XML 71 R27.htm IDEA: XBRL DOCUMENT
v3.20.2

Determination of fair value | 3 Months Ended | 12 Months Ended
--- | --- | ---
Mar. 31, 2020 | Dec. 31, 2019
Text Block [Abstract] |  |
Determination of fair value | 22. Determination of fair value The Group measures financial instruments such as certain financial investments and derivatives at fair value at each balance sheet date. Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The financial instruments included in the level 1 consist mainly in public financial instruments and financial instruments negotiated on active markets (i.e. Stock Exchanges). Level 2: The fair value of financial instruments that are not traded in active markets is determined using valuation techniques, which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value as instrument are directly or indirectly observable, the instrument is included in level 2. The financial instruments classified as level 2 are composed mainly from private financial instruments and financial instruments negotiated in a secondary market. Level 3: If one or more of the significant inputs is unobservable, the instrument is included in level 3. This is the case for unlisted equity securities. As of March 31, 2020 and December 31, 2019, there were no financial instruments classified as level 3. Specific valuation techniques used to value financial instruments include:
| • |  | Financial assets (other than derivatives)—The fair value of securities is determined by reference to their closing prices on the date of presentation of the consolidated financial statements. If there is no market price, fair value is estimated based on the present value of future cash flows discounted using the observable rates and market rates on the date of presentation.
| • |  | Swap—These operations swap cash flow based on the comparison of profitability between two indexers. Thus, the agent assumes both positions—put in one indexer and call on another.
| • |  | Forward—at the market quotation value, and the installments receivable or payable are prefixed to a future date, adjusted to present value, based on market rates published at B3.
| • |  | Futures—Foreign exchange rates, prices of shares and commodities are commitments to buy or sell a financial instrument at a future date, at a contracted price or yield and may be settled in cash or through delivery. Daily cash settlements of price movements are made for all instruments.
| • |  | Options—option contracts give the purchaser the right to buy the instrument at a fixed price negotiated at a future date. Those who acquire the right must pay a premium to the seller. This premium is not the price of the instrument, but only an amount paid to have the option (possibility) to buy or sell the instrument at a future date for a previously agreed price.
| • |  | Other financial assets and liabilities—Fair value, which is determined for disclosure purposes, is calculated based on the present value of the principal and future cash flows, discounted using the observable rates and market rates on the date the financial statements are presented.
Below are the Group financial assets and liabilities by level within the fair value hierarchy. The Group assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels:
|  | March, 31 2020 |
|  | Level 1 |  |  | Level 2 |  |  | Fair Value |  |  | Book Value |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets at Fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | 22,640,753 |  |  |  | 2,450,970 |  |  |  | 25,091,723 |  |  |  | 25,091,723 |
Derivative financial instruments |  |  | 1,215 |  |  |  | 8,513,577 |  |  |  | 8,514,793 |  |  |  | 8,514,793 |
Fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | 4,896,387 |  |  |  | — |  |  |  | 4,896,387 |  |  |  | 4,896,387 |
Evaluated at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | — |  |  |  | 1,267,826 |  |  |  | 1,267,826 |  |  |  | 1,267,826 |
Securities purchased under agreements to resell |  |  | — |  |  |  | 14,916,794 |  |  |  | 14,916,794 |  |  |  | 14,916,794 |
Securities trading and intermediation |  |  | — |  |  |  | 1,015,785 |  |  |  | 1,015,785 |  |  |  | 1,015,785 |
Accounts receivable |  |  | — |  |  |  | 424,702 |  |  |  | 424,702 |  |  |  | 424,702 |
Loan operations |  |  | — |  |  |  | 63,589 |  |  |  | 63,589 |  |  |  | 63,589 |
Other financial assets |  |  | — |  |  |  | 25,472 |  |  |  | 25,472 |  |  |  | 25,472 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  |  | 721,131 |  |  |  | — |  |  |  | 721,131 |  |  |  | 721,131 |
Derivative financial instruments |  |  | — |  |  |  | 7,526,075 |  |  |  | 7,526,075 |  |  |  | 7,526,075 |
Evaluated at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold under repurchase agreements |  |  | — |  |  |  | 21,111,301 |  |  |  | 21,111,301 |  |  |  | 21,111,301 |
Securities trading and intermediation |  |  | — |  |  |  | 13,333,539 |  |  |  | 13,333,539 |  |  |  | 13,333,539 |
Borrowings and lease liabilities |  |  | — |  |  |  | 644,184 |  |  |  | 644,184 |  |  |  | 644,439 |
Debentures |  |  | — |  |  |  | 832,810 |  |  |  | 832,810 |  |  |  | 844,361 |
Accounts payables |  |  | — |  |  |  | 265,197 |  |  |  | 265,197 |  |  |  | 265,197 |
Structured operations certificates |  |  | — |  |  |  | 150,461 |  |  |  | 150,461 |  |  |  | 150,461 |
Other financial liabilities |  |  | — |  |  |  | 31,485 |  |  |  | 31,485 |  |  |  | 31,485 |
|  | December 31, 2019 |
|  | Level 1 |  |  | Level 2 |  |  | Fair Value |  |  | Book Value |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets at Fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | 20,277,031 |  |  |  | 2,166,361 |  |  |  | 22,443,392 |  |  |  | 22,443,392 |
Derivative financial instruments |  |  | 21,809 |  |  |  | 4,063,195 |  |  |  | 4,085,004 |  |  |  | 4,085,004 |
Fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | 2,616,118 |  |  |  | — |  |  |  | 2,616,118 |  |  |  | 2,616,118 |
Evaluated at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | — |  |  |  | 3,914,923 |  |  |  | 3,914,923 |  |  |  | 2,266,971 |
Securities purchased under agreements to resell |  |  | — |  |  |  | 9,490,090 |  |  |  | 9,490,090 |  |  |  | 9,490,090 |
Securities trading and intermediation |  |  | — |  |  |  | 504,983 |  |  |  | 504,983 |  |  |  | 504,983 |
Accounts receivable |  |  | — |  |  |  | 462,029 |  |  |  | 462,029 |  |  |  | 462,029 |
Loan operations |  |  | — |  |  |  | 386 |  |  |  | 386 |  |  |  | 386 |
Other financial assets |  |  | — |  |  |  | 19,805 |  |  |  | 19,805 |  |  |  | 19,805 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  |  | 2,021,707 |  |  |  | — |  |  |  | 2,021,707 |  |  |  | 2,021,707 |
Derivative financial instruments |  |  | — |  |  |  | 3,229,236 |  |  |  | 3,229,236 |  |  |  | 3,229,236 |
Evaluated at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold under repurchase agreements |  |  | — |  |  |  | 15,638,407 |  |  |  | 15,638,407 |  |  |  | 15,638,407 |
Securities trading and intermediation |  |  | — |  |  |  | 9,114,546 |  |  |  | 9,114,546 |  |  |  | 9,114,546 |
Borrowings and lease liabilities |  |  | — |  |  |  | 633,781 |  |  |  | 633,781 |  |  |  | 637,484 |
Debentures |  |  | — |  |  |  | 836,001 |  |  |  | 836,001 |  |  |  | 835,230 |
Accounts payables |  |  | — |  |  |  | 266,813 |  |  |  | 266,813 |  |  |  | 266,813 |
Structured operations certificates |  |  | — |  |  |  | 19,474 |  |  |  | 19,474 |  |  |  | 19,474 |
Other financial liabilities |  |  | — |  |  |  | 79,127 |  |  |  | 79,127 |  |  |  | 79,157 |
| 32. Determination of fair value The Group measures financial instruments such as certain financial investments and derivatives at fair value at each balance sheet date. Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The financial instruments included in the level 1 consist mainly in public financial instruments and financial instruments negotiated on active markets (i.e., Stock Exchanges). Level 2: The fair value of financial instruments that are not traded in active markets is determined using valuation techniques, which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value as instrument are directly or indirectly observable, the instrument is included in level 2. The financial instruments classified as level 2 are composed mainly from private financial instruments and financial instruments negotiated in a secondary market. Level 3: If one or more of the significant inputs is unobservable, the instrument is included in level 3. This is the case for unlisted equity securities. As of December 31, 2019, 2018 and 2017 there were no financial instruments classified as level 3. Fair values have been assessed for purposes of measurement based on the methods below, (a) Cash and cash equivalents, Securities purchased under agreements to resell and Securities sold under repurchase agreements The fair value of cash and cash equivalents, securities purchased under agreements to resell and securities sold under repurchase agreements approximates the carrying amount. (b) Financial assets (other than derivatives) The fair value of securities is determined by reference to their closing prices on the date of presentation of the consolidated financial statements. If there is no market quotation, fair value is estimated based on the present value of future cash flows discounted using the observable rates and market rates on the date of presentation. (c) Derivative financial instruments Criteria and methodologies for calculating the fair value of derivative financial instruments are described in Note 8. (d) Other financial assets and liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of the principal and future cash flows, discounted using the observable rates and market rates on the date the financial statements are presented. Financial instruments not measured at fair value (securities trading and intermediation, accounts receivable and accounts payables) were not disclosed as their carrying amounts approximates their fair values. Below are the Group financial assets and liabilities by level within the fair value hierarchy. The Group assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels:
|  | 2019 |
|  | Level 1 |  |  | Level 2 |  |  | Fair Value |  |  | Book Value |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets at Fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | 20,277,031 |  |  |  | 2,166,361 |  |  |  | 22,443,392 |  |  |  | 22,443,392 |
Derivative financial instruments |  |  | 21,809 |  |  |  | 4,063,195 |  |  |  | 4,085,004 |  |  |  | 4,085,004 |
Fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | 2,616,118 |  |  |  | — |  |  |  | 2,616,118 |  |  |  | 2,616,118 |
Evaluated at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | — |  |  |  | 3,914,923 |  |  |  | 3,914,923 |  |  |  | 2,266,971 |
Securities purchased under agreements to resell |  |  | — |  |  |  | 9,490,090 |  |  |  | 9,490,090 |  |  |  | 9,490,090 |
Securities trading and intermediation |  |  | — |  |  |  | 504,983 |  |  |  | 504,983 |  |  |  | 504,983 |
Accounts receivable |  |  | — |  |  |  | 462,029 |  |  |  | 462,029 |  |  |  | 462,029 |
Other financial assets |  |  | — |  |  |  | 20,191 |  |  |  | 20,191 |  |  |  | 20,191 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  |  | 2,021,707 |  |  |  | — |  |  |  | 2,021,707 |  |  |  | 2,021,707 |
Derivative financial instruments |  |  | — |  |  |  | 3,229,236 |  |  |  | 3,229,236 |  |  |  | 3,229,236 |
Evaluated at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold under repurchase agreements |  |  | — |  |  |  | 15,638,407 |  |  |  | 15,638,407 |  |  |  | 15,638,407 |
Securities trading and intermediation |  |  | — |  |  |  | 9,114,546 |  |  |  | 9,114,546 |  |  |  | 9,114,546 |
Borrowings and lease liabilities |  |  | — |  |  |  | 633,781 |  |  |  | 633,781 |  |  |  | 637,484 |
Debentures |  |  | — |  |  |  | 836,001 |  |  |  | 836,001 |  |  |  | 835,230 |
Accounts payables |  |  | — |  |  |  | 266,813 |  |  |  | 266,813 |  |  |  | 266,813 |
Other financial liabilities |  |  | — |  |  |  | 98,601 |  |  |  | 98,601 |  |  |  | 98,631 |
|  | 2018 |
|  | Level 1 |  |  | Level 2 |  |  | Fair Value |  |  | Book Value |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets at Fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | 5,259,591 |  |  |  | 1,031,380 |  |  |  | 6,290,971 |  |  |  | 6,290,971 |
Derivative financial instruments |  |  | 6,599 |  |  |  | 1,685,432 |  |  |  | 1,692,031 |  |  |  | 1,692,031 |
Fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | 695,778 |  |  |  | — |  |  |  | 695,778 |  |  |  | 695,778 |
Evaluated at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities |  |  | — |  |  |  | 153,709 |  |  |  | 153,709 |  |  |  | 155,292 |
Securities purchased under agreements to resell |  |  | — |  |  |  | 6,568,246 |  |  |  | 6,568,246 |  |  |  | 6,570,609 |
Securities trading and intermediation |  |  | — |  |  |  | 898,312 |  |  |  | 898,312 |  |  |  | 898,312 |
Accounts receivable |  |  | — |  |  |  | 219,200 |  |  |  | 219,200 |  |  |  | 219,200 |
Other financial assets |  |  | — |  |  |  | 60,423 |  |  |  | 60,423 |  |  |  | 60,423 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value through profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  |  | 1,259,579 |  |  |  | — |  |  |  | 1,259,579 |  |  |  | 1,259,579 |
Derivative financial instruments |  |  | — |  |  |  | 991,399 |  |  |  | 991,399 |  |  |  | 991,399 |
Evaluated at amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold under repurchase agreements |  |  | — |  |  |  | 6,792,316 |  |  |  | 6,792,316 |  |  |  | 6,640,694 |
Securities trading and intermediation |  |  | — |  |  |  | 5,306,628 |  |  |  | 5,306,628 |  |  |  | 5,306,628 |
Borrowings |  |  | — |  |  |  | 459,487 |  |  |  | 459,487 |  |  |  | 469,609 |
Debentures |  |  | — |  |  |  | 406,540 |  |  |  | 406,540 |  |  |  | 406,538 |
Accounts payables |  |  | — |  |  |  | 134,579 |  |  |  | 134,579 |  |  |  | 134,579 |
Other financial liabilities |  |  | — |  |  |  | 7,011 |  |  |  | 7,011 |  |  |  | 7,011 |

X
- Definition The entire disclosure for fair value measurement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 13 -IssueDate 2019-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=13&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS13_g91-99_TI -URIDate 2019-03-27 + Details
Name: | ifrs-full_DisclosureOfFairValueMeasurementExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text Block [Abstract] + References No definition available. + Details
Name: | xp_TextBlockAbstract
Namespace Prefix: | xp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration