Separate statement of financial position (Stated in millions of Colombian pesos)
Asse ts
Current assets
Cash and cash equivalents
Amortized cost investments
Trading securities
Accounts receivable from related parties
Taxes paid in advance
Other accounts receivable
Other non-financial assets Total current assets
Non-current Assets
Investments in subsidiaries and associates Accounts receivable from related parties Property and equipment, net
Deferred tax assets, net
Total non-current Assets Total assets
Liabilities and shareholders' equity
Current liabilities
Financial obligations at amortized cost
Outstanding bonds at amortized cost
Accounts payable
Employee benefits
Tax liabilities
Other non-financial liabilities
Total current liabilities
Long-term liabilities
Financial obligations at amortized cost
Outstanding bonds at amortized cost
Total long-term liabilities
Total liabilities
Equity
Subscribed and paid capital Additional paid-in capital Retained earnings
Net income
Other comprehensive income Total shareholders' equityNoteDecember 31st 2023
December 31st 2022
6
7
Ps.
157,323 18,707
Ps.
67,439 -
8
256 764
9
444,964 96,081
9
5,958 7,577
9
31 161
10
103 52
627,342
172,074
11 9 12 13
Ps.
18,645,247 Ps. 18,361,916
1,031,954 1,498,754
2,404 278
4,083 127
19,679,883 19,864,880
Ps.
20,307,225 Ps. 20,036,954
14
Ps.
20,923 Ps. 20,255
14
237,172 14,093
16
363,998 106,101
15
2,880 2,486
16
13,335 11,920
16
1,214 1,214
639,522 156,069
14 14
Ps.
1,525,800 Ps. 1,794,089
900,000 1,124,520
2,425,800 2,918,609
Ps.
3,065,322 Ps. 3,074,678
17 17 17
Ps.
23,743
Ps.
23,743
9,695,243 9,695,243
7,450,394 5,939,430
723,038 2,541,179
17
(650,515)
(1,237,319)
Ps.
17,241,903 Ps. 16,962,276
Total liabilities and shareholders' equity
The accompanying notes are an integral part of these financial statements
Luis Carlos Sarmiento Gutiérrez
María Edith González Flórez
President
Certified Public Accountant
Registration 13083-T
Ps.
20,307,225 Ps. 20,036,954
Diana Alexandra Rozo Muñoz
Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
Registration 120741 T
Member of KPMG S.A.S. (See my report of february 27th 2024)
Separate income statement
(Stated in millions of Colombian pesos, except earnings per share)
Operating revenue
Equity method income, net
Other revenue from ordinary activities
Total operating revenue
Expenses, net
Administrative expenses
Other expenses
revenue from exchange rate differences Operating income
For the accumulated period
December 31st | December 31st | |
Note | 2023 | 2022 |
19 19
Ps.
Ps.
731,040 443,050 1,174,090
Ps.
Ps.
1,956,438 307,399 2,263,837
20 20 20
Ps.
79,766 Ps. 105,356
(467) 4,092
1,495 627
Ps.
1,093,296 Ps.
2,153,762
Financial expenses
20
326,757
191,558
Earnings before taxes
Ps.
766,539
Ps.
1,962,204
Income tax expense
Net income from continuing operations
Discontinued operations
Equity method income from discontinued operations
13
43,501
Ps.
17,672
723,038
Ps.
1,944,532
19 - 596,647
Income from discontinued operations Ps. - Ps. 596,647
Net income
Ps.
723,038
Ps.
2,541,179
Number of shares outstanding
17
23,743,475,754
23,743,475,754
Net income per share from continuing operations Net income per share from discontinued operations
The accompanying notes are an integral part of these financial statements
Luis Carlos Sarmiento Gutiérrez
María Edith González Flórez
President
Certified Public Accountant
Registration 13083-T
Ps. Ps.
30.45 Ps. 84.03
- Ps. 25.78
Diana Alexandra Rozo Muñoz
Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
Registration 120741 T
Member of KPMG S.A.S. (See my report of february 27th 2024)
GRUPO AVAL ACCIONES Y VALORES S.A. Separate Other Comprehensive Income Statement
(Stated in millions of Colombian pesos)
For the accumulated period
December 31st | December 31st | ||
2023 | 2022 | ||
Net income | Ps. | 723,038 Ps. | 2,541,179 |
Other comprehensive income (OCI), net of taxes | |||
Participation in other comprehensive income | |||
reported using the equity method | 586,804 | (2,250,919) | |
Comprehensive income, net | Ps. | 1,309,842 Ps. | 290,260 |
The accompanying notes are an integral part of these financial statements |
Luis Carlos Sarmiento Gutiérrez
María Edith González Flórez
President
Certified Public Accountant
Registration 13083-T
Diana Alexandra Rozo Muñoz
Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
Registration 120741 T
Member of KPMG S.A.S. (See my report of february 27th 2024)
GRUPO AVAL ACCIONES Y VALORES S.A.
Separate Statement of Changes in Equity (Stated in millions of Colombian pesos)
Retained earnings (losses)Subscribed and paid capital
Paid-in Capital
Le gal reserve
Occas io n al reserveRe taine d earnings
Operations with s har e holde r s
Net Income
Othe r com pr e he ns ive incom e
Total Equity
Balance as of december 31 st. 2021
Constitution of reserves for future distributions net income 2021
Reserve appropriation
To distribute a stock dividend of $ 54 per share , over 22,281,017,159 outstanding shares as of december 31st 2021. These dividends w ere be paid at the rate of 1 share for each 13.74233 common or preferred shares as of december 31st, 2021.
Issuance of shares
Application of the equity method Application of the equity method (Spin-off)
Deferred tax adjustment (equity method) Decree 2617 /2022
Witholding tax on dividends
Net Income
Balance as of December 31st 2022
Ps.
22,281 Ps.
8,612,936 Ps.
11,140 Ps.
10,706,543 Ps.
(393,822) Ps.
- Ps.
3,502,758 Ps.
1,013,600 Ps.
23,475,436
732
3,502,758 (188,940)
188,208
(3,502,758)
- -(1,203,175)
(1,203,175)
1,462
1,082,307
1,083,769
(1,532,701) (1,532,701)
(6,644,277)
(718,218) (7,362,495)
(36,287) (36,287)
(3,450) (3,450)
2,541,179 2,541,179
Ps.
23,743 Ps.
9,695,243 Ps.
11,872 Ps.
12,817,186 Ps.
(245,351) Ps.
(6,644,277) Ps.
2,541,179 Ps.
(1,237,319) Ps. 16,962,276
Constitution of reserves for future distributions net income 2022 Reserve appropriation
To distribute a cash dividend of $ 3.60 per share per month from April 2023 to March 2024 including those two months, over 23.743.475.754 outstanding shares as of the date of the Shareholder´s meeting. Application of the equity method
Effect of carrying out Other Comprehensive Income to retained (Equity method) Witholding tax on dividends
Net Income
Balance as of December 31st 2023
Ps.
The accompanying notes are an integral part of these financial statements
Luis Carlos Sarmiento Gutiérrez
2,541,179 (7,111,764)
(1,025,718)
23,743 Ps.
9,695,243 Ps.
11,872 Ps.
President
María Edith González Flórez Certified Public Accountant
Registration 13083-T
(2,541,179)
467,487
6,644,277
(759) (3,738)
723,038
7,220,883 Ps.
217,639 Ps.
- Ps.
723,038 Ps.
Diana Alexandra Rozo Muñoz
586,804
(650,515) Ps.
Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
Registration 120741 T
Member of KPMG S.A.S. (See my report of february 27th 2024)
- -(1,025,718)
586,804
(759) (3,738) 723,038
17,241,903
Separate Statement of Cash Flows (Stated in millions of Colombian pesos)
Cash flow from operating activity:
Net Income
Adjustments to reconcile net income with net cash provided (used) by operating activities
Income tax expense
Impairment of property and equipment
Depreciation and amortization
Loan Impairment
Equity method income
Equity method income from discontinued operations
Changes in operating assets and liabilities:
Decrease (Increase) in trading securities
For the accumulated periodNoteDecember 31st 2023
December 31st 2022
Ps.
723,038 Ps.
2,541,179
13 12 9 19 19
Ps.
43,501 Ps.
4
17,672 5
1,735 1,767
(689) 2,907
(731,040)
(1,956,438)
-
(596,647)Ps.
508
Ps.
(717)Increase in receivables - (661,710)Acquisition of permanent investments Decrease in receivable interests
Decrease in other assets and liabilities, net: prepaid taxes, prepaid expenses, taxes, accounts payable, employee liabilities, estimated liabilities and provisions Increase (Derease) in interests payable
Interest paid on lease agreements (IFRS 16) Dividends received by subsidiaries
Income tax paid
Net cash provided by operating activities
Cash flow from investing activities:
Amortized cost investments
Acquisition of property and equipment
Net cash used in investing activities
Cash flow from financing activities:
Dividends paid
Acquisition of borrowings at amortized cost
Payment of other borrowings from banks
Payment of lease liabilities
Net cash used in financing activities
Effect of exchange rate difference on cash
Change in cash and cash equivalents
Cash and cash equivalents as of the beginning of the period Cash and cash equivalents as of the end of the period
Additional information:
Payment of Interest
The accompanying notes are an integral part of these financial statements
Luis Carlos Sarmiento Gutiérrez
María Edith González Flórez
President
Certified Public Accountant
Registration 13083-T
11 - (831,449)
9
(9) (10,058)
(38,879) (37,322)
(405)
20,114
20
(490) 879,252
(232) 564,575
- (3,354)
Ps.
876,526 Ps. (949,708)
7 12
(19,146)
-(145) (164)
Ps.
(19,291) Ps. (164)
14
(766,537)
-(414,267) 1,287,144
14 - (29,000)
14
(1,270) (1,350)
Ps.
(767,807)
456 89,884
Ps.
842,527 - (107,345)
67,439 174,784
Ps.
157,323 Ps. 67,439
Ps.
327,624 Ps. 170,566
Diana Alexandra Rozo Muñoz
Revisor Fiscal of Grupo Aval Acciones y Valores S.A.
Registration 120741 T
Member of KPMG S.A.S. (See my report of february 27th 2024)
(1)
Reporting Entity
Grupo Aval Acciones y Valores S.A. (hereinafter referred to as the 'Company' or 'Grupo Aval') is a
Stock Corporation established by Public Deed number 0043 on January 7, 1994; Its registered office is located at Carrera 13 No. 26A - 47, Bogotá, D.C., Colombia.
Its corporate purpose is focused on the to buy and to sell of stocks, bonds, and securities of entities belonging to the financial system and other commercial entities. As part of its activities, the Company is authorized to acquire and trade all kinds of marketable securities and securities in general freely circulating in the market; to promote the creation of all kinds of companies related to or complementary to the corporate purpose; to represent natural or legal persons engaged in similar or complementary activities, as well as those previously indicated; to lend or borrow money, with or without interest; to provide as collateral or for management its movable or immovable assets; to issue, endorse, acquire, accept, collect, protest, cancel, or pay bills of exchange, checks, promissory notes, or any other securities titles, either by accepting or providing them as payment, and generally execute or celebrate the exchange contract in all its manifestations, in all their forms, or related, parallel, and/or complementary activities. The total number of employees as at December 31, 2023, and 2022, was 119 and 118, respectively.
The duration of the Company, as established in its bylaws, is until May 24, 2044, but may be dissolved or extended before that term.
The Law 1870 of 2017 aims to define, supervise, and regulate financial conglomerates to watch over the stability of the financial system. In its Article 3, it defines the scope and responsibility of financial holdings, such as Grupo Aval. This law specifies that these entities will be subject to inspection and supervision by the Financial Superintendent; therefore, all regulatory provisions related to risk management, internal control, information disclosure, conflicts of interest, and corporate governance that they must apply will be applicable.
a. Spin-off BAC Holding International Corp. (BHIC)
On March 25, 2022, Banco de Bogotá, a subsidiary of Grupo Aval, spun-off 75% of BHIC (formerly Leasing Bogotá Panamá) from a total direct ownership of 100%, in favor of Sociedad Beneficiaria Bogotá S.A.S, a subsidiary of Banco de Bogotá. This operation resulted in Banco de Bogotá losing control over BHIC.
On March 28, 2022, Grupo Aval spun off in favor of its shareholders its ownership percentage received from BHIC through Banco de Bogotá, corresponding to 68.74% of the 75% spin off.
The value of the investment spun off by Grupo Aval and the effect on its subsidiaries is detailed below:
Basis for Spin-off calculation
OCI
Retained Earnings
Profit for the period
Total
Spin-off Investment (Asset) Realization of OCI into Earnings Realization of OCI into Retained Earnings Effect on Hedge Accounting for Grupo Aval Tota l
Ps.
- (1,187,254)Ps.
(9,658,574) Ps.
7,735 134,632
- (7,735)
Ps.
(1,044,887) Ps.
- (9,666,309) Ps.
- 1,187,254 - (134,632)Ps.
(9,658,574)
1,052,622 Ps.
- - - (9,658,574)
Ownership Percentage
Effect of Spin-off on Grupo Aval´s InvestmentsPs.
68.74% (718,218) Ps.
68.74% (6,644,277) Ps.
68.74% 723,534 Ps.
68.74% (6,638,961)
b. Takeover Bid
On December 6, 2022, the Tender Offer made by Esadinco S.A. was accepted, which included the sale of BHIC shares by Banco de Bogotá. On December 14, the selling process concluded, resulting in the sale of 20.9% of BHIC shares. The remaining 4.1% stake was sold by Banco de Bogotá on March 17, 2023.
(2)Basis of presentation of separate financial statements and summary of significant accounting policies.
The annual separate financial statements of Grupo Aval Acciones y Valores S.A. have been prepared in accordance with the Accounting and Financial Reporting Standards accepted in Colombia (IFRS adopted by Colombia) and established in Law 1314 of 2009, regulated in the annex of Decree 2420 of 2015, and the other amending decrees issued by the National Government.
In accordance with Colombian legislation, the Company must prepare separate and consolidated financial statements. The separate financial statements are those that serve as the basis for the distribution of dividends and other appropriations by the shareholders. The separate and consolidated financial statements are submitted to the Shareholders' Meeting for approval.
The Company applies to these separate financial statements the following exceptions contemplated in Title 4 - Special Regimes of Chapter 1 of Decree 2420 of 2015 and applies the following guidelines in accordance with laws and other regulations in force in Colombia:
• The following exceptions established in External Circular 036 of 2014 of the Financial Superintendency of Colombia, for supervised and controlled entities:
- The instructions of the Financial Superintendency of Colombia related to the classification, valuation and accounting of investments, as regards their separate financial statements.
• Book 2 of Decree 2420 of 2015, as amended included in Decree 2496 of 2015:
- Article 7 - Explanatory notes (Addition of Part 2 to Book 2, Article 2.2.1) establishing that for the determination of post-employment benefits for future retirement or disability pensions, the parameters established in Decree 2783 of 2001 are used as the best market approximation, instead of the requirements determined in accordance with IAS 19.
-Article 11 - Validity (Amendment to Article 2.1.2 of Part 1 of Book 2) establishing that for the application of Article 35 of Law 222 of 1995, participations in subsidiaries must be recognized in the individual (separate) financial statements in accordance with the equity method, as described in IAS 28.
• Decree 1311 of 2021 regulating Article 50 of Decree Law 410 of 1971:
-Article 1. Alternative for recognition and presentation of the deferred tax arising from the change in the income tax rate. The value of the deferred tax arising from the change in the income tax rate may be recognized in the entity's equity in the retained earnings of previous years.
The main accounting policies applied in the preparation of the separate financial statements presented under IFRS adopted by Colombia as at December 31, 2023 and 2022, are as follows.
2.1. Presentation Basis
The Company's separate financial statements are those unconsolidated financial statements in which investments in subsidiaries are accounted for by the equity method in accordance with IAS
28. Under the equity method, investments in subsidiaries are recorded at acquisition cost and are periodically adjusted for changes in the parent company's equity interest in the net assets of the subsidiaries, less dividends received from them in cash and the effect of adjustments resulting from the homogenization to the parent company's policies, as well as the elimination of related party transactions. The Company's results for the period include its share in the results for the period of the subsidiaries, and Other Comprehensive Income includes its share in the other comprehensive income of the subsidiaries.
At the end of each year-end the Company performs a qualitative and quantitative evaluation for impairment of its investments, in accordance with the parameters established in IAS 36.
2.2. Functional and presentation currency
Most of the Company's operations are conducted in Colombian pesos (Ps.). The Company's performance is measured and reported to its stockholders and the general public in Colombian pesos. Due to the foregoing, the Company's management believes that the Colombian peso is the currency that most faithfully represents the economic effects of the Company's underlying transactions, events and conditions and, for this reason, the accompanying financial statements are presented in millions of Colombian pesos as their functional currency and the figures have been rounded to the nearest whole number.
2.3. Presentation of separate financial statements
The accompanying separate financial statements were prepared to comply with the legal provisions to which the Company is subject as a legal and independent entity; some accounting principles may differ from those applied in the consolidated financial statements and, additionally, do not include the adjustments and eliminations necessary for the interpretation of the consolidated financial position and the consolidated comprehensive income of the Company and its subsidiaries.
a) According to the Company's bylaws, Grupo Aval performed the accounting closing every six months, with the purpose of distributing profits. As of 2017, Grupo Aval performs annual account closing, in accordance with the approval of the General Shareholders' Meeting, in an extraordinary meeting held on October 25, 2016 with minute number 77.
b) The Statement of Financial Position is presented showing current assets and liabilities as categories, a form of presentation that provides reliable information. In addition, in the development of each of the notes of financial assets and liabilities, the expected amount to be recovered or payable within the next twelve months and after twelve months is disclosed.
c) The Statement of Income and the Statement of Other Comprehensive Income are presented separately as permitted by IAS 1; the Statement of Income is presented classified by function of expenses.
d) The Statement of Cash Flows is presented by the indirect method, in which operating activities begin by presenting net profit, which is then modified by the effect of non-cash transactions for all types of deferred payment items and accruals that do not generate cash flows, as well as by the effect of income items that are classified as investment or financing; interest income and expense, as well as movements in investments in subsidiaries, are presented as components of operating activities.
2.4. Transactions in foreign currency
Transactions in foreign currency are translated into Colombian pesos using the representative market exchange rate at the transaction date. Monetary assets and liabilities in foreign currency are translated to the functional currency using the exchange rate at the reporting date of the statement of financial position. As at December 31, 2023 and 2022, the closing exchange rate was Ps. 3,822.05
and Ps. 4,810.20 per dollar, respectively. Gains or losses resulting from the translation process are included in the separate income statement.
2.5. Cash and cash equivalents
Cash and cash equivalents consist of cash balances, deposits and other liquid investments with original maturities of three months or less that are subject to an insignificant risk of changes in fair value and are used by the Company in the management of its short-term commitments.
2.6. Financial assets
i. Recognition and initial measurement
A financial asset is any asset that is:
• cash;
• an equity instrument of another entity;
• a contractual right:
o to receive cash or another financial asset from another entity; or
o to exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the entity; or
o a contract that will or may be settled using the entity's own equity instruments.
Regular purchases and sales of investments are recognized on the trade date, on which the Company and its subsidiaries commit to purchase or sell securities. Financial assets at fair value through profit or loss are initially recognized at fair value and transaction costs are expensed as incurred.
Financial assets classified at amortized cost are recorded at acquisition or grant at their transaction value in the case of investments, or at their nominal value in the case of loans, which, unless there is evidence to the contrary, coincides with their fair value, plus transaction costs directly attributable to their acquisition or grant, less commissions received.
ii. Classification
IFRS 9 (2014 version) contains a classification and measurement approach for financial assets that reflects the business model in which these assets are managed and their cash flow characteristics.
IFRS 9 (2014 version) includes three main classification categories for financial assets: measured at amortized cost (AC), at fair value through other comprehensive income (FVTOCI), and at fair value through profit or loss (FVTPL).
A financial asset is measured at amortized cost and not at fair value through profit or loss if it meets both of the following conditions:
• The asset is held within a business model whose objective is to hold assets in order to obtain contractual cash flows; and
• The contractual terms of the financial asset establish specific dates for cash flows derived solely from payments of principal and interest on the outstanding balance.
A debt instrument is measured at FVTOCI only if it meets both of the following conditions and has not been designated as FVTPL:
10
• The asset is held within a business model whose objective is achieved by collecting contractual cash flows and selling these financial assets; and;
• The contractual terms of the financial asset establish specific dates for cash flows derived solely from payments of principal and interest on the outstanding balance.
The following accounting policies apply to the subsequent measurement of financial assets.
Financial assets at fair | These assets are subsequently measured at fair value. Net gains and losses, |
value through profit or loss | including interest or dividend income, are recognized in income. |
(FVTPL) | |
These assets are subsequently measured at amortized cost using the effective | |
Financial assets at | interest method. Amortized cost is reduced by impairment losses. Interest |
amortized cost (AC) | income, foreign exchange gains and losses and impairment are recognized in |
profit or loss. Any gain or loss on derecognition is recognized in profit or loss. | |
Equity investments with | These assets are subsequently measured at fair value. Dividends are recognized |
changes in other | as income in profit or loss unless the dividend clearly represents a recovery of |
comprehensive income | part of the cost of the investment. Other net gains and losses are recognized in |
(FVOCI) | OCI and are never reclassified to profit or loss. |
iii. Reclassifications |
Financial assets are not reclassified after initial recognition, except in the period after the Company modifies its business model for managing financial assets.
iv. Transfers and derecognition of financial assets
The accounting treatment of transfers of financial assets is conditioned by the manner in which the risks and benefits associated with the assets being transferred are transferred to third parties, such that financial assets are derecognized from the separate statement of financial position when the cash flows they generate have been extinguished or when the risks and benefits implicit in them have been substantially transferred to third parties. In the latter case, the transferred financial asset is derecognized from the separate statement of financial position, recognizing simultaneously any right or obligation retained or created as a result of the transfer.
Substantially all the risks and rewards are deemed to be transferred if the risks and rewards transferred represent the majority of the total risks and rewards of the transferred assets.
If substantially all the risks and/or rewards associated with the transferred financial asset are retained:
• The transferred financial asset is not derecognized from the statement of financial position and continues to be measured using the same criteria used before the transfer.
• An associated financial liability is recorded for an amount equal to the consideration received, which is subsequently measured at amortized cost.
• Both the income associated with the financial asset transferred (but not derecognized) and the expenses associated with the new financial liability continue to be recorded.
Financial assets are derecognized from the statement of financial position only when the rights have been legally extinguished or when substantially all the risks and rewards of the asset have been transferred to third parties.
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Grupo Aval Acciones y Valores SA published this content on 23 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 March 2024 04:46:06 UTC.