Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2024

Fair Value of Financial Assets and Liabilities [Abstract]

Fair value of financial assets and liabilities

26.

Fair value of financial assets and liabilities

Financial assets -

Except for derivative financial instruments and financial instruments designated at fair value through OCI, all financial assets which included trade and other receivables are classified in the category of loans and receivables, which are non-derivative financial assets carried at amortized cost, held to maturity, and generate a fixed or variable interest income for the Group. The carrying value may be affected by changes in the credit risk of the counterparties.

Financial liabilities -

All financial liabilities of the Group including trade and other payables financial obligations are classified as loans and borrowings and are carried at amortized cost.

(a)

Fair values and fair value accounting hierarchy -

Set out below is a comparison of the carrying amounts and fair values of financial instruments as of December 31, 2024 and 2023, as well as the fair value accounting hierarchy. The dates of valuations at fair value were as of December 31, 2024 and 2023, respectively.

	Carrying amount				Fair value				Fair value hierarchy
	2024		2023		2024		2023		2024/2023
	S/(000)		S/(000)		S/(000)		S/(000)

Financial assets
Cash and cash equivalents		72,723		90,193		72,723		90,193	Level 1
Trade and other receivables		174,399		143,085		174,399		143,085	Level 2
Financial investments designated at fair value through other comprehensive income		239		249		239		249	Level 3
Total financial assets		247,361		233,527		247,361		233,527

Financial liabilities
Trade and other payables		242,051		231,511		242,051		231,511	Level 2
Senior notes		569,303		569,192		541,508		532,987	Level 1
Promissory notes		923,888		1,003,834		916,415		931,014	Level 2

Total financial liabilities		1,735,242		1,804,537		1,699,974		1,695,512

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchies are those described in note 2.3.2 (iv).

For assets and liabilities that are recognized at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy. As of December 31, 2024 and 2023, there were no transfers between the fair value hierarchies.

Management assessed that cash and cash equivalents; trade and other receivables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values:

The fair value of the quoted senior notes is based on the current quotations value at the reporting date as they trade on the exchange.

The fair value of the fixed rate promissory note it is calculated using the results of cash flow discounted at the average indebtedness rates effective as of the reporting date.

The fair value of financial instruments at fair value with changes in OCI has been determined through the percentage of the Company's shareholding in the equity of Fossal S.A.A.