)   
-
    2,045    25,994    56    637    3,630    23,850    26,022    82,234 
Sale of assets (ii)   
-
    (66)   (26,848)   (6,227)   (2,931)   (3,231)   
-
    
-
    (39,303)
Disposals   
-
    (1,206)   (23,266)   (398)   (562)   (5,909)   (3)   (48)   (31,392)
Reclassifications   
-
    1,125    (2,696)   414    (3,046)   5,115    (3,518)   (637)   (3,243)
Transfers   
-
    
-
    
-
    
-
    
-
    
-
    
-
    (143)   (143)
Translations adjustments   33    1,090    (952)   1,310    3    177    17    
-
    1,678 
At December 31, 2023   9,110    61,703    801,434    202,327    28,443    59,119    32,126    49,777    1,244,039 

 

In thousands of soles  Land   Buildings   Machinery   Vehicles   Furniture and Fixtures   Other equipment   Replacement and
in-transit
units		   Work in progress   Total 
Accumulated depreciation and impairment                                    
Balance at January 1, 2021   (273)   (51,901)   (498,601)   (47,959)   (44,873)   (140,635)   (11)   (16,138)   (800,391)
Depreciation charge   
-
    (5,455)   (49,753)   (4,561)   (1,335)   (9,676)   
-
    
-
    (70,780)
Sale of assets (ii)   
-
    704    122,056    1,632    361    2,127    
-
    
-
    126,880 
Disposals   
-
    1,991    15,022    814    951    2,759    
-
    
-
    21,537 
Subsidiary deconsolidation   
-
    15,508    
-
    698    2,357    63,626    
-
    
-
    82,189 
Reclassifications   273    (12,832)   (221,775)   (158,628)   15,799    30,722    34    16,138    (330,269)
Transfers   
-
    13,691    339    (48)   
-
    
-
    
-
    
-
    13,982 
Impairment loss (iii)   
-
    
-
    (8,055)   
-
    
-
    
-
    (33)   
-
    (8,088)
Translations adjustments   
-
    (99)   6,468    748    10    (115)   
-
    
-
    7,012 
At December 31, 2021   
-
    (38,393)   (634,299)   (207,304)   (26,730)   (51,192)   (10)   
-
    (957,928)
Balance at January 1, 2022   
-
    (38,393)   (634,299)   (207,304)   (26,730)   (51,192)   (10)   
-
    (957,928)
Depreciation charge   
-
    (4,294)   (39,837)   (2,417)   (1,067)   (4,693)   
-
    
-
    (52,308)
Sale of assets (ii)   
-
    75    26,241    6,013    484    1,222    384    
-
    34,419 
Disposals   
-
    2,756    12,219    3,268    276    1,780    89    
-
    20,388 
Reclassifications   
-
    (438)   845    
-
    217    221    
-
    
-
    845 
Transfers   
-
    (691)   (1,103)   (36)   (1,255)   633    
-
    
-
    (2,452)
Impairment loss (iii)   
-
    (6,515)   (1,916)   
-
    (2,357)   
-
    (69)   
-
    (10,857)
Translations adjustments   
-
    6,922    6,521    1,977    2,465    669    (404)   
-
    18,150 
At December 31, 2022   
-
    (40,578)   (631,329)   (198,499)   (27,967)   (51,360)   (10)   
-
    (949,743)
Balance at January 1, 2023   
-
    (40,578)   (631,329)   (198,499)   (27,967)   (51,360)   (10)   
-
    (949,743)
Depreciation charge   
-
    (3,375)   (44,095)   (1,968)   (986)   (3,911)   
-
    
-
    (54,335)
Sale of assets (ii)   
-
    66    23,418    4,982    2,925    3,207    
-
    
-
    34,598 
Disposals   
-
    1,104    22,862    353    461    4,786    
-
    
-
    29,566 
Reclassifications   
-
    471    955    1,456    2,415    (2,064)   10    
-
    3,243 
Translations adjustments   
-
    (31)   1,058    (985)   2    (179)   (68)   
-
    (203)
At December 31, 2023   
-
    (42,343)   (627,131)   (194,661)   (23,150)   (49,521)   (68)   
-
    (936,874)
Carrying amounts                                             
At January 1, 2021   10,606    81,200    257,237    16,724    7,937    15,476    11,946    4,343    405,469 
At December 31, 2021   9,718    34,173    220,750    11,818    6,851    6,515    11,840    1,505    303,170 
At December 31, 2022   9,077    18,137    197,873    8,673    6,375    7,977    11,770    24,583    284,465 
At December 31, 2023   9,110    19,360    174,303    7,666    5,293    9,598    32,058    49,777    307,165 

 

(i)As of December 31, 2023, additions to property, plant and equipment correspond mainly to the energy segment, for machinery, replacement units, works in progress, other equipment, and furniture and fixtures for a total of S/ 66 million. Likewise, additions in the engineering and construction segment, for other equipment, machinery, furniture and fixtures, vehicles and buildings for S/ 14.5 million; and additions in the infrastructure and real estate segment for S/ 1.8 million (As of December 31, 2022, additions to property, plant, and equipment correspond mainly to additions to equipment and work in progress related to well operations for S/ 49.9 million, in the Energy sector; additions to various machinery and equipment for S/ 8 million, in the Engineer and Construction sector; and additions to various equipment and machinery for S/ 3.4 million, in the real estate segment).

 

(ii)During 2023, asset sales were recorded, with disposal costs mainly in machinery and vehicles for S/ 4.7 million in the Engineering and Construction segment (in 2022, S/ 6.6 million, in the Engineering and Construction segment and sales in machinery and vehicles for S/ 0.6 million, in the Infrastructure segment).

 

(iii)In 2022, it corresponds mainly to assets of projects belonging to the Engineering and Construction segment, which came to an end and were recognized as impairment; these comprise improvements and installations for S/ 6.5 million, furniture and fixtures for S/ 2.4 million and machinery for S/ 1.9 million. This was recorded in the consolidated statement of income under “Other income and expenses” and “Cost of Sales and Services”.

 

(iv)Depreciation of fixed assets is distributed in the consolidated statement of profit or loss as follows:

 

In thousands of soles  Note  2021   2022   2023 
Cost of sales and services  25(iii)   58,434    47,195    51,964 
Administrative expenses  25(iii)   6,406    5,113    2,371 
Depreciation discontinued operations      5,940    
-
    
-
 
       70,780    52,308    54,335 

 

(v)The net carrying amount of machinery and equipment, vehicles, and furniture and fixtures acquired under finance lease agreements is broken down as follows:

 

In thousands of soles  2021   2022   2023 
Cost of acquisition   64,640    64,710    64,710 
Accumulated depreciation   (53,321)   (54,097)   (64,710)
Net carrying amount   11,319    10,613    
-
 

 

In 2023 payments for amortization and interest on finance lease amounting to S/ 0.8 million were made (S/ 9.1 million in 2022 and S/ 8.8 million in 2021).

 

(vi)The Corporation maintains insurance in force on its major assets in accordance with policies established by the Corporation’s management. In the opinion of Corporate Management, the Corporation’s insurance policies are consistent with industry practice.

 

(vii)As of December 31, 2023, the Corporation’s management evaluated its long-lived assets for impairment and found no material impairment. In 2022 the impairment effect amounted S/ 10.8 million (see (iii)).

 

C.Right-of-use assets, net

 

(i)As of December 31, 2021, 2022 and 2023, the Corporation recognized right-of-use assets and liabilities as shown in the following table:

 

In thousands of soles  Buildings   Machinery and equipment   Vehicles   Total 
Cost                
Balance at January 1, 2021   75,849    19,344    14,324    109,517 
Additions   8,260    317    5,354    13,931 
Deconsolidation   (21,117)   
-
    (3,050)   (24,167)
Disposals   (364)   
-
    
-
    (364)
Reclassifications   (589)   10    546    (33)
Translations adjustments   (443)   
-
    (50)   (493)
At December 31, 2021   61,596    19,671    17,124    98,391 
Balance at January 1, 2022   61,596    19,671    17,124    98,391 
Additions   6,295    6,344    8,928    21,567 
Reclassifications   (188)   443    (478)   (223)
Translations adjustments   (240)   
-
    
-
    (240)
At December 31, 2022   67,463    26,458    25,574    119,495 
Balance at January 1, 2023   67,463    26,458    25,574    119,495 
Additions   910    2,839    43    3,792 
Reclassifications   (1,511)   (1,183)   (197)   (2,891)
Translations adjustments   130    50    -    180 
At December 31, 2023   66,992    28,164    25,420    120,576 
Accumulated depreciation                    
Balance at January 1, 2021   (24,980)   (12,604)   (7,415)   (44,999)
Depreciation charge   (12,589)   (5,355)   (5,755)   (23,699)
Deconsolidation   14,701    
-
    2,834    17,535 
Disposals   364    
-
    
-
    364 
Reclassifications   588    1,346    (1,901)   33 
Translations adjustments   92    
-
    
-
    92 
At December 31, 2021   (21,824)   (16,613)   (12,237)   (50,674)
Balance at January 1, 2022   (21,824)   (16,613)   (12,237)   (50,674)
Depreciation charge   (9,672)   (4,169)   (4,868)   (18,709)
Reclassifications   (68)   (59)   94    (33)
Translations adjustments   128    
-
    
-
    128 
At December 31, 2022   (31,436)   (20,841)   (17,011)   (69,288)
Balance at January 1, 2023   (31,436)   (20,841)   (17,011)   (69,288)
Depreciation charge   (8,841)   (4,914)   (4,079)   (17,834)
Reclassifications   1,291    1,404    185    2,880 
Translations adjustments   (37)   (2)   
-
    (39)
At December 31, 2023   (39,023)   (24,353)   (20,905)   (84,281)
Carrying amounts                    
At January 1, 2021   50,869    6,740    6,909    64,518 
At December 31, 2021   39,772    3,058    4,887    47,717 
At December 31, 2022   36,027    5,617    8,563    50,207 
At December 31, 2023   27,969    3,811    4,515    36,295 

 

(ii)Depreciation expenses for right-of-use assets have been distributed in the following items of the consolidated statement of profit or loss:

 

In thousands of soles  Note  2021   2022   2023 
Cost of sales and services  25(iii)   9,498    8,809    9,082 
Administrative expenses  25(iii)   8,834    9,900    8,752 
Depreciation discontinued operations      5,367    
-
    
-
 
       23,699    18,709    17,834 

 

(iii)Costs related to the machinery and equipment lease for which the Corporation applied the exceptions described in IFRS 16 are the following:

 

Leases under twelve (12) months: S/ 169.7 million (S/ 187.3 million in 2022 and S/ 252.4 million in 2021). Low value asset leases: S/ 1.7 million (S/ 1.5 million in 2022 and S/ 44.4 million in 2021).

 

In addition, leases, whose payments are entirely variable and depend on their future performance or use, were excluded, in 2023. Expenses amounted to S/ 26.7 million (S/ 45.9 million in 2022 and S/ 85.8 million in 2021).

 

For the years ended December 31, total depreciation is composed as follows:

 

In thousands of soles  Note  2021   2022   2023 
Depreciation of property, plant and equipment  15.B   70,780    52,308    54,335 
Depreciation related to right-of-use assets  15.C   23,699    18,709    17,834 
Depreciation related to investment property  15.A   4,316    3,971    3,857 
Sub total Continuous operations      98,795    74,988    76,026 
(-) Depreciation discontinued operations      (11,307)   -    - 
   25   87,488    74,988    76,026