ECOPETROL S.A. | CIK:0001444406 | 3

  • Filed: 4/26/2018
  • Entity registrant name: ECOPETROL S.A. (CIK: 0001444406)
  • Generator: DataTracks
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1444406/000114420418022451/0001144204-18-022451-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1444406/000114420418022451/ec-20171231.xml
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    • ifrs-full:DisclosureOfGoodwillExplanatory

    19.
    Goodwill
     
    The balance as of December 31, 2017 and 2016 of goodwill in acquisitions of subsidiaries is as follows:
     
     
     
    2017
     
    2016
     
    Transport and Logistics
     
     
     
     
     
     
     
    Oleoducto Central S.A.
     
     
    683,496
     
     
    683,496
     
    Exploration and Production
     
     
     
     
     
     
     
    Hocol Petroleum Ltd.
     
     
    537,598
     
     
    537,598
     
    Refining and Petrochemicals
     
     
     
     
     
     
     
    Andean Chemical Ltd
     
     
    127,812
     
     
    127,812
     
    Propilco S.A
     
     
    108,137
     
     
    108,137
     
     
     
     
    1,457,043
     
     
    1,457,043
     
    Less impairment Hocol Petroleum Ltd.
     
     
    (297,121)
     
     
    (297,121)
     
     
     
     
    1,159,922
     
     
    1,159,922
     
     
    As of December 31, 2017 and 2016, the Group assessed the recoverability of the carrying value of goodwill generated in the acquisition of subsidiaries. The recoverable amount was determined based on the realization value less costs of disposal using the present value of future cash flows for each of the companies acquired with goodwill. The source of information used the financial projections of each company derived from the business plans approved by management, which were developed based on long term macro-economic factors such as price curves and margins and fundamental assumptions of supply and demand. As a result of the analysis, the Group did not recognize any goodwill impairment.