Investor Presentaiton
7. Financial instruments by category
Accounting policy
The Company and its subsidiaries classify their financial instruments de-
pending on the purpose for which the financial instruments were acquired.
Management determines the classification of financial instruments upon
initial recognition, in the following categories:
(a) Financial instruments at fair value through profit or loss
These are financial assets held for active and frequent trading. These assets
are measured at their fair value, and the changes are recognized in the sta-
tement of income for the year.
(b) Financial instruments at fair value through other
comprehensive income
These are financial instruments that meet the criteria of contractual terms,
give rise to cash flows that are exclusively the payment of principal and
interest and are maintained in a business model, the objective of which is
achieved both by obtaining contractual cash flows and by sale of financial
assets. The instruments in this classification are measured at fair value
through other comprehensive income.
(c) Financial instruments at amortized cost
These are financial instruments maintained in a business model whose
purpose is to obtain contractual cash flows and their contractual terms give
rise to cash flows that are exclusively the payment of principal and interest.
The instruments in this classification are measured at amortized cost.
(d) Impairment of financial assets measured at cost
This is measured as the difference between the book value of the assets.
and the present value of the estimated future cash flows (excluding future
credit losses that were not incurred), discounted at the current interest rate
of financial assets. The book value of the asset is reduced and the amount
of the loss is recognized in the statement of income.
If, in a subsequent period, the impairment loss decreases and the impair-
ment can be objectively related to an event occurring after recognition of
the impairment (such as an improvement in the debtor's credit rating), the
reversal of the loss will be recognized in the statement of the results.
Assets
At amortized cost
Trade receivables
Related parties
Trade receivables
Note
2021
2020
15
3,679
225
3,904
2,352
196
2,548
Fair value through profit or loss
Cash and cash equivalents (i)
9
13,680
9,783
Financial investments
10
3,132
5,698
857
Derivative financial instruments
6.1.1 (a)
847
1,154
Derivative financial instruments - put option
Electric power futures contracts
6.1.1 (b)
4,704
3,807
26,170
252
58
17,802
Fair value through other comprehensive income
Financial instruments - shares
Derivative financial instruments
13
2,801
2,590
6.1.1 (a)
106
1,012
2,907
3,602
=
140View entire presentation