Annual Report and Consolidated Accounts 2015
19. PROVISIONS
On 31 December 2015 and 2014, provisions were broken down as follows:
Dec. 2015
Dec. 2014
Legal processes
5.257
5.257
Income tax
(1)
828.705
-
Other
28.000
26.861
Provisions
861.962
32.118
(1) Provisão referente a benefícios fiscais decorrente do cálculo do IRC do exercício de 2014 em fase de confirmação da respetiva concretização.
20. DERIVATIVE FINANCIAL INSTRUMENT
On December 31, 2015 and 2014 the detail of Ibersol derivative financial instruments is presented as
follows:
Dec. 2015
Dec. 2014
Swaps
(1)
181.602
-
Derivative financial instruments
181.602
-
(1) Amount reclassified from the 2014 loans.
In 2012, subsidiary Asurebi subscribed a deriva-
tive financial instrument for cash-flows hedging
with an interest rate Swap. In 2014 due to chang-
es in the related loan swap conditions were ad-
justed as follows:
- Initial date: September, 5 2015;
- expiration date: July, 15 2019;
- fixed interest rate: 0,78%;
- variable interest rate: Euribor 1M;
- total amount: 10 million euros, reduces with
debt repayment plan.
This derivative is classified as a level 2 category
and its technical valuation based on a market ap-
proach (MTM).
As the derivative financial instrument was not
registered under hedge accounting, its changes
in fair value are reflected in the income of the
year (35.418 euros, Note 27).
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