Grupo Aval Acciones Y Valores S.A. | CIK:0001504764 | 3

  • Filed: 4/27/2018
  • Entity registrant name: Grupo Aval Acciones Y Valores S.A. (CIK: 0001504764)
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    • ifrs-full:DisclosureOfRelatedPartyExplanatory

    NOTE 35 – RELATED PARTIES
     
    To verify the correct identification of relationships and transaction with related parties, Grupo Aval has established a specific written Procedure for the Identification and Disclosure of Balances and Transactions with Related Parties. Such procedure is communicated and made available to our personnel through Grupo Aval’s intranet. In application of this procedure, our members of the board of directors and our key management personnel are periodically required to identify close family members and entities over which such persons have significant influence. Such process is conducted by a written request containing the criteria that such person must consider in order to provide information on close family members and entities that must be disclosed as their related parties.
     
    In addition, Grupo Aval Vice-Presidency of Accounting Consolidation periodically performs an evaluation of its controlling and non-controlling investments in other entities to identify if such entities should be treated as a related entity.
     
    In October 28, 2015, Grupo Aval’s board of directors approved a Reference Framework for Institutional Relations applicable to Grupo Aval and its subsidiaries. Among other things, such framework established guidelines for intragroup operations oriented to regulate this type of transactions and to generate an adequate balance between the best interests of Grupo Aval at a consolidated level and that of the minority shareholders of the entities forming part of Grupo Aval and/or its subsidiaries. The following are some of the guidelines included in the abovementioned corporate framework:
     
    ·
    Grupo Aval and its subsidiaries shall permanently carry out the registration of the operations performed with related parties, identifying the type of operation, its purpose, economic conditions and authorizations received when applicable.
     
    ·
    Grupo Aval and its subsidiaries shall establish limits of indebtedness or exposure and perform constant monitoring of the intragroup operations, complying for such purpose with the restrictions set forth under applicable regulations.
     
    ·
    All intragroup operations shall be fully identified by accounting areas of the respective entities.
     
    ·
    Authorization levels are defined within the governance and control structure, assigned as may be deemed adequate as a function of the magnitude and type of transaction, keeping the evidence of such authorizations.
     
    ·
    It should be verified that related party transactions are carried out for a good and valuable consideration, at market conditions, maintaining a financial equilibrium in the relationships between the entities participating in the operation.
     
    This Reference Framework for Institutional Relations was also submitted to the consideration and approval of the Board of Directors of our subsidiaries and has been made available in the web sites of Grupo Aval and its subsidiaries.
     
    Balances as of December 31, 2017 and 2016, with related parties, are detailed in the following tables:
     
     
     
    Individuals
     
     
    Entity
     
    December 31, 2017
     
    Mr.
    Sarmiento
    Angulo
    and
    relatives
     
     
    Key
    management
    personnel
     
     
    Associates
    and joint
    ventures
     
     
    Entities
    controlled
    by
    individuals
     
     
    Entities
    with
    significant
    influence
    by
    individuals
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Assets
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Cash and equivalents
     
    Ps.
    -
     
     
    Ps.
    -
     
     
    Ps.
    11
     
     
    Ps.
    -
     
     
    Ps.
    67
     
    Financial assets in investments
     
     
    -
     
     
     
    -
     
     
     
    910,310
     
     
     
    1,249
     
     
     
    -
     
    Financial assets in credit operations
     
     
    3,066
     
     
     
    10,665
     
     
     
    1,492,067
     
     
     
    1,301,697
     
     
     
    3,385
     
    Accounts receivable
     
     
    11
     
     
     
    33
     
     
     
    59,588
     
     
     
    4,421
     
     
     
    -
     
    Other assets
     
     
    -
     
     
     
    -
     
     
     
    156,636
     
     
     
    3,661
     
     
     
    18
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Liabilities
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Deposits
     
    Ps.
    21,257
     
     
    Ps.
    20,192
     
     
    Ps.
    2,535,339
     
     
    Ps.
    1,566,160
     
     
    Ps.
    1,275
     
    Accounts payable
     
     
    103
     
     
     
    700
     
     
     
    15,353
     
     
     
    322,275
     
     
     
    18,671
     
    Financial obligations
     
     
    4
     
     
     
    10
     
     
     
    16,435
     
     
     
    1,249
     
     
     
    -
     
    Other liabilities
     
     
    -
     
     
     
    4
     
     
     
    7,424
     
     
     
    49
     
     
     
    -
     
     
     
     
    Individuals
     
     
    Entity
     
    December 31, 2016
     
    Mr.
    Sarmiento
    Angulo
    and
    relatives
     
     
    Key
    management
    personnel
     
     
    Associates
    and joint
    ventures
     
     
    Entities
    controlled
    by
    individuals
     
     
    Entities
    with
    significant
    influence
    by
    individuals
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Assets
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Cash and equivalents
     
    Ps.
    -
     
     
    Ps.
    -
     
     
    Ps.
    -
     
     
    Ps.
    -
     
     
    Ps.
    -
     
    Financial assets in investments
     
     
    -
     
     
     
    -
     
     
     
    157,427
     
     
     
    -
     
     
     
    -
     
    Financial assets in credit operations
     
     
    3,897
     
     
     
    9,520
     
     
     
    1,809,972
     
     
     
    1,276,534
     
     
     
    24,695
     
    Accounts receivable
     
     
    3
     
     
     
    28
     
     
     
    157,725
     
     
     
    8,781
     
     
     
    125,532
     
    Other assets
     
     
    -
     
     
     
    1
     
     
     
    41,168
     
     
     
    30,068
     
     
     
    -
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Liabilities
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Deposits
     
    Ps.
    100,787
     
     
    Ps.
    39,431
     
     
    Ps.
    2,610,620
     
     
    Ps.
    446,802
     
     
    Ps.
    588
     
    Accounts payable
     
     
    73
     
     
     
    582
     
     
     
    16,215
     
     
     
    641,363
     
     
     
    37,831
     
    Financial obligations
     
     
    3
     
     
     
    308
     
     
     
    9,445
     
     
     
    -
     
     
     
    -
     
    Other liabilities
     
     
    -
     
     
     
    -
     
     
     
    1,984
     
     
     
    3,982
     
     
     
    -
     
     
    Transactions during the years ended as of December 31, 2017, 2016 and 2015, with related parties are as follows:
     
    a.
    Profit or loss
     
     
     
    Individuals
     
     
    Entity
     
    December 31, 2017
     
    Mr.
    Sarmiento
    Angulo
    and
    relatives
     
     
    Key
    management
     personnel
     
     
    Associates
    and joint
    ventures
     
     
    Entities
    controlled
    by
    individuals
     
     
    Entities
    with
    significant
    influence
    by
    individuals
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Income
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Interest income
     
    Ps.
    164
     
     
     
    757
     
     
     
    155,690
     
     
     
    123,671
     
     
     
    543
     
    Fee income and commissions
     
     
    5
     
     
     
    48
     
     
     
    26,249
     
     
     
    57,180
     
     
     
    -
     
    Leases
     
     
    -
     
     
     
    -
     
     
     
    321
     
     
     
    301
     
     
     
    -
     
    Other income
     
     
    4
     
     
     
    59
     
     
     
    236,871
     
     
     
    6,391
     
     
     
    -
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Expenses
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Financial expenses
     
     
    243
     
     
     
    1,197
     
     
     
    129,335
     
     
     
    30,431
     
     
     
    6
     
    Fee expenses and commissions
     
     
    4
     
     
     
    1,510
     
     
     
    24,039
     
     
     
    3,276
     
     
     
    1
     
    Operating expenses
     
     
    -
     
     
     
    9,706
     
     
     
    3,572
     
     
     
    1,892
     
     
     
    113
     
    Other expenses
     
     
    -
     
     
     
    1,635
     
     
     
    32,691
     
     
     
    34,400
     
     
     
    -
     
     
     
     
    Individuals
     
     
    Entity
     
    December 31, 2016
     
    Mr.
    Sarmiento
    Angulo
    and
    relatives
     
     
    Key
    management
    personnel
     
     
    Associates
    and joint
    ventures
     
     
    Entities
    controlled
    by
    individuals
     
     
    Entities
    with
    significant
    influence
    by
    individuals
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Income
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Interest income
     
    Ps.
    28
     
     
     
    321
     
     
     
    81,646
     
     
     
    64,299
     
     
     
    789
     
    Fee income and commissions
     
     
    4
     
     
     
    28
     
     
     
    12,717
     
     
     
    33,659
     
     
     
    -
     
    Leases
     
     
    -
     
     
     
    -
     
     
     
    66
     
     
     
    290
     
     
     
    30
     
    Other income
     
     
    440
     
     
     
    -
     
     
     
    171,405
     
     
     
    2,957
     
     
     
    9.915
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Expenses
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Financial expenses
     
     
    84
     
     
     
    656
     
     
     
    88,800
     
     
     
    19,064
     
     
     
    -
     
    Fee expenses and commissions
     
     
    333
     
     
     
    931
     
     
     
    15,451
     
     
     
    2,674
     
     
     
    143
     
    Operating expenses
     
     
    -
     
     
     
    5,588
     
     
     
    75
     
     
     
    2,060
     
     
     
    1
     
    Other expenses
     
     
    11
     
     
     
    1,390
     
     
     
    193,762
     
     
     
    15,159
     
     
     
    811
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Individuals
     
     
    Entity
     
    December 31, 2015
     
    Mr.
    Sarmiento
    Angulo
    and
    relatives
     
     
    Key
    management
    personnel
     
     
    Associates
    and joint
    ventures
     
     
    Entities
    controlled
    by
    individuals
     
     
    Entities
    with
    significant
    influence
    by
    individuals
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Income
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Interest income
     
    Ps.
    84
     
     
     
    379
     
     
     
    66,562
     
     
     
    23,506
     
     
     
    1,122
     
    Fee income and commissions
     
     
    3
     
     
     
    28
     
     
     
    6,471
     
     
     
    26,775
     
     
     
    -
     
    Leases
     
     
    -
     
     
     
    -
     
     
     
    278
     
     
     
    262
     
     
     
    19
     
    Other income
     
     
    2
     
     
     
    80
     
     
     
    190,571
     
     
     
    2,423
     
     
     
    5,786
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Expenses
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Financial expenses
     
     
    163
     
     
     
    209
     
     
     
    324
     
     
     
    18,001
     
     
     
    -
     
    Fee expenses and commissions
     
     
    2
     
     
     
    1,327
     
     
     
    13,597
     
     
     
    1,227
     
     
     
    8
     
    Operating expenses
     
     
    -
     
     
     
    8,288
     
     
     
    114
     
     
     
    1,963
     
     
     
    -
     
    Other expenses
     
     
    5
     
     
     
    154
     
     
     
    71,759
     
     
     
    27,916
     
     
     
    60
     
     
    Outstanding amounts are not guaranteed and shall be liquidated in cash. Guarantees have not been granted or received. No expense has been recognized during the current period nor in previous periods with respect to uncollectable or accounts of doubtful collection relating to amounts in debt by related parties.
     
    b.
    Compensation of Key Management Personnel
     
    The compensation received by the key personnel of the management comprises the following:
     
     
     
    Years ended as of
     
    Items
     
    December
    31, 2017
     
     
    December
    31, 2016
     
     
    December
    31, 2015
     
    Salaries
     
    Ps.
    17,073
     
     
    Ps.
    15,731
     
     
    Ps.
    14,271
     
    Short term benefits for employees
     
     
    3,167
     
     
     
    10,664
     
     
     
    12,282
     
    Total
     
    Ps.
    20,240
     
     
    Ps.
    26,395
     
     
    Ps.
    26,553
     
     
    Transactions with our related parties correspond primarily to normal course of banking business activities effected in market conditions.  Such transactions include demand and saving deposits, time deposits, commercial, consumer and mortgage loans, financial leases, payment of dividends and or interest.