BANCOLOMBIA SA | CIK:0001071371 | 3

  • Filed: 4/30/2018
  • Entity registrant name: BANCOLOMBIA SA (CIK: 0001071371)
  • Generator: DataTracks
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1071371/000114420418023396/0001144204-18-023396-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1071371/000114420418023396/cib-20171231.xml
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    • ifrs-full:DisclosureOfInvestmentPropertyExplanatory

    NOTE 10. INVESTMENT PROPERTIES
     
    The table below sets forth the reconciliation between the initial balance account and the balance at the end of the period, at fair value:
     
     
    December 31, 2017
    December 31, 2016
    In millions of COP
    Balance at the beginning of the year
    1,581,689
    1,505,046
    Acquisitions
    92,102
    29,034
    Sales/Write-offs
    (71,955)
    (72,682)
    Classified to Assets held for sale
    -
    (29,008)
    Gains on valuation (1)
    55,573
    149,299
    Balance at the end of the period(2)
    1,657,409
    1,581,689
     
    (1)
    See note 24.4. Other operating income.
    (2)
    Between December 31, 2016 and 2017 there were no transfers in and out of Level 3 fair value hierarchy related with investment properties. See Note 29 Fair value of assets and liabilities.
     
    The valuation adjustments recorded by the Bank's related to its investment properties are detailed below:
     
    As of December 31, 2017
     
    Type of asset
    Balance at the
    beginning of
    the year
    Appraisals
    Net increase
    (decrease) in
    investment properties
    Adjusted fair value at
    the end of the year (1)
    In millions of COP
    Buildings
    1,355,717
    49,721
    7,847
    1,413,285
    Lands
    225,972
    5,852
    12,300
    244,124
    Total
    1,581,689
    55,573
    20,147
    1,657,409
     
    As of December 31, 2016
     
    Type of asset
    Balance at the
    beginning of
    the year
    Appraisals
    Net increase
    (decrease) in
    investment
    properties
    Classified to
    assets held for
    sale
    Adjusted fair value
    at the end of the
    year (1)
    In millions of COP
    Buildings
    1,275,566
    52,543
    27,608
    -
    1,355,717
    Lands
    229,480
    96,756
    (71,256)
    (29,008)
    225,972
    Total
    1,505,046
    149,299
    (43,648)
    (29,008)
    1,581,689
     
    (1)
    Corresponds to the change in the commercial estimate of real estate due to the change in the consumer price index (IPC).
     
    Amounts recognized in the statement of income for the period.
     
    The table sets forth the main income recorded by the Bank related to its investment properties:
     
     
     
    December
    31, 2017
    December
    31, 2016
    December
    31, 2015
     
     
    In millions of COP
    Income from rentals
     
    77,964
    66,838
    89,389
    Operating expenses due to:
     
     
     
     
    Investment properties that generated income through rentals
     
    21,012
    21,254
    11,693
    Investment properties that did not generate income through rentals
     
    2,295
    2,495
    2,539
     
    Currently, there are no restrictions on the use or income derived from the buildings or lands that the Bank has as investment property.
     
    The fair value of the Bank’s investment properties for the year ending at December 31, 2017 and December 31, 2016, has been recorded according to the assessment made by independent external consulting companies that have the appropriate capacity and experience in performing those assessments. The appraisers are either approved by the Property Market Auctions of Colombia or foreign appraisers, who are required to provide a second signature by a Colombia appraiser accredited by the Property Market Auctions.
     
    Fair value appraisals are carried out in accordance with IFRS 13. The reports made by the external consulting company contain the description of the valuation methodologies used, and key assumptions such as: discount rates, calculation of applied expenses and income approach, among others. The fair value of the investment properties is based on the comparative market approach, which reflects the prices of recent transactions with similar characteristics. Upon determining the fair value of these investment properties, the greater and best use of these investment properties is their present use. For further information about measurements techniques and inputs used by consulting companies, please see Note 29 Fair Value of assets and liabilities.
     
    As of December 31, 2017 and 2016, the Bank does not have investment properties held under financial leases.