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FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended
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Dec. 31, 2022
Financial Assets And Liabilities |
FINANCIAL ASSETS AND LIABILITIES | NOTE 12: FINANCIAL ASSETS AND LIABILITIES 12.1 Financial assets at amortized cost
Schedule of financial assets at amortized cost |  |  |  |
|  | 12.31.2022 |  | 12.31.2021
Non-current |  |  |  |
Term deposit |  | 101 |  | 100
Notes receivable |  | 1 |  | 5
Total non-current |  | 102 |  | 105
Current |  |  |  |
Notes receivable |  | 8 |  | 5
Total current |  | 8 |  | 5
12.2 Financial assets at fair value through profit and loss
Schedule of financial assets at fair value through profit and loss |  |  |  |
|  | 12.31.2022 |  | 12.31.2021
Non-current |  |  |  |
Shares |  | 27 |  | 29
Total non-current |  | 27 |  | 29
Current |  |  |  |
Government securities |  | 279 |  | 278
Corporate bonds |  | 116 |  | 19
Shares |  | 160 |  | 120
Mutual funds |  | 31 |  | 41
Total current |  | 586 |  | 458
12.3 Trade and other receivables
Schedule of trade and other receivables |  |  |  |  |
| Note |  | 12.31.2022 |  | 12.31.2021
Non-Current |  |  |  |  |
Related parties | 16 |  | 17 |  | 23
Tax credits |  |  | 2 |  | 9
Prepaid expenses |  |  | - |  | 1
Other |  |  | 1 |  | 1
Other receivables |  |  | 20 |  | 34
Total non-current |  |  | 20 |  | 34
|  |  | 12.31.2022 |  | 12.31.2021
Current |  |  |  |  |
Receivables from MAT sales |  |  | 21 |  | 24
CAMMESA |  |  | 165 |  | 89
Receivables from oiland gas sales |  |  | 55 |  | 69
Receivables from petrochemicals sales |  |  | 62 |  | 71
Related parties | 16 |  | 5 |  | 7
Other |  |  | 3 |  | 5
Impairment of financial assets |  |  | (6) |  | (9)
Trade receivables, net |  |  | 305 |  | 256
Current |  |  |  |  |
Related parties | 16 |  | 7 |  | 8
Tax credits |  |  | 14 |  | 5
Receivables for complementary activities |  |  | - |  | 2
Prepaid expenses |  |  | 14 |  | 10
Financial credit |  |  | - |  | 10
Guarantee deposits |  |  | 27 |  | 30
Insurance to be recovered |  |  | - |  | 1
Expenses to be recovered |  |  | 15 |  | -
Receivables for acquisition of subsidiary |  |  | 7 |  | -
Receivables for sale of subsidiary and associates |  |  | 4 |  | 41
Receivables for financial instruments sale |  |  | 1 |  | 6
Argentine Natural Gas Production Promotion Plan |  |  | 32 |  | 14
Receivables for arbitration award | 15.6 |  | 37 |  | -
Other |  |  | 7 |  | 14
Other receivables, net |  |  | 165 |  | 141
Total current |  |  | 470 |  | 397
Due to the short-term nature of trade and other receivables, its book value is not considered to differ from its fair value. For non-current trade and other receivables, fair values do not significantly differ from book values. The movements in the impairment of trade receivables were as follows:
Schedule of allowance for the impairment of trade receivables |  |  |  |  |  |  |
|  |  | 12.31.2022 |  | 12.31.2021 |  | 12.31.2020
At the beginning of the year |  |  | 9 |  | 16 |  | 68
Impairment (1) |  |  | 1 |  | 1 |  | 63
Utilization |  |  | (1) |  | - |  | (7)
Reversal of unused amounts |  |  | - |  | (6) |  | (3)
Gain on monetary position, net |  |  | (3) |  | (2) |  | (2)
Gain on monetary position, net |  |  | - |  | - |  | (28)
Reclasified to assets classified as held for sale |  |  | - |  | - |  | (75)
At the end of the year |  |  | 6 |  | 9 |  | 16
| (1) | It includes US$ 26 million corresponding to discontinued operations for fiscal year 2020. As of December 31, 2020, it includes US$ 13 million corresponding to the receivable impairment related to the exchange difference between the price of gas purchased by distributors and the price of gas recognised in distributors´s final tariffs between April 2018 and March 2019 to be assumed by the Federal Government in accordance to PEN Executive Order No. 1,053/18 (see Note 15).
The movements in the impairment of other financial assets were as follows:
Schedule of impairment of other financial assets assets |  |  |  |  |  |  |
|  |  | 12.31.2022 |  | 12.31.2021 |  | 12.31.2020
At the beginning of the year |  |  | - |  | - |  | 6
Impairment |  |  | - |  | - |  | 2
Reversal of unused amounts |  |  | - |  | - |  | (7)
Reclasified to assets classified as held for sale |  |  | - |  | - |  | (1)
At the end of the year |  |  | - |  | - |  | -
12.4 Cash and cash equivalents
Schedule of cash and cash equivalents |  |  |  |  |  |  |
|  |  |  |  | 12.31.2022 |  | 12.31.2021
Banks |  |  |  |  | 11 |  | 26
Mutual funds |  |  |  |  | 95 |  | 84
Total |  |  |  |  | 106 |  | 110
12.5 Borrowings
Schedule of borrowings |  |  |  |  |
|  |  | 12.31.2022 |  | 12.31.2021
Non-Current |  |  |  |  |
Financial borrowings |  |  | 108 |  | 58
Corporate bonds |  |  | 1,232 |  | 1,301
Total non-current |  |  | 1,340 |  | 1,359
Current |  |  |  |  |
Bank overdrafts |  |  | 59 |  | 11
Financial borrowings |  |  | 51 |  | 29
Corporate bonds |  |  | 163 |  | 39
Total current |  |  | 273 |  | 79
Total |  |  | 1,613 |  | 1,438
As of December 31, 2022 and 2021, the fair values of the Company’s Corporate Bonds amount approximately to US$ 1,435 million and US$ 1,233 million, respectively. Such values were calculated on the basis of the determined market price of the Company’s CB at the end of each year (fair value level 1). The carrying amounts of short-term borrowings and bank overdrafts approximate their fair value due to their short-term maturity. The long-term borrowings were measured at amortized cost, which does not differ significantly from its fair value. As of the date of issuance of these Consolidated Financial Statements, the Company is in compliance with the covenants established in its indebtedness contracts. 12.5.1 Movements in borrowings:
Schedule of changes in borrowings |  |  |  |  |  |  |
|  |  | 12.31.2022 |  | 12.31.2021 |  | 12.31.2020
At the beginning of the year |  |  | 1,438 |  | 1,614 |  | 1,947
Proceeds from borrowings |  |  | 308 |  | 188 |  | 353
Payment of borrowings |  |  | (143) |  | (336) |  | (300)
Accrued interest |  |  | 172 |  | 137 |  | 176
Payment of interests |  |  | (162) |  | (140) |  | (201)
Repurchase and redemption of corporate bonds |  |  | (28) |  | (3) |  | (155)
Result from exchange of corporate bonds |  |  | 14 |  | - |  | -
Result from repurchase of corporate bonds |  |  | (6) |  | - |  | (43)
Increases for incorporation (1) |  |  | 89 |  | - |  | -
Cancellation through dividend compensation |  |  | - |  | - |  | (12)
Gain on monetary position, net |  |  | - |  | - |  | (43)
Foreign currency exchange difference, net |  |  | (80) |  | (22) |  | (18)
Borrowing costs capitalized in property, plant and equipment |  |  | 11 |  | - |  | 10
Reclassified to liabilities associated to assets classified as held for sale |  |  | - |  | - |  | (100)
At the end of the year |  |  | 1,613 |  | 1,438 |  | 1,614
(1) | See Notes 5.1.3 and 5.1.5.
12.5.2 Details of borrowings:
Schedule of borrowings composition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Type of instrument |  | Company |  | Currency |  | Residual value |  |  | Interest |  | Rate |  | Expiration |  | Book value as of 12.31.2022
Corporate bonds (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
T Series CB |  | PAMPA |  | US$ |  | 93 |  |  | Fixed |  | 7.38% |  | Jul-23 |  | 95
Class 8 CB |  | PAMPA |  | $ |  | 18 |  |  | Variable |  | Badlar + 2% |  | Jul-23 |  | 20
Class 11 CB |  | PAMPA |  | $ |  | 122 |  |  | Variable |  | Badlar + 0% |  | Jan-24 |  | 140
Class 9 CB |  | PAMPA |  | US$ |  | 102 |  |  | Fixed |  | 9.50% |  | Dec-26 |  | 184
Class 1 CB |  | PAMPA |  | US$ |  | 501 |  |  | Fixed |  | 7.50% |  | Jan-27 |  | 616
Class 13 CB |  | PAMPA |  | US$ |  | 49 |  |  | Fixed |  | 0.00% |  | Dec-27 |  | 48
Class 3 CB |  | PAMPA |  | US$ |  | 285 |  |  | Fixed |  | 9.13% |  | Apr-29 |  | 292
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,395
Financial loans (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | PAMPA |  | US$ |  | 15 |  |  | Variable |  | Libor + 4.21% |  | Nov-24 |  | 16
|  | GW |  | US$ |  | 83 |  |  | Variable |  | Libor + 5.75% |  | Sep-26 |  | 85
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 101
Other financial loans (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | PAMPA |  | US$ |  | 22 |  |  | Variable |  | SOFR + 0.35% |  | Jul-23 |  | 23
|  | PAMPA |  | US$ |  | 8 |  |  | Fixed |  | Between 9.50% and 14.50% |  | Between Jan-23 and May-23 |  | 8
|  | PAMPA |  | US$ |  | 27 |  |  | Variable |  | SOFR + 0% |  | Agu-24 |  | 27
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 58
Bank overdrafts (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | PAMPA |  | $ |  | 57 |  |  | Fixed |  | Between 54% and 54.50% |  | Jan-23 |  | 59
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 59
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,613
| (1) | Net of the following face value repurchases: US$ 113.7 million of ON 2026, US$ 146.2 million of ON 2027 and US$ 7.5 million of ON 2029.
| (2) | During the the fiscal year ended December 31, 2022, the Company took on new short-term financing with domestic financial entities, net of cancellations, for a total $ 8,618 million and import prefinancing for US$ 7.6 million. Additionally, the Company repaid at maturity two principal installments for the credit facility sponsored by FINNVERA in the amount of US$ 7.7 million and US$ 10.4 million corresponding to the credit facility subscribed between IDB Invest and Greenwind, a Company that is consolidated since acquisition of an additional 50% interest in August 2022.
| (3) | During the fiscal year ended December 31, 2022, the Company received disbursements in the amount of US$ 1.3 million under the credit facilities taken out with BNP Paribas S.A. in 2020. After the fiscal year closing, the Company repaid short-term bank loans with local financial entities for $ 10,065 million and import prefinancing for US$ 0.7 million.
Type of instrument |  | Company |  | Currency |  | Residual value |  |  | Interest |  | Rate |  | Expiration |  | Book value as of 12.31.2021
Corporate bonds (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
T Series CB |  | PAMPA |  | US$ |  | 389 |  |  | Fixed |  | 7.38% |  | Jul-23 |  | 400
Class 1 CB |  | PAMPA |  | US$ |  | 636 |  |  | Fixed |  | 7.50% |  | Jan-27 |  | 648
Class 3 CB |  | PAMPA |  | US$ |  | 293 |  |  | Fixed |  | 9.13% |  | Apr-29 |  | 292
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,340
Financial loans (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | PAMPA |  | US$ |  | 23 |  |  | Variable |  | Libor + 4.21% |  | May-24 |  | 23
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 23
Other financial loans (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | PAMPA |  | US$ |  | 22 |  |  | Variable |  | Libor + 0.35% |  | Jul-22 |  | 22
|  | PAMPA |  | US$ |  | 43 |  |  | Variable |  | Libor + 0% |  | Aug-23 |  | 42
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 64
Bank overdrafts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | PAMPA |  | $ |  | 11 |  |  | Fixed |  | 33.00% |  | Jan-22 |  | 11
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,438
| (1) | Net of the following face value repurchases: US$ 110,4 million of ON 2023, US$ 114,0 million of ON 2027 and US$ 7,5 million of ON 2029.
On September 27, 2021, the Company repaid at maturity Class 6 CBs for $ 6,355 million.
| (2) | During the fiscal year ended December 31, 2021, the Company canceled short-term financing with local financial entities, net of borrowings, for $ 8,158 million. Additionally, the Company repaid at maturity two principal installments for the credit facility sponsored by FINNVERA in the amount of US$ 7.7 million.
| (3) | During the fiscal year ended December 31, 2021, the Company received disbursements in the amount of US$ 27 million under the credit facilities taken out with BNP in 2020.
12.5.3 New Global Program of CB On September 30, 2021, the Company’s General Ordinary and Extraordinary Shareholders’ Meeting resolved to approve the creation of a new global corporate bonds program for an amount of up to US$ 2,000 million or its equivalent in other currencies or units of value, in the form of simple corporate bonds non-convertible into shares and/or corporate bonds convertible into shares, to renew the program expired on December 29, 2021. The public offering was authorized by the CNV on December 9, 2021. 12.5.4 Issuance of CB Class 8 On January 18, 2022, the Company issued Class 8 CB in the amount of $ 3,107 million at a Badlar rate + 2%, maturing in 18 months. This is the first green bond issued by Pampa, which reflects the commitment to finance projects with a positive impact on the environment and to diversify the country’s energy generation matrix. The issue was recognised by Fix Ratings, an affiliate of Fitch Ratings, with the rating of Green Bond (BV1), the best possible grade, since it is aligned with the four main components of ICMA’s (International Capital Market Association) Green Bond Principles (GBP). It was issued in observance of the “Guidelines for the Issuance of Social, Green and Sustainable Bonds in Argentina” of the CNV Rules and the provisions of BYMA’s Social, Green and Sustainable Guide and the BYMA Rules, and also makes up BYMA’s Social, Green and Sustainable Bonds Panel. The Company will allocate the issue’s proceeds to finance the expansion of PEPE IV (see Note 17.1). 12.5.5 Issuance of Class 10, 11, 12, 13 and 15 CB On July 15, 2022, the Company issued Class 11 CB for $ 12,690 million, accruing interest at a variable BADLAR rate plus an annual 0% spread and maturing on January 15, 2024. Class 10 and Class 12 CB were declared unawarded. Additionally, on August 8, 2022 the Company reopened Class 11 CB for $ 8,963.9 million at an issuance price of 1.0305. The total face value of outstanding Class 11 CB amounted to $ 21,654.6 million. Finally, on December 13, 2022, the Company issued Clase 13 US$-link CB for US$ 49.9 million at a fixed interest rate of 0% and maturing on December 2027. After the closing of the fiscal year, on January 11, 2023, the Company issued Class 15 CB for $ 10,379 million accruing interest at a variable BADLAR rate plus an annual 2% spread and maturing on July 11, 2024. Additionally, on March 2, 2023, the Company reopened Class 13 and Class 15 CB for US$ 48.2 million and $ 7,885 million, respectively. 12.5.6 Series T CB Exchange Offer On June 16, 2022, the Company launched an exchange offer for holders of Series T CB maturing in 2023 originally issued by Petrobras Argentina S.A. (currently merged with the la Company) dated July 21, 2016 for a face value of US$ 500 million, under its Global Program authorized pursuant to CNV Resolution No. 17,162 dated August 15, 2013. Once the exchange offer expired on July 29, 2022, the information and exchange agent informed the Company that US$ 193.8 million and US$ 213.3 million, representing 38.8% and 42.7% of the Series T CB’ outstanding principal, had been validly tendered for exchange under Option A and Option B, respectively, totaling a US$ 407.1 million participation and representing approximately 81.4% of the outstanding Series T CB’ capital amount. Consequently, on August 8, 2022, after meeting the conditions established in the exchange offer documents, Pampa issued Class 9 CB for a face value of US$ 292.8 million, accruing interest at an annual fixed 9.5% rate and maturing on December 8, 2026, payable in three consecutive annual installments starting in 2024, and paid US$ 122.1 million in cash. For each US$ 1,000 of Series T CB’s capital amount validly tendered and accepted for exchange, eligible holders received, together with the payment of interest accrued on Series T CB up to the settlement date: (i) Option A: approximately US$ 377.2 in Class 9 CB and US$ 630.2 in cash; and (ii) Option B: US$ 1,030 in Class 9 CB. As a result of the debt swap, the Company disclosed losses for US$ 14 million under “Other financial results” to reflect the change in the payment estimates discounted at Series T CB’s original effective interest rate, since they were not deemed substantially different from the issuance conditions for Class 9 CB, in accordance with IFRS. As of the date of issuance of these Consolidated Financial Statements, outstanding Series T CB amount to US$ 92.9 million. 12.6 Trade and other payables
Schedule of trade and other payables |  |  |  |  |
| Note |  | 12.31.2022 |  | 12.31.2021
Non-Current |  |  |  |  |
Compensation agreements |  |  | 10 |  | 3
Finance leases liability |  |  | 10 |  | 9
Other |  |  | 1 |  | -
Other payables |  |  | 21 |  | 12
Total non-current |  |  | 21 |  | 12
Current |  |  |  |  |
Suppliers |  |  | 198 |  | 154
Customer advances |  |  | 3 |  | 4
Related parties | 16 |  | 14 |  | 15
Trade payables |  |  | 215 |  | 173
Compensation agreements |  |  | 12 |  | 2
Liability for acquisition of companies |  |  | 46 |  | -
Finance leases liability |  |  | 2 |  | 4
Other |  |  | 6 |  | 3
Other payables |  |  | 66 |  | 9
Total current |  |  | 281 |  | 182
Due to the short-term nature of the trade payables and other payables, their carrying amount is considered to be the same as their fair value. For most other non-current debts, fair values are also not significantly different from their book values. 12.7 Financial instruments by category The following table presents financial instruments by category:
Schedule of financial instruments |  |  |  |  |  |  |  |  |  |
As of December 31, 2022 |  | Financial assets/liabilities at amortized cost |  | Financial assets/liabilities at fair value through profit and loss |  | Subtotal financial assets/liabilities |  | Non financial assets/liabilities |  | Total
Assets |  |  |  |  |  |  |  |  |  |
Trade receivables and other receivables |  | 437 |  | 22 |  | 459 |  | 31 |  | 490
Financial assets at amortized cost |  |  |  |  |  |  |  |  |  |
Term deposit |  | 101 |  | - |  | 101 |  | - |  | 101
Notes receivable |  | 9 |  | - |  | 9 |  | - |  | 9
Financial assets at fair value through profit and loss |  |  |  |  |  |  |  |  |  |
Government securities |  | - |  | 279 |  | 279 |  | - |  | 279
Corporate bonds |  | - |  | 116 |  | 116 |  | - |  | 116
Shares |  | - |  | 187 |  | 187 |  | - |  | 187
Mutual funds |  | - |  | 31 |  | 31 |  | - |  | 31
Cash and cash equivalents |  | 11 |  | 95 |  | 106 |  | - |  | 106
Total |  | 558 |  | 730 |  | 1,288 |  | 31 |  | 1,319
Liabilities |  |  |  |  |  |  |  |  |  |
Trade and other liabilities |  | 298 |  | - |  | 298 |  | 4 |  | 302
Borrowings |  | 1,613 |  | - |  | 1,613 |  | - |  | 1,613
Derivative financial instruments |  | - |  | 2 |  | 2 |  | - |  | 2
Total |  | 1,911 |  | 2 |  | 1,913 |  | 4 |  | 1,917
As of December 31, 2021 |  | Financial assets/liabilities at amortized cost |  | Financial assets/liabilities at fair value through profit and loss |  | Subtotal financial assets/liabilities |  | Non financial assets/liabilities |  | Total
Assets |  |  |  |  |  |  |  |  |  |
Trade receivables and other receivables |  | 376 |  | 30 |  | 406 |  | 25 |  | 431
Financial assets at amortized cost |  |  |  |  |  |  |  |  |  |
Term deposit |  | 100 |  | - |  | 100 |  | - |  | 100
Notes receivable |  | 10 |  | - |  | 10 |  | - |  | 10
Financial assets at fair value through profit and loss |  |  |  |  |  |  |  |  |
Government securities |  | - |  | 278 |  | 278 |  | - |  | 278
Corporate bonds |  | - |  | 19 |  | 19 |  | - |  | 19
Shares |  | - |  | 149 |  | 149 |  | - |  | 149
Mutual funds |  | - |  | 41 |  | 41 |  | - |  | 41
Cash and cash equivalents |  | 26 |  | 84 |  | 110 |  | - |  | 110
Total |  | 512 |  | 601 |  | 1,113 |  | 25 |  | 1,138
Liabilities |  |  |  |  |  |  |  |  |  |
Trade and other liabilities |  | 190 |  | - |  | 190 |  | 4 |  | 194
Borrowings |  | 1,438 |  | - |  | 1,438 |  | - |  | 1,438
Total |  | 1,628 |  | - |  | 1,628 |  | 4 |  | 1,632
The categories of financial instruments have been determined according to IFRS 9. The income, expenses, gains and losses derived from each of the financial instrument categories are indicated below:
Schedule of income, expenses, gains and losses from financial instruments |  |  |  |  |  |  |  |  |  |
As of December 31, 2022 |  | Financial assets/liabilities at amortized cost |  | Financial assets/liabilities at fair value through profit and loss |  | Subtotal financial assets/liabilities |  | Non Financial assets/ liabilities |  | Total
Interest income |  | 5 |  | - |  | 5 |  | - |  | 5
Interest expenses |  | (175) |  | - |  | (175) |  | (41) |  | (216)
Foreign currency exchange difference, net |  | 16 |  | (85) |  | (69) |  | 149 |  | 80
Changes in the fair value of financial instruments |  | - |  | 110 |  | 110 |  | - |  | 110
Result from present value measurement |  | (1) |  | - |  | (1) |  | (13) |  | (14)
Other financial results |  | (15) |  | - |  | (15) |  | - |  | (15)
Total |  | (170) |  | 25 |  | (145) |  | 95 |  | (50)
As of December 31, 2021 |  | Financial assets/liabilities at amortized cost |  | Financial assets/liabilities at fair value through profit and loss |  | Subtotal financial assets/liabilities |  | Non Financial assets/ liabilities |  | Total
Interest income |  | 10 |  | - |  | 10 |  | - |  | 10
Interest expenses |  | (138) |  | - |  | (138) |  | (40) |  | (178)
Foreign currency exchange difference, net |  | (11) |  | (19) |  | (30) |  | 33 |  | 3
Changes in the fair value of financial instruments |  | - |  | (15) |  | (15) |  | - |  | (15)
Result from present value measurement |  | 2 |  | - |  | 2 |  | (3) |  | (1)
Other financial results |  | (4) |  | - |  | (4) |  | (4) |  | (8)
Total |  | (141) |  | (34) |  | (175) |  | (14) |  | (189)
As of December 31, 2020 |  | Financial assets/liabilities at amortized cost |  | Financial assets/liabilities at fair value through profit and loss |  | Subtotal financial assets/liabilities |  | Non Financial assets/ liabilities |  | Total
Interest income |  | 9 |  | - |  | 9 |  | - |  | 9
Interest expenses |  | (164) |  | - |  | (164) |  | (6) |  | (170)
Foreign currency exchange difference, net |  | 38 |  | (35) |  | 3 |  | 11 |  | 14
Changes in the fair value of financial instruments |  | - |  | 30 |  | 30 |  | - |  | 30
Result from present value measurement |  | 6 |  | - |  | 6 |  | (4) |  | 2
Other financial results |  | 36 |  | - |  | 36 |  | (5) |  | 31
Total |  | (75) |  | (5) |  | (80) |  | (4) |  | (84)
12.8 Fair value of financial Instruments The Company classifies the fair value measurements of financial instruments using a fair value hierarchy, which reflects the relevance of the variables used to perform those measurements. The fair value hierarchy has the following levels:
| - | Level 1: quoted prices (not adjusted) for identical assets or liabilities in active markets.
| - | Level 2: data different from the quoted prices included in Level 1 observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).
| - | Level 3: Asset or liability data based on information that cannot be observed in the market (i.e., unobservable data).
The following table shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2022 and 2021:
Schedule of fair value of financial instruments |  |  |  |  |  |  |  |
As of December 31, 2022 |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |
Financial assets at fair value through profit and losss |  |  |  |  |  |  |  |
Government securities |  | 279 |  | - |  | - |  | 279
Corporate bonds |  | 116 |  | - |  | - |  | 116
Mutual funds |  | 31 |  | - |  | - |  | 31
Shares |  | 160 |  | - |  | 27 |  | 187
Cash and cash equivalents |  |  |  |  |  |  |  |
Mutual funds |  | 95 |  | - |  | - |  | 95
Other receivables |  | 22 |  | - |  | - |  | 22
Total assets |  | 703 |  | - |  | 27 |  | 730
Liabilities |  |  |  |  |  |  |  |
Derivative financial instruments |  | - |  | 2 |  | 0 |  | 2
Total liabilities |  | - |  | 2 |  | - |  | 2
As of December 31, 2021 |  | Level 1 |  | Level 3 |  | Total |  |
Assets |  |  |  |  |  |  |  |
Financial assets at fair value through profit and losss |  |  |  |  |  |  |  |
Government securities |  | 278 |  | - |  | 278 |  |
Corporate bonds |  | 19 |  | - |  | 19 |  |
Mutual funds |  | 41 |  | - |  | 41 |  |
Shares |  | 120 |  | 29 |  | 149 |  |
Cash and cash equivalents |  |  |  |  |  |  |  |
Mutual funds |  | 84 |  | - |  | 84 |  |
Other receivables |  | 30 |  | - |  | 30 |  |
Total assets |  | 572 |  | 29 |  | 601 |  |
The value of the financial instruments negotiated in active markets is based on the market quoted prices as of the date of these Consolidated Financial Statements. A market is considered active when the quoted prices are regularly available through a stock exchange, broker, sector-specific institution or regulatory body, and those prices reflect regular and current market transactions between parties that act in conditions of mutual independence. The market quotation price used for the financial assets held by the Company is the current offer price. These instruments are included in Level 1. The fair value of financial instruments that are not negotiated in active markets is determined using valuation techniques. These valuation techniques maximize the use of market observable information, when available, and rely as little as possible on specific estimates of the Company. If all significant variables to establish the fair value of a financial instrument can be observed, the instrument is included in Level 2. If one or more variables used to determine the fair value cannot be observed in the market, the financial instrument is included in Level 3. The techniques used for the measurement of assets at fair value with changes in profit (loss), classified as Level 2 and 3, are detailed below:
| - | Derivative Financial Instruments: calculated from variations between market prices at the closing date of the year, and the amount at the time of the contract.
| - | Shares: it was determined using the income-based approach through the “Indirect Cash Flow” method, that is, the net present value of expected future cash flows, mainly through the collection of dividends taking into consideration the direct equity interest of 2.84% and 3.19%, and the additional equity interest of 2.18% and 2.46% through HIDISA and HINISA, in TJSM and TMB, respectively, resulting from the Federal Government’s restructuring of assets in the energy sector. This restructuring resulted in TMB’s and TJSM’s share transfer from the Federal Government to IEASA, considering 16.4% and 13.7% discount rate as of December, 31 2022 and 2021, respectively. The key assumptions were prepared based on estimates on the future behavior of certain sensitive variables, including: (i) the dividend distribution policy; (ii) reference prices for energy sold in the spot market; (iii) projections of the availability and dispatch of power plants; (iv) the evolution of structural costs and expenses; (v) macroeconomic variables such as inflation and exchange rates, etc. The Company recognised losses for US$ 1.7 million and earnings for US$ 18 million as a result of changes in the fair value of financial instruments classified as level 3, under the item “Other financial results” of the Consolidated Statement of Comprehensive Income, as of December, 31 2022 and 2021, respectively. Current values may substantially differ from projections, mainly on account of: i) the timeliness and magnitude of the distribution of dividends, ii) the timeliness and magnitude of energy price updates, and/or iii) the evolution of costs. The Company estimates that any sensitivity analysis that considers changes in any of the estimates taken individually may lead to distorting conclusions, generating an adverse effect on the Company’s results.

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