Trade and other receivables

12 Months Ended

Dec. 31, 2017

Disclosure of trade and other receivables [Abstract]

Disclosure of trade and other receivables [text block]

Note 10 Trade and other receivables

The trade and other receivables are detailed as follows:

	As of December 31, 2017				As of December 31, 2016
	Current		Non current		Current		Non current
	ThCh$		ThCh$		ThCh$		ThCh$
Accounts receivables:
Chile operating segment		159,465,654		-		145,670,490		-
International business operating segment		62,587,204		-		63,602,409		-
Wines operating segment		40,284,490		-		42,958,093		-
Impairment loss estimate		(4,154,752)		-		(3,837,914)		-
Total commercial debtors		258,182,596		-		248,393,078		-
Others accounts receivables (1)		28,031,002		3,330,606		32,395,055		3,563,797
Total other accounts receivable		28,031,002		3,330,606		32,395,055		3,563,797
Total		286,213,598		3,330,606		280,788,133		3,563,797

(1)

As of December 31, 2017, this item mainly includes ThCh$ 2,411,833 (ThCh$ 2,898,277 in 2016) in non-current related to the account receivable from the sale of the 49% that subsidiary CPCh had in Compañía Pisquera Bauzá S.A. (see Note 1, letter (b)).

The Company’s accounts receivable are denominated in the following currencies:

	As of December 31, 2017		As of December 31, 2016
	ThCh$		ThCh$
Chilean Peso		183,948,334		179,896,747
Argentine Peso		54,882,590		56,773,947
US Dollar		27,810,990		24,451,001
Euro		9,326,882		7,025,446
Unidad de Fomento		2,590,736		3,613,395
Uruguayan Peso		4,372,909		5,304,719
Paraguayan Guaraní		5,495,532		6,030,014
Others Currencies		1,116,231		1,256,661
Total		289,544,204		284,351,930

The detail of the accounts receivable maturities as of December 31, 2017, is detailed as follows:

					Overdue balances
	Total		Current balance		0 a 3 months		3 a 6 months		6 a 12 months		More than 12 months
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Accounts receivables:
Chile operating segment		159,465,654		150,256,296		4,960,461		1,037,876		1,358,009		1,853,012
International business operating segment		62,587,204		56,180,536		4,978,409		595,173		318,551		514,535
Wines operating segment		40,284,490		36,270,918		3,347,465		219,135		224,487		222,485
Impairment loss estimate		(4,154,752)		-		(421,560)		(695,114)		(1,001,699)		(2,036,379)
Total commercial debtors		258,182,596		242,707,750		12,864,775		1,157,070		899,348		553,653
Others accounts receivables		28,031,002		27,768,858		97,052		165,092		-		-
Total other accounts receivable		28,031,002		27,768,858		97,052		165,092		-		-
Total current		286,213,598		270,476,608		12,961,827		1,322,162		899,348		553,653
Others accounts receivables		3,330,606		3,330,606		-		-		-		-
Total non-current		3,330,606		3,330,606		-		-		-		-

The detail of the accounts receivable maturities as of December 31, 2016, is detailed as follows:

					Overdue balances
	Total		Current balance		0 a 3 months		3 a 6 months		6 a 12 months		More than 12 months
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Accounts receivables:
Chile operating segment		145,670,490		134,545,838		8,090,616		1,136,211		638,417		1,259,408
International business operating segment		63,602,409		55,231,951		7,521,071		130,299		275,300		443,788
Wines operating segment		42,958,093		39,499,120		3,028,707		208,628		137,671		83,967
Impairment loss estimate		(3,837,914)		-		(1,130,545)		(478,707)		(542,389)		(1,686,273)
Total commercial debtors		248,393,078		229,276,909		17,509,849		996,431		508,999		100,890
Others accounts receivables		32,395,055		31,917,416		186,213		291,426		-		-
Total other accounts receivable		32,395,055		31,917,416		186,213		291,426		-		-
Total current		280,788,133		261,194,325		17,696,062		1,287,857		508,999		100,890
Others accounts receivables		3,563,797		3,563,797		-		-		-		-
Total non-current		3,563,797		3,563,797		-		-		-		-

The Company markets its products through wholesale customers, retail and supermarket chains. As of December 31, 2017, the accounts receivable from the three most important supermarket chains in Chile and Argentina represent 28.1% (27.1% in 2016) of the total accounts receivable.

As indicated in the Risk management note (Note 5), for Credit Risk purposes, the Company acquires credit insurance policies to cover approximately 90% and 99% of the significant accounts receivable balances domestic and export, respectively, of the total of the account receivables. Regarding amounts aged more than 6 months and for which no allowances have been constituted, they correspond mainly to amounts already covered by the credit insurance policies. In addition, there are amounts overdue within ranges for which, in accordance with current policies are only partially impaired for, based on a case by case analysis.

For the above mentioned, management estimates that it does not require establishing allowances for further deterioration, in addition to those already constituted based on an aging analysis of these balances.

The write-offs of our doubtful clients are once all pre-trial and judicial, efforts have been made and exhausted all means of payment, with the proper demonstration of the insolvency of customers. This process of punishment normally takes more than 1 year.

The movement of the impairment losses provision for accounts receivable is as follows:

	As of December 31, 2017		As of December 31, 2016
	ThCh$		ThCh$
Balance at the beginning of year		(3,837,914)		(3,936,871)
Impairment estimate for accounts receivable		(1,948,264)		(1,352,722)
Uncollectible accounts		634,256		219,222
Add back of unused provisions		832,704		1,031,841
Effect of translation into presentation currency		164,466		200,616
Total		(4,154,752)		(3,837,914)