EEB Begins convergence to international financial reporting standards - IFRS
02 January 2015
Bogotá, D.C., January 2, 2015. Empresa Energía de Bogotá S.A. ESP -EEB-, head of Grupo Energia de Bogotá, as a listed company on the Securities and Issuers National Register and in the Colombia Securities Exchange (BVC for its Spanish acronym), informs the public that in accordance with the provisions of the 1314 Act of 2009 and the regulatory decree 2784 of December 2012, EEB started the convergence process of the Colombian GAAP to the International Financial Reporting Standards - IFRS. For this purpose, the technical board of the National Accountancy Agency issued the strategic direction by classifying companies into three groups.
Given that the company belongs to group 1 (securities’ issuers) the mandatory transition period began on January 1, 2014 and the issuance date of the first comparative financial statements under IFRS will be December 31, 2015.
Derived from the 2784 Decree of December 28, 2012, the Colombia Financial Superintendence issued the circular letter No. 10 2013 and the company presented the implementation plan to IFRS.
During the years 2013 and 2014, EEB carried out activities regarding the preparation and adaptation of the resources needed to advance the process of convergence to IFRS in accordance with legal requirements.
EEB, with technical support from their accounting advisors, determined that the main effects that such changes will have on the financial statements will be those listed below:
1. Fixed assets
2. Permanent investments
4. Employees’ Benefits
5. Deferred tax
6. Income Recognition
About Grupo Energía de Bogotá
Grupo Energía de Bogotá (GEB) is the leading corporation in the Colombian power sector. Through EEB, GEB transports electricity to the most significant markets in terms of demand and size in the country, in addition to controlling the largest natural gas transportation company in Colombia, TGI S.A. In Peru, its subsidiary CONTUGAS has a 30-year concession for the transportation and distribution of natural gas in the Ica Region, while CALIDDA is in charge of natural gas distribution in Lima and Callao. In that same country, together with ISA, GEB holds a stake in REP S.A. and TRANSMANTARO S.A., which operate 63% of the electricity transmission system in Peru. In 2010, GEB established TRECSA -Transportadora de Energía Centroamericana S.A.- currently building the most important infrastructure Project in Guatemala that will render electricity transmission services as of 2015. Furthermore, GEB holds an investment portfolio in the most important companies in the electricity and natural gas sector, in which the following stand out, CODENSA S.A., EMGESA S.A., GAS NATURAL S.A., Empresa de Energía de Cundinamarca - EEC and Electrificadora del Meta, EMSA and to a lesser extent ISA and ISAGEN. As of 2013, the Group renders advisory and engineering services in Guatemala and Peru through its subsidiaries EEB Ingeniería y Servicios. In 2014, Empresa de Movilidad de Bogotá SAS E.S.P., was constituted as subsidiary related to the development of electrical mobility projects.
Nicolás G. Mancini-Suárez
GEB Financing and Investor Relations Manager
Tel. 3268000 ext. 1675, 1827
Jorge Armando Riaño Delgado
EEB External Communications Adviser
Tel. 3268000 ext. 169