Trade and other receivables

12 Months Ended

Dec. 31, 2018

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, 2018					As of December 31, 2017
	Current			Non current		Current			Non current
	ThCh $			ThCh $		ThCh $			ThCh $
Chile operating segment		162,477,091			-		159,465,654			-
International business operating segment		76,166,145			-		62,587,204			-
Wines operating segment		51,478,501			-		40,284,490			-
Total commercial debtors		290,121,737			-		262,337,348			-
Impairment loss estimate		(6,059,201	)		-		(4,154,752	)		-
Total commercial debtors - net		284,062,536			-		258,182,596			-
Others accounts receivables (1)		36,639,803			3,363,123		28,031,002			3,974,395
Total other accounts receivable		36,639,803			3,363,123		28,031,002			3,974,395
Total		320,702,339			3,363,123		286,213,598			3,974,395

(1)

As of December 31, 2018, this item mainly includes ThCh$ 1,392,650 in current and ThCh$ 1,240,461 (ThCh$ 2,411,833 in 2017) 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 14

– Non-current assets of disposal groups classifield as held for sale)

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

	As of December 31, 2018		As of December 31, 2017
	ThCh $		ThCh $
Chilean Peso		191,979,443		183,948,334
Argentine Peso		67,553,470		55,526,379
US Dollar		34,113,849		27,810,990
Euro		10,152,559		9,326,882
Unidad de Fomento		2,678,592		2,590,736
Uruguayan Pesos		5,128,068		4,372,909
Paraguayan Guarani		8,774,244		5,495,532
Bolivian		1,340,388		-
Others currencies		2,344,849		1,116,231
Total		324,065,462		290,187,993

The detail of the accounts receivable maturities as of

December 31, 2018

, 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 $
Chile operating segment		162,477,091			152,644,412			5,928,791			1,085,806			844,101			1,973,981
International business operating segment		76,166,145			63,419,349			9,546,370			1,092,229			701,571			1,406,626
Wines operating segment		51,478,501			44,304,213			6,248,007			272,721			305,811			347,749
Total commercial debtors		290,121,737			260,367,974			21,723,168			2,450,756			1,851,483			3,728,356
Impairment loss estimate		(6,059,201	)		(148,214	)		(542,195	)		(600,433	)		(1,407,848	)		(3,360,511	)
Total commercial debtors - net		284,062,536			260,219,760			21,180,973			1,850,323			443,635			367,845
Others accounts receivables		36,639,803			36,056,454			321,767			162,295			99,233			54
Total other accounts receivable		36,639,803			36,056,454			321,767			162,295			99,233			54
Total current		320,702,339			296,276,214			21,502,740			2,012,618			542,868			367,899
Others accounts receivables		3,363,123			3,363,123			-			-			-			-
Total non-current		3,363,123			3,363,123			-			-			-			-

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 $
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
Total commercial debtors		262,337,348			242,707,750		13,286,335			1,852,184			1,901,047			2,590,032
Impairment loss estimate		(4,154,752	)		-		(421,560	)		(695,114	)		(1,001,699	)		(2,036,379	)
Total commercial debtors - net		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		3,974,395			3,974,395		-			-			-			-
Total non-current		3,974,395			3,974,395		-			-			-			-

The Company markets its products through wholesale customers, retail and supermarket chains. As of

December 31, 2018

, the accounts receivable from the three most important supermarket chains in Chile and Argentina represent 27.3% (28.1% in

2017

) of the total accounts receivable.

As indicated in the Risk management note (See

Note 5 – Risk administration

), 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.

The general criteria for the determination of the provision for impairment has been established in the framework of IFRS 9, which requires analysing the behavior of the client portfolio in the long term in order to generate an expected credit loss index by tranches based on the age of the portfolio. This analysis delivered the following results for the Company:

			Overdue balances
	Current balance		0 a 3 months		3 a 6 months		6 a 12 months		More than 12 months
% Impairment loss estimate by stretch		0.10		4.30		32.60		100.00		100.00

The percentage of impairment determined for the portfolio in each court may differ from the direct application of the previously presented parameters because these percentages are applied to the uncovered portfolio of credit insurance that the Company takes. Past due balances over 6 months and for which no estimates have been made for impairment losses, correspond mainly to items protected by credit insurance. Additionally, there are expired amounts in this stretch, which according to the policy, partial losses due to impairment are estimated based on an individual case-by-case analysis.

For the above mentioned, management estimates that it does not require establishing allowances for further impairment, 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 write off normally takes more than 1 year.

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

	As of December 31, 2018			As of December 31, 2017
	ThCh $			ThCh $
Balance at the beginning of year		(4,154,752	)		(3,837,914	)
First application effect IFRS 9		(192,377	)		-
Initial balance restated		(4,347,129	)		(3,837,914	)
Impairment estimate for accounts receivable		(1,697,861	)		(1,948,264	)
Uncollectible accounts		527,545			634,256
Add back of unused provisions		448,056			832,704
Estimates resulting from business combinations (1)		(1,354,559	)		-
Effect of translation into presentation currency		364,747			164,466
Total		(6,059,201	)		(4,154,752	)

(1)

See

Note 15 – Business Combinations