Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F/A |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | QIWI |
Entity Registrant Name | QIWI PLC |
Entity Central Index Key | 1,561,566 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Class A ordinary shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 14,277,871 |
Class B ordinary shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 46,654,783 |
Consolidated statement of finan
Consolidated statement of financial position - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Non-current assets | ||
Property and equipment | ₽ 724 | ₽ 593 |
Goodwill and other intangible assets | 10,807 | 11,022 |
Investments in joint ventures | 832 | |
Long-term debt instruments | 1,100 | 399 |
Long-term loans | 164 | 120 |
Other non-current assets | 64 | 40 |
Deferred tax assets | 245 | 270 |
Total non-current assets | 13,936 | 12,444 |
Current assets | ||
Trade and other receivables | 9,648 | 5,679 |
Short-term loans | 1,691 | 19 |
Short-term debt instruments | 704 | 1,772 |
Prepaid income tax | 187 | 77 |
Cash and cash equivalents | 18,406 | 18,997 |
Other current assets | 458 | 661 |
Total current assets | 31,094 | 27,205 |
Assets of disposal group classified as held for sale | 29 | 25 |
Total assets | 45,059 | 39,674 |
Equity attributable to equity holders of the parent | ||
Share capital | 1 | 1 |
Additional paid-in capital | 1,876 | 1,876 |
Share premium | 12,068 | 12,068 |
Other reserve | 1,462 | 1,064 |
Retained earnings | 5,715 | 4,808 |
Translation reserve | (2) | 131 |
Total equity attributable to equity holders of the parent | 21,120 | 19,948 |
Non-controlling interest | 37 | 21 |
Total equity | 21,157 | 19,969 |
Non-current liabilities | ||
Other non-current liabilities | 10 | 2 |
Deferred tax liabilities | 826 | 851 |
Total non-current liabilities | 836 | 853 |
Current liabilities | ||
Trade and other payables | 19,599 | 16,328 |
Customer accounts and amounts due to banks | 3,182 | 2,342 |
VAT and other taxes payable | 198 | 102 |
Income tax payable | 32 | 68 |
Other current liabilities | 51 | 10 |
Total current liabilities | 23,062 | 18,850 |
Liabilities directly associated with the assets of a disposal group classified as held for sale | 4 | 2 |
Total equity and liabilities | ₽ 45,059 | ₽ 39,674 |
Consolidated statement of compr
Consolidated statement of comprehensive income - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
Revenue | ₽ 20,897 | ₽ 17,880 | ₽ 17,717 |
Operating costs and expenses: | |||
Cost of revenue (exclusive of depreciation and amortization) | 9,763 | 8,646 | 8,695 |
Selling, general and administrative expenses | 6,243 | 3,423 | 3,469 |
Depreciation and amortization | 796 | 796 | 689 |
Impairment of intangible assets | 104 | 878 | |
Profit from operations | 3,991 | 4,137 | 4,864 |
Loss on disposal of subsidiaries | (10) | (38) | |
Other income and expenses, net | (41) | (69) | (23) |
Foreign exchange gain | 257 | 1,040 | 2,801 |
Foreign exchange loss | (373) | (1,963) | (1,360) |
Interest income and expenses, net | 6 | (28) | (93) |
Profit before tax | 3,840 | 3,107 | 6,151 |
Income tax expense | (698) | (618) | (877) |
Net profit | 3,142 | 2,489 | 5,274 |
Attributable to: | |||
Equity holders of the parent | 3,114 | 2,474 | 5,187 |
Non-controlling interests | 28 | 15 | 87 |
Exchange differences on translation of foreign operations | |||
Differences arising during the year | (133) | (330) | 231 |
Accumulated exchange differences reclassified to earnings upon disposal of foreign operations | 56 | ||
Total comprehensive income, net of tax effect of nil | 3,009 | 2,159 | 5,561 |
Attributable to: | |||
Equity holders of the parent | 2,981 | 2,144 | 5,443 |
Non-controlling interests | ₽ 28 | ₽ 15 | ₽ 118 |
Earnings per share: | |||
Basic, profit attributable to ordinary equity holders of the parent | ₽ 51.25 | ₽ 40.91 | ₽ 89.72 |
Diluted, profit attributable to ordinary equity holders of the parent | ₽ 50.92 | ₽ 40.79 | ₽ 89.49 |
Consolidated statement of cash
Consolidated statement of cash flows - RUB (₽) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities | ||||
Profit before tax | ₽ 3,840 | ₽ 3,107 | ₽ 6,151 | |
Adjustments to reconcile profit before tax to net cash flows (used in) /generated from operating activities | ||||
Depreciation and amortization | 796 | 796 | 689 | |
Foreign exchange loss/(gain), net | 116 | 923 | (1,441) | |
Interest income, net | (1,016) | (834) | (559) | |
Bad debt expense | 220 | 215 | 362 | |
Share-based payments | 398 | 224 | 88 | |
Impairment of intangible assets | 104 | 878 | ||
Other | 46 | 80 | 36 | |
Operating profit before changes in working capital | 4,504 | 5,389 | 5,326 | |
(Increase)/decrease in trade and other receivables | (3,683) | (709) | 2,248 | |
(Increase)/decrease in other assets | 150 | (127) | 129 | |
Increase in customer accounts and amounts due to banks | 898 | 90 | 409 | |
Increase/(decrease) in trade and other payables | 3,414 | 1,020 | (8,883) | |
Loans (issued)/repaid from banking operations | (1,888) | 40 | ||
Cash (used in)/generated from operations | 3,395 | 5,663 | (731) | |
Interest received | 1,048 | 858 | 716 | |
Interest paid | (70) | (101) | (181) | |
Income tax paid | (813) | (877) | (811) | |
Net cash flow (used in)/generated from operating activities | 3,560 | 5,543 | (1,007) | |
Cash flows (used in)/generated from investing activities | ||||
Acquisition of joint control companies | (813) | |||
Cash acquired upon /(used in) business combination | (10) | 3,181 | ||
Net cash inflow/(outflow) on disposal of subsidiaries | (57) | |||
Purchase of property and equipment | (360) | (388) | (88) | |
Purchase of intangible assets | (819) | (298) | (222) | |
Loans issued | (376) | (675) | (780) | |
Repayment of loans issued | 316 | 774 | 458 | |
Purchase of debt instruments | (1,376) | (549) | (982) | |
Proceeds from settlement of debt instruments | 1,775 | 1,326 | 2,046 | |
Net cash (used in)/generated from investing activities | (1,653) | 180 | 3,556 | |
Cash flows (used in)/generated from financing activities | ||||
Proceeds from borrowings | 2 | 58 | ||
Repayment of borrowings | (4) | (1,252) | ||
Dividends paid to owners of the Group | (2,148) | (4,628) | (699) | |
Dividends paid to non-controlling shareholders | (12) | (7) | ||
Net cash (used in)/generated from financing activities | (2,160) | (4,637) | (1,893) | |
Effect of exchange rate changes on cash and cash equivalents | (333) | (1,428) | 1,612 | |
Net increase/(decrease) in cash and cash equivalents | (586) | (342) | 2,268 | |
Cash and cash equivalents at the beginning of year | [1] | 19,021 | 19,363 | 17,095 |
Cash and cash equivalents at the end of year | [1] | ₽ 18,435 | ₽ 19,021 | ₽ 19,363 |
[1] | * Cash and cash equivalents at the end of year 2016 and 2017 do not reconcile to Note 15 by 24 and 29 respectively, due to - the amount of cash classified as part of assets held for sale as of December 31, 2016 and 2017. |
Consolidated statement of cash5
Consolidated statement of cash flows (Parenthetical) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of cash flows [abstract] | ||
Cash and cash equivalents at the end of year 2016 and 2017 do not reconcile to Note 15 by 24 and 29 respectively, due to - the amount of cash classified as part of assets held for sale as of December 31, 2016 and 2017. | ₽ 29 | ₽ 24 |
Consolidated statement of chang
Consolidated statement of changes in equity - RUB (₽) ₽ in Millions | Total | Additional paid-in capital [member] | Share premium [member] | Other reserves [member] | Retained earnings [member] | Translation reserve [member] | Parent [member] | Non-controlling interests [member] | Share capital [member] |
Beginning balance at Dec. 31, 2014 | ₽ 8,334 | ₽ 1,876 | ₽ 3,044 | ₽ 764 | ₽ 2,684 | ₽ 205 | ₽ 8,574 | ₽ (240) | ₽ 1 |
Beginning balance, shares at Dec. 31, 2014 | 54,505,998 | ||||||||
Profit (loss) for the year | 5,274 | 5,187 | 5,187 | 87 | |||||
Exchange differences on translation of foreign operations | 287 | 256 | 256 | 31 | |||||
Total comprehensive income | 5,561 | 5,187 | 256 | 5,443 | 118 | ||||
Issue of share capital | 9,024 | 9,024 | 9,024 | ||||||
Issue of share capital, shares | 5,593,041 | ||||||||
Share-based payments | 88 | 88 | 88 | ||||||
Exercise of options | 319,562 | ||||||||
Increase of ownership in subsidiaries | 37 | (12) | (12) | 49 | |||||
Disposal of subsidiaries | 86 | 86 | |||||||
Dividends | (694) | (694) | (694) | ||||||
Ending balance, equity at Dec. 31, 2015 | 22,436 | 1,876 | 12,068 | 840 | 7,177 | 461 | 22,423 | 13 | ₽ 1 |
Ending balance, shares at Dec. 31, 2015 | 60,418,601 | ||||||||
Profit (loss) for the year | 2,489 | 2,474 | 2,474 | 15 | |||||
Exchange differences on translation of foreign operations | (330) | (330) | (330) | ||||||
Total comprehensive income | 2,159 | 2,474 | (330) | 2,144 | 15 | ||||
Share-based payments | 224 | 224 | 224 | ||||||
Exercise of options | 178,433 | ||||||||
Dividends | (4,843) | (4,843) | (4,843) | ||||||
Dividends to non-controlling interest | (7) | (7) | |||||||
Ending balance, equity at Dec. 31, 2016 | 19,969 | 1,876 | 12,068 | 1,064 | 4,808 | 131 | 19,948 | 21 | ₽ 1 |
Ending balance, shares at Dec. 31, 2016 | 60,597,034 | ||||||||
Profit (loss) for the year | 3,142 | 3,114 | 3,114 | 28 | |||||
Exchange differences on translation of foreign operations | (133) | (133) | (133) | ||||||
Total comprehensive income | 3,009 | 3,114 | (133) | 2,981 | 28 | ||||
Share-based payments | 398 | 398 | 398 | ||||||
Exercise of options | 335,620 | ||||||||
Dividends | (2,207) | (2,207) | (2,207) | ||||||
Dividends to non-controlling interest | (12) | (12) | |||||||
Ending balance, equity at Dec. 31, 2017 | ₽ 21,157 | ₽ 1,876 | ₽ 12,068 | ₽ 1,462 | ₽ 5,715 | ₽ (2) | ₽ 21,120 | ₽ 37 | ₽ 1 |
Ending balance, shares at Dec. 31, 2017 | 60,932,654 |
Consolidated statement of chan7
Consolidated statement of changes in equity (Parenthetical) - ₽ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of changes in equity [abstract] | |||
Dividends per share | ₽ 36 | ₽ 80 | ₽ 11.5 |
Corporate information and descr
Corporate information and description of business | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Corporate information and description of business | 1. Corporate information and description of business QIWI plc (hereinafter “the Company”) was registered on February 26, 2007 as a limited liability Company OE Investment in Cyprus under the Cyprus Companies Law, Cap. 113. The registered office of the Company is Kennedy 12, Kennedy Business Centre, 2nd Floor, P.C.1087, Nicosia, Cyprus. On September 13, 2010 the directors of the Company resolved to change the name of the Company from OE Investments Limited to QIWI Limited. On February 25, 2013 the directors of the Company resolved to change the legal form of the Company from QIWI Limited to QIWI plc. The consolidated financial statements of QIWI plc and its subsidiaries for the year ended December 31, 2017 were authorized for issue by Board of Directors on March 15, 2018. QIWI plc and its subsidiaries (collectively the “Group”) operate electronic online payment systems primarily in Russia, Kazakhstan, Moldova, Belarus, Romania, United Arab Emirates (UAE) and other countries and provide consumer and small and medium enterprises (SME) financial services. The Company was founded as a holding company as a part of the business combination transaction in which ZAO Ob’edinennya Sistema Momentalnykh Platezhey and ZAO e-port The Company’ American Depositary Securities (ADS) have been listed on Nasdaq since May 3, 2013 and have been admitted to trading on MOEX since May 20, 2013. Prior to that time, there was no public market for the Company’ ADSs or ordinary shares. Subsequently, the Company closed two follow-on offerings of its ADSs on October 3, 2013 and on June 20, 2014. Sergey Solonin is the ultimate controlling shareholder of the Group as of December 31, 2017. Information on the Company’s principal subsidiaries is disclosed in Note 5. |
Principles underlying preparati
Principles underlying preparation of consolidated financial statements | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Principles underlying preparation of consolidated financial statements | 2. Principles underlying preparation of consolidated financial statements 2.1 Basis of preparation The consolidated financial statements are prepared on a historical cost basis. The consolidated financial statements are presented in Russian rubles (“RUB”) and all values are rounded to the nearest million (RUB (000,000)) except when otherwise indicated. The Group’s subsidiaries maintain and prepare their accounting records and prepare their statutory accounting reports in accordance with domestic accounting legislation. Standalone financial statements of subsidiaries are prepared in their respective functional currencies (see Note 3.3 below). The Group accounts are prepared in accordance with the IFRS standards and interpretations, as published by the IASB. These consolidated financial statements are based on the underlying accounting records appropriately adjusted and reclassified for fair presentation in accordance with IFRS. IFRS adjustments include and affect but not limited to such major areas as consolidation, revenue recognition, accruals, deferred taxation, fair value adjustments, business combinations and impairment. 2.2 Basis of consolidation The consolidated financial statements comprise the financial statements of QIWI plc and its subsidiaries as of December 31 each year. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee), • Exposure, or rights, to variable returns from its involvement with the investee, and • The ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement with the other vote holders of the investee, • Rights arising from other contractual arrangements, • The Group’s voting rights and potential voting rights. The Group re-assesses All intra-group balances, income, expenses and unrealized gains and losses resulting from intra-group transactions are eliminated in full, except for the foreign exchange gains and losses arising on intra-group loans. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling non-controlling A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: • Derecognises the assets (including goodwill) and liabilities of the subsidiary. • Derecognises the carrying amount of any non-controlling • Recognises the fair value of the consideration received. • Recognises the fair value of any investment retained. • Recognises any surplus or deficit in profit or loss. • Reclassifies to profit or loss or retained earnings, as appropriate, the amounts previously recognized in OCI as would be required if the Group had directly disposed of the related assets or liabilities. 2.3 Changes in accounting policies The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those followed in the preparation of the Group’s annual financial statements for the year ended December 31, 2016, except for the adoption of the new and amended IFRS and IFRIC interpretations as of January 1, 2017. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Although these new standards and amendments apply for the first time in 2017, they do not have a material impact on the annual consolidated financial statements of the Group. The nature and the impact of each new standard or amendment that could have any potential effect on the Group’s financial statements are described below: Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative The amendments require entities to provide disclosures about changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash Amendments to IAS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrecognised Losses The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact. The Group applied the amendments retrospectively. However, their application has no effect on the Group’s financial position and performance as the Group has no deductible temporary differences or assets that are in the scope of the amendments. Annual Improvements Cycle—2014-2016 Amendments to IFRS 12 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in IFRS 12 The amendments clarify that the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale. These amendments had no impact on the Group as there is no a joint venture or an associate that is classified as held for sale. 2.4 Standards issued but not yet effective Amendments to IFRS 2 - Classification and Measurement of Share-based Payment The amendments to IFRS 2 Share-based Payment address three main areas: - the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; - the classification of a share-based payment transaction with net settlement features for withholding tax obligations; - and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. The amendments are effective for annual periods beginning on or after January 1, 2018, with early application permitted. These amendments are not expected to have any impact on the Group as there is no cash-settled share-based transactions. IFRS 16 - Leases IFRS 16 was issued in January 2016 and sets out the principles that both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’), apply to provide relevant information about leases in a manner that faithfully represents those transactions. Under IFRS 16 a lessee is required to recognize assets and liabilities arising from a lease. The new standard is applicable to all lease and sublease contracts except for leases of certain types of intangibles and some other specific assets and will supersede all current requirements for lease recognition and disclosure under IFRS. IFRS 16 is effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted for entities that apply IFRS 15 at or before the date of initial application of IFRS 16. The Group is in the process of assessment of the potential impact on its consolidated financial statements. As of the date of these financial statements, the most significant impact identified is that the Group will recognise new assets and liabilities for its operating leases of office buildings and kiosk places as disclosed as non-cancellable right-of-use The Group plans to adopt IFRS 16 initially on January 1, 2019. The Group has not yet determined which transition approach to apply. The Group has not yet quantified the impact on its reported assets and liabilities of adoption of IFRS 16. The quantitative effect will depend on, inter alia, the transition method chosen, the extent to which the Group uses the practical expedients and recognition exemptions, and any additional leases that the Group enters into. The Group expects to disclose its transition approach and quantitative information before adoption. IFRIC 22 - Foreign Currency Transactions and Advance Consideration IFRIC 22 provides requirements about which exchange rate to use in reporting foreign currency transactions (such as revenue transactions) when payment is made or received in advance. The Interpretation is effective for annual periods beginning on or after January 1, 2018. Early application of interpretation is permitted and must be disclosed. However, since the Group’s current practice is in line with the Interpretation, the Group does not expect any effect on its consolidated financial statements. IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 and does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: - Whether an entity considers uncertain tax treatments separately - The assumptions an entity makes about the examination of tax treatments by taxation authorities - How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates - How an entity considers changes in facts and circumstances An entity must determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. The interpretation is effective for annual reporting periods beginning on or after January 1, 2019, but certain transition reliefs are available. The Group does not expect a significant impact on its financial statements on applying the interpretation. Amendments to IAS 28 - Investments in Associates and Joint Ventures The amendment clarified that an entity has an investment-by-investment These amendments are effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. The Group does not expect a significant impact on its financial statements on applying the amendments to IAS 28. IFRS 9 Financial Instruments In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early application permitted. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions. The Group plans to adopt the new standard on the required effective date and will not restate comparative information. During 2017, the Group has performed a detailed impact assessment of all three aspects of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the Group in 2018 when the Group will adopt IFRS 9. Overall, the Group expects no significant impact on its statement of financial position and equity except for the effect of applying the impairment requirements of IFRS 9. The Group expects an increase in the loss allowance resulting in a negative impact on equity as discussed below. (a) Classification and measurement The Group does not expect any impact on its balance sheet or equity on applying the classification and measurement requirements of IFRS 9. It expects to continue measuring at fair value all financial assets currently held at fair value. Debt securities, loans and trade receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analysed the contractual cash flow characteristics of those instruments and concluded that they meet the criteria for amortised cost measurement under IFRS 9. Therefore, reclassification for these instruments is not required. (b) Impairment IFRS 9 requires the Group to record expected credit losses on all of its debt securities, loans and trade receivables, either on a 12-month (c) Hedge accounting The Group does not applied hedge accounting in its financial statements. (d) Other adjustments In addition to the adjustments described above, on adoption of IFRS 9, other items of the primary financial statements such as deferred taxes, assets held for sale and liabilities associated with them, investments in the associate and joint venture if material, will be adjusted as necessary. The non-controlling In summary, the provisional impact of IFRS 9 adoption as of December 31, 2017 is expected to be, as follows: Ajustments Amount Assets Cash and cash equivalents b (130 ) Trade and other receivables b (38 ) Loans issued b (93 ) Debt instruments b (5 ) Deferred tax assets d 75 Total assets (191 ) Liabililies Other current liabilities b (111 ) Total Liabililies (111 ) Net impact on equity, Including (302 ) Retained earnings b (302 ) IFRS 15 Revenue from Contracts with Customers IFRS 15 was issued in May 2014, and amended in April 2016, and establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under IFRS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after January 1, 2018. Early adoption is permitted. The Group plans to adopt the new standard on the required effective date using the full retrospective method. During 2017 the Group has not finalised it assessment of IFRS 15 application. However, that the Group expects that the application of IFRS 15 will not have a significant impact. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of significant accounting policies | 3. Summary of significant accounting policies Set out below are the principal accounting policies used to prepare these consolidated financial statements: 3.1 Business combinations and goodwill Business combinations are accounted for using the acquisition method. Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group to the previous owners of the acquiree, and equity interests issued by the Group. Consideration transferred also includes the fair value of any contingent consideration and share-based payment awards of the acquiree that are replaced mandatorily in the business combination. If a business combination results in the termination of pre-existing If the business combination is achieved in stages, any previously held equity interest is re-measured Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequently, contingent consideration classified as an asset or liability, is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not re-measured The Group measures any non-controlling Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling re-assesses re-assessment After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated of the Group’s cash generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquired entity are assigned to those units. Where goodwill has been allocated to a cash-generating unit and certain operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed in this circumstance is measured based on the relative values of the operation disposed and the portion of the cash-generating unit retained. 3.2 Investments in associates and joint ventures The Group’s investment in its associate and joint ventures are accounted for using the equity method. An associate is an entity in which the Group has significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. unanimouns consent of the parties) have rights to the net assets of the arrangement. Under the equity method, the investment in the associate or joint venture is carried on the statement of financial position at cost plus post acquisition changes in the Group’s share of net assets of the associate/joint venture. Goodwill relating to the associate/joint venture is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment. The statement of comprehensive income reflects the Group’s share of the results of operations of the associate/joint venture. When there has been a change recognized directly in the equity of the investment, the Group recognizes its share of any changes and discloses this, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and the associate/joint venture are eliminated to the extent of the interest in it. The Group’s share of profit of an associate/joint venture is shown on the face of the statement of comprehensive income. This is the profit attributable to equity holders of the associate/joint venture and, therefore, is profit after tax and non-controlling The financial statements of the associates/joint ventures are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognize an additional impairment loss on its investment in its associates/joint ventres. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate/joint venture is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of an investment in associate/joint venture and its carrying value and recognizes any respective loss in the statement of comprehensive income. Upon loss of significant influence over the associate/joint venture, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate/joint venture upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. 3.3 Foreign currency translation The consolidated financial statements are presented in Russian rubles (RUB), which is the Company’s functional and the Group’s presentation currency. Each entity in the Group determines its own functional currency, depending on what the underlying economic environment is, and items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are initially recorded in the functional currency at the functional currency rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are re-measured Non-monetary Non-monetary non-monetary The functional currency of the foreign operations is generally the respective local currency – US Dollar (U.S.$), Euro (€), Kazakhstan tenge (KZT), Belarussian ruble (BYR), Moldovan leu (MDL) and New Romanian leu (RON). As of the reporting date, the assets and liabilities of these operations are translated into the presentation currency of the Group (the Russian Ruble) at the rate of exchange at the reporting date and their statements of comprehensive income are translated at the average exchange rates for the year or exchange rates prevailing on the date of specific transactions. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign entity, the deferred cumulative amount recognized in equity relating to that particular foreign operation is reclassified to the profit or loss. The exchange rates of the Russian ruble to each respective currency as of December 31, 2017 and 2016 were as follows: Average exchange rates for Exchange rates at 2016 2017 2016 2017 US Dollar 67.0349 58.3529 60.6569 57.6002 Euro 74.2310 65.9014 63.8111 68.8668 Kazakhstan Tenge (100) 19.5980 17.8959 18.1637 17.3184 Belarussian Ruble 33.7165 30.2125 30.9474 29.1013 Moldovan Leu (10) 33.6961 31.6871 30.5269 33.6548 New Romanian Leu 16.5315 14.4216 14.0722 14.7822 The currencies listed above are not a fully convertible outside the territories of countries of their operations. Related official exchange rates are determined daily by the Central Bank of the Russian Federation (further CBR). Market rates may differ from the official rates but the differences are, generally, within narrow parameters monitored by the respective Central Banks. The translation of assets and liabilities denominated in the currencies listed above into RUB for the purposes of these financial statements does not indicate that the Group could realize or settle, in RUB, the reported values of these assets and liabilities. Likewise, it does not indicate that the Group could return or distribute the reported RUB value of capital and retained earnings to its shareholders. 3.4 Property and equipment 3.4.1 Cost of property and equipment Property and equipment are stated at cost less accumulated depreciation and any accumulated impairment loss. Expenditures for continuing repairs and maintenance are charged to the profit or loss as incurred. 3.4.2 Depreciation and useful lives Depreciation is calculated on property and equipment on a straight-line basis from the time the assets are available for use, over their estimated useful lives as follows: Processing servers and engineering equipment 3-10 years Computers and office equipment 3-5 Other equipment 2-20 years Useful lives of leasehold improvements of leased office premises included in engineering equipment and other equipment are determined at the lower between the useful live of the asset or the lease term. The asset’s residual values, useful lives and depreciation methods are reviewed, and adjusted as appropriate, at each financial year-end. 3.5 Intangible assets 3.5.1 Software and other intangible assets Software and other intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected generation of future benefits, generally 3-5 3.5.2 Software development costs Development expenditure on an individual project is recognized as an intangible asset when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development. 3.5.3 Useful life and amortization of intangible assets The Group assesses whether the useful life of an intangible asset is finite or indefinite and, if finite, the length of that useful life. An intangible asset is regarded by the entity as having an indefinite useful life when, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity. Intangible assets with finite lives are amortized on a straight-line basis over the useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Below is the summary of useful lives of intangible assets: Customer relationships and contract rights 4-15 years Computer Software 3-10 years Bank license indefinite Trademarks and other intangible assets 3-6 Amortization periods and methods for intangible assets with finite useful lives are reviewed at least at each financial year-end. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. Indefinite-lived intangible assets include the acquired licenses for banking operations. It is considered indefinite-lived as the related license is expected to be renewed indefinitely. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of comprehensive income when the asset is derecognized. 3.6 Impairment of non-financial The Group assesses at each reporting date whether there is an indication that an asset, other than goodwill and intangible assets with indefinite useful life, may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax These calculations are corroborated by valuation multiples, quoted share prices for publicly traded analogues, if applicable, or other available fair value indicators. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s cash generating units (CGU), to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years or longer, when management considers appropriate. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the last year. Impairment losses of continuing operations are recognized in profit or loss in those expense categories consistent with the function of the impaired asset. For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an estimate of recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. The following criteria are also applied in assessing impairment of specific assets: Goodwill Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating units, to which the goodwill relates. Where the recoverable amount of the cash-generating units is less than their carrying amount an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. The Group performs its annual impairment test of goodwill as of December 31 and whenever certain events and circumstances indicate that its carrying value may be impaired. Intangible assets Intangible assets with indefinite useful lives are tested for impairment annually as of December 31, either individually or at the cash generating unit level, as appropriate and whenever events and circumstances indicate that an asset may be impaired. 3.7 Financial assets 3.7.1 Initial recognition and measurement Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity available-for-sale re-evaluates year-end. 3.7.2 Subsequent measurement Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial assets at fair value through profit and loss are carried in the statement of financial position at fair value with net changes in fair value recognized in “change in fair value of derivative financial assets”, “other gains” or “other losses” in the statement of comprehensive income. Financial assets designated upon initial recognition at fair value through profit or loss are designated at their initial recognition date and only if the criteria under IAS 39 are satisfied. The Group has not designated any financial assets at fair value through profit or loss. Loans and receivables Loans and receivables are non-derivative Debt instruments Debt instruments and financial investments are non-derivative held-to-maturity If the Group sold or reclassified more than an insignificant amount of debt instruments before maturity (other than in certain specific circumstances), the entire category would be tainted and would have to be reclassified as available-for-sale. AFS financial assets AFS financial assets include equity investments. Equity investments classified as AFS are those that are neither classified as held for trading nor designated at fair value through profit or loss. After initial measurement, AFS financial assets are subsequently measured at fair value with unrealized gains or losses recognized in OCI and credited in the AFS reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in other operating income, or the investment is determined to be impaired, when the cumulative loss is reclassified from the AFS reserve to the statement of profit or loss in finance costs. Interest earned whilst holding AFS financial assets is reported as interest income using the EIR method. Amortized cost Held-to-maturity 3.7.3 Impairment and derecognition of financial assets Impairment The Group assesses at each reporting date whether a financial asset or group of financial assets is impaired. Assets carried at amortized cost For financial assets carried at amortized cost (such as loans and receivables, held-to-maturity For the purposes of a collective evaluation of impairment, financial assets are grouped on the basis of similar credit risk characteristics. Those characteristics are relevant to the estimation of future cash flows ability to pay all amounts due according to the contractual terms of the assets being evaluated. Future cash flows in a group of financial assets that are collectively evaluated for impairment, are estimated on the basis of the contractual cash flows of the assets and the experience of management in respect of the extent to which amounts will become overdue as a result of past loss events and the success of recovery of overdue amounts. Past experience is adjusted on the basis of current observable data to reflect the effects of current conditions that did not affect past periods, and to remove the effects of past conditions that do not exist currently. If there is objective evidence that an impairment loss on assets carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through use of an allowance account. The amount of the loss is recognized in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed, to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date. Any subsequent reversal of an impairment loss is recognized in profit or loss. In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the probability of insolvency or significant financial difficulties of the debtor) that the Group will not be able to collect all of the amounts due under the original terms of the invoice. The carrying amount of the receivable is reduced through use of an allowance account. Impaired debts are derecognized when they are assessed as uncollectible. Derecognition A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized when: • The rights to receive cash flows from the asset have expired • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. 3.8.1 Initial recognition and measurement Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Group determines the classification of its financial liabilities at initial recognition. Financial liabilities are recognized initially at fair value less, in the case of loans and borrowings, directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, bank overdraft, customer accounts and amounts due to banks. The measurement of financial liabilities depends on their classification as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through profit or loss. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This category includes derivative financial instruments entered into by the Group that do not meet the hedge accounting criteria as defined by IAS 39. Gains or losses on liabilities held for trading are recognized in profit or loss. The Group has not designated any financial liabilities at fair value through profit or loss. Loans, borrowing, customer accounts and amounts due to banks and payables After initial recognition, interest bearing loans, borrowings and payables are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the amortization process. 3.8.2 Derecognition of financial liabilities A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in profit or loss. 3.8.3 Offsetting financial assets and liabilities Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if: • There is a currently enforceable legal right to offset the recognized amounts; and • There is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. The right of set-off: • Must not be contingent on a future event; and • Must be legally enforceable in all of the following circumstances: (i) the normal course of business; (ii) the event of default; and (iii) the event of insolvency or bankruptcy of the entity and all of the counterparties 3.9 Cash and cash equivalents Cash comprises cash at banks and in hand and short-term deposits with an original maturity of three months or less. All these items are included as a component of cash and cash equivalents for the purpose of the statement of financial position and statement of cash flows. 3.10 Employee benefits 3.10.1 Short-term employee benefits Wages and salaries paid to employees are recognized as expenses in the current period. The Group also accrues expenses for future vacation payments and short-term employee bonuses. 3.10.2 Social contributions and define contributions to pension fund Under provisions of the Russian legislation, social contributions include defined contributions to pension and other social funds of Russia and are calculated by the Group by the application of a regressive rate (from 30% to 10% in 2017, 2016 and 2015) to the annual gross remuneration of each employee. For the year ended December 31, 2017 defined contributions to pension fund of Russia of the Group amounted to 473 (2016 – 315; 2015 – 270). 3.11 Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Group expects a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of discounting is material, provisions are determined by discounting the expected value of future cash flows at a pre-tax 3.12 Special contribution for defence of the Republic of Cyprus Dividend Distribution Cyprus entities that do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years after the end of the relevant tax year, are deemed to have distributed as dividends 70% of these profits. A special contribution for the defence fund of the Republic of Cyprus is levied at the 17% rate for 2015, 2016, 2017 and thereafter will be payable on such deemed dividends distribution. Profits that are attributable to shareholders who are not tax resident of Cyprus and own shares in the Company either directly and/or indirectly at the end of two years from the end of the tax year to which the profits relate, are exempted. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by the Company for the account of the shareholders. The Company’s ultimate shareholder as of December 31, 2017 is non-Cypriot Dividend income Dividends received from a non-resident The Company has not been subject to defence tax on dividends received from abroad as the dividend paying entities are engaged in other than investing activities. 3.13 Income taxes Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Current income tax relating to items recognized in other comprehensive income is recognized in other comprehensive income. Deferred income tax Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. 3.14 Revenue and certain expenses recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenues and related cost of revenue from services are recognized in the period when services are rendered, regardless of when payment is made. Payment processing fee revenues and related transaction costs The Group earns a fee for processing payments initiated by the ultimate customers (“consumers”) to pay to merchants and service providers (“merchants”) or transfer money to other individuals. Payment processing fees are earned from consumers or merchants, or both. Consumers can make payments to various merchants through kiosks or network of agents and banks participants of payment system or through the Group’s website or applications using a unique user login and password (e-payments). In accordance with terms and conditions of use of QIWI Wallet accounts and QIWI system rules, the Group charges a fee to its consumers on the balance of unused accounts after certain period of inactivity and unclaimed payments. Such fees are recorded as revenues in the period a fee is charged. The Group generates revenue from the foreign currency conversion when payments are made in currencies different from the country of the consumer, mainly Russia. The Group recognizes the related revenues at the time of conversion in the amount of conversion commission representing the difference between the current Russian or relevant country Central Bank foreign currency exchange rate and the foreign currency exchange rate charged by the Group’s processing system. Cash and settlement services The Group charges a fee for managing current accounts and deposits of individuals and legal entities, including guarantee deposits from agents placed with the bank to cover consumer payments they accept. Related revenue is recorded as services are rendered or as transactions are processed. Interest revenue, interest income and interest expense For all financial instruments measured at amortized cost, interest bearing financial assets classified as available for sale and financial instruments designated at fair value through profit or loss, interest income or expense is recorded using the EIR. The carrying amount of the financial asset or financial liability is adjusted if the Group revises its estimates of payments or receipts. Once the recorded value of a financial asset or a group of similar financial assets has been reduced due to an impairment loss, interest income continues to be recognized using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Interest |
Significant accounting judgment
Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2017 | |
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Significant accounting judgments, estimates and assumptions | 4. Significant accounting judgments, estimates and assumptions The preparation of consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the reporting dates and the reported amounts of revenues and expenses during the reporting periods. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods. Significant judgments Revenue recognition Payment processing fees revenue and transaction costs The Group exercised significant judgment in reaching a conclusion about its accounting policy for gross versus net reporting of payment processing fee revenues and related transaction costs. In particular, there are two major sources of payment processing fee revenues: • Payment processing fees charged to consumers on payments collected through agents, mobile operators and other payment methods; and • Payment processing fees charged to merchants. Either one of the two types of payment processing fees above, or in some cases, both payment processing fees apply to a single consumer payment. Transaction costs relate to acquisition of payments by agents, mobile operators, international payment systems and some other parties, and the applicable fees, generally determined as a percentage of consumer payment, for each specific payment channel are on terms similar to those available to other market participants. A merchants’ payment processing fee, when charged, is recorded gross of related transaction costs, because the Group (i) is the primary obligor as it undertakes to transfer the consumer payment to the merchant or other individual using its payment processing system; (ii) it negotiates and ultimately sets the fee receivable from a merchant or consumer, generally as a percentage of payments; and (iii) it bears credit risk in most of the cases, unless the payment is made from a deposit made with the Group. A consumer payment processing fee, when it is charged on payments made by consumers through payment kiosks and terminals, is reported net of any transaction costs payable to or retained by agents. This is because, although the Group is the primary obligor, it does not have any discretion over the ultimate payment processing fee set by the agent to the consumer, does not have readily available information about gross fee, and is only exposed to the net amount of fee receivable from agents. A consumer payment processing fee revenue is reported gross of related transaction costs. Such payments are made by consumers through the Group’s website or an application using a unique user login and password, and are called electronic payments. In contrast with the consumer payment processing fee revenue collected through payment kiosks and terminals, the Group, being a primary obligor in electronic payment transactions, also sets the consumer’s payment processing fee, generally as a percentage of payment, although credit risk for these transactions is limited. Thus, the Group concluded that its ability to control the consumer payment processing fee for electronic payments is a key differentiator from the consumer payment processing fees on payments collected through payment kiosks and terminals. The total amounts of transaction costs are disclosed in Note 23. Revenue from cash and settlement services The Group charges a fee for maintenance of current accounts of individuals and SME clients and for managing special guarantee deposit accounts made by agents to cover consumer payments they accept. Related revenues are reported gross of transaction costs paid to the same agents for collection of consumer payments, because these revenues relate to a separate service having distinct value to agents and are provided at their discretion. The total amounts of revenue from cash and settlement services are disclosed in Note 22. Functional currency Each entity in the Group determines its own functional currency, depending on the economic environment it operates in, and items included in the financial statements of each entity are measured using that functional currency. Significant estimates and assumptions Significant estimates reflected in the Company’s financial statements include, but are not limited to: • Fair values of assets and liabilities acquired in business combinations; • Impairment of intangible assets and goodwill; • Recoverability of deferred tax assets; • Impairment of loans and receivables; • Measurement of cost associated with share-based payments; • Uncertain position over risk assessment; Actual results could materially differ from those estimates. The key assumptions concerning the future events and other key sources of estimation uncertainty at the reporting date that have a significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Fair values of assets and liabilities acquired in business combinations The Group recognizes separately, at the acquisition date, the identifiable assets, liabilities and contingent liabilities acquired or assumed in the business combination at their fair values, which involves estimates. Such estimates are based on valuation techniques, which require considerable judgment in forecasting future cash flows and developing other assumptions. In some cases, when the amounts of fair values are significant, the Group hires third party appraisers to assist it in determining the related fair values. Impairment of goodwill and intangible assets The Group determines the following material CGUs: SOVEST, Payment services, Postomatnye Tekhnologii, Tochka, Rocketbank, New Terminal and Flocktory. For the purpose of goodwill impairment test, the Group estimates the recoverable amounts of Payment services CGU as fair value less costs of disposal on the basis of quoted prices of Company’s ordinary shares. See also Note 12 below for details. For the purpose of intangible assets with indefinite useful life impairment test, the Group estimates the recoverable amounts of each asset as fair value less costs of disposal on the basis of comparative method and cost approach. For the purpose of intangible assets with definite useful life impairment, when indicators of impairment are noted, the Group estimates the recoverable amounts as higher of value in use or fair value less costs to sell of an individual asset or the CGU to which this asset relates. Recoverability of deferred tax assets The utilization of deferred tax assets will depend on whether it is possible to generate sufficient taxable income against which the deductible temporary differences can be utilized. Various factors are used to assess the probability of the future utilization of deferred tax assets, including past operating results, operational plans, expiration of tax losses carried forward, and tax planning strategies. Certain portion of deferred tax assets was not recorded because the Group does not expect to realize certain of its tax loss carry forwards in the foreseeable future due to history of losses. Further details on deferred taxes are disclosed in Note 26. Impairment of loans and receivables Management assesses an impairment of loans and receivables to account for estimated losses resulting from the inability of customers to make required payments. When evaluating the adequacy of an impairment of loans and receivables, management bases its estimates on the aging of accounts receivable balances and loans and historical write-off The Group regularly reviews its loan portfolio to assess impairment. For instalment card loans the Group performs collective assessment of impairment for each loan portfolio group divided by overdue status of the loans (non-overdue; up to 30 days overdue, 30 to 60 days overdue, 60 to 90 days overdue, over 90 days overdue). The impairment assessment for each portfolio group is based on probability of default, loss given default and exposure at default. The Group uses internal historical instalment card loans loss rates statistics and roll-rates method for assessment of probabilities of default. The loss given default is an estimate of the loss arising in the case where a default occurs at a given time and is based on external market statistic. The exposure at default is an estimate of the exposure at a default date. Further details on provision for impairment of loans and receivables are disclosed in Notes 13, 14. Measurement of cost associated with share-based payments Share-based payments included expenses incurred under employee stock option plan (ESOP) and restricted stock unit plan (RSU). See also Note 31 below for more details. Management estimates the fair value of stock options at the date of grant using the Black-Scholes-Merton pricing model and its restricted stock units using the Binominal model. The option pricing models were originally developed for use in estimating the fair value of traded options, which have different characteristics than the stock options granted by the Company and its subsidiaries, associates and joint ventures. The models are also sensitive to changes in the subjective assumptions, which can materially affect the fair value estimate. These subjective assumptions include the expected life of the options, expected volatility, risk-free interest rates, expected dividend yield, the fair value of the underlying shares. The amount of expense is also sensitive to the number of awards, which are expected to vest, taking into account estimated forfeitures. Below is the discussion of each of these estimates: Assumptions used for ESOP valuation Expected life The Company did not have any option grants in the past, and does not have sufficient history to determine the time the option holders will hold the shares. Therefore, the Company used the expected term as the average between the vesting and contractual term of each option tranche for stock option plan. Expected volatility Due to a relatively short period of historical market data, QIWI’s share price volatility for options valuation was defined based on the historical volatility of peer group companies over a period, which approximates the expected life of option tranches. Risk-free interest rates Risk-free interest rates are based on the implied yield currently available in the US treasury bonds, adjusted for a country risk premium, with a remaining term approximating the expected life of the option award being valued. Expected dividend yield At the time of grant in 2012 the Group had no plans to pay cash dividends, and the Group used an expected dividend yield of zero in its option pricing model for option awards granted in 2012. Following its IPO in 2013, the Group started to pay dividends and set an expected dividend yield of 2.83% based on post-IPO Fair value of the underlying shares Prior to May 2013 the Company’s ordinary shares were not publicly traded. Therefore, it estimated the fair value of the underlying shares on the basis of valuations arrived at by employing the “income approach” valuation methodology. Since May 2013 QIWI plc is a public company and the fair value of its shares defined by reference to closing market price of its traded shares. Estimated forfeitures As of the dates of stock options grants had no data of attrition rate among key personnel and management resulted in an estimated forfeiture rate of zero. Subsequently, the actual forfeiture rate is higher, the actual amount of related expense will become lower. Assumptions used for RSU valuation Expected life The Company used the expected term as the vesting term for RSU plan. Expected volatility The expected volatility reflects the assumption that the historical QIWI’s share price volatility over a period similar to the life of the RSUs is indicative of future trends, which may not necessarily be the actual outcome. Risk-free interest rates Risk-free interest rates are based on the implied yield currently available in the US treasury bonds, adjusted for a country risk premium, with a remaining term approximating the expected life of the option award being valued. Expected dividend yield Before September 2017 the Group set an expected dividend yield of 5.03% based on historical payout. Following September 2017, the Group stoped to pay dividends and set an expected dividend yield of zero. Fair value of the underlying shares The fair value of shares defined by reference to closing market price of the Group’s traded shares. Estimated forfeitures The forfeiture rate for RSUs granted during the period is 9%. It is based on historical data and current expectations and is not necessarily indicative of forfeiture patterns that may occur. Uncertain position over risk assessment The Group disclosed possible and accrued probable risks in respect on currency, customs, tax and other regulatory positions. Management estimates the amount of risk based on its interpretation of the relevant legislation, in accordance with the current industry practice and in conformity with its estimation of probability, which require considerable judgment. |
Consolidated subsidiaries
Consolidated subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
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Consolidated subsidiaries | 5. Consolidated subsidiaries The consolidated IFRS financial statements include the assets, liabilities and financial results of the Company and its subsidiaries. The subsidiaries are listed below: Ownership interest Subsidiary Main activity As of December 31, As of December 31, JSC QIWI (Russia) Operation of electronic payment kiosks 100 % 100 % QIWI Bank JSC (Russia) Maintenance of electronic payment systems, money transfer, consumer and SME financial services 100 % 100 % QIWI Payments Services Provider Ltd (UAE) Operation of on-line 100 % 100 % QIWI International Payment System LLC (USA) Operation of electronic payment kiosks 100 % 100 % Qiwi Kazakhstan LP (Kazakhstan) Operation of electronic payment kiosks 100 % 100 % JLLC OSMP BEL (Belarus) Operation of electronic payment kiosks 51 % 51 % QIWI – M S.R.L. (Moldova) Operation of electronic payment kiosks 51 % 51 % QIWI ROMANIA SRL Operation of electronic payment kiosks 100 % 100 % QIWI WALLET EUROPE SIA (Latvia) (Note 7.2) Operation of on-line 100 % 100 % QIWI Retail LLC (Russia) Sublease of space for electronic payment kiosks 100 % 100 % QIWI Management Services FZ-LLC Management services 100 % 100 % CIHRUS LLC (Russia) 1 Management services 100 % — Attenium LLC (Russia) Management services 100 % 100 % Rapida LTD (Russia) 2 Operation of payment processing and money transfer settlement systems 100 % — Postomatnye Tekhnologii LLC (Russia) Logistic 100 % 100 % Future Pay LLC (Russia) Operation of on-line 100 % 100 % Qiwi Blockchain Technologies LLC (Russia) Software development 100 % 100 % QIWI Shtrikh LLC (Russia) 3 On-line — 51 % QIWI Platform LLC (Russia) 4 Software development — 100 % QIWI Processing LLC (Russia) 3 Software development — 100 % Joint ventures (Note 6, Note 21) Flocktory Ltd (Cyprus) Holding company — 82 % Flocktory Spain S.L. (Spain) SaaS platform for customer lifecycle management and personalization — 82 % FreeAtLast LLC (Russia) SaaS platform for customer lifecycle management and personalization — 82 % 1 The entity was reorganized in the form of accession to JSC QIWI in 2017 2 The entity was reorganized in the form of accession to QIWI Bank JSC in 2017 3 The entities were incorporated in 2017 4 The entity with negligible net assets was acquired for insignificant consideration in 2017 |
Acquisition of joint venture
Acquisition of joint venture | 12 Months Ended |
Dec. 31, 2017 | |
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Acquisition of joint venture | 6. Acquisition of joint venture FLOCKTORY On March 22, 2017, the Group acquired 82% stake in Flocktory Ltd, non-public e-commerce, According to the shareholders’ agreement and the articles of association, decisions on relevant activities require unanimous consent of all shareholders. Thus, since the date of acquisition the Group has exercised a joint control over Flocktory Ltd and recognized it as a joint venture accounted for under equity method. Pre-existing QIWI entered into call and put option agreements with respect to the remaining 18% stake in Flocktory Ltd. Put option provides right to minority shareholders to sell its remaining shares to QIWI after the acquisition date. Put option becomes exercisable after one year from the acquisition date for 50% of minority shares, after year and a half for 25% of minority shares and after two years form acquisition— remaining 25%. Both call and put options are not exercisable and their fair value equals zero as of the acquisition date and as of December 31, 2017. The consideration was made by the following: Cash consideration paid 794 Cash payable for Flocktory’s stock option plan cancelation* 37 Total purchase consideration transferred 831 * Based on Share purchase agreement (SPA) Qiwi plc is obliged to offer to employee stock option plan (ESOP) participants of Flocktory Ltd cash consideration for cancellation of 504 ESOP rights, 259 of which were cancelled at the date of acquisition (March 22, 2017), 120 to be offered for cancellation – at March 22, 2018, and 125 at March 22, 2019. The fair value of the identifiable assets and liabilities as of the date of acquisition was: Net assets acquired: Property and equipment 1 Intangible assets 720 Accounts receivable 26 Cash and cash equivalents 55 Trade and other payables (21 ) Other liabilities (1 ) Total identifiable net assets at fair value 780 Group’s share of net assets (82%) 639 Goodwill arising on acquisition 192 Goodwill related to the joint venture amounted to 192 and is included in the carrying amount of the investment in joint venture. |
Disposals of subsidiaries and D
Disposals of subsidiaries and Disposal Groups Held for Sale | 12 Months Ended |
Dec. 31, 2017 | |
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Disposals of subsidiaries and Disposal Groups Held for Sale | 7. Disposals of subsidiaries and Disposal Groups Held for Sale 7.1. Disposal of subsidiaries 2016 Disposal of Processingovyi Tsentr Rapida LLC In December 2016 the Group entered into an agreement to sell its entire share in its non-core The loss from the disposal was calculated as the difference between: (i) The fair value of the consideration received (ii) the carrying value of net liabilities disposed of, as of the date of the transaction (iii) and result from disposal of indemnity asset related to subsidiary Net liabilities of Processingovyi Tsentr Rapida LLC derecognized on disposal 230 Disposal of indemnity asset related to the subsidiary (240 ) Loss on disposal (10 ) Loss on disposal of Processingovyi Tsentr Rapida LLC is neutral for tax purposes. Below are the assets and liabilities of Processingovyi Tsentr Rapida LLC as of date of disposal: Processingovyi Tsentr Rapida LLC Assets: Other current assets 13 Total assets 13 Liabilities: Income tax payable 240 Other current liabilities 3 Total liabilities 243 7.2. Disposal Groups Held for Sale Sale of QIWI WALLET EUROPE SIA In December 2016 the BOD of the Group decided to sell QIWI WALLET EUROPE SIA.The subsidiary was recognized in a disposal group as of December 31, 2016 and all its assets and liabilities were classified as held for sale. Although in the end of 2017 the Group entered into a contract to sell QIWI WALLET EUROPE SIA, but, the control over the entity was not transferred as of December 31, 2017. No impairment was recognized upon reclassification of the subsidiary as a disposal group. |
Operating segments
Operating segments | 12 Months Ended |
Dec. 31, 2017 | |
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Operating segments | 8. Operating segments In reviewing the operational performance of the Group and allocating resources, the chief operating decision maker of the Group (CODM), who is the Croup’s CEO and its ultimate controlling shareholder, reviews selected items of segment’s statement of comprehensive income. In determining that the CODM was the CEO, the Group considered the aforementioned roles of CEO responsibilities as well as the following factors: • The CEO determines compensation of our other executive officers while board of directors approves corporate key performance indicators (KPIs) and total bonus pool for those executive officers. In case of underperformance of corporate KPIs a right to make a final decision on bonus pool distribution is left with the BOD; • The CEO is actively involved in the day-to-day • The CEO regularly reviews the financial and operational reports of the Group. These reports primarily include segment net revenue, segment profit before tax and segment net profit for the Group as well as certain operational data (since 2017 such reports represent separately Payment Services and Consumer Financial Services operating segments and Corporate and Other). The financial data is presented on a combined basis for all key subsidiaries and joint ventures representing the segment net revenue, segment profit before tax and segment net profit. The Group measures the performance of its operating segments by monitoring: segment net revenue, segment profit before tax and segment net profit. Segment net revenue is a measure of profitability defined as the segment revenues less segment direct costs, which include the same items as the “Cost of revenue (exclusive of depreciation and amortization)” as reported in the Group’s consolidated statement of comprehensive income, except for payroll costs. Payroll costs are excluded because, although required to maintain the Group’s operations, they are not linked to payment volume. The Group does not monitor balances of assets and liabilities by segments as CODM consider they have no impact on decision making. The Group has identified its operating segments based on the types of products and services the Group offers. Before January 1, 2017 the Group had one operating segment as only one segment was reviewed by CODM. In 2017 the Group continued to invest in the development of new business activities, hence SOVEST instalment card project became significant. As a result, CODM started to review segment net revenue, segment profit before tax and segment net profit separately for each of the following identified reportable segments: Payment Services and Consumer Financial Services: • Payment Services (PS), operating segment that generates revenue through operations of our payment processing system offered to our customers through a diverse range of channels and interfaces. • Consumer Financial Services (CFS), operating segment that generates revenue through financial services rendered to individuals. For the purpose of management reporting, expenses related to corporate back-office operations were not allocated to any operating segment and presented separately to CODM. Results of other operating segments and corporate expenses are included in Corporate and Other (CO) category for the purpose of segment reporting. Management reporting is different from IFRS, because it does not include certain IFRS adjustments, which are not analyzed by the CODM in assessing the operating performance of the business. The adjustments affect such major areas as deferred taxation, share-based non-recurring The segments’ statement of comprehensive income for the years ended December 31, 2015, 2016 and 2017, as presented to the CODM are presented below: 2017 PS CFS CO Total Segment net revenue 12,580 9 604 13,193 Segment profit/(loss) before tax 8,795 (2,704 ) (1,273 ) 4,818 Segment net profit/(loss) 7,543 (2,164 ) (1,325 ) 4,054 2015* 2016* PS CO Total PS CFS CO Total Segment net revenue 10,198 30 10,228 10,583 (3 ) 31 10,611 Segment profit/(loss) before tax 6,066 (995 ) 5,071 6,454 (259 ) (605 ) 5,590 Segment net profit/(loss) 5,242 (1,100 ) 4,142 5,612 (219 ) (679 ) 4,714 * For comparative purposes 2015 and 2016 segment information is presented in 2017 format. Segment net revenue, as presented to the CODM, for the years ended December 31, 2015, 2016 and 2017 is calculated by subtracting cost of revenue (exclusive of depreciation and amortization) from revenue and adding back payroll and related taxes as presented in the table below: 2015 2016 2017 Revenue under IFRS 17,717 17,880 20,897 Cost of revenue (exclusive of depreciation and amortization) (8,695 ) (8,646 ) (9,763 ) Payroll and related taxes 1,206 1,377 2,059 Total segment net revenue, as presented to CODM 10,228 10,611 13,193 A reconciliation of segment profit before tax to IFRS consolidated profit before tax of the Group, as presented to the CODM, for the years ended December 31, 2015, 2016 and 2017 is presented below: 2015 2016 2017 Consolidated profit before tax under IFRS 6,151 3,107 3,840 Amortization of fair value adjustments to intangible assets recorded on acquisitions 270 396 344 Share – based payments 88 224 398 Foreign exchange gain/(loss) from revaluation of cash proceeds received from secondary public offering (1,476 ) 975 236 Impairment of intangible assets recorded on acquisitions — 878 — Loss on disposal of subsidiaries, net 38 10 — Total segment profit before tax, as presented to CODM 5,071 5,590 4,818 A reconciliation of segment net profit to IFRS consolidated net profit of the Group, as presented to the CODM, for the years ended December 31, 2015, 2016 and 2017 is presented below: 2015 2016 2017 Consolidated net profit under IFRS 5,274 2,489 3,142 Amortization of fair value adjustments to intangible assets recorded on acquisitions 270 396 344 Share – based payments 88 224 398 Foreign exchange gain/(loss) from revaluation of cash proceeds received from secondary public offering (1,476 ) 975 236 Impairment of intangible assets recorded on acquisitions — 878 — Loss on disposal of subsidiaries, net 38 10 — Effect from taxation of the above items (52 ) (258 ) (66 ) Total segment net profit, as presented to CODM 4,142 4,714 4,054 Geographic information Revenues from external customers are presented below: 2015 2016 2017 Russia 13,737 13,274 15,556 CIS 1,019 1,099 1,098 EU 566 807 989 Other 2,395 2,700 3,254 Total revenue per consolidated statement of comprehensive income 17,717 17,880 20,897 Revenue is recognized according to merchants’ geographic place. The majority of the Group’s non-current The Group does not have any single external customer amounting to 10% or greater of the Group’s revenue for the years ended December 31, 2017, 2016 and 2015. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
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Earnings per share | 9. Earnings per share Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent adjusted for the effect of any potential share exercise by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The following reflects the income and share data used in basic and diluted earnings per share computations for the years ended December 31: 2015 2016 2017 Net profit attributable to ordinary equity holders of the parent for basic earnings 5,187 2,474 3,114 Weighted average number of ordinary shares for basic earnings per share 57,819,164 60,477,840 60,755,706 Effect of share-based payments 147,851 167,197 404,357 Weighted average number of ordinary shares for diluted earnings per share 57,967,015 60,645,037 61,160,063 Earnings per share: Basic, profit attributable to ordinary equity holders of the parent 89.72 40.91 51.25 Diluted, profit attributable to ordinary equity holders of the parent 89.49 40.79 50.92 There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2017 | |
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Property and equipment | 10. Property and equipment Processing Computers Other Construction Advances Total Cost Balance as of December 31, 2015 498 71 92 15 676 Transfer between groups 11 — — (11 ) — Additions 215 19 76 78 388 Disposals (27 ) 2 (6 ) — (31 ) Foreign currency translation (2 ) (1 ) — (1 ) (4 ) Balance as of December 31, 2016 695 91 162 81 1,029 Transfer between groups 77 1 — (78 ) — Additions 196 45 16 108 365 Disposals (146 ) (7 ) (4 ) — (157 ) Balance as of December 31, 2017 822 130 174 111 1,237 Accumulated depreciation and impairment: Balance as of December 31, 2015 (234 ) (42 ) (34 ) — (310 ) Depreciation charge (113 ) (17 ) (19 ) — (149 ) Disposals 20 (3 ) 6 — 23 Foreign currency translation (1 ) 1 — — — Balance as of December 31, 2016 (328 ) (61 ) (47 ) — (436 ) Depreciation charge (150 ) (21 ) (35 ) — (206 ) Disposals 122 6 1 — 129 Balance as of December 31, 2017 (356 ) (76 ) (81 ) — (513 ) Net book value As of December 31, 2015 264 29 58 15 366 As of December 31, 2016 367 30 115 81 593 As of December 31, 2017 466 54 93 111 724 As of December 31, 2017, the gross book value of fully depreciated assets is equal to 184 (2016 – 141). In August 2017, the Group has executed a series of transactions to acquire the trade marks, computer software and hardware of Tochka and Rocketbank from Otkritie Bank (see Notes 11, 14 and 24). In 2017 the Group purchased the property plant and equipment in the amount of 104 from Otkritie bank. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
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Intangible assets | 11. Intangible assets Cost: Goodwill Licenses Computer Customer Trade Contract rights Advances for and others Total Balance as of December 31, 2015 6,285 284 898 5,326 216 295 11 13,315 Additions — — 182 — — — 110 292 Additions from business combinations — — — 12 — — — 12 Transfer between groups — — 3 — — — (3 ) — Disposals — — (173 ) — — — (6 ) (179 ) Balance as of December 31, 2016 6,285 284 910 5,338 216 295 112 13,440 Additions — — 244 — — — 240 484 Transfer between groups — — 54 — — — (54 ) — Disposals — (101 ) (125 ) (12 ) — (295 ) (99 ) (632 ) Balance as of December 31, 2017 6,285 183 1,083 5,326 216 — 199 13,292 Accumulated Amortization: Balance as of December 31, 2015 — — (368 ) (371 ) (23 ) (295 ) (4 ) (1,061 ) Amortization charge — (28 ) (233 ) (345 ) (40 ) — (1 ) (647 ) Impairment — (31 ) (8 ) (820 ) (27 ) — — (886 ) Disposals — — 173 — — — 3 176 Balance as of December 31, 2016 — (59 ) (436 ) (1,536 ) (90 ) (295 ) (2 ) (2,418 ) Amortization charge — (42 ) (220 ) (286 ) (36 ) — (6 ) (590 ) Impairment — — — (8 ) — — (96 ) (104 ) Disposals — 101 120 12 2 295 97 627 Balance as of December 31, 2017 — — (536 ) (1,818 ) (124 ) — (7 ) (2,485 ) Net book value As of December 31, 2015 6,285 284 530 4,955 193 — 7 12,254 As of December 31, 2016 6,285 225 474 3,802 126 — 110 11,022 As of December 31, 2017 6,285 183 547 3,508 92 — 192 10,807 As of December 31, 2017, the gross book value of fully amortized intangible assets is equal to 169 (2016 – 109). In 2017 the Group purchased the intangible assets in the amount of 254 from Otkritie bank. |
Impairment testing of goodwill
Impairment testing of goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
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Impairment testing of goodwill and intangible assets | 12. Impairment testing of goodwill and intangible assets Goodwill In 2017 following the legal merger of NKO Rapida to QIWI Bank the Group combined JSC QIWI, Visa QIWI Wallet and Rapida CGUs into one CGU – Payment Services. Considering launching of new projects and acquiring new assets in 2017 the Group identified following new significant CGU’s: SOVEST, Postomatnye Tekhnologii, Tochka, Rocketbank, New Terminal and Flocktory. As of December 31, 2017 the Group considers that goodwill which was allocated and tested for impairment at the group of CGU - JSC QIWI, Visa QIWI Wallet and Rapida – is attributable to Payment services CGU, which carrying amount was equal to 6,285 (2016 - 6,285). For the purpose of goodwill impairment test the Company estimated the recoverable amount of the Payment services CGU as fair value less costs of disposal on the basis of quoted prices of the Company’s ordinary shares (Level 1). As a result of annual impairment test the Group did not identify any impairment as of December 31, 2016 and 2017. Intangible assets with indefinite useful life As of December 31, 2017, the carrying amount of intangible assets with an indefinite useful life (licenses for banking operations, which are expected to be renewed indefinitely) is recognized with a value of 183 (2016 - 183). Intangible assets with an indefinite useful life were recorded by the Group at the date of acquisition of QIWI Bank JSC. For the purpose of the impairment test of the intangible assets with indefinite useful life, the Company estimated the recoverable amounts of each asset as fair value less costs of disposal on the basis of comparative method and cost approach. Under the valuation using the comparative method the Group considered similar third-party’s transactions for acquisition of banks or bank organization that holds licenses identical to the Group’s ones. Under the valuation using the cost approach the Group considered outflows required to meet the requirements for a minimum amount of equity to be held by the bank or bank organization with licenses similar to the Group ones according to current legislation (Level 3). The key assumption used in fair value less cost of disposal calculations is expected outflows to acquire license on the open market. All assumptions are determined using observable market data and publicly available information of the cash transactions of the third-parties. The Group performed an annual impairment test of Qiwi Bank’s license as of December 31, 2017 and as of December 31, 2016, but no impairment was identified. Reasonably possible changes in any valuation parameters would not result in impairment of intangible assets with indefinite useful life. Intangible assets with definite useful life For the purpose of the impairment test on other intangible assets the Company estimated the recoverable amounts as the higher of value in use or fair value less costs to sell of an individual asset or CGU this asset relates. As of December 31, 2016 the Group identified the impairment indicators of intangible assets allocated to Rapida LTD CGU performed an impairment test of this CGU before the Goodwill testing, which indicated that there is impairment as of the reporting date in the amount of 847. As of December 31, 2017 the Group identifed the impairment indicators of New terminal CGU and completely impaired it by the amount of 89. An analysis and movement of net book value of goodwill and indefinite life licenses acquired through business combinations, as included in the intangible assets (Note 11), is as follows: As of December 31, 2015 6,569 Transfer to intangible assets with definite useful life (101 ) As of December 31, 2016 6,468 Transfer to intangible assets with definite useful life — As of December 31, 2017 6,468 |
Long-term and short-term loans
Long-term and short-term loans issued | 12 Months Ended |
Dec. 31, 2017 | |
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Long-term and short-term loans issued | 13. Long-term and short-term loans issued As of December 31, 2017, long-term and short-term loans issued consisted of the following: Total as of December 31, Provision for Net as of December 31, Long-term loans Loans to individuals 1 — 1 Loans to legal entities 166 (3 ) 163 Total long-term loans 167 (3 ) 164 Short-term loans Loans to financial institutions 3 (3 ) — Loans to legal entities 94 (93 ) 1 Instalment Card Loans* 1,912 (222 ) 1,690 Total short-term loans 2,009 (318 ) 1,691 * Instalment Card Loans are primarily represented by new consumer oriented payment-by time-to-time As of December 31, 2016, long-term and short-term loans consisted of the following: Total as of December 31, Provision for Net as of December 31, Long-term loans Loans to individuals 7 — 7 Loans to legal entities 113 — 113 Total long-term loans 120 — 120 Short-term loans Loans to financial institutions 3 (3 ) — Loans to individuals 17 — 17 Loans to legal entities 115 (113 ) 2 Total short-term loans 135 (116 ) 19 As of December 31, 2017, the provision for impairment of loans movement was the following: Provision for of loans as of December 31, 2016 (Charge)/ Utilisation Provision for of loans as of December 31, Instalment Card Loans — (222 ) — (222 ) Loans to legal entities (113 ) 3 14 (96 ) Loans to financial institutions (3 ) — — (3 ) Total (116 ) (219 ) 14 (321 ) As of December 31, 2016, the provision for impairment of loans movement was the following: Provision for of loans as of December 31, 2015 Charge for Utilisation Provision for of loans as of December 31, Loans to legal entities (199 ) (53 ) 139 (113 ) Loans to financial institutions (3 ) — — (3 ) Total (202 ) (53 ) 139 (116 ) Analysis of loans by credit quality is as follows: December 31, 2017 December 31, 2016 Instalment Loans to Loans Loans to Loans to Loans Loans to Loans assessed individually — 1 260 3 24 228 3 Loans assessed collectively: - non-overdue 1,668 — — — — — — - up to 30 days overdue 88 — — — — — — - 30 to 60 days overdue 35 — — — — — — - 60 to 90 days overdue 25 — — — — — — - over 90 days overdue 96 — — — — — — Less: Provision for loan impairment (222 ) — (96 ) (3 ) — (113 ) (3 ) Total loans issued 1,690 1 164 — 24 115 — The primary factor that the Group considers in determining whether a financial asset is impaired is its overdue status. A loan is considered overdue when the borrower fails to make any payment due under the loan at the reporting date. In this case an overdue amount is recognized as the aggregate amount of all amounts due from borrower under the respective loan agreement including accrued interest and commissions. As defined by the Group for the purposes of internal credit risk assessment, loans fall into the “non-performing” |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2017 | |
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Trade and other receivables | 14. Trade and other receivables As of December 31, 2017, trade and other receivables consisted of the following: Total as of Provision for Net as of December 31, Cash receivable from agents 4,666 (426 ) 4,240 Deposits issued to merchants 3,919 (13 ) 3,906 Comissions receivable 827 (18 ) 809 Advances issued 240 (1 ) 239 Rent receivables 101 (73 ) 28 Other receivables* 440 (14 ) 426 Total trade and other receivables 10,193 (545 ) 9,648 * As of December 31, 2017 the other receivables includes the amount of 336 from Otkritie bank for assets with incomplete transfer of ownership (see Note 10 and 11). As of December 31, 2016, trade and other receivables consisted of the following: Total as of Provision for Net as of December 31, Cash receivable from agents 3,657 (659 ) 2,998 Deposits issued to merchants 2,318 (3 ) 2,315 Comissions receivable 162 (7 ) 155 Advances issued 144 (1 ) 143 Rent receivables 106 (95 ) 11 Other receivables 71 (14 ) 57 Total trade and other receivables 6,458 (779 ) 5,679 The ageing analysis of trade receivables that are past due but not impaired as of December 31, 2017 are presented below: Ageing of receivables (days) As of December 31, 2017 Total <30 30-60 60-90 90-180 180-360 >360 Cash receivable from agents 4,240 4,217 20 1 0 2 0 Comissions receivable 809 797 5 5 – 1 1 Rent receivables 28 19 6 2 1 – – Total trade and other receivables 5,077 5,033 31 8 1 3 1 The ageing analysis of trade receivables that are past due but not impaired as of December 31, 2016 are presented below: Ageing of receivables (days) As of December 31, 2016 Total <30 30-60 60-90 90-180 180-360 >360 Cash receivable from agents 2,998 2,568 423 1 3 1 2 Comissions receivable 155 141 10 1 2 1 — Rent receivables 11 7 3 1 — — — Total trade and other receivables 3,164 2,716 436 3 5 2 2 For the year ended December 31, 2017, the provision for impairment of receivables movement was the following: Provision for (Charge)/ reversal for Utilisation Provision for Cash receivable from agents (659 ) 16 217 (426 ) Deposits issued to merchants (3 ) (11 ) 1 (13 ) Comissions receivable (7 ) (11 ) — (18 ) Advances issued (1 ) — — (1 ) Rent receivables (95 ) 10 12 (73 ) Other receivables (14 ) (5 ) 5 (14 ) Total trade and other receivables (779 ) (1 ) 235 (545 ) For the year ended December 31, 2016, the provision for impairment of receivables movement was the following: Provision for (Charge)/ Utilisation Provision for Cash receivable from agents (660 ) (125 ) 126 (659 ) Deposits issued to merchants (1 ) (2 ) — (3 ) Comissions receivable (21 ) (1 ) 15 (7 ) Advances issued (1 ) — — (1 ) Rent receivables (95 ) (15 ) 15 (95 ) Other receivables (16 ) 1 1 (14 ) Total trade and other receivables (794 ) (142 ) 157 (779 ) For the year ended December 31, 2015, the provision for impairment of receivables movement was the following: Provision for (Charge)/ Utilisation Provision for Cash receivable from agents (506 ) (204 ) 50 (660 ) Deposits issued to merchants (6 ) (1 ) 6 (1 ) Comissions receivable (3 ) (19 ) 1 (21 ) Advances issued (2 ) 1 — (1 ) Rent receivables (29 ) (70 ) 4 (95 ) Other receivables (18 ) (6 ) 8 (16 ) Total trade and other receivables (564 ) (299 ) 69 (794 ) Receivables are non-interest 16%-36% |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
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Cash and cash equivalents | 15. Cash and cash equivalents As of December 31, 2017 and 2016, cash and cash equivalents consisted of the following: As of December 31, As of December 31, Correspondent accounts with Central Bank of Russia (CBR) 1,877 6,522 Correspondent accounts with other banks 2,789 2,890 Short-term CBR deposits 9,201 6,500 Other short-term bank deposits 3,857 1,322 RUB denominated cash with banks and on hand 294 600 Other currency denominated cash with banks and on hand 979 572 Total cash and cash equivalents 18,997 18,406 Cash and short-term investments are placed in financial institutions or financial instruments, which are considered to have minimal risk of default as of date of approval of these financial statements. The Company received the guarantee and secured it by cash deposit of 2.5 mln U.S.$ until July 31, 2018. |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2017 | |
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Other current assets | 16. Other current assets As of December 31, 2017 and 2016, other current assets consisted of the following: As of December 31, 2016 As of December 31, Indemnification asset 60 30 Reserves at CBR* 312 229 Prepaid expenses 204 99 VAT and other taxes receivable 22 51 Other 63 49 Total other current assets 661 458 * Banks are currently required to post mandatory reserves with the CBR to be held in non-interest 6-7% |
Share capital, additional paid-
Share capital, additional paid-in capital, share premium and other reserves | 12 Months Ended |
Dec. 31, 2017 | |
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Share capital, additional paid-in capital, share premium and other reserves | 17. Share capital, additional paid-in The Capital of the Company is divided by two classes. Each class A share has the right to ten votes at a meeting of shareholders and each class B share has the right to one vote at a meeting of shareholders. The class A shares and the class B shares have the right to an equal share in any dividend or other distribution the Company pays and have nominal of EUR 0.0005 each. Authorised shares As of December 31, As of December 31, As of December 31, Thousands Thousands Thousands Ordinary Class A shares 133,017 133,017 131,778 Ordinary Class B shares 97,833 97,833 99,072 Total authorised shares 230,850 230,850 230,850 Issued and fully paid shares As of December 31, As of December 31, As of December 31, Thousands Thousands Thousands Ordinary Class A shares 15,517 15,517 14,278 Ordinary Class B shares 44,902 45,080 46,655 Total issued and fully paid shares 60,419 60,597 60,933 For the year ended December 31, 2017 and 2016 the share capital and share premium movement was the following: Number of issued Share Share Thousands As of December 31, 2015 60,419 1 12,068 Increase of share capital due to exercise of options by employees during the year 178 — — As of December 31, 2016 60,597 1 12,068 Increase of share capital due to exercise of options by employees during the year 336 — — As of December 31, 2017 60,933 1 12,068 In case of liquidation, the Company’s assets remaining after settlement with creditors, payment of dividends and redemption of the par value of shares is distributed among the ordinary shareholders proportionately to the number of shares owned. The other reserves of the Group’s equity represent the financial effects from changes in equity settled share-based payments to employees, acquisitions and disposals, as well as other operations with non-controlling |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
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Borrowings | 18. Borrowings During the year ended December 31, 2017 the Group had available overdraft credit facilities with an overall credit limit of 1,460, with maturity from May 2018 to June 2020, and interest rate of up to 30% per annum. The balance payable under these credit lines as of December 31, 2017 was zero. Some of these agreements stipulated the right of a lender to increase the interest rate in case the covenants are violated. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2017 | |
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Trade and other payables | 19. Trade and other payables As of December 31, 2017 and 2016, the Group’s trade and other payables consisted of the following: As of December 31, As of December 31, Payables to merchants 6,696 9,178 Deposits received from agents 4,030 3,638 Deposits received from individual customers 3,961 4,726 Payment processing fees payable 504 469 Unsettled money remittances 433 586 Accrued personnel expenses and related taxes 323 353 Payables to vendors 338 536 Payables for rent 24 37 Other advances received 19 76 Total trade and other payables 16,328 19,599 |
Customer accounts and amounts d
Customer accounts and amounts due to banks | 12 Months Ended |
Dec. 31, 2017 | |
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Customer accounts and amounts due to banks | 20. Customer accounts and amounts due to banks As of December 31, 2017 and 2016, customer accounts and amounts due to banks consisted of the following: As of December 31, As of December 31, Due to banks 1,207 1,390 Due to individuals 34 110 Due to legal entities 1,101 1,571 Term deposits — 111 Total customer accounts and amounts due to banks 2,342 3,182 Customer accounts and amounts due to banks bear the interest of up to 7% and are due on demand exept for term deposits which duration are contracted. |
Investment in joint ventures
Investment in joint ventures | 12 Months Ended |
Dec. 31, 2017 | |
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Investment in joint ventures | 21. Investment in joint ventures The Group has a single joint venture: Flocktory Ltd with subsidiaries (see Note 6). Three parties exercising joint control over this entity make unanimous decisions on major issues, including distribution and payment of dividends. The Group’s interest in Flocktory joint venture is accounted for using the equity method in the consolidated financial statements. The following table illustrates summarized financial information of the Group’s investment in Flocktory joint venture: As of Share of the joint venture companies’ statement of financial position: Non-current 666 Current assets 125 including cash and cash equivalents 80 Current liabilities (11 ) including financial liabilities (9 ) Net assets 780 Group’s share (82%) of net assets 640 Goodwill 192 Carrying amount of investment in joint venture companies 832 Share of the joint venture’s revenue and net income for year ended December 31, 2017: Revenue 187 Cost of revenues (79 ) Other income and expenses, net (107 ) including selling, general and administrative expenses (55 ) including depreciation and amortization (59 ) Total comprehensive income 1 Group’s share (82%) of total comprehensive income 1 The Group tested its investment into Flocktory joint venture as at December 31, 2017 and found no impairment indicators. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2017 | |
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Revenue | 22. Revenue Revenue for the years ended December 31 was as follows: 2015 2016 2017 Payment processing fees 14,935 16,289 18,575 Interest revenue 731 899 1,052 Cash and settlement services 557 130 670 Other revenue 1,494 562 600 Total revenue 17,717 17,880 20,897 For the purposes of consolidated cash flow statement, “Interest income, net” consists of the following: 2015 2016 2017 Interest revenue (731 ) (899 ) (1,052 ) Interest expense classified as part of cost of revenue 79 37 42 Interest income from non-banking (16 ) (36 ) (35 ) Interest expense from non-banking 109 64 29 Interest income, net, for the purposes of consolidated cash flow statement (559 ) (834 ) (1,016 ) |
Cost of revenue (exclusive of d
Cost of revenue (exclusive of depreciation and amortization) | 12 Months Ended |
Dec. 31, 2017 | |
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Cost of revenue (exclusive of depreciation and amortization) | 23. Cost of revenue (exclusive of depreciation and amortization) Cost of revenue (exclusive of depreciation and amortization) for the years ended December 31 was as follows: 2015 2016 2017 Transaction costs 6,300 6,490 6,756 Payroll and related taxes 1,206 1,377 2,059 Other expenses 1,189 779 948 Total cost of revenue (exclusive of depreciation and amortization) 8,695 8,646 9,763 |
Selling, general and administra
Selling, general and administrative expenses | 12 Months Ended |
Dec. 31, 2017 | |
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Selling, general and administrative expenses | 24. Selling, general and administrative expenses Selling, general and administrative expenses for the years ended December 31 were as follows: 2015* 2016* 2017 Compensation to employees, related taxes and other personnel expenses 1,511 1,682 2,227 Rent of premises and related utility expenses 338 346 391 Bad debt expense 362 215 220 Advertising, client acquisition and related expenses 242 165 1,294 Advisory and audit services 357 297 433 Tax expenses, except of income and payroll relates taxes 155 175 407 IT related services 176 180 236 Other expenses 328 363 1,035 Total selling, general and administrative expenses 3,469 3,423 6,243 * Since 1 January 2017, general and administrative expenses have been revised to present more detailed classification of items based on their nature to provide the users of the financial statements with more relevant information. Certain comparative amounts have been reclassified to conform to the current period’s presentation. In 2017 as result of the transaction with Otkritie bank (See Note 10, 11, 14) the Group recognized losses of 350 and included this amount in other expenses. |
Dividends paid and proposed
Dividends paid and proposed | 12 Months Ended |
Dec. 31, 2017 | |
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Dividends paid and proposed | 25. Dividends paid and proposed Dividends paid and proposed by the Group to the shareholders of the parent are presented below: 2015 2016 2017 Proposed, declared and approved during the year: 2017: Final dividend for 2016: U.S.$ 11,520,798, Interim dividend for 2017: U.S.$ 26,113,788 (2016: Final dividend for 2015: U.S.$ 30,210,153, Interim dividend for 2016: U.S.$ 39,943,003 2015: Interim dividend for 2015: U.S.$ 13,640,343) 694 4,843 2,207 Paid during the period*: 2017: Final dividend for 2016: U.S.$ 11,520,798, Interim dividend for 2017: U.S.$ 26,113,788 (2016: Final dividend for 2015: U.S.$ 30,210,153, Interim dividend for 2016: U.S.$ 39,943,003 2015: Interim dividend for 2015: U.S.$ 13,640,343) 699 4,628 2,148 Proposed for approval (not recognized as a liability as of December 31): 2017: nill 2016: Final dividend for 2016: U.S.$ 11,513,436 2015: Final dividend for 2015: U.S.$ 30,209,301 2,237 679 — Dividends payable as of December 31 — — — * The difference between paid and declared dividends represents foreign exchange movement |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2017 | |
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Income tax | 26. Income tax The Company is incorporated in Cyprus under the Cyprus Companies Law, but the business activity of the Group and joint ventures is subject to taxation in multiple jurisdictions, the most significant of which include: Cyprus The Company is subject to 12.5% corporate income tax applied to its worldwide income. Gains from the sale of securities/titles (including shares of companies) either in Cyprus or abroad are exempt from corporate income tax in Cyprus. Capital gains tax is levied at a rate of 20% on profits from disposal of immovable property situated in Cyprus or of shares in companies which own immovable property situated in Cyprus (unless the shares are listed on a recognized stock exchange). Dividends received from a non-resident The Russian Federation The Company’s subsidiaries incorporated in the Russian Federation are subject to corporate income tax at the standard rate of 15% applied to income received from Russia government bonds and 20% applied to their other taxable income. Withholding tax of 15% is applied to any dividends paid out of Russia, reduced to as low as 5% for some countries (including Cyprus), with which Russia has double-taxation treaties. Kazakhstan The Company’s subsidiary incorporated in Kazakhstan is subject to corporate income tax at the standard rate of 20% applied to their taxable income. Deferred income tax assets and liabilities as of December 31, 2017 and 2016, relate to the following: Consolidated statement of Consolidated statement of 2017 2016 2017 2016 Intangible assets (719 ) (784 ) 65 265 Trade and other payables 166 130 36 9 Trade and other receivables 101 138 (37 ) (20 ) Loans issued 48 27 21 7 Taxes on unremitted earnings (184 ) (75 ) (109 ) 19 Other 7 (17 ) 24 (27 ) Net deferred income tax asset/(liability) (581 ) (581 ) – 253 including: Deferred tax asset 245 270 Deferred tax liability (826 ) (851 ) Deferred tax assets and liabilities are not offset because they do not relate to income taxes levied by the same tax authority on the same taxable entity. Reconciliation of deferred income tax asset/(liability), net: 2015 2016 2017 Deferred income tax asset/(liability), net as of January 1 203 (834 ) (581 ) Effect of acquisitions of subsidiaries (1,037 ) – – Deferred tax benefit/(expense) – 253 – Deferred income tax asset/(liability), net as of December 31 (834 ) (581 ) (581 ) As of December 31, 2017 the Group does not intend to distribute a portion of its accumulated undistributed foreign earnings in the amount of 2,473 (2016 – 2,690). The amount of tax that the Group would pay to distribute them would be 124 (2016 – 149). Unremitted earnings include all earning that were recognized by the Group’s subsidiaries and that are expected to be distributed to the holding company. For the year ended December 31 income tax expense included: 2015 2016 2017 Total tax expense Current income tax expense (877 ) (871 ) (698 ) Deferred tax benefit/(expense) – 253 – Income tax expense for the year (877 ) (618 ) (698 ) Theoretical and actual income tax expense is reconciled as follows: 2015 2016 2017 Profit before tax 6,151 3,107 3,840 Theoretical income tax expense at the domestic rate in each individual jurisdiction (802 ) (278 ) (370 ) (Increase)/decrease resulting from the tax effect of: Non-taxable 200 39 12 Non-deductible (105 ) (269 ) (222 ) Income tax associated with earnings of foreign subsidiaries (102 ) (95 ) (109 ) Unrecognized deferred tax assets (68 ) (15 ) (9 ) Total income tax expense (877 ) (618 ) (698 ) During the year ended December 31, 2017 the Group did not recognize deferred tax assets related to the tax loss carry forward in the amount of 9 (2016 – 15, 2015—68) because the Group did not believe that the realization of the related deferred tax assets is probable. Non-taxable |
Commitments, contingencies and
Commitments, contingencies and operating risks | 12 Months Ended |
Dec. 31, 2017 | |
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Commitments, contingencies and operating risks | 27. Commitments, contingencies and operating risks Operating environment Russia continues economic reforms and development of its legal, tax and regulatory frameworks as required by a market economy. The future stability of the Russian economy is largely dependent upon these reforms and developments and the effectiveness of economic, financial and monetary measures undertaken by the government. As Russia is Group’s main country of operation, it is particularly exposed to fluctuations and problems that arise in the Russian economy. Emerging markets, such as Russia, are subject to greater risks than more developed markets, including significant legal, economic and political risks. Emerging economies are subject to rapid change, and therefore the information set out herein may become outdated relatively quickly. Chief among the challenges currently facing the Russian economy are (i) the ongoing crisis in Eastern Ukraine, (ii) the deterioration of Russia’s relationships with many Western countries, (iii) the economic and financial sanctions imposed by the U.S., EU, Canada and other countries in connection with these events on certain Russian companies, individuals, and entire sectors of Russian economy, (iv) a steep decline in oil prices in preceding years, and (v) a consequent record weakening of the Russian ruble against the U.S. dollar. The lack of access to financing for Russian issuers, capital flight and a general climate of political and economic uncertainty are additional difficulties constricting Russian business at this time. Moreover, certain sanctions, as of now only imposed by Ukraine, and Russian countersanctions instituted in response to such sanctions, directly target payment services providers. There can be no assurance that additional sanctions affecting the payments of financial services business will not be imposed by Russia or other countries in which the Group operates. In addition, a number of Western businesses have curtailed or suspended activities in Russia or dealings with Russian counterparts for reputational reasons, even though currently such activities and dealings are not prohibited by the sanctions. An expansion of the existing sanctions or introduction of new sanctions, sanctions specifically targeting the Group, its management or its shareholders, or targeting the sector generally, could affect the Group’s business as its international customers, suppliers, shareholders and other business partners may change their relationship with the Group for compliance, political, reputational or other reasons. Some of our agents, merchants or Tochka’s SME clients, although mostly not incorporated in Crimea, may have operations there. Further, before the introduction of the corresponding sanctions the Group has had direct contacts with several Crimea banks that are registered as financial legal entities in Crimea, currently such banks may continue to operate as the Group’ agents or merchants. Overall the share of the Group’ business that comes from such counterparties is insignificant. On December 19, 2014, U.S. President Obama signed a new executive order imposing comprehensive sanctions on the Crimea region. The EU has similarly introduced a broad set of sanctions through the Council Regulation (EU) 692/2014 as amended by Regulation (EU) 1351/2014. To date, management does not believe that any of the current sanctions as in force limit the Group’ ability to work with entities that may have operations in Crimea or operate in Crimea. Nevertheless, if the Group is deemed to be in violation of any sanctions currently in place or if any new or expanded sanctions are imposed on Russian businesses operating in Crimea by the U.S., EU, or other countries the Group’s business and results of operations may be materially adversely affected. In the ordinary course of our business, the Group may accept payments from consumers who either directly or indirectly interact with certain entities that are the targets of U.S. sanctions. The Group operates primarily within the Russian financial system and, accordingly, many of its customers have accounts at banks in Russia. The U.S., EU and other countries have adopted a package of economic restrictive measures imposing certain sanctions on the operations of various Russian banks, including VTB Bank and Gazprombank. Some subsidiaries of the Company hold bank accounts in the aforementioned banks as well as have overdrafts and bank guarantees in VTB Bank. Other Russian banks, including Bank Rossiya, SMP Bank, Investcapitalbank and Sobinbank, have also been designated by OFAC and are subject to U.S. economic sanctions. Tempbank was also designated due to its dealings with the Syrian government. Management is monitoring these developments in the current environment and taking actions where appropriate. These and any further possible negative developments in Ukraine could adversely impact the results and financial position of the Group in a manner not currently determinable. Furthermore, U.S. sanctions may be extended to any person that U.S. authorities determine has materially assisted, provided financial, material, or technological support to, or provided goods or services in support of, any sanctioned individuals or entities. For example, the Group may be deemed to be associated with U.S.- designated banks due to its accepting payments for them from consumers in the ordinary course of its business, even though the Group may not have any direct contract relationships with them. There can be no assurance that the U.S. Government would not view such activities as meeting the criteria for U.S. economic sanctions. In addition, because of the nature of the Group’s business, the Group does not generally identify its customers where there is no express requirement to do so under Russian anti-money laundering legislation. Therefore, the Group is not always able to screen them against the “Specially Designated Nationals and Blocked Persons List” published by OFAC or other sanctions lists. The crisis in Ukraine is ongoing and could escalate. Were full-fledged hostilities to break out between Ukraine and Russia, significant economic disruption would likely result and further calls from the Western countries for a comprehensive sanction regime that would further isolate Russia from the world economy. The current civil unrest in eastern Ukraine, if no resolution is forthcoming, may alone lead to the further strengthening and broadening of Ukraine-related sanctions. For example, it has been proposed to remove Russia from the international SWIFT payment system, which would disrupt ordinary financial services in Russia and any cross-border trade. The future repercussions surrounding the situation in Crimea and Eastern Ukraine are unknown, and no assurance can be given regarding the future of relations between Russia and other countries. The Group cannot therefore predict how the Ukrainian crisis will unfold or the impact it will have on its business or results of operations. Additionally, relations between the U.S. and Russia have become strained over a variety of other issues, which could result in further sanctions against Russia or specific individuals, entities or economic sectors. Any or all of the above factors could have a material adverse effect on the Group’s business, financial condition, results of operations and prospects. In recent years, the CBR has considerably increased the intensity of its supervision and regulation of the Russian banking sector. Qiwi Bank is central to the operation of all of the Group’s segments, as it provides issuing, acquiring and deposit settlement functions within the Group, serves as the issuing bank for our payment-by-installment SOVEST cards and is the banking institution behind Tochka’s financial services offering. Qiwi Bank, like all banks and non-banking credit organizations operating in Russia, is subject to extensive regulation and reporting obligations, which may limit the Groups activities and increase the Groups costs of doing business. Qiwi Bank has been the subject of CBR investigations in the past that have uncovered various regulatory violations and deficiencies, which the Group has generally rectified. As part of the ongoing supervisory process, the management was recently notified that in 2018 Qiwi Bank will be subject to the CBR inspection. There can be no assurance that any currently planned or future inspection will not result in discovery of any significant or minor violations of various banking regulations, and what sanctions the CBR would choose to employ against QIWI Bank if this were to happen. For example, recently management was notified that throughout 2017 QIWI Bank exceeded thresholds turnover amounts with respect to certain types of transactions. The measures that the CBR has so far imposed on QIWI Bank in response have not had a significant impact on operations, and management believes that it has remedied the violation and taken appropriate measures to ensure that QIWI Bank will not be in breach of such requirements going forward. However, this measures have not been lifted yet and there can be no assurance that this measures will be lifted soon or additional sanctions will not be imposed on us as a result of such findings. Scrutiny of CBR can be expected to increase following launch of SOVEST, as it will expand the scope of traditional commercial and retail bank services that Qiwi Bank provides. Any such sanctions could have a material adverse effect on our business, financial condition and results of operations. Historically, the revocation of banking licenses by the CBR has been relatively rare, but since October 2013 the CBR has launched a campaign aimed at cleansing the Russian banking industry, revoking the licenses from an unusually high number of banks. If Qiwi Bank’s banking license is revoked, the Group would effectively be unable to provide most of our services. Though the Russian economy contracted both in 2015 and in 2016, it has registered modest growth in 2017. However, throughout the period from 2014 to 2017 the population’s purchasing power has been decreasing due to the weakening of the ruble and the rise in cost of basic necessities such as food products and utilities, which according to the Russian Consumer Confidence Overall Index resulted in consumer confidence declining significantly. A further weakening in the Russian economy could have a negative impact on the Group’ merchants, as well as consumers who purchase products and services using the Group’ payment processing systems. This could negatively impact the Group’ business, financial condition and results of operations, particularly if the recessionary environment disproportionately affects some of the market segments that represent a larger portion of the Group’s payment processing volume. Specifically, worsening economic conditions could force some of the Group’ merchants and agents to liquidate their operations or go bankrupt, or could cause the Group’ agents to reduce the number of their locations or hours of operation, resulting in reduced transaction volumes. Similarly, a deteriorating economy and reduced consumer spending may translate into a decline in the number of transactions with SOVEST cards and may also affect the creditworthiness of the Group’ customers, which could result in increased credit risk. The Group also has a certain amount of fixed costs, including salaries and rent, which could limit its ability to adjust costs and respond quickly to changes affecting the economy and its business. In this context, management perceives several risks that could affect the stability and profitability of the Group’s offline distribution business. Firstly, the overall macroeconomic conditions adversely affect the purchasing power of Russian population, as high inflation combined with decreasing real wage put pressure on the disposable income of consumers, thus leading to the overall decrease in consumer spending and in turn the Group’s payment volumes. Secondly, the Group agents’ economics are being pressured by decreasing commissions and higher customer commission sensitivity, combined with higher rental and other costs. Thirdly, because the CBR has taken steps to secure the quality and transparency the industries in which the Group’ agents operate, additional controls and monitoring requirements have been imposed on agents through the banks. As agents work to comply with additional requirements and handle increasing numbers of inquiries from the banks they interact with, additional pressure is put on the agents’ business model especially for the smaller businesses. Although the Group’s network of agents remains well diversified, these changes in recent years have negatively affected the size of Group’s physical distribution in Russia and, correspondingly, its financial results. Management is committed to making its best efforts to support the Group’s physical distribution in Russia and, correspondingly, its financial results, there can be no assurance that there will not be further negative impacts of these changes in the mid-term. The Group provides payment processing services to a number of merchants in the betting industry. Processing payments to such merchants represents a relatively significant portion of the Group’ revenues and also generally carries higher margins than processing payments to merchants in most of the Group’s other categories. The betting industry is subject to extensive and actively developing regulation in Russia, as well as increasing government scrutiny. Recent amendments to Russian betting legislation introduced a more comprehensive regulatory framework in this area. In particular, under amendments to the Russian betting laws introduced in 2014, in order to engage in the betting industry, a bookmaker has to become a member of a self-regulated organization of bookmakers and abide by its rules, and any and all interactive bets may only be accepted through an Interactive Bets Accounting Center (TSUPIS) set up by a credit organization together with a self-regulated association of bookmakers. In 2016, QIWI Bank established a TSUPIS together with a the self-regulated associations of bookmakers in order to be able to accept such payments. Processing payments to betting merchants represents a relatively significant portion of the Group’s revenues. Furthermore, betting winnings received by the Group consumers deposited into their Qiwi Wallet accounts represents one of the significant reload sources for Qiwi Wallet accounts. If other banks or payment service providers were to enter this market, the payment volume, revenue and margins of the Group’ Payments business, as well as overall usage of Qiwi Wallet, could be materially adversely affected. Additionally, if any of the Group’s merchants engaged in the betting industry are not able or are unwilling to comply with Russian betting legislation, or if they decide to cease their operations in Russia for regulatory reasons or otherwise, the Group would have to discontinue servicing them and would lose the associated income. Moreover, if the Group is found to be in non-compliance E-commerce The Group may also be subject to reputational risks associated with being involved in the betting business through offering the payments services to betting merchants. For example, in July 2016, the Group was served with notices from Roskomnadzor, the Russian state agency responsible for overseeing the media and Internet, stating that the Group had breached Russian laws on public distribution of information about gambling, since the Group’s website contained links to services offered by certain betting operators that were allegedly not in compliance with the Russian betting legislation. The Group has complied with the prescriptions contained in the notices. However, there can be no assurance that further violations will not occur in the future, as the Group services a wide variety of merchants and depend on their compliance with relevant laws in this regard. If the Group is found to be in breach, Roskomnadzor or other agencies could take further action against it, including by blocking its website, imposing fines or other sanctions. The Group could face similar difficulties in other jurisdictions, since online betting is an area of intense focus by regulators in many of the countries in which the Group operates. Taxation Russian and the CIS’s tax, currency and customs legislation is subject to varying interpretations, and changes, which can occur frequently. Management’s interpretation of such legislation as applied to the transactions and activity of the Group may be challenged by the relevant regional and federal authorities. Recent events within Russia and the CIS which are discussed below suggest that the tax authorities are taking a more assertive position in their interpretation of the legislation and assessments and as a result, it is possible that transactions and activities that have not been challenged in the past may be challenged in the future. The Company may encounter difficulties in obtaining lower rates of Russian withholding income tax envisaged by the Russia-Cyprus double tax treaty for dividends distributed from Russia, i.e. dividends paid by a Russian legal entity to a foreign legal entity are generally subject to Russian withholding income tax at a rate of 15%, although this tax rate may be reduced under an applicable double tax treaty. The Company intend to rely on the Russia-Cyprus double tax treaty. The tax treaty allows reduction of withholding income tax on dividends paid by a Russian company to a Cypriot company to 10% provided that the following conditions are met: (i) the Cypriot company is a tax resident of Cyprus within the meaning of the tax treaty; (ii) the Cypriot company is the beneficial owner of the dividends; (iii) the dividends are not attributable to a permanent establishment of the Cypriot company in Russia; and (iv) the treaty clearance procedures are duly performed. This rate may be further reduced to 5% if the direct investment of the Cypriot company in a Russian subsidiary paying the dividends is at least EUR 100,000. Although the Group will seek to claim treaty protection, there is a risk that the applicability of the reduced rate of 5% or 10% may be challenged by Russian tax authorities. As a result, there can be no assurance that the Company would be able to avail itself of the reduced withholding income tax rate in practice. Specifically, Cypriot holding company may incur a 15% withholding income tax at source on dividend payments from Russian subsidiaries if the treaty clearance procedures are not duly performed at the date when the dividend payment is made. In this case the Company may seek to claim as a refund the difference between the 15% tax withheld and the reduced rate of 10% or 5% as appropriate. However, there can be no assurance that such taxes would be refunded in practice. Due to its international structure, the Group is subject to transfer pricing and permanent establishment risks in various jurisdictions it operates in. Since January, 2012, the Russian tax authorities have the right to apply transfer pricing adjustments and impose additional tax liabilities in respect of “controlled” transactions, if the transaction price differs from the market price. The Russian transfer pricing legislation grants taxpayers the right to justify their compliance with the arm’s length principle at prices used in controlled transactions by preparing the transfer pricing documentation. The Group manages the related risks by looking at its management functions and risks in various countries and level of profits allocated to each subsidiary. The list of “controlled” transactions of the Group includes various transactions between different Russian entities as well as certain types of cross-border transactions. The Group determines its tax liabilities arising from “controlled” transactions using actual transaction prices. Currently the tax authorities perform tax audits of many Russian taxpayers with major focus on compliance with new transfer pricing legislation. It is therefore possible that the Group entities may become subject to transfer pricing tax audits by tax authorities in the near future. The Russian tax authorities may challenge the level of prices applied by the Group under the “controlled” transactions (including certain intercompany transactions) and accrue additional tax liabilities. If additional taxes are assessed with respect to these matters, they may be material. This risk may increase in the future as Russian transfer pricing practice develops. The Management believes that the Group is able to prove the arms’ length nature of prices with respect to the “controlled” transactions, and that there has been proper reporting to the Russian tax authorities, supported by appropriate available transfer pricing documentation. Since 2015 significant changes to the Russian tax legislation are enacted which are aimed at preventing the abuse of “offshore” structures (so-called “de-offshorization” “de-offshorization” Risk of cybersecurity breach The Group stores and/or transmits sensitive data, such as credit or debit card numbers, passport details, mobile phone numbers and other identification data, and the Company has ultimate liability to its consumers for the failure to protect this data. The Company has experienced breaches of its security by hackers in the past, and breaches could occur in the future. In such circumstances, the encryption of data and other protective measures have not prevented unauthorized access and may not be sufficient to prevent future unauthorized access. Any future breach of the system, including through employee fraud, may subject the Company to material losses or liability, payables to other payment systems, fines and claims for unauthorized purchases with misappropriated credit or debit card information, identity theft, impersonation or other similar fraud claims. In addition, misuse of such sensitive data or a cybersecurity breach could result in claims, regulatory scrutiny and other negative consequences. Risk assessment The Group’s management believes that its interpretation of the relevant legislation is appropriate and is in accordance with the current industry practice and that the Group’s currency, customs, tax and other regulatory positions will be sustained. However, the interpretations of the relevant authorities could differ and the maximum effect of additional losses on these consolidated financial statements, if the authorities were successful in enforcing their different interpretations, could be significant, and amount up to 2.5 billion rubles which was assessed by the Group as of December 31, 2017 (2 billion rubles as of December 31, 2016). Insurance policies The Group holds no insurance policies in relation to its assets, operations, or in respect of public liability or other insurable risks. There are no significant physical assets to insure. Management has considered the possibility of insurance of business interruption in Russia, but the cost of it outweighs the benefits in management’s view. In the ordinary course of business, the Group may be subject to legal actions and complaints. Management believes that the ultimate liability, if any, arising from such actions or complaints will not have a material adverse effect on the financial condition or the results of future operations of the Group. Know-your-client requirements in Russia The Group’s business is currently subject to know-your-client- requirements established by Federal Law of the Russian Federation No. 115-FZ Operating lease commitments The Group has commercial lease agreements of office buildings. The leases have an average life of between one and five years. Total lease expense for the twelve months ended December 31, 2017 is for rent of office places 357 (2016 – 307). Future minimum lease rentals under non-cancellable As of December 31, As of December 31, 2017 Within one year 244 397 After one year but not more than five years 583 693 The Group is a party to a material contract of lease of office building, which gave origin to lease expenses in the amount of 154 in 2017 (172 in 2016) and creates commitments to charge further 461 of lease expenses, 154 of which shall be accrued within one year and 307 – after one year but no more than five years. The contract was concluded on July 1, 2014 and terminates on December 31, 2020. The lease payment consists of three parts: basis lease payment, reimbursement of operational expenses, and lease pay for parking places. All the three components gradually increase to the end of the contract term. For the purposes of these financial statements, the payments are recognized as expenses on a straight-line basis over the lease term. Pledge of assets As of December 31, 2017 the Group pledged debt instruments (government bonds) with carrying amount of 1,319 (December 31, 2016 – 1,687) as collateral for bank guarantee issued on Group’s behalf to its major partner and 486 (December 31, 2016 – 484) as coverage for supporting its short-term overnight credit facility at CBR. Commitments to Mail.ru Group Limited The Group committed to purchase of advertising services from Mail.ru Group Limited affiliates in the amount of 260 during three years starting from November 2014. Mail.ru Group Limited makes advertising available for the Group on the standard commercial rates. As of December 31, 2017 the Group spent 50 (2014 – 50, 2015 – nil, 2016 –nil, 2017 –nil) on advertising under this agreement. Credit related commitments The primary purpose of these instruments is to ensure that funds are available to a customer as required. Commitments to extend credit represent unused portions of both activated and not activated by the customers of instalment card loans. Commitments to extend credit are contingent upon customers firstly activating their credit limits and further maintaining specific credit standards. Outstanding credit limits possible to be used including credit limits not yet activated by the customers and related commitments are as follows: As of December 31, 2016 As of December 31, 2017 Unused limits on instalment card loans 127 8,603 The total outstanding contractual amount of unused limits on contingencies and commitments liability does not necessarily represent future cash requirements, as these financial instruments may expire or terminate without being funded. In accordance with instalment card service conditions the Group has a right to refuse the issuance, activation, reissuing or unblocking of an instalment card, and is providing an instalment card limit at its own discretion and without explaining its reasons. The Group also has a right to increase or decrease a credit card limit at any time without prior notice. |
Balances and transactions with
Balances and transactions with related parties | 12 Months Ended |
Dec. 31, 2017 | |
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Balances and transactions with related parties | 28. Balances and transactions with related parties Customer accounts in the amount of 97 as of December 31, 2017 (December 31, 2016 – 27) comprise of cash held at bank account by related parties, including key management personnel and the companies under their control or control of their close family members. Benefits of key management and Board of Directors generally comprise of short-term benefits and share-based payments during the year ended December 31, 2017 and amounted to 137 (136 – for the year 2016, 142 – for the year 2015) As of December 31, 2016 some of the overdraft facilities were guaranteed by the Group’s CEO. There are no such overdraft facilities as of December 31, 2017. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2017 | |
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Risk management | 29. Risk management The main risks that could adversely affect the Group’s financial assets, liabilities or future cash flows are foreign exchange risk, liquidity and credit risk. Management reviews and approves policies for managing each of the risks which are summarized below. Foreign exchange risk Foreign exchange risk is the risk that fluctuations in exchange rates will adversely affect items in the Group’s statement of comprehensive income, statement of financial position and/or cash flows. Foreign currency denominated assets and liabilities give rise to foreign exchange exposure. During last public offering, the Company increased its issued share capital and received about 89 mln U.S. $. The unused portion of these proceeds is accounted as other short-term bank deposits in cash and cash equivalents as of December 31, 2017 and 2016. Due to depreciation of U.S. $ rate against RUB for the year 2017 and for the year 2016 by 5% and 17% respectively the Group recorded foreign exchange loss in the amount of 236 and 975 respectively. The Group intends to use these assets for general corporate purposes including potential acquisitions. Foreign currency sensitivity The following tables demonstrate the sensitivity to a reasonably possible change in US Dollar and Euro exchange rates against Ruble, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the carrying amount of monetary assets and liabilities denominated in US Dollar and Euro when these currencies are not functional currencies of the respective Group subsidiary. The Group’s exposure to foreign currency changes for all other currencies is not material. change in US Dollar Effect on profit before tax Gain/(loss) 2017 +11% 83 - 11% (83) 2016 +20% 655 - 20% (655) change in Euro Effect on profit before tax Gain/(loss) 2017 +12.5% 36 - 12.5% (36) 2016 +20% 40 - 20% (40) Liquidity risk and capital management The Group uses cash from shareholders’ contributions, has sufficient cash and does not have any significant outstanding debt other than interbank debt with short maturities (classified as due to banks). Deposits received from agents are also due on demand, but are usually offset against future payments processed through agents. The Group expects that agent’s deposits will continue to be offset against future payments and not be called by the agents. Customer accounts and amounts due to banks, trade and other payables are due on demand. Since 2014 Russian economy has been going through a period of macroeconomic slowdown and liquidity shortage in a number of markets (including those in which the Group operates), caused among other things by falling oil prices, ruble devaluation and the economic sanctions regime. Banks and other entities in Russia decreased credit limits in their everyday operations and it was noted that the Group’s merchants and partners also started and in certain cases continued to request from the Group larger collaterals to hedge their risks. Thr Group was able to manage these conditions and requirements to date, though the liquidity shortage in the market if exacerbated may have further negative effects on the Group’s operations, which cannot be now reliably estimated. According to CBR requirements, a bank’s capital calculated based on CBR instruction should be not less than sertain portion of its risk-adjusted assets. As of December 31, 2017, QIWI Bank JSC’s capital ratio is above the minimal level required. The Group monitor the fulfillment of requirements on a daily basis and send the reports to CBR on a monthly basis. During the years ended December 31, 2017 and 2016 QIWI Bank JSC and Rapida LTD met the capital adequacy requirements. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. Capital includes share capital, share premium, additional paid-in Due: Total On Within a year More than a Trade and other payables (Note 19) 19,599 19,599 — — Customer accounts and amounts due to banks (Note 20) 3,182 3,071 111 — Total as of December 31, 2017 22,781 22,670 111 — Due: Total On Within a year More than a Trade and other payables (Note 19) 16,328 16,328 — — Customer accounts and amounts due to banks (Note 20) 2,342 2,342 — — Total as of December 31, 2016 18,670 18,670 — — Credit risk Financial assets of the Group, which potentially subject us and our subsidiaries and associates to credit risk, consist principally of trade receivables, loans issued, cash and short-term investments. The Group sells services on a prepayment basis or ensures that its receivables are from customers with an appropriate credit history – large merchants and agents with sufficient and appropriate credit history. The Group’s receivables from merchants and others, except for agents, are generally non-interest-bearing Starting from 2017, we are also exposed to substantial credit risk through our payment-by-installment card project SOVEST, where Qiwi Bank JSC serves as a lender and bears all credit risk on outstanding loans. When granting loans on SOVEST cards, the Group uses automated scoring solvency models and evaluate individually each application for the probability of fraud and social default. It uses the information from the major credit bureaus as well as certain other data including the evaluation of the potential effects of changes in macroeconomic conditions and regional affiliation of the applicant in order to approve or reject the application. Qiwi Bank can then use manual verification for determining the credit limit for the approved applicants. Qiwi Bank runs advanced forward-looking models that are based on the analysis of the transactional behavior of individual customers in order to predict and stimulate usage as well as prevent fraud, and Qiwi Bank uses a migration matrix approach for calculation of the loan loss provisions. Qiwi Bank distributes its installment cards to customers on a federal scale, across all regions of Russia. Our target audience includes Russian citizens with the permanent registration and aged 18 to 70 years. Qiwi Bank also uses a variety of distribution channels and strategies to obtain clients and therefore believe that its credit risk is broadly diversified. The management established a credit committee that develops and approves general principles for lending and takes special measures to mitigate credit risk such as cut down of the credit limits for unreliable clients, diversification of methods of work with overdue borrowers and more advanced scoring models for the new borrowers. Please see Note 13 for the carrying amount of loans issued and the maximum amount exposed to the credit risk for these type of assets. The carrying amount of accounts receivable, net of allowance for impairment of receivables, represents the maximum amount exposed to the credit risk for this type of receivables (Note 14). The table below demonstrates the largest counterparties’ balances, as a percentage of respective totals: Trade and other receivables As of December 31, As of December 31, Concentration of credit risks by main counterparties, % from total amount Top 5 counterparties 60 % 47 % Others 40 % 53 % Collection of receivables may be influenced by economic factors. Management believes that there is no significant risk of recognition of additional loss beyond the allowance already recorded. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Financial instruments | 30. Financial instruments The Group’s principal financial instruments consisted of loans receivable, trade and other receivables, customer accounts and amounts due to banks, trade and other payables, cash and cash equivalents, long and short-term debt instruments and borrowings. The Group has various other financial assets and liabilities which arise directly from its operations. During the year, the Group did not undertake trading in financial instruments. The fair value of the Group’s financial instruments as of December 31, 2017 and 2016 is presented by type of the financial instrument in the table below: As of December 31, As of December 31, Carrying Fair Carrying Fair Financial assets Debt instruments HTM 2,171 2,195 1,804 1,827 Long-term loans LAR 120 120 164 164 Total financial assets 2,291 2,315 1,968 1,991 Financial instruments used by the Group are included in one of the following categories: • LAR – loans and receivables; • HTM – held-to-maturity Carrying amounts of cash and cash equivalents, short-term investments, short-term loans issued, accounts receivable and payable, reserves at CBR and customer accounts and amounts due to banks approximate their fair values largely due to short-term maturities of these instruments. Debt instruments of the Group consist of RUB nominated government bonds with interest rate 6.7% - 7.5% and maturity up to May 2019. All debt instruments are pledged (Note 27). Long-term loans generally represent RUB nominated loans to Russian legal entities and have a maturity up to ten years. For the purpose of fair value measurement of these loans the Group uses comparable marketable interest rate which is 10%. The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities: Fair value measurement using Quoted prices Significant Significant Date of valuation Total (Level 1) (Level 2) (Level 3) Assets for which fair values are disclosed Debt instruments December 31, 2017 1,827 1,827 — — Long-term loans December 31, 2017 164 — — 164 Assets for which fair values are disclosed Debt instruments December 31, 2016 2,195 2,195 — — Long-term loans December 31, 2016 120 — — 120 There were no transfers between Level 1 and Level 2 fair value measurements and no transfers into or out of Level 3 fair value measurements during the year ended December 31, 2017. The Group uses the following IFRS hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: • Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities; • Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly; • Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data. Valuation methods and assumptions The fair value of the financial assets and liabilities included at the amount the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Long-term fixed-rate loans issued and debt instruments are evaluated by the Group based on parameters such as interest rates, specific country risk factors and individual creditworthiness of the customer. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Share-based payments | 31. Share-based payments 31.1. Option plans As of December 31, 2017, the Group has the following outstanding option plans: 2012 Employee Stock Option Plan (ESOP) 2015 Restricted Stock Unit Plan (RSU Plan) Adoption date October, 2012 July, 2015 Type of shares class B shares class B shares Number of options or RSUs reserved Up to 7 % of total amount of shares Up to 7 % of total amount of shares Exercise price Granted during: Granted during: Year 2012: U.S. $13.65 Year 2016: n/a Year 2013: U.S. $41.24 – 46.57 Year 2017: n/a Year 2014: U.S. $34.09 – 37.89 Year 2017: U.S. $ 23.94 Exercise basis Shares Shares Expiration date December 2020 December 2022 Vesting period Up to 4 years Three vesting during up to 2 years Other major terms The options are not transferrable - The units are not transferrable - All other terms of the units under 2015 RSU Plan are to be determined by the Company’s BOD or the CEO, if so resolved by the BOD, acting as administrator of the Plan 31.2. Changes in outstanding options The following table illustrates the movements in share options during the year ended December 31, 2017: As of December 31, Granted during Forfeited during the Exercised As of December 31, 2012 ESOP 1,929,089 27,743 (282,000 ) (146,692 ) 1,528,140 2015 RSU Plan 414,035 512,108 (66,732 ) (314,033 ) 545,378 Total 2,343,124 539,851 (348,732 ) (460,725 ) 2,073,518 As of December 31, 2017 the Company has 1,528,140 options outstanding, all of which are vested, and 545,378 RSUs outstanding, of which 51,912 are vested and 493,466 are unvested. The weighted average price for share options exercised under ESOP during the reporting period was U.S. $13.65 and exercised under RSU plan was nill. 31.3. Valuations of share-based payments The valuation of all equity-settled options granted are summarized in the table below: Option plan/ Grant date Number of Dividend Volatility,% Risk-free Expec- Weighted Weighted RSU (U.S. Valuation 2012 ESOP 4,128,521 0-5.03% 28%- 49.85% 0.29 3.85 %- % 2-4 28.10 7.14 Black- 2015 RSU Plan 1,095,708 0-5.03% 50.65%- 64.02% 2.89 3.19 %- % 0-2 15.04 14.41 Binominal The forfeiture rate used in valuation models granted during the period is 9%. It is based on historical data and current expectations and is not necessarily indicative of forfeiture patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. 31.4. Share-based payment expense The amount of expense arising from equity-settled share-based payment transactions for the year ended December 31, 2017 was 398 (2016 – 224, 2015 – 88). |
Principles underlying prepara39
Principles underlying preparation of consolidated financial statements (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Basis of preparation | 2.1 Basis of preparation The consolidated financial statements are prepared on a historical cost basis. The consolidated financial statements are presented in Russian rubles (“RUB”) and all values are rounded to the nearest million (RUB (000,000)) except when otherwise indicated. The Group’s subsidiaries maintain and prepare their accounting records and prepare their statutory accounting reports in accordance with domestic accounting legislation. Standalone financial statements of subsidiaries are prepared in their respective functional currencies (see Note 3.3 below). The Group accounts are prepared in accordance with the IFRS standards and interpretations, as published by the IASB. These consolidated financial statements are based on the underlying accounting records appropriately adjusted and reclassified for fair presentation in accordance with IFRS. IFRS adjustments include and affect but not limited to such major areas as consolidation, revenue recognition, accruals, deferred taxation, fair value adjustments, business combinations and impairment. |
Basis of consolidation | 2.2 Basis of consolidation The consolidated financial statements comprise the financial statements of QIWI plc and its subsidiaries as of December 31 each year. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee), • Exposure, or rights, to variable returns from its involvement with the investee, and • The ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement with the other vote holders of the investee, • Rights arising from other contractual arrangements, • The Group’s voting rights and potential voting rights. The Group re-assesses All intra-group balances, income, expenses and unrealized gains and losses resulting from intra-group transactions are eliminated in full, except for the foreign exchange gains and losses arising on intra-group loans. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling non-controlling A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: • Derecognises the assets (including goodwill) and liabilities of the subsidiary. • Derecognises the carrying amount of any non-controlling • Recognises the fair value of the consideration received. • Recognises the fair value of any investment retained. • Recognises any surplus or deficit in profit or loss. • Reclassifies to profit or loss or retained earnings, as appropriate, the amounts previously recognized in OCI as would be required if the Group had directly disposed of the related assets or liabilities. |
Changes in accounting policies | 2.3 Changes in accounting policies The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those followed in the preparation of the Group’s annual financial statements for the year ended December 31, 2016, except for the adoption of the new and amended IFRS and IFRIC interpretations as of January 1, 2017. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Although these new standards and amendments apply for the first time in 2017, they do not have a material impact on the annual consolidated financial statements of the Group. The nature and the impact of each new standard or amendment that could have any potential effect on the Group’s financial statements are described below: |
Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative | Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative The amendments require entities to provide disclosures about changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash |
Amendments to IAS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrecognised Losses | Amendments to IAS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrecognised Losses The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact. The Group applied the amendments retrospectively. However, their application has no effect on the Group’s financial position and performance as the Group has no deductible temporary differences or assets that are in the scope of the amendments. Annual Improvements Cycle—2014-2016 |
Amendments to IFRS 12 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in IFRS 12 | Amendments to IFRS 12 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in IFRS 12 The amendments clarify that the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale. These amendments had no impact on the Group as there is no a joint venture or an associate that is classified as held for sale. |
Standards issued but not yet effective | 2.4 Standards issued but not yet effective Amendments to IFRS 2 - Classification and Measurement of Share-based Payment The amendments to IFRS 2 Share-based Payment address three main areas: - the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; - the classification of a share-based payment transaction with net settlement features for withholding tax obligations; - and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. The amendments are effective for annual periods beginning on or after January 1, 2018, with early application permitted. These amendments are not expected to have any impact on the Group as there is no cash-settled share-based transactions. |
IFRS 16 - Leases | IFRS 16 - Leases IFRS 16 was issued in January 2016 and sets out the principles that both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’), apply to provide relevant information about leases in a manner that faithfully represents those transactions. Under IFRS 16 a lessee is required to recognize assets and liabilities arising from a lease. The new standard is applicable to all lease and sublease contracts except for leases of certain types of intangibles and some other specific assets and will supersede all current requirements for lease recognition and disclosure under IFRS. IFRS 16 is effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted for entities that apply IFRS 15 at or before the date of initial application of IFRS 16. The Group is in the process of assessment of the potential impact on its consolidated financial statements. As of the date of these financial statements, the most significant impact identified is that the Group will recognise new assets and liabilities for its operating leases of office buildings and kiosk places as disclosed as non-cancellable right-of-use The Group plans to adopt IFRS 16 initially on January 1, 2019. The Group has not yet determined which transition approach to apply. The Group has not yet quantified the impact on its reported assets and liabilities of adoption of IFRS 16. The quantitative effect will depend on, inter alia, the transition method chosen, the extent to which the Group uses the practical expedients and recognition exemptions, and any additional leases that the Group enters into. The Group expects to disclose its transition approach and quantitative information before adoption. |
IFRIC 22 - Foreign Currency Transactions and Advance Consideration | IFRIC 22 - Foreign Currency Transactions and Advance Consideration IFRIC 22 provides requirements about which exchange rate to use in reporting foreign currency transactions (such as revenue transactions) when payment is made or received in advance. The Interpretation is effective for annual periods beginning on or after January 1, 2018. Early application of interpretation is permitted and must be disclosed. However, since the Group’s current practice is in line with the Interpretation, the Group does not expect any effect on its consolidated financial statements. |
IFRIC Interpretation 23 Uncertainty over Income Tax Treatment | IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 and does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: - Whether an entity considers uncertain tax treatments separately - The assumptions an entity makes about the examination of tax treatments by taxation authorities - How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates - How an entity considers changes in facts and circumstances An entity must determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. The interpretation is effective for annual reporting periods beginning on or after January 1, 2019, but certain transition reliefs are available. The Group does not expect a significant impact on its financial statements on applying the interpretation. |
Amendments to IAS 28 - Investments in Associates and Joint Ventures | Amendments to IAS 28 - Investments in Associates and Joint Ventures The amendment clarified that an entity has an investment-by-investment These amendments are effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. The Group does not expect a significant impact on its financial statements on applying the amendments to IAS 28. |
IFRS 9 Financial Instruments | IFRS 9 Financial Instruments In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early application permitted. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions. The Group plans to adopt the new standard on the required effective date and will not restate comparative information. During 2017, the Group has performed a detailed impact assessment of all three aspects of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the Group in 2018 when the Group will adopt IFRS 9. Overall, the Group expects no significant impact on its statement of financial position and equity except for the effect of applying the impairment requirements of IFRS 9. The Group expects an increase in the loss allowance resulting in a negative impact on equity as discussed below. (a) Classification and measurement The Group does not expect any impact on its balance sheet or equity on applying the classification and measurement requirements of IFRS 9. It expects to continue measuring at fair value all financial assets currently held at fair value. Debt securities, loans and trade receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analysed the contractual cash flow characteristics of those instruments and concluded that they meet the criteria for amortised cost measurement under IFRS 9. Therefore, reclassification for these instruments is not required. (b) Impairment IFRS 9 requires the Group to record expected credit losses on all of its debt securities, loans and trade receivables, either on a 12-month (c) Hedge accounting The Group does not applied hedge accounting in its financial statements. (d) Other adjustments In addition to the adjustments described above, on adoption of IFRS 9, other items of the primary financial statements such as deferred taxes, assets held for sale and liabilities associated with them, investments in the associate and joint venture if material, will be adjusted as necessary. The non-controlling In summary, the provisional impact of IFRS 9 adoption as of December 31, 2017 is expected to be, as follows: Ajustments Amount Assets Cash and cash equivalents b (130 ) Trade and other receivables b (38 ) Loans issued b (93 ) Debt instruments b (5 ) Deferred tax assets d 75 Total assets (191 ) Liabililies Other current liabilities b (111 ) Total Liabililies (111 ) Net impact on equity, Including (302 ) Retained earnings b (302 ) |
IFRS 15 Revenue from Contracts with Customers | IFRS 15 Revenue from Contracts with Customers IFRS 15 was issued in May 2014, and amended in April 2016, and establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under IFRS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after January 1, 2018. Early adoption is permitted. The Group plans to adopt the new standard on the required effective date using the full retrospective method. During 2017 the Group has not finalised it assessment of IFRS 15 application. However, that the Group expects that the application of IFRS 15 will not have a significant impact. |
Business combinations and goodwill | Set out below are the principal accounting policies used to prepare these consolidated financial statements: 3.1 Business combinations and goodwill Business combinations are accounted for using the acquisition method. Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group to the previous owners of the acquiree, and equity interests issued by the Group. Consideration transferred also includes the fair value of any contingent consideration and share-based payment awards of the acquiree that are replaced mandatorily in the business combination. If a business combination results in the termination of pre-existing If the business combination is achieved in stages, any previously held equity interest is re-measured Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequently, contingent consideration classified as an asset or liability, is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not re-measured The Group measures any non-controlling Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling re-assesses re-assessment After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated of the Group’s cash generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquired entity are assigned to those units. Where goodwill has been allocated to a cash-generating unit and certain operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed in this circumstance is measured based on the relative values of the operation disposed and the portion of the cash-generating unit retained. |
Investments in associates and joint ventures | 3.2 Investments in associates and joint ventures The Group’s investment in its associate and joint ventures are accounted for using the equity method. An associate is an entity in which the Group has significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. unanimouns consent of the parties) have rights to the net assets of the arrangement. Under the equity method, the investment in the associate or joint venture is carried on the statement of financial position at cost plus post acquisition changes in the Group’s share of net assets of the associate/joint venture. Goodwill relating to the associate/joint venture is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment. The statement of comprehensive income reflects the Group’s share of the results of operations of the associate/joint venture. When there has been a change recognized directly in the equity of the investment, the Group recognizes its share of any changes and discloses this, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and the associate/joint venture are eliminated to the extent of the interest in it. The Group’s share of profit of an associate/joint venture is shown on the face of the statement of comprehensive income. This is the profit attributable to equity holders of the associate/joint venture and, therefore, is profit after tax and non-controlling The financial statements of the associates/joint ventures are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognize an additional impairment loss on its investment in its associates/joint ventres. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate/joint venture is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of an investment in associate/joint venture and its carrying value and recognizes any respective loss in the statement of comprehensive income. Upon loss of significant influence over the associate/joint venture, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate/joint venture upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. |
Foreign currency translation | 3.3 Foreign currency translation The consolidated financial statements are presented in Russian rubles (RUB), which is the Company’s functional and the Group’s presentation currency. Each entity in the Group determines its own functional currency, depending on what the underlying economic environment is, and items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are initially recorded in the functional currency at the functional currency rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are re-measured Non-monetary Non-monetary non-monetary The functional currency of the foreign operations is generally the respective local currency – US Dollar (U.S.$), Euro (€), Kazakhstan tenge (KZT), Belarussian ruble (BYR), Moldovan leu (MDL) and New Romanian leu (RON). As of the reporting date, the assets and liabilities of these operations are translated into the presentation currency of the Group (the Russian Ruble) at the rate of exchange at the reporting date and their statements of comprehensive income are translated at the average exchange rates for the year or exchange rates prevailing on the date of specific transactions. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign entity, the deferred cumulative amount recognized in equity relating to that particular foreign operation is reclassified to the profit or loss. The exchange rates of the Russian ruble to each respective currency as of December 31, 2017 and 2016 were as follows: Average exchange rates for Exchange rates at 2016 2017 2016 2017 US Dollar 67.0349 58.3529 60.6569 57.6002 Euro 74.2310 65.9014 63.8111 68.8668 Kazakhstan Tenge (100) 19.5980 17.8959 18.1637 17.3184 Belarussian Ruble 33.7165 30.2125 30.9474 29.1013 Moldovan Leu (10) 33.6961 31.6871 30.5269 33.6548 New Romanian Leu 16.5315 14.4216 14.0722 14.7822 The currencies listed above are not a fully convertible outside the territories of countries of their operations. Related official exchange rates are determined daily by the Central Bank of the Russian Federation (further CBR). Market rates may differ from the official rates but the differences are, generally, within narrow parameters monitored by the respective Central Banks. The translation of assets and liabilities denominated in the currencies listed above into RUB for the purposes of these financial statements does not indicate that the Group could realize or settle, in RUB, the reported values of these assets and liabilities. Likewise, it does not indicate that the Group could return or distribute the reported RUB value of capital and retained earnings to its shareholders. |
Property and equipment | 3.4 Property and equipment 3.4.1 Cost of property and equipment Property and equipment are stated at cost less accumulated depreciation and any accumulated impairment loss. Expenditures for continuing repairs and maintenance are charged to the profit or loss as incurred. 3.4.2 Depreciation and useful lives Depreciation is calculated on property and equipment on a straight-line basis from the time the assets are available for use, over their estimated useful lives as follows: Processing servers and engineering equipment 3-10 years Computers and office equipment 3-5 Other equipment 2-20 years Useful lives of leasehold improvements of leased office premises included in engineering equipment and other equipment are determined at the lower between the useful live of the asset or the lease term. The asset’s residual values, useful lives and depreciation methods are reviewed, and adjusted as appropriate, at each financial year-end. |
Intangible assets | 3.5 Intangible assets 3.5.1 Software and other intangible assets Software and other intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected generation of future benefits, generally 3-5 3.5.2 Software development costs Development expenditure on an individual project is recognized as an intangible asset when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development. 3.5.3 Useful life and amortization of intangible assets The Group assesses whether the useful life of an intangible asset is finite or indefinite and, if finite, the length of that useful life. An intangible asset is regarded by the entity as having an indefinite useful life when, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity. Intangible assets with finite lives are amortized on a straight-line basis over the useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Below is the summary of useful lives of intangible assets: Customer relationships and contract rights 4-15 years Computer Software 3-10 years Bank license indefinite Trademarks and other intangible assets 3-6 Amortization periods and methods for intangible assets with finite useful lives are reviewed at least at each financial year-end. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. Indefinite-lived intangible assets include the acquired licenses for banking operations. It is considered indefinite-lived as the related license is expected to be renewed indefinitely. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of comprehensive income when the asset is derecognized. |
Impairment of non-financial assets | 3.6 Impairment of non-financial The Group assesses at each reporting date whether there is an indication that an asset, other than goodwill and intangible assets with indefinite useful life, may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax These calculations are corroborated by valuation multiples, quoted share prices for publicly traded analogues, if applicable, or other available fair value indicators. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s cash generating units (CGU), to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years or longer, when management considers appropriate. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the last year. Impairment losses of continuing operations are recognized in profit or loss in those expense categories consistent with the function of the impaired asset. For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an estimate of recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. The following criteria are also applied in assessing impairment of specific assets: Goodwill Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating units, to which the goodwill relates. Where the recoverable amount of the cash-generating units is less than their carrying amount an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. The Group performs its annual impairment test of goodwill as of December 31 and whenever certain events and circumstances indicate that its carrying value may be impaired. Intangible assets Intangible assets with indefinite useful lives are tested for impairment annually as of December 31, either individually or at the cash generating unit level, as appropriate and whenever events and circumstances indicate that an asset may be impaired. |
Financial assets | 3.7 Financial assets 3.7.1 Initial recognition and measurement Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity available-for-sale re-evaluates year-end. 3.7.2 Subsequent measurement Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial assets at fair value through profit and loss are carried in the statement of financial position at fair value with net changes in fair value recognized in “change in fair value of derivative financial assets”, “other gains” or “other losses” in the statement of comprehensive income. Financial assets designated upon initial recognition at fair value through profit or loss are designated at their initial recognition date and only if the criteria under IAS 39 are satisfied. The Group has not designated any financial assets at fair value through profit or loss. Loans and receivables Loans and receivables are non-derivative Debt instruments Debt instruments and financial investments are non-derivative held-to-maturity If the Group sold or reclassified more than an insignificant amount of debt instruments before maturity (other than in certain specific circumstances), the entire category would be tainted and would have to be reclassified as available-for-sale. AFS financial assets AFS financial assets include equity investments. Equity investments classified as AFS are those that are neither classified as held for trading nor designated at fair value through profit or loss. After initial measurement, AFS financial assets are subsequently measured at fair value with unrealized gains or losses recognized in OCI and credited in the AFS reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in other operating income, or the investment is determined to be impaired, when the cumulative loss is reclassified from the AFS reserve to the statement of profit or loss in finance costs. Interest earned whilst holding AFS financial assets is reported as interest income using the EIR method. Amortized cost Held-to-maturity 3.7.3 Impairment and derecognition of financial assets Impairment The Group assesses at each reporting date whether a financial asset or group of financial assets is impaired. Assets carried at amortized cost For financial assets carried at amortized cost (such as loans and receivables, held-to-maturity For the purposes of a collective evaluation of impairment, financial assets are grouped on the basis of similar credit risk characteristics. Those characteristics are relevant to the estimation of future cash flows ability to pay all amounts due according to the contractual terms of the assets being evaluated. Future cash flows in a group of financial assets that are collectively evaluated for impairment, are estimated on the basis of the contractual cash flows of the assets and the experience of management in respect of the extent to which amounts will become overdue as a result of past loss events and the success of recovery of overdue amounts. Past experience is adjusted on the basis of current observable data to reflect the effects of current conditions that did not affect past periods, and to remove the effects of past conditions that do not exist currently. If there is objective evidence that an impairment loss on assets carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through use of an allowance account. The amount of the loss is recognized in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed, to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date. Any subsequent reversal of an impairment loss is recognized in profit or loss. In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the probability of insolvency or significant financial difficulties of the debtor) that the Group will not be able to collect all of the amounts due under the original terms of the invoice. The carrying amount of the receivable is reduced through use of an allowance account. Impaired debts are derecognized when they are assessed as uncollectible. Derecognition A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized when: • The rights to receive cash flows from the asset have expired • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. |
Financial liabilities | 3.8.1 Initial recognition and measurement Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Group determines the classification of its financial liabilities at initial recognition. Financial liabilities are recognized initially at fair value less, in the case of loans and borrowings, directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, bank overdraft, customer accounts and amounts due to banks. The measurement of financial liabilities depends on their classification as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through profit or loss. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This category includes derivative financial instruments entered into by the Group that do not meet the hedge accounting criteria as defined by IAS 39. Gains or losses on liabilities held for trading are recognized in profit or loss. The Group has not designated any financial liabilities at fair value through profit or loss. Loans, borrowing, customer accounts and amounts due to banks and payables After initial recognition, interest bearing loans, borrowings and payables are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the amortization process. 3.8.2 Derecognition of financial liabilities A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in profit or loss. 3.8.3 Offsetting financial assets and liabilities Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if: • There is a currently enforceable legal right to offset the recognized amounts; and • There is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. The right of set-off: • Must not be contingent on a future event; and • Must be legally enforceable in all of the following circumstances: (i) the normal course of business; (ii) the event of default; and (iii) the event of insolvency or bankruptcy of the entity and all of the counterparties |
Cash and cash equivalents | 3.9 Cash and cash equivalents Cash comprises cash at banks and in hand and short-term deposits with an original maturity of three months or less. All these items are included as a component of cash and cash equivalents for the purpose of the statement of financial position and statement of cash flows. |
Employee benefits | 3.10 Employee benefits 3.10.1 Short-term employee benefits Wages and salaries paid to employees are recognized as expenses in the current period. The Group also accrues expenses for future vacation payments and short-term employee bonuses. 3.10.2 Social contributions and define contributions to pension fund Under provisions of the Russian legislation, social contributions include defined contributions to pension and other social funds of Russia and are calculated by the Group by the application of a regressive rate (from 30% to 10% in 2017, 2016 and 2015) to the annual gross remuneration of each employee. For the year ended December 31, 2017 defined contributions to pension fund of Russia of the Group amounted to 473 (2016 – 315; 2015 – 270). |
Provisions | 3.11 Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Group expects a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of discounting is material, provisions are determined by discounting the expected value of future cash flows at a pre-tax |
Special contribution for defence of the Republic of Cyprus | 3.12 Special contribution for defence of the Republic of Cyprus Dividend Distribution Cyprus entities that do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years after the end of the relevant tax year, are deemed to have distributed as dividends 70% of these profits. A special contribution for the defence fund of the Republic of Cyprus is levied at the 17% rate for 2015, 2016, 2017 and thereafter will be payable on such deemed dividends distribution. Profits that are attributable to shareholders who are not tax resident of Cyprus and own shares in the Company either directly and/or indirectly at the end of two years from the end of the tax year to which the profits relate, are exempted. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by the Company for the account of the shareholders. The Company’s ultimate shareholder as of December 31, 2017 is non-Cypriot Dividend income Dividends received from a non-resident The Company has not been subject to defence tax on dividends received from abroad as the dividend paying entities are engaged in other than investing activities. |
Income taxes | 3.13 Income taxes Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Current income tax relating to items recognized in other comprehensive income is recognized in other comprehensive income. Deferred income tax Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Revenue and certain expenses recognition | 3.14 Revenue and certain expenses recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenues and related cost of revenue from services are recognized in the period when services are rendered, regardless of when payment is made. Payment processing fee revenues and related transaction costs The Group earns a fee for processing payments initiated by the ultimate customers (“consumers”) to pay to merchants and service providers (“merchants”) or transfer money to other individuals. Payment processing fees are earned from consumers or merchants, or both. Consumers can make payments to various merchants through kiosks or network of agents and banks participants of payment system or through the Group’s website or applications using a unique user login and password (e-payments). In accordance with terms and conditions of use of QIWI Wallet accounts and QIWI system rules, the Group charges a fee to its consumers on the balance of unused accounts after certain period of inactivity and unclaimed payments. Such fees are recorded as revenues in the period a fee is charged. The Group generates revenue from the foreign currency conversion when payments are made in currencies different from the country of the consumer, mainly Russia. The Group recognizes the related revenues at the time of conversion in the amount of conversion commission representing the difference between the current Russian or relevant country Central Bank foreign currency exchange rate and the foreign currency exchange rate charged by the Group’s processing system. Cash and settlement services The Group charges a fee for managing current accounts and deposits of individuals and legal entities, including guarantee deposits from agents placed with the bank to cover consumer payments they accept. Related revenue is recorded as services are rendered or as transactions are processed. Interest revenue, interest income and interest expense For all financial instruments measured at amortized cost, interest bearing financial assets classified as available for sale and financial instruments designated at fair value through profit or loss, interest income or expense is recorded using the EIR. The carrying amount of the financial asset or financial liability is adjusted if the Group revises its estimates of payments or receipts. Once the recorded value of a financial asset or a group of similar financial assets has been reduced due to an impairment loss, interest income continues to be recognized using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Interest income from bank loans and short- and long-term investments performed as part of the Group’s treasury function is classified as part of revenues, Interest income derived from loans issued to various third and related parties as part of other arrangements is classified as interest income. Cash receipts of both types of interest are included into interest received in the statement of cash flows. Interest expense from bank borrowings intended to attract funds to offer them as agents’ overdrafts is classified as part of cost of revenue. Interest expense derived from borrowings attracted from various third parties as part of other arrangements and interest expense from bank guaranties is classified as interest expense not as part of cost of revenue. Cash disbursements of both types of interest are included into interest paid in the statement of cash flows. |
Share-based payments | 3.15 Share-based payments Employees of the Group receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is recognized, together with a corresponding increase in other reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The statement of comprehensive income expense or credit for a period represents the movement in cumulative expense recognized as of the beginning and end of that period and is recognized in compensation to employees and other personnel expenses. No expense is recognized for awards that do not ultimately vest, except for equity-settled transactions for which vesting is conditional upon a market or non-vesting non-vesting When the terms of an equity-settled award are modified, the minimum expense recognized is the expense that would have been incurred had the terms not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification. When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share. The option awards that are outstanding as of December 31, 2017, 2016 and 2015 can only be settled in shares, that is why they are accounted for as equity-settled transactions. |
Leases | 3.16 Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date, whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. Group as a lessee Operating lease payments are recognized as an operating expense in the statement of comprehensive income on a straight-line basis over the lease term. Group as a lessor Leases in which the Group does not transfer substantially all the risks and benefits of ownership of an asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned. |
Non-current assets held for sale and discontinued operations | 3.17 Non-current Non-current Non-current In the statement of comprehensive income, income and expenses from discontinued operations are reported separately from income and expenses from continuing operations, down to the level of profit after taxes, even when the Group retains a non-controlling Property and equipment and intangible assets once classified as held for sale are not depreciated or amortized. |
Revenue recognition | Revenue recognition Payment processing fees revenue and transaction costs The Group exercised significant judgment in reaching a conclusion about its accounting policy for gross versus net reporting of payment processing fee revenues and related transaction costs. In particular, there are two major sources of payment processing fee revenues: • Payment processing fees charged to consumers on payments collected through agents, mobile operators and other payment methods; and • Payment processing fees charged to merchants. Either one of the two types of payment processing fees above, or in some cases, both payment processing fees apply to a single consumer payment. Transaction costs relate to acquisition of payments by agents, mobile operators, international payment systems and some other parties, and the applicable fees, generally determined as a percentage of consumer payment, for each specific payment channel are on terms similar to those available to other market participants. A merchants’ payment processing fee, when charged, is recorded gross of related transaction costs, because the Group (i) is the primary obligor as it undertakes to transfer the consumer payment to the merchant or other individual using its payment processing system; (ii) it negotiates and ultimately sets the fee receivable from a merchant or consumer, generally as a percentage of payments; and (iii) it bears credit risk in most of the cases, unless the payment is made from a deposit made with the Group. A consumer payment processing fee, when it is charged on payments made by consumers through payment kiosks and terminals, is reported net of any transaction costs payable to or retained by agents. This is because, although the Group is the primary obligor, it does not have any discretion over the ultimate payment processing fee set by the agent to the consumer, does not have readily available information about gross fee, and is only exposed to the net amount of fee receivable from agents. A consumer payment processing fee revenue is reported gross of related transaction costs. Such payments are made by consumers through the Group’s website or an application using a unique user login and password, and are called electronic payments. In contrast with the consumer payment processing fee revenue collected through payment kiosks and terminals, the Group, being a primary obligor in electronic payment transactions, also sets the consumer’s payment processing fee, generally as a percentage of payment, although credit risk for these transactions is limited. Thus, the Group concluded that its ability to control the consumer payment processing fee for electronic payments is a key differentiator from the consumer payment processing fees on payments collected through payment kiosks and terminals. The total amounts of transaction costs are disclosed in Note 23. Revenue from cash and settlement services The Group charges a fee for maintenance of current accounts of individuals and SME clients and for managing special guarantee deposit accounts made by agents to cover consumer payments they accept. Related revenues are reported gross of transaction costs paid to the same agents for collection of consumer payments, because these revenues relate to a separate service having distinct value to agents and are provided at their discretion. The total amounts of revenue from cash and settlement services are disclosed in Note 22 |
Functional currency | Functional currency Each entity in the Group determines its own functional currency, depending on the economic environment it operates in, and items included in the financial statements of each entity are measured using that functional currency. |
Significant estimates and assumptions | Significant estimates and assumptions Significant estimates reflected in the Company’s financial statements include, but are not limited to: • Fair values of assets and liabilities acquired in business combinations; • Impairment of intangible assets and goodwill; • Recoverability of deferred tax assets; • Impairment of loans and receivables; • Measurement of cost associated with share-based payments; • Uncertain position over risk assessment; Actual results could materially differ from those estimates. The key assumptions concerning the future events and other key sources of estimation uncertainty at the reporting date that have a significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: |
Fair values of assets and liabilities acquired in business combinations | Fair values of assets and liabilities acquired in business combinations The Group recognizes separately, at the acquisition date, the identifiable assets, liabilities and contingent liabilities acquired or assumed in the business combination at their fair values, which involves estimates. Such estimates are based on valuation techniques, which require considerable judgment in forecasting future cash flows and developing other assumptions. In some cases, when the amounts of fair values are significant, the Group hires third party appraisers to assist it in determining the related fair values. |
Impairment of goodwill and intangible assets | Impairment of goodwill and intangible assets The Group determines the following material CGUs: SOVEST, Payment services, Postomatnye Tekhnologii, Tochka, Rocketbank, New Terminal and Flocktory. For the purpose of goodwill impairment test, the Group estimates the recoverable amounts of Payment services CGU as fair value less costs of disposal on the basis of quoted prices of Company’s ordinary shares. See also Note 12 below for details. For the purpose of intangible assets with indefinite useful life impairment test, the Group estimates the recoverable amounts of each asset as fair value less costs of disposal on the basis of comparative method and cost approach. For the purpose of intangible assets with definite useful life impairment, when indicators of impairment are noted, the Group estimates the recoverable amounts as higher of value in use or fair value less costs to sell of an individual asset or the CGU to which this asset relates. |
Recoverability of deferred tax assets | Recoverability of deferred tax assets The utilization of deferred tax assets will depend on whether it is possible to generate sufficient taxable income against which the deductible temporary differences can be utilized. Various factors are used to assess the probability of the future utilization of deferred tax assets, including past operating results, operational plans, expiration of tax losses carried forward, and tax planning strategies. Certain portion of deferred tax assets was not recorded because the Group does not expect to realize certain of its tax loss carry forwards in the foreseeable future due to history of losses. Further details on deferred taxes are disclosed in Note 26. |
Impairment of loans and receivables | Impairment of loans and receivables Management assesses an impairment of loans and receivables to account for estimated losses resulting from the inability of customers to make required payments. When evaluating the adequacy of an impairment of loans and receivables, management bases its estimates on the aging of accounts receivable balances and loans and historical write-off The Group regularly reviews its loan portfolio to assess impairment. For instalment card loans the Group performs collective assessment of impairment for each loan portfolio group divided by overdue status of the loans (non-overdue; up to 30 days overdue, 30 to 60 days overdue, 60 to 90 days overdue, over 90 days overdue). The impairment assessment for each portfolio group is based on probability of default, loss given default and exposure at default. The Group uses internal historical instalment card loans loss rates statistics and roll-rates method for assessment of probabilities of default. The loss given default is an estimate of the loss arising in the case where a default occurs at a given time and is based on external market statistic. The exposure at default is an estimate of the exposure at a default date. Further details on provision for impairment of loans and receivables are disclosed in Notes 13, 14. |
Measurement of cost associated with share-based payments | Measurement of cost associated with share-based payments Share-based payments included expenses incurred under employee stock option plan (ESOP) and restricted stock unit plan (RSU). See also Note 31 below for more details. Management estimates the fair value of stock options at the date of grant using the Black-Scholes-Merton pricing model and its restricted stock units using the Binominal model. The option pricing models were originally developed for use in estimating the fair value of traded options, which have different characteristics than the stock options granted by the Company and its subsidiaries, associates and joint ventures. The models are also sensitive to changes in the subjective assumptions, which can materially affect the fair value estimate. These subjective assumptions include the expected life of the options, expected volatility, risk-free interest rates, expected dividend yield, the fair value of the underlying shares. The amount of expense is also sensitive to the number of awards, which are expected to vest, taking into account estimated forfeitures. Below is the discussion of each of these estimates: Assumptions used for ESOP valuation Expected life The Company did not have any option grants in the past, and does not have sufficient history to determine the time the option holders will hold the shares. Therefore, the Company used the expected term as the average between the vesting and contractual term of each option tranche for stock option plan. Expected volatility Due to a relatively short period of historical market data, QIWI’s share price volatility for options valuation was defined based on the historical volatility of peer group companies over a period, which approximates the expected life of option tranches. Risk-free interest rates Risk-free interest rates are based on the implied yield currently available in the US treasury bonds, adjusted for a country risk premium, with a remaining term approximating the expected life of the option award being valued. Expected dividend yield At the time of grant in 2012 the Group had no plans to pay cash dividends, and the Group used an expected dividend yield of zero in its option pricing model for option awards granted in 2012. Following its IPO in 2013, the Group started to pay dividends and set an expected dividend yield of 2.83% based on post-IPO Fair value of the underlying shares Prior to May 2013 the Company’s ordinary shares were not publicly traded. Therefore, it estimated the fair value of the underlying shares on the basis of valuations arrived at by employing the “income approach” valuation methodology. Since May 2013 QIWI plc is a public company and the fair value of its shares defined by reference to closing market price of its traded shares. Estimated forfeitures As of the dates of stock options grants had no data of attrition rate among key personnel and management resulted in an estimated forfeiture rate of zero. Subsequently, the actual forfeiture rate is higher, the actual amount of related expense will become lower. Assumptions used for RSU valuation Expected life The Company used the expected term as the vesting term for RSU plan. Expected volatility The expected volatility reflects the assumption that the historical QIWI’s share price volatility over a period similar to the life of the RSUs is indicative of future trends, which may not necessarily be the actual outcome. Risk-free interest rates Risk-free interest rates are based on the implied yield currently available in the US treasury bonds, adjusted for a country risk premium, with a remaining term approximating the expected life of the option award being valued. Expected dividend yield Before September 2017 the Group set an expected dividend yield of 5.03% based on historical payout. Following September 2017, the Group stoped to pay dividends and set an expected dividend yield of zero. Fair value of the underlying shares The fair value of shares defined by reference to closing market price of the Group’s traded shares. Estimated forfeitures The forfeiture rate for RSUs granted during the period is 9%. It is based on historical data and current expectations and is not necessarily indicative of forfeiture patterns that may occur. |
Uncertain position over risk assessment | Uncertain position over risk assessment The Group disclosed possible and accrued probable risks in respect on currency, customs, tax and other regulatory positions. Management estimates the amount of risk based on its interpretation of the relevant legislation, in accordance with the current industry practice and in conformity with its estimation of probability, which require considerable judgment. |
Principles underlying prepara40
Principles underlying preparation of consolidated financial statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Provisional Impact of IFRS 9 Adoption | In summary, the provisional impact of IFRS 9 adoption as of December 31, 2017 is expected to be, as follows: Ajustments Amount Assets Cash and cash equivalents b (130 ) Trade and other receivables b (38 ) Loans issued b (93 ) Debt instruments b (5 ) Deferred tax assets d 75 Total assets (191 ) Liabililies Other current liabilities b (111 ) Total Liabililies (111 ) Net impact on equity, Including (302 ) Retained earnings b (302 ) |
Summary of significant accoun41
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Exchange Rates of Russian Ruble to Each Respective Currency | The exchange rates of the Russian ruble to each respective currency as of December 31, 2017 and 2016 were as follows: Average exchange rates for Exchange rates at 2016 2017 2016 2017 US Dollar 67.0349 58.3529 60.6569 57.6002 Euro 74.2310 65.9014 63.8111 68.8668 Kazakhstan Tenge (100) 19.5980 17.8959 18.1637 17.3184 Belarussian Ruble 33.7165 30.2125 30.9474 29.1013 Moldovan Leu (10) 33.6961 31.6871 30.5269 33.6548 New Romanian Leu 16.5315 14.4216 14.0722 14.7822 |
Summary of Useful Lives of Property and Equipment | Depreciation is calculated on property and equipment on a straight-line basis from the time the assets are available for use, over their estimated useful lives as follows: Processing servers and engineering equipment 3-10 years Computers and office equipment 3-5 Other equipment 2-20 years |
Summary of Useful Lives of Intangible Assets | Below is the summary of useful lives of intangible assets: Customer relationships and contract rights 4-15 years Computer Software 3-10 years Bank license indefinite Trademarks and other intangible assets 3-6 |
Consolidated subsidiaries (Tabl
Consolidated subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Description of Subsidiaries and Ownership Interest | The consolidated IFRS financial statements include the assets, liabilities and financial results of the Company and its subsidiaries. The subsidiaries are listed below: Ownership interest Subsidiary Main activity As of December 31, As of December 31, JSC QIWI (Russia) Operation of electronic payment kiosks 100 % 100 % QIWI Bank JSC (Russia) Maintenance of electronic payment systems, money transfer, consumer and SME financial services 100 % 100 % QIWI Payments Services Provider Ltd (UAE) Operation of on-line 100 % 100 % QIWI International Payment System LLC (USA) Operation of electronic payment kiosks 100 % 100 % Qiwi Kazakhstan LP (Kazakhstan) Operation of electronic payment kiosks 100 % 100 % JLLC OSMP BEL (Belarus) Operation of electronic payment kiosks 51 % 51 % QIWI – M S.R.L. (Moldova) Operation of electronic payment kiosks 51 % 51 % QIWI ROMANIA SRL Operation of electronic payment kiosks 100 % 100 % QIWI WALLET EUROPE SIA (Latvia) (Note 7.2) Operation of on-line 100 % 100 % QIWI Retail LLC (Russia) Sublease of space for electronic payment kiosks 100 % 100 % QIWI Management Services FZ-LLC Management services 100 % 100 % CIHRUS LLC (Russia) 1 Management services 100 % — Attenium LLC (Russia) Management services 100 % 100 % Rapida LTD (Russia) 2 Operation of payment processing and money transfer settlement systems 100 % — Postomatnye Tekhnologii LLC (Russia) Logistic 100 % 100 % Future Pay LLC (Russia) Operation of on-line 100 % 100 % Qiwi Blockchain Technologies LLC (Russia) Software development 100 % 100 % QIWI Shtrikh LLC (Russia) 3 On-line — 51 % QIWI Platform LLC (Russia) 4 Software development — 100 % QIWI Processing LLC (Russia) 3 Software development — 100 % Joint ventures (Note 6, Note 21) Flocktory Ltd (Cyprus) Holding company — 82 % Flocktory Spain S.L. (Spain) SaaS platform for customer lifecycle management and personalization — 82 % FreeAtLast LLC (Russia) SaaS platform for customer lifecycle management and personalization — 82 % 1 The entity was reorganized in the form of accession to JSC QIWI in 2017 2 The entity was reorganized in the form of accession to QIWI Bank JSC in 2017 3 The entities were incorporated in 2017 4 The entity with negligible net assets was acquired for insignificant consideration in 2017 |
Acquisition of joint venture (T
Acquisition of joint venture (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Disclosure of Detailed Information About Business Combinations Cash Consideration | The consideration was made by the following: Cash consideration paid 794 Cash payable for Flocktory’s stock option plan cancelation* 37 Total purchase consideration transferred 831 * Based on Share purchase agreement (SPA) Qiwi plc is obliged to offer to employee stock option plan (ESOP) participants of Flocktory Ltd cash consideration for cancellation of 504 ESOP rights, 259 of which were cancelled at the date of acquisition (March 22, 2017), 120 to be offered for cancellation – at March 22, 2018, and 125 at March 22, 2019. |
Summary of Fair Value of The Identifiable Assets and Liablilities as of The Date of Acquisition | The fair value of the identifiable assets and liabilities as of the date of acquisition was: Net assets acquired: Property and equipment 1 Intangible assets 720 Accounts receivable 26 Cash and cash equivalents 55 Trade and other payables (21 ) Other liabilities (1 ) Total identifiable net assets at fair value 780 Group’s share of net assets (82%) 639 Goodwill arising on acquisition 192 |
Disposals of subsidiaries and44
Disposals of subsidiaries and Disposal Groups Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Gain/Loss on Disposal of Subsidiaries | Net liabilities of Processingovyi Tsentr Rapida LLC derecognized on disposal 230 Disposal of indemnity asset related to the subsidiary (240 ) Loss on disposal (10 ) |
Assets and Liabilities of Disposal Group as of Disposal Date | Below are the assets and liabilities of Processingovyi Tsentr Rapida LLC as of date of disposal: Processingovyi Tsentr Rapida LLC Assets: Other current assets 13 Total assets 13 Liabilities: Income tax payable 240 Other current liabilities 3 Total liabilities 243 |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Segments' Statement of Comprehensive Income | The segments’ statement of comprehensive income for the years ended December 31, 2015, 2016 and 2017, as presented to the CODM are presented below: 2017 PS CFS CO Total Segment net revenue 12,580 9 604 13,193 Segment profit/(loss) before tax 8,795 (2,704 ) (1,273 ) 4,818 Segment net profit/(loss) 7,543 (2,164 ) (1,325 ) 4,054 2015* 2016* PS CO Total PS CFS CO Total Segment net revenue 10,198 30 10,228 10,583 (3 ) 31 10,611 Segment profit/(loss) before tax 6,066 (995 ) 5,071 6,454 (259 ) (605 ) 5,590 Segment net profit/(loss) 5,242 (1,100 ) 4,142 5,612 (219 ) (679 ) 4,714 * For comparative purposes 2015 and 2016 segment information is presented in 2017 format. |
Schedule of Segment Net Revenue | Segment net revenue, as presented to the CODM, for the years ended December 31, 2015, 2016 and 2017 is calculated by subtracting cost of revenue (exclusive of depreciation and amortization) from revenue and adding back payroll and related taxes as presented in the table below: 2015 2016 2017 Revenue under IFRS 17,717 17,880 20,897 Cost of revenue (exclusive of depreciation and amortization) (8,695 ) (8,646 ) (9,763 ) Payroll and related taxes 1,206 1,377 2,059 Total segment net revenue, as presented to CODM 10,228 10,611 13,193 |
Schedule of Reconciliation of Segment Profit before Tax | A reconciliation of segment profit before tax to IFRS consolidated profit before tax of the Group, as presented to the CODM, for the years ended December 31, 2015, 2016 and 2017 is presented below: 2015 2016 2017 Consolidated profit before tax under IFRS 6,151 3,107 3,840 Amortization of fair value adjustments to intangible assets recorded on acquisitions 270 396 344 Share – based payments 88 224 398 Foreign exchange gain/(loss) from revaluation of cash proceeds received from secondary public offering (1,476 ) 975 236 Impairment of intangible assets recorded on acquisitions — 878 — Loss on disposal of subsidiaries, net 38 10 — Total segment profit before tax, as presented to CODM 5,071 5,590 4,818 |
Schedule of Reconciliation of Segment Net Profit | A reconciliation of segment net profit to IFRS consolidated net profit of the Group, as presented to the CODM, for the years ended December 31, 2015, 2016 and 2017 is presented below: 2015 2016 2017 Consolidated net profit under IFRS 5,274 2,489 3,142 Amortization of fair value adjustments to intangible assets recorded on acquisitions 270 396 344 Share – based payments 88 224 398 Foreign exchange gain/(loss) from revaluation of cash proceeds received from secondary public offering (1,476 ) 975 236 Impairment of intangible assets recorded on acquisitions — 878 — Loss on disposal of subsidiaries, net 38 10 — Effect from taxation of the above items (52 ) (258 ) (66 ) Total segment net profit, as presented to CODM 4,142 4,714 4,054 |
Schedule of Revenue from External Customers | Revenues from external customers are presented below: 2015 2016 2017 Russia 13,737 13,274 15,556 CIS 1,019 1,099 1,098 EU 566 807 989 Other 2,395 2,700 3,254 Total revenue per consolidated statement of comprehensive income 17,717 17,880 20,897 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Calculation of Basic and Diluted Earnings Per Share Amounts | The following reflects the income and share data used in basic and diluted earnings per share computations for the years ended December 31: 2015 2016 2017 Net profit attributable to ordinary equity holders of the parent for basic earnings 5,187 2,474 3,114 Weighted average number of ordinary shares for basic earnings per share 57,819,164 60,477,840 60,755,706 Effect of share-based payments 147,851 167,197 404,357 Weighted average number of ordinary shares for diluted earnings per share 57,967,015 60,645,037 61,160,063 Earnings per share: Basic, profit attributable to ordinary equity holders of the parent 89.72 40.91 51.25 Diluted, profit attributable to ordinary equity holders of the parent 89.49 40.79 50.92 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Property and Equipment | Processing Computers Other Construction Advances Total Cost Balance as of December 31, 2015 498 71 92 15 676 Transfer between groups 11 — — (11 ) — Additions 215 19 76 78 388 Disposals (27 ) 2 (6 ) — (31 ) Foreign currency translation (2 ) (1 ) — (1 ) (4 ) Balance as of December 31, 2016 695 91 162 81 1,029 Transfer between groups 77 1 — (78 ) — Additions 196 45 16 108 365 Disposals (146 ) (7 ) (4 ) — (157 ) Balance as of December 31, 2017 822 130 174 111 1,237 Accumulated depreciation and impairment: Balance as of December 31, 2015 (234 ) (42 ) (34 ) — (310 ) Depreciation charge (113 ) (17 ) (19 ) — (149 ) Disposals 20 (3 ) 6 — 23 Foreign currency translation (1 ) 1 — — — Balance as of December 31, 2016 (328 ) (61 ) (47 ) — (436 ) Depreciation charge (150 ) (21 ) (35 ) — (206 ) Disposals 122 6 1 — 129 Balance as of December 31, 2017 (356 ) (76 ) (81 ) — (513 ) Net book value As of December 31, 2015 264 29 58 15 366 As of December 31, 2016 367 30 115 81 593 As of December 31, 2017 466 54 93 111 724 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Intangible Assets | Cost: Goodwill Licenses Computer Customer Trade Contract rights Advances for and others Total Balance as of December 31, 2015 6,285 284 898 5,326 216 295 11 13,315 Additions — — 182 — — — 110 292 Additions from business combinations — — — 12 — — — 12 Transfer between groups — — 3 — — — (3 ) — Disposals — — (173 ) — — — (6 ) (179 ) Balance as of December 31, 2016 6,285 284 910 5,338 216 295 112 13,440 Additions — — 244 — — — 240 484 Transfer between groups — — 54 — — — (54 ) — Disposals — (101 ) (125 ) (12 ) — (295 ) (99 ) (632 ) Balance as of December 31, 2017 6,285 183 1,083 5,326 216 — 199 13,292 Accumulated Amortization: Balance as of December 31, 2015 — — (368 ) (371 ) (23 ) (295 ) (4 ) (1,061 ) Amortization charge — (28 ) (233 ) (345 ) (40 ) — (1 ) (647 ) Impairment — (31 ) (8 ) (820 ) (27 ) — — (886 ) Disposals — — 173 — — — 3 176 Balance as of December 31, 2016 — (59 ) (436 ) (1,536 ) (90 ) (295 ) (2 ) (2,418 ) Amortization charge — (42 ) (220 ) (286 ) (36 ) — (6 ) (590 ) Impairment — — — (8 ) — — (96 ) (104 ) Disposals — 101 120 12 2 295 97 627 Balance as of December 31, 2017 — — (536 ) (1,818 ) (124 ) — (7 ) (2,485 ) Net book value As of December 31, 2015 6,285 284 530 4,955 193 — 7 12,254 As of December 31, 2016 6,285 225 474 3,802 126 — 110 11,022 As of December 31, 2017 6,285 183 547 3,508 92 — 192 10,807 |
Impairment testing of goodwil49
Impairment testing of goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Movements in Intangible Assets | An analysis and movement of net book value of goodwill and indefinite life licenses acquired through business combinations, as included in the intangible assets (Note 11), is as follows: As of December 31, 2015 6,569 Transfer to intangible assets with definite useful life (101 ) As of December 31, 2016 6,468 Transfer to intangible assets with definite useful life — As of December 31, 2017 6,468 |
Long-term and short-term loan50
Long-term and short-term loans issued (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Long-Term and Short-Term Loans Issued | As of December 31, 2017, long-term and short-term loans issued consisted of the following: Total as of December 31, Provision for Net as of December 31, Long-term loans Loans to individuals 1 — 1 Loans to legal entities 166 (3 ) 163 Total long-term loans 167 (3 ) 164 Short-term loans Loans to financial institutions 3 (3 ) — Loans to legal entities 94 (93 ) 1 Instalment Card Loans* 1,912 (222 ) 1,690 Total short-term loans 2,009 (318 ) 1,691 * Instalment Card Loans are primarily represented by new consumer oriented payment-by time-to-time As of December 31, 2016, long-term and short-term loans consisted of the following: Total as of December 31, Provision for Net as of December 31, Long-term loans Loans to individuals 7 — 7 Loans to legal entities 113 — 113 Total long-term loans 120 — 120 Short-term loans Loans to financial institutions 3 (3 ) — Loans to individuals 17 — 17 Loans to legal entities 115 (113 ) 2 Total short-term loans 135 (116 ) 19 |
Summary of Provision for Impairment of Loans Movement | As of December 31, 2017, the provision for impairment of loans movement was the following: Provision for of loans as of December 31, 2016 (Charge)/ Utilisation Provision for of loans as of December 31, Instalment Card Loans — (222 ) — (222 ) Loans to legal entities (113 ) 3 14 (96 ) Loans to financial institutions (3 ) — — (3 ) Total (116 ) (219 ) 14 (321 ) As of December 31, 2016, the provision for impairment of loans movement was the following: Provision for of loans as of December 31, 2015 Charge for Utilisation Provision for of loans as of December 31, Loans to legal entities (199 ) (53 ) 139 (113 ) Loans to financial institutions (3 ) — — (3 ) Total (202 ) (53 ) 139 (116 ) |
Analysis of Loans by Credit Quality | Analysis of loans by credit quality is as follows: December 31, 2017 December 31, 2016 Instalment Loans to Loans Loans to Loans to Loans Loans to Loans assessed individually — 1 260 3 24 228 3 Loans assessed collectively: - non-overdue 1,668 — — — — — — - up to 30 days overdue 88 — — — — — — - 30 to 60 days overdue 35 — — — — — — - 60 to 90 days overdue 25 — — — — — — - over 90 days overdue 96 — — — — — — Less: Provision for loan impairment (222 ) — (96 ) (3 ) — (113 ) (3 ) Total loans issued 1,690 1 164 — 24 115 — |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Trade and Other Receivables | As of December 31, 2017, trade and other receivables consisted of the following: Total as of Provision for Net as of December 31, Cash receivable from agents 4,666 (426 ) 4,240 Deposits issued to merchants 3,919 (13 ) 3,906 Comissions receivable 827 (18 ) 809 Advances issued 240 (1 ) 239 Rent receivables 101 (73 ) 28 Other receivables* 440 (14 ) 426 Total trade and other receivables 10,193 (545 ) 9,648 * As of December 31, 2017 the other receivables includes the amount of 336 from Otkritie bank for assets with incomplete transfer of ownership (see Note 10 and 11). As of December 31, 2016, trade and other receivables consisted of the following: Total as of Provision for Net as of December 31, Cash receivable from agents 3,657 (659 ) 2,998 Deposits issued to merchants 2,318 (3 ) 2,315 Comissions receivable 162 (7 ) 155 Advances issued 144 (1 ) 143 Rent receivables 106 (95 ) 11 Other receivables 71 (14 ) 57 Total trade and other receivables 6,458 (779 ) 5,679 |
Summary of Ageing Analysis of Trade Receivables That Are Past Due but Not Impaired | The ageing analysis of trade receivables that are past due but not impaired as of December 31, 2017 are presented below: Ageing of receivables (days) As of December 31, 2017 Total <30 30-60 60-90 90-180 180-360 >360 Cash receivable from agents 4,240 4,217 20 1 0 2 0 Comissions receivable 809 797 5 5 – 1 1 Rent receivables 28 19 6 2 1 – – Total trade and other receivables 5,077 5,033 31 8 1 3 1 The ageing analysis of trade receivables that are past due but not impaired as of December 31, 2016 are presented below: Ageing of receivables (days) As of December 31, 2016 Total <30 30-60 60-90 90-180 180-360 >360 Cash receivable from agents 2,998 2,568 423 1 3 1 2 Comissions receivable 155 141 10 1 2 1 — Rent receivables 11 7 3 1 — — — Total trade and other receivables 3,164 2,716 436 3 5 2 2 |
Summary of Provision for Impairment of Receivables Movement | For the year ended December 31, 2017, the provision for impairment of receivables movement was the following: Provision for (Charge)/ reversal for Utilisation Provision for Cash receivable from agents (659 ) 16 217 (426 ) Deposits issued to merchants (3 ) (11 ) 1 (13 ) Comissions receivable (7 ) (11 ) — (18 ) Advances issued (1 ) — — (1 ) Rent receivables (95 ) 10 12 (73 ) Other receivables (14 ) (5 ) 5 (14 ) Total trade and other receivables (779 ) (1 ) 235 (545 ) For the year ended December 31, 2016, the provision for impairment of receivables movement was the following: Provision for (Charge)/ Utilisation Provision for Cash receivable from agents (660 ) (125 ) 126 (659 ) Deposits issued to merchants (1 ) (2 ) — (3 ) Comissions receivable (21 ) (1 ) 15 (7 ) Advances issued (1 ) — — (1 ) Rent receivables (95 ) (15 ) 15 (95 ) Other receivables (16 ) 1 1 (14 ) Total trade and other receivables (794 ) (142 ) 157 (779 ) For the year ended December 31, 2015, the provision for impairment of receivables movement was the following: Provision for (Charge)/ Utilisation Provision for Cash receivable from agents (506 ) (204 ) 50 (660 ) Deposits issued to merchants (6 ) (1 ) 6 (1 ) Comissions receivable (3 ) (19 ) 1 (21 ) Advances issued (2 ) 1 — (1 ) Rent receivables (29 ) (70 ) 4 (95 ) Other receivables (18 ) (6 ) 8 (16 ) Total trade and other receivables (564 ) (299 ) 69 (794 ) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Sechedule of Cash and Cash Equivalents | As of December 31, 2017 and 2016, cash and cash equivalents consisted of the following: As of December 31, As of December 31, Correspondent accounts with Central Bank of Russia (CBR) 1,877 6,522 Correspondent accounts with other banks 2,789 2,890 Short-term CBR deposits 9,201 6,500 Other short-term bank deposits 3,857 1,322 RUB denominated cash with banks and on hand 294 600 Other currency denominated cash with banks and on hand 979 572 Total cash and cash equivalents 18,997 18,406 |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Current Assets | As of December 31, 2017 and 2016, other current assets consisted of the following: As of December 31, 2016 As of December 31, Indemnification asset 60 30 Reserves at CBR* 312 229 Prepaid expenses 204 99 VAT and other taxes receivable 22 51 Other 63 49 Total other current assets 661 458 |
Share capital, additional pai54
Share capital, additional paid-in capital, share premium and other reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Authorised, Issued and Fully Paid Shares | Authorised shares As of December 31, As of December 31, As of December 31, Thousands Thousands Thousands Ordinary Class A shares 133,017 133,017 131,778 Ordinary Class B shares 97,833 97,833 99,072 Total authorised shares 230,850 230,850 230,850 Issued and fully paid shares As of December 31, As of December 31, As of December 31, Thousands Thousands Thousands Ordinary Class A shares 15,517 15,517 14,278 Ordinary Class B shares 44,902 45,080 46,655 Total issued and fully paid shares 60,419 60,597 60,933 |
Summary of Share Capital and Share Premium Movements | For the year ended December 31, 2017 and 2016 the share capital and share premium movement was the following: Number of issued Share Share Thousands As of December 31, 2015 60,419 1 12,068 Increase of share capital due to exercise of options by employees during the year 178 — — As of December 31, 2016 60,597 1 12,068 Increase of share capital due to exercise of options by employees during the year 336 — — As of December 31, 2017 60,933 1 12,068 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Trade and Other Payables | As of December 31, 2017 and 2016, the Group’s trade and other payables consisted of the following: As of December 31, As of December 31, Payables to merchants 6,696 9,178 Deposits received from agents 4,030 3,638 Deposits received from individual customers 3,961 4,726 Payment processing fees payable 504 469 Unsettled money remittances 433 586 Accrued personnel expenses and related taxes 323 353 Payables to vendors 338 536 Payables for rent 24 37 Other advances received 19 76 Total trade and other payables 16,328 19,599 |
Customer accounts and amounts56
Customer accounts and amounts due to banks (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Customer Accounts and Amounts Due to Bank | As of December 31, 2017 and 2016, customer accounts and amounts due to banks consisted of the following: As of December 31, As of December 31, Due to banks 1,207 1,390 Due to individuals 34 110 Due to legal entities 1,101 1,571 Term deposits — 111 Total customer accounts and amounts due to banks 2,342 3,182 |
Investment in joint ventures (T
Investment in joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Financial Information of Group's Investment in Flocktory Joint Venture | The following table illustrates summarized financial information of the Group’s investment in Flocktory joint venture: As of Share of the joint venture companies’ statement of financial position: Non-current 666 Current assets 125 including cash and cash equivalents 80 Current liabilities (11 ) including financial liabilities (9 ) Net assets 780 Group’s share (82%) of net assets 640 Goodwill 192 Carrying amount of investment in joint venture companies 832 |
Summary of Joint Venture's Revenue and Net Income | Share of the joint venture’s revenue and net income for year ended December 31, 2017: Revenue 187 Cost of revenues (79 ) Other income and expenses, net (107 ) including selling, general and administrative expenses (55 ) including depreciation and amortization (59 ) Total comprehensive income 1 Group’s share (82%) of total comprehensive income 1 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Revenue | Revenue for the years ended December 31 was as follows: 2015 2016 2017 Payment processing fees 14,935 16,289 18,575 Interest revenue 731 899 1,052 Cash and settlement services 557 130 670 Other revenue 1,494 562 600 Total revenue 17,717 17,880 20,897 |
Schedule of Interest Income Net | For the purposes of consolidated cash flow statement, “Interest income, net” consists of the following: 2015 2016 2017 Interest revenue (731 ) (899 ) (1,052 ) Interest expense classified as part of cost of revenue 79 37 42 Interest income from non-banking (16 ) (36 ) (35 ) Interest expense from non-banking 109 64 29 Interest income, net, for the purposes of consolidated cash flow statement (559 ) (834 ) (1,016 ) |
Cost of revenue (exclusive of59
Cost of revenue (exclusive of depreciation and amortization) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Cost of Revenue Excluding Depreciation and Amortization | Cost of revenue (exclusive of depreciation and amortization) for the years ended December 31 was as follows: 2015 2016 2017 Transaction costs 6,300 6,490 6,756 Payroll and related taxes 1,206 1,377 2,059 Other expenses 1,189 779 948 Total cost of revenue (exclusive of depreciation and amortization) 8,695 8,646 9,763 |
Selling, general and administ60
Selling, general and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Selling, General and Administrative Expenses | Selling, general and administrative expenses for the years ended December 31 were as follows: 2015* 2016* 2017 Compensation to employees, related taxes and other personnel expenses 1,511 1,682 2,227 Rent of premises and related utility expenses 338 346 391 Bad debt expense 362 215 220 Advertising, client acquisition and related expenses 242 165 1,294 Advisory and audit services 357 297 433 Tax expenses, except of income and payroll relates taxes 155 175 407 IT related services 176 180 236 Other expenses 328 363 1,035 Total selling, general and administrative expenses 3,469 3,423 6,243 * Since 1 January 2017, general and administrative expenses have been revised to present more detailed classification of items based on their nature to provide the users of the financial statements with more relevant information. Certain comparative amounts have been reclassified to conform to the current period’s presentation. |
Dividends paid and proposed (Ta
Dividends paid and proposed (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Dividends Paid and Proposed | Dividends paid and proposed by the Group to the shareholders of the parent are presented below: 2015 2016 2017 Proposed, declared and approved during the year: 2017: Final dividend for 2016: U.S.$ 11,520,798, Interim dividend for 2017: U.S.$ 26,113,788 (2016: Final dividend for 2015: U.S.$ 30,210,153, Interim dividend for 2016: U.S.$ 39,943,003 2015: Interim dividend for 2015: U.S.$ 13,640,343) 694 4,843 2,207 Paid during the period*: 2017: Final dividend for 2016: U.S.$ 11,520,798, Interim dividend for 2017: U.S.$ 26,113,788 (2016: Final dividend for 2015: U.S.$ 30,210,153, Interim dividend for 2016: U.S.$ 39,943,003 2015: Interim dividend for 2015: U.S.$ 13,640,343) 699 4,628 2,148 Proposed for approval (not recognized as a liability as of December 31): 2017: nill 2016: Final dividend for 2016: U.S.$ 11,513,436 2015: Final dividend for 2015: U.S.$ 30,209,301 2,237 679 — Dividends payable as of December 31 — — — * The difference between paid and declared dividends represents foreign exchange movement |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities as of December 31, 2017 and 2016, relate to the following: Consolidated statement of Consolidated statement of 2017 2016 2017 2016 Intangible assets (719 ) (784 ) 65 265 Trade and other payables 166 130 36 9 Trade and other receivables 101 138 (37 ) (20 ) Loans issued 48 27 21 7 Taxes on unremitted earnings (184 ) (75 ) (109 ) 19 Other 7 (17 ) 24 (27 ) Net deferred income tax asset/(liability) (581 ) (581 ) – 253 including: Deferred tax asset 245 270 Deferred tax liability (826 ) (851 ) |
Summary of Reconciliation of Deferred Income Tax Assets (Liability), Net | Reconciliation of deferred income tax asset/(liability), net: 2015 2016 2017 Deferred income tax asset/(liability), net as of January 1 203 (834 ) (581 ) Effect of acquisitions of subsidiaries (1,037 ) – – Deferred tax benefit/(expense) – 253 – Deferred income tax asset/(liability), net as of December 31 (834 ) (581 ) (581 ) |
Summary of Income Tax Expense | For the year ended December 31 income tax expense included: 2015 2016 2017 Total tax expense Current income tax expense (877 ) (871 ) (698 ) Deferred tax benefit/(expense) – 253 – Income tax expense for the year (877 ) (618 ) (698 ) |
Reconciliation of Theoretical and Actual Income Tax Expense | Theoretical and actual income tax expense is reconciled as follows: 2015 2016 2017 Profit before tax 6,151 3,107 3,840 Theoretical income tax expense at the domestic rate in each individual jurisdiction (802 ) (278 ) (370 ) (Increase)/decrease resulting from the tax effect of: Non-taxable 200 39 12 Non-deductible (105 ) (269 ) (222 ) Income tax associated with earnings of foreign subsidiaries (102 ) (95 ) (109 ) Unrecognized deferred tax assets (68 ) (15 ) (9 ) Total income tax expense (877 ) (618 ) (698 ) |
Commitments, contingencies an63
Commitments, contingencies and operating risks (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Future Minimum Lease Rentals Under Non Cancellable Operating Lease Commitments for Office Premises | Future minimum lease rentals under non-cancellable As of December 31, As of December 31, 2017 Within one year 244 397 After one year but not more than five years 583 693 |
Schedule of Outstanding Credit Limits Possible to Be Used and Related Commitments | Outstanding credit limits possible to be used including credit limits not yet activated by the customers and related commitments are as follows: As of December 31, 2016 As of December 31, 2017 Unused limits on instalment card loans 127 8,603 |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Change in US Dollar and Euro Exchange Rates Against Ruble, with all Other Variable Held Constant | The following tables demonstrate the sensitivity to a reasonably possible change in US Dollar and Euro exchange rates against Ruble, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the carrying amount of monetary assets and liabilities denominated in US Dollar and Euro when these currencies are not functional currencies of the respective Group subsidiary. The Group’s exposure to foreign currency changes for all other currencies is not material. change in US Dollar Effect on profit before tax Gain/(loss) 2017 +11% 83 - 11% (83) 2016 +20% 655 - 20% (655) change in Euro Effect on profit before tax Gain/(loss) 2017 +12.5% 36 - 12.5% (36) 2016 +20% 40 - 20% (40) |
Summary of Maturity Profile of Company's Financial Liabilities Based on Contractual Undiscounted Payments | from its operations. The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments. Due: Total On Within a year More than a Trade and other payables (Note 19) 19,599 19,599 — — Customer accounts and amounts due to banks (Note 20) 3,182 3,071 111 — Total as of December 31, 2017 22,781 22,670 111 — Due: Total On Within a year More than a Trade and other payables (Note 19) 16,328 16,328 — — Customer accounts and amounts due to banks (Note 20) 2,342 2,342 — — Total as of December 31, 2016 18,670 18,670 — — |
Summary of Largest Counter Parties Balance as Percentage of Respective Totals | type of receivables (Note 14). The table below demonstrates the largest counterparties’ balances, as a percentage of respective totals: Trade and other receivables As of December 31, As of December 31, Concentration of credit risks by main counterparties, % from total amount Top 5 counterparties 60 % 47 % Others 40 % 53 % |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Fair Value of Type Financial Instrument | The fair value of the Group’s financial instruments as of December 31, 2017 and 2016 is presented by type of the financial instrument in the table below: As of December 31, As of December 31, Carrying Fair Carrying Fair Financial assets Debt instruments HTM 2,171 2,195 1,804 1,827 Long-term loans LAR 120 120 164 164 Total financial assets 2,291 2,315 1,968 1,991 |
Summary of Fair Value Measurement Hierarchy of Assets and Liabilities | The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities: Fair value measurement using Quoted prices Significant Significant Date of valuation Total (Level 1) (Level 2) (Level 3) Assets for which fair values are disclosed Debt instruments December 31, 2017 1,827 1,827 — — Long-term loans December 31, 2017 164 — — 164 Assets for which fair values are disclosed Debt instruments December 31, 2016 2,195 2,195 — — Long-term loans December 31, 2016 120 — — 120 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Option Plans | 2012 Employee Stock Option Plan (ESOP) 2015 Restricted Stock Unit Plan (RSU Plan) Adoption date October, 2012 July, 2015 Type of shares class B shares class B shares Number of options or RSUs reserved Up to 7 % of total amount of shares Up to 7 % of total amount of shares Exercise price Granted during: Granted during: Year 2012: U.S. $13.65 Year 2016: n/a Year 2013: U.S. $41.24 – 46.57 Year 2017: n/a Year 2014: U.S. $34.09 – 37.89 Year 2017: U.S. $ 23.94 Exercise basis Shares Shares Expiration date December 2020 December 2022 Vesting period Up to 4 years Three vesting during up to 2 years Other major terms The options are not transferrable - The units are not transferrable - All other terms of the units under 2015 RSU Plan are to be determined by the Company’s BOD or the CEO, if so resolved by the BOD, acting as administrator of the Plan |
Schedule of Changes in Outstanding Options | 31.2. Changes in outstanding options The following table illustrates the movements in share options during the year ended December 31, 2017: As of December 31, Granted during Forfeited during the Exercised As of December 31, 2012 ESOP 1,929,089 27,743 (282,000 ) (146,692 ) 1,528,140 2015 RSU Plan 414,035 512,108 (66,732 ) (314,033 ) 545,378 Total 2,343,124 539,851 (348,732 ) (460,725 ) 2,073,518 |
Schedule of Valuations of Share-based Payments | The valuation of all equity-settled options granted are summarized in the table below: Option plan/ Grant date Number of Dividend Volatility,% Risk-free Expec- Weighted Weighted RSU (U.S. Valuation 2012 ESOP 4,128,521 0-5.03% 28%- 49.85% 0.29 3.85 %- % 2-4 28.10 7.14 Black- 2015 RSU Plan 1,095,708 0-5.03% 50.65%- 64.02% 2.89 3.19 %- % 0-2 15.04 14.41 Binominal |
Principles Underlying Prepara67
Principles Underlying Preparation of Consolidated Financial Statements - Summary of Provisional Impact of IFRS 9 Adoption (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | ₽ 18,406 | ₽ 18,997 | ||
Trade and other receivables | 9,648 | 5,679 | ||
Deferred tax assets | 245 | 270 | ||
Total assets | 45,059 | 39,674 | ||
Liabililies | ||||
Net impact on equity, Including | 21,157 | 19,969 | ₽ 22,436 | ₽ 8,334 |
Retained earnings | 5,715 | ₽ 4,808 | ||
In accordance with IFRS 9 [member] | ||||
Assets | ||||
Cash and cash equivalents | (130) | |||
Trade and other receivables | (38) | |||
Loans issued | (93) | |||
Debt instruments | (5) | |||
Deferred tax assets | 75 | |||
Total assets | (191) | |||
Liabililies | ||||
Other current liabilities | (111) | |||
Total Liabililies | (111) | |||
Net impact on equity, Including | (302) | |||
Retained earnings | ₽ (302) |
Summary of Significant Accoun68
Summary of Significant Accounting Policies - Schedule of Exchange Rates of Russian Ruble to Each Respective Currency (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
US Dollar [member] | ||
Disclosure of significant accounting policies [line items] | ||
Average exchange rate | 58.3529 | 67.0349 |
Exchange rates | 57.6002 | 60.6569 |
Euro [member] | ||
Disclosure of significant accounting policies [line items] | ||
Average exchange rate | 65.9014 | 74.2310 |
Exchange rates | 68.8668 | 63.8111 |
Kazakhstan Tenge (100) [member] | ||
Disclosure of significant accounting policies [line items] | ||
Average exchange rate | 17.8959 | 19.5980 |
Exchange rates | 17.3184 | 18.1637 |
Belarussian Ruble [member] | ||
Disclosure of significant accounting policies [line items] | ||
Average exchange rate | 30.2125 | 33.7165 |
Exchange rates | 29.1013 | 30.9474 |
Moldovan Leu (10) [member] | ||
Disclosure of significant accounting policies [line items] | ||
Average exchange rate | 31.6871 | 33.6961 |
Exchange rates | 33.6548 | 30.5269 |
New Romanian Leu [member] | ||
Disclosure of significant accounting policies [line items] | ||
Average exchange rate | 14.4216 | 16.5315 |
Exchange rates | 14.7822 | 14.0722 |
Summary of Significant Accoun69
Summary of Significant Accounting Policies - Schedule of Depreciation and Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range [member] | Processing servers and engineering equipment [member] | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives | P3Y |
Bottom of range [member] | Computers and office equipment [member] | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives | P3Y |
Bottom of range [member] | Other equipment [member] | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives | P2Y |
Top of range [member] | Processing servers and engineering equipment [member] | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives | P10Y |
Top of range [member] | Computers and office equipment [member] | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives | P5Y |
Top of range [member] | Other equipment [member] | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives | P20Y |
Summary of Significant Accoun70
Summary of Significant Accounting Policies - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Russia [member] | |||
Disclosure of significant accounting policies [line items] | |||
Defined contributions to pension fund | ₽ 473 | ₽ 315 | ₽ 270 |
Bottom of range [member] | |||
Disclosure of significant accounting policies [line items] | |||
Percentage of defined contributions to pension fund | 10.00% | ||
Bottom of range [member] | Software and Other Intangible Assets [member] | |||
Disclosure of significant accounting policies [line items] | |||
Amortization period of intangible assets | P3Y | ||
Top of range [member] | |||
Disclosure of significant accounting policies [line items] | |||
Percentage of defined contributions to pension fund | 30.00% | ||
Top of range [member] | Software and Other Intangible Assets [member] | |||
Disclosure of significant accounting policies [line items] | |||
Amortization period of intangible assets | P5Y |
Summary of Significant Accoun71
Summary of Significant Accounting Policies - Summary of Useful Lives of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Bank license [member] | |
Disclosure of significant accounting policies [line items] | |
Useful lives of intangible assets | indefinite |
Bottom of range [member] | Customer relationship and contract rights [member] | |
Disclosure of significant accounting policies [line items] | |
Useful lives of intangible assets | 4 years |
Bottom of range [member] | Computer software [member] | |
Disclosure of significant accounting policies [line items] | |
Useful lives of intangible assets | 3 years |
Bottom of range [member] | Trademarks and other intangible assets [member] | |
Disclosure of significant accounting policies [line items] | |
Useful lives of intangible assets | 3 years |
Top of range [member] | Customer relationship and contract rights [member] | |
Disclosure of significant accounting policies [line items] | |
Useful lives of intangible assets | 15 years |
Top of range [member] | Computer software [member] | |
Disclosure of significant accounting policies [line items] | |
Useful lives of intangible assets | 10 years |
Top of range [member] | Trademarks and other intangible assets [member] | |
Disclosure of significant accounting policies [line items] | |
Useful lives of intangible assets | 6 years |
Significant Accounting Judgme72
Significant Accounting Judgments, Estimates and Assumptions - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Judgments Estimates And Assumptions [Line Items] | |||||
Major sources of payment processing fee revenues | Two major sources | ||||
Expected dividend yield | 0.00% | 5.03% | 2.83% | 0.00% | |
Estimated forfeiture rate | 0.00% | ||||
RSU [Member] | |||||
Significant Accounting Judgments Estimates And Assumptions [Line Items] | |||||
Estimated forfeiture rate | 9.00% |
Consolidated Subsidiaries - Des
Consolidated Subsidiaries - Description of Subsidiaries and Ownership Interest (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Flocktory Ltd (Cyprus) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in joint ventures | 82.00% | |
Flocktory Spain S.L. (Spain) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in joint ventures | 82.00% | |
FreeAtLast LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in joint ventures | 82.00% | |
JSC QIWI (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Bank JSC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Payments Services Provider Ltd (UAE) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI International Payment System LLC (USA) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Qiwi Kazakhstan LP (Kazakhstan) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
JLLC OSMP BEL (Belarus) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 51.00% | 51.00% |
QIWI-M S.R.L. (Moldova) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 51.00% | 51.00% |
QIWI ROMANIA SRL [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI WALLET EUROPE SIA (Latvia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Retail LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Management Services FZ-LLC (UAE) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
CIHRUS LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | |
Attenium LLC (Russia) [Member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Rapida LTD (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | |
Postomatnye Tekhnologii LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Future Pay LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Qiwi Blockchain Technologies LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Shtrikh LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 51.00% | |
QIWI Platform LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% | |
QIWI Processing LLC (Russia) [member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest in subsidiaries | 100.00% |
Acquisition of Joint Venture -
Acquisition of Joint Venture - Additional Information (Detail) - RUB (₽) | Dec. 31, 2017 | Mar. 22, 2017 |
Disclosure of detailed information about business combination [line items] | ||
Percentage of voting equity interests acquired | 82.00% | |
Flocktory Ltd (Cyprus) [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Percentage of equity held with acquiree | 18.00% | |
Percentage of minority shareholders put option exercisable after one year from acquisition date | 50.00% | |
Percentage of minority shareholders put option exercisable after one and half year from acquisition date | 25.00% | |
Percentage of minority shareholders put option exercisable after two years from acquisition date | 25.00% | |
Fair value of call option | ₽ 0 | |
Fair value of put option | 0 | |
Goodwill arising on acquisition | ₽ 192,000,000 |
Acquisition of Joint Venture 75
Acquisition of Joint Venture - Disclosure of Detailed Information About Business Combinations Cash Consideration (Detail) - Flocktory Ltd (Cyprus) [member] ₽ in Millions | Dec. 31, 2017RUB (₽) |
Disclosure of detailed information about business combination [line items] | |
Cash consideration paid | ₽ 794 |
Cash payable for Flocktory's stock option plan cancelation | 37 |
Total purchase consideration transferred | ₽ 831 |
Acquisition of Joint Venture 76
Acquisition of Joint Venture - Disclosure of Detailed Information About Business Combinations Cash Consideration (Parenthetical) (Detail) shares in Millions | Mar. 22, 2017shares |
Disclosure of detailed information about business combination [abstract] | |
ESOP rights for cancellation | 504 |
ESOP rights cancelled at acquisition date | 259 |
ESOP rights offered for cancellation | 120 |
ESOP rights offered for cancellation | 125 |
Acquisition of Joint Venture 77
Acquisition of Joint Venture - Summary of Fair Value of the Identifiable Assets and Liabilities as of the Date of Acquisitions (Detail) - Flocktory Ltd (Cyprus) [member] ₽ in Millions | Mar. 22, 2017RUB (₽) |
Net assets acquired: | |
Property and equipment | ₽ 1 |
Intangible assets | 720 |
Accounts receivable | 26 |
Cash and cash equivalents | 55 |
Trade and other payables | (21) |
Other liabilities | (1) |
Total identifiable net assets at fair value | 780 |
Group's share of net assets (82%) | 639 |
Goodwill arising on acquisition | ₽ 192 |
Acquisition of Joint Venture 78
Acquisition of Joint Venture - Summary of Fair Value of the Identifiable Assets and Liabilities as of the Date of Acquisitions (Parenthetical) (Detail) | Mar. 22, 2017 |
Flocktory Ltd (Cyprus) [member] | |
Disclosure of detailed information about business combination [line items] | |
Ownership interest | 82.00% |
Disposals of Subsidiaries and79
Disposals of Subsidiaries and Disposal Groups Held for Sale - Additional Information (Detail) - RUB (₽) | 1 Months Ended | 12 Months Ended | |
Dec. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Processingovyi Tsentr Rapida LLC (Russia) [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of ownership interest in subsidiary | 100.00% | ||
QIWI WALLET EUROPE SIA (Latvia) [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% | |
QIWI WALLET EUROPE SIA (Latvia) [member] | Disposal Groups Classified as Held for Sale [member] | |||
Disclosure of subsidiaries [line items] | |||
Impairment loss | ₽ 0 |
Disposals of Subsidiaries and80
Disposals of Subsidiaries and Disposal Groups Held for Sale - Gain/Loss on Disposal of Subsidiaries (Detail) - Disposal Groups Classified as Held for Sale [member] - Processingovyi Tsentr Rapida LLC (Russia) [member] ₽ in Millions | 12 Months Ended |
Dec. 31, 2016RUB (₽) | |
Disclosure of subsidiaries [line items] | |
Net liabilities of Processingovyi Tsentr Rapida LLC derecognized on disposal | ₽ 230 |
Disposal of indemnity asset related to the subsidiary | (240) |
Loss on disposal | ₽ (10) |
Disposals of Subsidiaries and81
Disposals of Subsidiaries and Disposal Groups Held for Sale - Assets and Liabilities of Disposal Group as of Disposal Date (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Other current assets | ₽ 458 | ₽ 661 |
Total assets | ₽ 45,059 | 39,674 |
Processingovyi Tsentr Rapida LLC (Russia) [member] | Disposal Groups Classified as Held for Sale [member] | ||
Assets: | ||
Other current assets | 13 | |
Total assets | 13 | |
Liabilities: | ||
Income tax payable | 240 | |
Other current liabilities | 3 | |
Total liabilities | ₽ 243 |
Operating Segments - Schedule o
Operating Segments - Schedule of Segments Statement of Comprehensive Income (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Segment net revenue | ₽ 20,897 | ₽ 17,880 | ₽ 17,717 |
Segment profit/(loss) before tax | 3,840 | 3,107 | 6,151 |
Segment net profit/(loss) | 3,142 | 2,489 | 5,274 |
Operating segments [member] | PS [member] | |||
Disclosure of operating segments [line items] | |||
Segment net revenue | 12,580 | 10,583 | 10,198 |
Segment profit/(loss) before tax | 8,795 | 6,454 | 6,066 |
Segment net profit/(loss) | 7,543 | 5,612 | 5,242 |
Operating segments [member] | CFS [member] | |||
Disclosure of operating segments [line items] | |||
Segment net revenue | 9 | (3) | |
Segment profit/(loss) before tax | (2,704) | (259) | |
Segment net profit/(loss) | (2,164) | (219) | |
Operating segments [member] | CO [member] | |||
Disclosure of operating segments [line items] | |||
Segment net revenue | 604 | 31 | 30 |
Segment profit/(loss) before tax | (1,273) | (605) | (995) |
Segment net profit/(loss) | (1,325) | (679) | (1,100) |
Operating segments [member] | Total [member] | |||
Disclosure of operating segments [line items] | |||
Segment net revenue | 13,193 | 10,611 | 10,228 |
Segment profit/(loss) before tax | 4,818 | 5,590 | 5,071 |
Segment net profit/(loss) | ₽ 4,054 | ₽ 4,714 | ₽ 4,142 |
Operating Segments - Schedule83
Operating Segments - Schedule of Segment Net Revenue (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [abstract] | |||
Revenue under IFRS | ₽ 20,897 | ₽ 17,880 | ₽ 17,717 |
Cost of revenue (exclusive of depreciation and amortization) | (9,763) | (8,646) | (8,695) |
Payroll and related taxes | 2,059 | 1,377 | 1,206 |
Total segment net revenue, as presented to CODM | ₽ 13,193 | ₽ 10,611 | ₽ 10,228 |
Operating Segments - Schedule84
Operating Segments - Schedule of Reconciliation of Segment Profit before Tax (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Profit before tax | ₽ 3,840 | ₽ 3,107 | ₽ 6,151 |
Amortization of fair value adjustments to intangible assets recorded on acquisitions | 344 | 396 | 270 |
Share - based payments | 398 | 224 | 88 |
Foreign exchange gain/(loss) from revaluation of cash proceeds received from secondary public offering | 236 | 975 | (1,476) |
Impairment of intangible assets recorded on acquisitions | 878 | ||
Loss on disposal of subsidiaries, net | 10 | 38 | |
CODM [member] | |||
Disclosure of operating segments [line items] | |||
Total segment profit before tax | ₽ 4,818 | ₽ 5,590 | ₽ 5,071 |
Operating Segments - Schedule85
Operating Segments - Schedule of Reconciliation of Segment Net Profit (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Net profit | ₽ 3,142 | ₽ 2,489 | ₽ 5,274 |
Amortization of fair value adjustments to intangible assets recorded on acquisitions | 344 | 396 | 270 |
Share - based payments | 398 | 224 | 88 |
Foreign exchange gain/(loss) from revaluation of cash proceeds received from secondary public offering | 236 | 975 | (1,476) |
Impairment of intangible assets recorded on acquisitions | 878 | ||
Loss on disposal of subsidiaries, net | 10 | 38 | |
Effect from taxation of the above items | (66) | (258) | (52) |
CODM [member] | |||
Disclosure of operating segments [line items] | |||
Total segment net profit | ₽ 4,054 | ₽ 4,714 | ₽ 4,142 |
Operating Segments - Schedule86
Operating Segments - Schedule of Revenue from External Customers (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [line items] | |||
Total revenue per consolidated statement of comprehensive income | ₽ 20,897 | ₽ 17,880 | ₽ 17,717 |
Russia [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue per consolidated statement of comprehensive income | 15,556 | 13,274 | 13,737 |
CIS [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue per consolidated statement of comprehensive income | 1,098 | 1,099 | 1,019 |
EU [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue per consolidated statement of comprehensive income | 989 | 807 | 566 |
Other [member] | |||
Disclosure of geographical areas [line items] | |||
Total revenue per consolidated statement of comprehensive income | ₽ 3,254 | ₽ 2,700 | ₽ 2,395 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major customer [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue | 10.00% | 10.00% | 10.00% |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share Amounts (Detail) - RUB (₽) ₽ / shares in Units, ₽ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Net profit attributable to ordinary equity holders of the parent for basic earnings | ₽ 3,114 | ₽ 2,474 | ₽ 5,187 |
Weighted average number of ordinary shares for basic earnings per share | 60,755,706 | 60,477,840 | 57,819,164 |
Effect of share-based payments | 404,357 | 167,197 | 147,851 |
Weighted average number of ordinary shares for diluted earnings per share | 61,160,063 | 60,645,037 | 57,967,015 |
Basic, profit attributable to ordinary equity holders of the parent | ₽ 51.25 | ₽ 40.91 | ₽ 89.72 |
Diluted, profit attributable to ordinary equity holders of the parent | ₽ 50.92 | ₽ 40.79 | ₽ 89.49 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | ₽ 593 | ₽ 366 |
Ending balance | 724 | 593 |
Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,029 | 676 |
Transfer between groups | 0 | 0 |
Additions | 365 | 388 |
Disposals | (157) | (31) |
Foreign currency translation | (4) | |
Ending balance | 1,237 | 1,029 |
Accumulated Depreciation and Impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (436) | (310) |
Depreciation charge | (206) | (149) |
Disposals | 129 | 23 |
Foreign currency translation | 0 | |
Ending balance | (513) | (436) |
Processing servers and engineering equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 367 | 264 |
Ending balance | 466 | 367 |
Processing servers and engineering equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 695 | 498 |
Transfer between groups | 77 | 11 |
Additions | 196 | 215 |
Disposals | (146) | (27) |
Foreign currency translation | (2) | |
Ending balance | 822 | 695 |
Processing servers and engineering equipment [member] | Accumulated Depreciation and Impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (328) | (234) |
Depreciation charge | (150) | (113) |
Disposals | 122 | 20 |
Foreign currency translation | (1) | |
Ending balance | (356) | (328) |
Computers and office equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 30 | 29 |
Ending balance | 54 | 30 |
Computers and office equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 91 | 71 |
Transfer between groups | 1 | 0 |
Additions | 45 | 19 |
Disposals | (7) | 2 |
Foreign currency translation | (1) | |
Ending balance | 130 | 91 |
Computers and office equipment [member] | Accumulated Depreciation and Impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (61) | (42) |
Depreciation charge | (21) | (17) |
Disposals | 6 | (3) |
Foreign currency translation | 1 | |
Ending balance | (76) | (61) |
Other equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 115 | 58 |
Ending balance | 93 | 115 |
Other equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 162 | 92 |
Transfer between groups | 0 | 0 |
Additions | 16 | 76 |
Disposals | (4) | (6) |
Foreign currency translation | 0 | |
Ending balance | 174 | 162 |
Other equipment [member] | Accumulated Depreciation and Impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (47) | (34) |
Depreciation charge | (35) | (19) |
Disposals | 1 | 6 |
Foreign currency translation | 0 | |
Ending balance | (81) | (47) |
Construction in Progress (CIP) and Advances for Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 81 | 15 |
Ending balance | 111 | 81 |
Construction in Progress (CIP) and Advances for Equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 81 | 15 |
Transfer between groups | (78) | (11) |
Additions | 108 | 78 |
Disposals | 0 | 0 |
Foreign currency translation | (1) | |
Ending balance | 111 | 81 |
Construction in Progress (CIP) and Advances for Equipment [member] | Accumulated Depreciation and Impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 0 | 0 |
Depreciation charge | 0 | 0 |
Disposals | 0 | 0 |
Foreign currency translation | 0 | |
Ending balance | ₽ 0 | ₽ 0 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Gross book value of fully depreciated assets | ₽ 184 | ₽ 141 |
Otkritie Bank [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property plant and equipment purchased | ₽ 104 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | ₽ 11,022 | ₽ 12,254 |
Impairment | 104 | 878 |
Transfer between groups | 0 | (101) |
Ending Balance | 10,807 | 11,022 |
Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 13,440 | 13,315 |
Additions | 484 | 292 |
Additions from business combinations | 12 | |
Transfer between groups | 0 | 0 |
Disposals | (632) | (179) |
Ending Balance | 13,292 | 13,440 |
Accumulated Amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (2,418) | (1,061) |
Amortization charge | (590) | (647) |
Impairment | (104) | (886) |
Disposals | 627 | 176 |
Ending Balance | (2,485) | (2,418) |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 6,285 | 6,285 |
Ending Balance | 6,285 | 6,285 |
Goodwill [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 6,285 | 6,285 |
Additions | 0 | 0 |
Additions from business combinations | 0 | |
Transfer between groups | 0 | 0 |
Disposals | 0 | 0 |
Ending Balance | 6,285 | 6,285 |
Goodwill [member] | Accumulated Amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 0 | 0 |
Amortization charge | 0 | 0 |
Impairment | 0 | 0 |
Disposals | 0 | 0 |
Ending Balance | 0 | 0 |
Licences [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 225 | 284 |
Ending Balance | 183 | 225 |
Licences [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 284 | 284 |
Additions | 0 | 0 |
Additions from business combinations | 0 | |
Transfer between groups | 0 | 0 |
Disposals | (101) | 0 |
Ending Balance | 183 | 284 |
Licences [member] | Accumulated Amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (59) | 0 |
Amortization charge | (42) | (28) |
Impairment | 0 | (31) |
Disposals | 101 | 0 |
Ending Balance | 0 | (59) |
Computer software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 474 | 530 |
Ending Balance | 547 | 474 |
Computer software [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 910 | 898 |
Additions | 244 | 182 |
Additions from business combinations | 0 | |
Transfer between groups | 54 | 3 |
Disposals | (125) | (173) |
Ending Balance | 1,083 | 910 |
Computer software [member] | Accumulated Amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (436) | (368) |
Amortization charge | (220) | (233) |
Impairment | 0 | (8) |
Disposals | 120 | 173 |
Ending Balance | (536) | (436) |
Customer relationships [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 3,802 | 4,955 |
Ending Balance | 3,508 | 3,802 |
Customer relationships [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 5,338 | 5,326 |
Additions | 0 | 0 |
Additions from business combinations | 12 | |
Transfer between groups | 0 | 0 |
Disposals | (12) | 0 |
Ending Balance | 5,326 | 5,338 |
Customer relationships [member] | Accumulated Amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (1,536) | (371) |
Amortization charge | (286) | (345) |
Impairment | (8) | (820) |
Disposals | 12 | 0 |
Ending Balance | (1,818) | (1,536) |
Trademarks [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 126 | 193 |
Ending Balance | 92 | 126 |
Trademarks [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 216 | 216 |
Additions | 0 | 0 |
Additions from business combinations | 0 | |
Transfer between groups | 0 | 0 |
Disposals | 0 | 0 |
Ending Balance | 216 | 216 |
Trademarks [member] | Accumulated Amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (90) | (23) |
Amortization charge | (36) | (40) |
Impairment | 0 | (27) |
Disposals | 2 | 0 |
Ending Balance | (124) | (90) |
Contract rights [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 0 | 0 |
Ending Balance | 0 | 0 |
Contract rights [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 295 | 295 |
Additions | 0 | 0 |
Additions from business combinations | 0 | |
Transfer between groups | 0 | 0 |
Disposals | (295) | 0 |
Ending Balance | 0 | 295 |
Contract rights [member] | Accumulated Amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (295) | (295) |
Amortization charge | 0 | 0 |
Impairment | 0 | 0 |
Disposals | 295 | 0 |
Ending Balance | 0 | (295) |
Advances for intangibles CIP and others [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 110 | 7 |
Ending Balance | 192 | 110 |
Advances for intangibles CIP and others [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 112 | 11 |
Additions | 240 | 110 |
Additions from business combinations | 0 | |
Transfer between groups | (54) | (3) |
Disposals | (99) | (6) |
Ending Balance | 199 | 112 |
Advances for intangibles CIP and others [member] | Accumulated Amortization [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (2) | (4) |
Amortization charge | (6) | (1) |
Impairment | (96) | 0 |
Disposals | 97 | 3 |
Ending Balance | ₽ (7) | ₽ (2) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Amount of fully amortized intangible assets | ₽ 169 | ₽ 109 |
Otkritie Bank [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets purchased | ₽ 254 |
Impairment Testing of Goodwil93
Impairment Testing of Goodwill and Intangible Assets - Additional Information (Detail) - Cash-generating units [member] - RUB (₽) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Impairment of Assets [line items] | ||
Carrying amount of goodwill | ₽ 6,285,000,000 | ₽ 6,285,000,000 |
Goodwill impairment | 0 | 0 |
Carrying amount of intangible assets with an indefinite useful life | 183,000,000 | 183,000,000 |
Impairment loss recognized | 89,000,000 | 847,000,000 |
QIWI Bank JSC (Russia) [member] | Licences [member] | ||
Disclosure of Impairment of Assets [line items] | ||
Impairment loss recognized | ₽ 0 | ₽ 0 |
Impairment Testing of Goodwil94
Impairment Testing of Goodwill and Intangible Assets - Summery of Movements in Intangible Assets (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Impairment of Assets [Abstract] | ||
Beginning balance | ₽ 6,468 | ₽ 6,569 |
Transfer to intangible assets with definite useful life | 0 | (101) |
Ending balance | ₽ 6,468 | ₽ 6,468 |
Long-Term and Short-Term Loan95
Long-Term and Short-Term Loans Issued - Summary of Long-Term and Short-Term Loans Issued (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | ₽ 164 | ₽ 120 |
Total short-term loans | 1,691 | 19 |
Loans to individuals [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | 1 | 7 |
Total short-term loans | 17 | |
Loans to legal entities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | 163 | 113 |
Total short-term loans | 1 | 2 |
Loans to financial institutions [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total short-term loans | 0 | 0 |
Installment card loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total short-term loans | 1,690 | |
Gross carrying amount [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | 167 | 120 |
Total short-term loans | 2,009 | 135 |
Gross carrying amount [member] | Loans to individuals [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | 1 | 7 |
Total short-term loans | 17 | |
Gross carrying amount [member] | Loans to legal entities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | 166 | 113 |
Total short-term loans | 94 | 115 |
Gross carrying amount [member] | Loans to financial institutions [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total short-term loans | 3 | 3 |
Gross carrying amount [member] | Installment card loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total short-term loans | 1,912 | |
Accumulated impairment [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | (3) | 0 |
Total short-term loans | (318) | (116) |
Accumulated impairment [member] | Loans to individuals [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | 0 | 0 |
Total short-term loans | 0 | |
Accumulated impairment [member] | Loans to legal entities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total long-term loans | (3) | 0 |
Total short-term loans | (93) | (113) |
Accumulated impairment [member] | Loans to financial institutions [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total short-term loans | (3) | ₽ (3) |
Accumulated impairment [member] | Installment card loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total short-term loans | ₽ (222) |
Long-Term and Short-Term Loan96
Long-Term and Short-Term Loans Issued - Summary of Provision for Impairment of Loans Movement (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | ₽ (116) | ₽ (202) |
(Charge)/reversal for the year | (219) | (53) |
Utilisation | 14 | 139 |
Ending balance | (321) | (116) |
Installment card loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 0 | |
(Charge)/reversal for the year | (222) | |
Utilisation | 0 | |
Ending balance | (222) | 0 |
Loans to legal entities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | (113) | (199) |
(Charge)/reversal for the year | 3 | (53) |
Utilisation | 14 | 139 |
Ending balance | (96) | (113) |
Loans to financial institutions [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | (3) | (3) |
(Charge)/reversal for the year | 0 | 0 |
Utilisation | 0 | 0 |
Ending balance | ₽ (3) | ₽ (3) |
Long-Term and Short-Term Loan97
Long-Term and Short-Term Loans Issued - Analysis of Loans by Credit Quality (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Less: Provision for loan impairment | ₽ (321) | ₽ (116) | ₽ (202) |
Installment card loans [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Less: Provision for loan impairment | (222) | 0 | |
Total loans issued | 1,690 | ||
Installment card loans [member] | Expected credit losses collectively assessed [member] | Non-overdue [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | 1,668 | ||
Installment card loans [member] | Expected credit losses collectively assessed [member] | Up to 30 days overdue [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | 88 | ||
Installment card loans [member] | Expected credit losses collectively assessed [member] | 30 to 60 days overdue [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | 35 | ||
Installment card loans [member] | Expected credit losses collectively assessed [member] | 60 to 90 days overdue [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | 25 | ||
Installment card loans [member] | Expected credit losses collectively assessed [member] | Over 90 days overdue [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | 96 | ||
Loans to individuals [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | 1 | 24 | |
Loans to individuals [member] | Expected credit losses individually assessed [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | 1 | 24 | |
Loans to legal entities [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Less: Provision for loan impairment | (96) | (113) | ₽ (199) |
Total loans issued | 164 | 115 | |
Loans to legal entities [member] | Expected credit losses individually assessed [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | 260 | 228 | |
Loans to credit Institutions [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Less: Provision for loan impairment | (3) | (3) | |
Loans to credit Institutions [member] | Expected credit losses individually assessed [member] | |||
Disclosure Of Analysis Of Loans By Credit Quality [Line Items] | |||
Total loans issued | ₽ 3 | ₽ 3 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | ₽ 9,648 | ₽ 5,679 |
Cash receivable from agents [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 4,240 | 2,998 |
Deposits issued to merchants [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 3,906 | 2,315 |
Commissions receivable [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 809 | 155 |
Advances issued [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 239 | 143 |
Rent receivables [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 28 | 11 |
Other receivables [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 426 | 57 |
Gross carrying amount [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 10,193 | 6,458 |
Gross carrying amount [member] | Cash receivable from agents [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 4,666 | 3,657 |
Gross carrying amount [member] | Deposits issued to merchants [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 3,919 | 2,318 |
Gross carrying amount [member] | Commissions receivable [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 827 | 162 |
Gross carrying amount [member] | Advances issued [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 240 | 144 |
Gross carrying amount [member] | Rent receivables [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 101 | 106 |
Gross carrying amount [member] | Other receivables [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 440 | 71 |
Provision for impairment of receivables [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | (545) | (779) |
Provision for impairment of receivables [member] | Cash receivable from agents [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | (426) | (659) |
Provision for impairment of receivables [member] | Deposits issued to merchants [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | (13) | (3) |
Provision for impairment of receivables [member] | Commissions receivable [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | (18) | (7) |
Provision for impairment of receivables [member] | Advances issued [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | (1) | (1) |
Provision for impairment of receivables [member] | Rent receivables [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | (73) | (95) |
Provision for impairment of receivables [member] | Other receivables [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | ₽ (14) | ₽ (14) |
Trade and Other Receivables -99
Trade and Other Receivables - Summary of Trade and Other Receivables (Parenthetical) (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | ₽ 9,648 | ₽ 5,679 |
Other receivables [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | 426 | ₽ 57 |
Other receivables [member] | Otkritie Bank [member] | ||
Disclosure of trade and other receivables [line items] | ||
Total trade and other receivables | ₽ 336 |
Trade and Other Receivables 100
Trade and Other Receivables - Summary of Ageing Analysis of Trade Receivables That Are Past Due but Not Impaired (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | ₽ 9,648 | ₽ 5,679 |
Cash receivable from agents [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 4,240 | 2,998 |
Commissions receivable [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 809 | 155 |
Rent receivables [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 28 | 11 |
Financial assets past due but not impaired [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 5,077 | 3,164 |
Financial assets past due but not impaired [member] | Cash receivable from agents [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 4,240 | 2,998 |
Financial assets past due but not impaired [member] | Commissions receivable [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 809 | 155 |
Financial assets past due but not impaired [member] | Rent receivables [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 28 | 11 |
Less than 30 [member] | Financial assets past due but not impaired [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 5,033 | 2,716 |
Less than 30 [member] | Financial assets past due but not impaired [member] | Cash receivable from agents [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 4,217 | 2,568 |
Less than 30 [member] | Financial assets past due but not impaired [member] | Commissions receivable [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 797 | 141 |
Less than 30 [member] | Financial assets past due but not impaired [member] | Rent receivables [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 19 | 7 |
30-60 [member] | Financial assets past due but not impaired [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 31 | 436 |
30-60 [member] | Financial assets past due but not impaired [member] | Cash receivable from agents [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 20 | 423 |
30-60 [member] | Financial assets past due but not impaired [member] | Commissions receivable [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 5 | 10 |
30-60 [member] | Financial assets past due but not impaired [member] | Rent receivables [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 6 | 3 |
60-90 [member] | Financial assets past due but not impaired [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 8 | 3 |
60-90 [member] | Financial assets past due but not impaired [member] | Cash receivable from agents [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 1 | 1 |
60-90 [member] | Financial assets past due but not impaired [member] | Commissions receivable [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 5 | 1 |
60-90 [member] | Financial assets past due but not impaired [member] | Rent receivables [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 2 | 1 |
90-180 [member] | Financial assets past due but not impaired [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 1 | 5 |
90-180 [member] | Financial assets past due but not impaired [member] | Cash receivable from agents [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 0 | 3 |
90-180 [member] | Financial assets past due but not impaired [member] | Commissions receivable [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 2 | |
90-180 [member] | Financial assets past due but not impaired [member] | Rent receivables [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 1 | |
180-360 [member] | Financial assets past due but not impaired [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 3 | 2 |
180-360 [member] | Financial assets past due but not impaired [member] | Cash receivable from agents [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 2 | 1 |
180-360 [member] | Financial assets past due but not impaired [member] | Commissions receivable [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 1 | 1 |
>360 [member] | Financial assets past due but not impaired [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 1 | 2 |
>360 [member] | Financial assets past due but not impaired [member] | Cash receivable from agents [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | 0 | ₽ 2 |
>360 [member] | Financial assets past due but not impaired [member] | Commissions receivable [member] | ||
Disclosure of Trade Receivables that are Past Due But Not Impaired [line items] | ||
Total trade and other receivables | ₽ 1 |
Trade and Other Receivables 101
Trade and Other Receivables - Summary of Provision for Impairment of Receivables Movement (Detail) - Provision for impairment of receivables [member] - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of provision for impairment of receivables [Line items] | |||
Provision for impairment of receivables beginning balance | ₽ (779) | ₽ (794) | ₽ (564) |
(Charge)/ reversal for the period | (1) | (142) | (299) |
Utilisation | 235 | 157 | 69 |
Provision for impairment of receivables ending balance | (545) | (779) | (794) |
Cash receivable from agents [member] | |||
Disclosure of provision for impairment of receivables [Line items] | |||
Provision for impairment of receivables beginning balance | (659) | (660) | (506) |
(Charge)/ reversal for the period | 16 | (125) | (204) |
Utilisation | 217 | 126 | 50 |
Provision for impairment of receivables ending balance | (426) | (659) | (660) |
Deposits issued to merchants [member] | |||
Disclosure of provision for impairment of receivables [Line items] | |||
Provision for impairment of receivables beginning balance | (3) | (1) | (6) |
(Charge)/ reversal for the period | (11) | (2) | (1) |
Utilisation | 1 | 6 | |
Provision for impairment of receivables ending balance | (13) | (3) | (1) |
Commissions receivable [member] | |||
Disclosure of provision for impairment of receivables [Line items] | |||
Provision for impairment of receivables beginning balance | (7) | (21) | (3) |
(Charge)/ reversal for the period | (11) | (1) | (19) |
Utilisation | 15 | 1 | |
Provision for impairment of receivables ending balance | (18) | (7) | (21) |
Advances issued [member] | |||
Disclosure of provision for impairment of receivables [Line items] | |||
Provision for impairment of receivables beginning balance | (1) | (1) | (2) |
(Charge)/ reversal for the period | 1 | ||
Provision for impairment of receivables ending balance | (1) | (1) | (1) |
Rent receivables [member] | |||
Disclosure of provision for impairment of receivables [Line items] | |||
Provision for impairment of receivables beginning balance | (95) | (95) | (29) |
(Charge)/ reversal for the period | 10 | (15) | (70) |
Utilisation | 12 | 15 | 4 |
Provision for impairment of receivables ending balance | (73) | (95) | (95) |
Other receivables [member] | |||
Disclosure of provision for impairment of receivables [Line items] | |||
Provision for impairment of receivables beginning balance | (14) | (16) | (18) |
(Charge)/ reversal for the period | (5) | 1 | (6) |
Utilisation | 5 | 1 | 8 |
Provision for impairment of receivables ending balance | ₽ (14) | ₽ (14) | ₽ (16) |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Correspondent accounts with Central Bank of Russia (CBR) | ₽ 6,522 | ₽ 1,877 |
Correspondent accounts with other banks | 2,890 | 2,789 |
Short-term CBR deposits | 6,500 | 9,201 |
Other short-term bank deposits | 1,322 | 3,857 |
RUB denominated cash with banks and on hand | 600 | 294 |
Other currency denominated cash with banks and on hand | 572 | 979 |
Total cash and cash equivalents | ₽ 18,406 | ₽ 18,997 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash deposit | $ 2.5 |
Other Assets - Summary of Other
Other Assets - Summary of Other Current Assets (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Current Assets [abstract] | ||
Indemnification asset | ₽ 30 | ₽ 60 |
Reserves at CBR | 229 | 312 |
Prepaid expenses | 99 | 204 |
VAT and other taxes receivable | 51 | 22 |
Other | 49 | 63 |
Total other current assets | ₽ 458 | ₽ 661 |
Other Assets - Summary of Ot105
Other Assets - Summary of Other Current Assets (Parenthetical) (Detail) | Aug. 01, 2016 |
Mandatory reserves with Central Bank of Russia for deposits in RUB [member] | |
Disclosure Of Other Current Assets [Line Items] | |
Mandatory reserves that constitutes percentage of liability of the Company for deposits | 5.00% |
Change in value of mandatory reserves with Central Bank of Russia for deposits in foreign currency [member] | Bottom of range [member] | |
Disclosure Of Other Current Assets [Line Items] | |
Mandatory reserves that constitutes percentage of liability of the Company for deposits | 6.00% |
Change in value of mandatory reserves with Central Bank of Russia for deposits in foreign currency [member] | Top of range [member] | |
Disclosure Of Other Current Assets [Line Items] | |
Mandatory reserves that constitutes percentage of liability of the Company for deposits | 7.00% |
Share Capital, Additional Pa106
Share Capital, Additional Paid-in Capital, Share Premium and Other Reserves - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017€ / shares | |
Class A ordinary shares [member] | |
Disclosure of Share Capital Reserves and Other Equity Interest [Line Items] | |
Nominal value per shares | € 0.0005 |
Description of voting right | Each class A share has the right to ten votes |
Class B ordinary shares [member] | |
Disclosure of Share Capital Reserves and Other Equity Interest [Line Items] | |
Nominal value per shares | € 0.0005 |
Description of voting right | Each class B share has the right to one vote |
Share Capital, Additional Pa107
Share Capital, Additional Paid-in Capital, Share Premium and Other Reserves - Summary of Authorised, Issued and Fully Paid Shares (Detail) - shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of classes of share capital [line items] | |||
Total authorised shares | 230,850 | 230,850 | 230,850 |
Total issued and fully paid shares | 60,933 | 60,597 | 60,419 |
Class A ordinary shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Total authorised shares | 131,778 | 133,017 | 133,017 |
Total issued and fully paid shares | 14,278 | 15,517 | 15,517 |
Class B ordinary shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Total authorised shares | 99,072 | 97,833 | 97,833 |
Total issued and fully paid shares | 46,655 | 45,080 | 44,902 |
Share Capital, Additional Pa108
Share Capital, Additional Paid-in Capital, Share Premium and Other Reserves - Summary of Share Capital and Share Premium Movements (Detail) - RUB (₽) shares in Thousands, ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Share Capital and Share Premium [Abstract] | ||
Number of shares issued, beginning balance | 60,597 | 60,419 |
Increase of share capital due to exercise of options by employees during the year | 336 | 178 |
Number of shares issued, ending balance | 60,933 | 60,597 |
Share capital, beginning balance | ₽ 1 | ₽ 1 |
Share capital, increase of share capital due to exercise of options by employees during the year | 0 | 0 |
Share capital, ending balance | 1 | 1 |
Share premium, beginning balance | 12,068 | 12,068 |
Share premium, increase of share capital due to exercise of options by employees during the year | 0 | 0 |
Share premium, ending balance | ₽ 12,068 | ₽ 12,068 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) ₽ in Millions | 12 Months Ended |
Dec. 31, 2017RUB (₽) | |
Disclosure of Borrowing Costs [Line Items] | |
Credit facility amount | ₽ 1,460 |
Credit lines balance payable | ₽ 0 |
Bottom of range [member] | |
Disclosure of Borrowing Costs [Line Items] | |
Borrowings maturity | May 2,018 |
Top of range [member] | |
Disclosure of Borrowing Costs [Line Items] | |
Borrowings maturity | June 2,020 |
Borrowings interest rate | 30.00% |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Trade and Other Payables (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | ₽ 19,599 | ₽ 16,328 |
Payables to merchants [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | 9,178 | 6,696 |
Deposits received from agents [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | 3,638 | 4,030 |
Deposits received from individual customers [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | 4,726 | 3,961 |
Payment processing fees payable [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | 469 | 504 |
Unsettled money remittances [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | 586 | 433 |
Accrued personnel expenses and related taxes [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | 353 | 323 |
Payables to vendors [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | 536 | 338 |
Payables for rent [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | 37 | 24 |
Other advances received [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other payables | ₽ 76 | ₽ 19 |
Customer Accounts and Amount111
Customer Accounts and Amounts Due to Banks - Summary of Customer Accounts and Amounts Due to Banks (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Customer Accounts and Amounts Due to Banks [Abstract] | ||
Due to banks | ₽ 1,390 | ₽ 1,207 |
Due to individuals | 110 | 34 |
Due to legal entities | 1,571 | 1,101 |
Term deposits | 111 | |
Total customer accounts and amounts due to banks | ₽ 3,182 | ₽ 2,342 |
Customer Accounts and Amount112
Customer Accounts and Amounts Due to Banks - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Top of range [member] | |
Disclosure of Amounts Due To Customers and Amounts Due to Banks [Line Items] | |
Interest rate of customer accounts and amounts due to banks | 7.00% |
Investment in Joint Ventures -
Investment in Joint Ventures - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of joint venture financial information [Abstract] | |
Number of joint ventures | 1 |
Investment in Joint Ventures114
Investment in Joint Ventures - Summary of Financial Information of Group's Investment in Flocktory Joint Venture (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Share of the joint control companies' statement of financial position: | ||
Non-current assets | ₽ 13,936 | ₽ 12,444 |
Current assets | 31,094 | 27,205 |
including cash and cash equivalents | 18,406 | 18,997 |
Current liabilities | 23,062 | ₽ 18,850 |
Joint operations [member] | Flocktory Ltd (Cyprus) [member] | ||
Share of the joint control companies' statement of financial position: | ||
Non-current assets | 666 | |
Current assets | 125 | |
including cash and cash equivalents | 80 | |
Current liabilities | (11) | |
including financial liabilities | (9) | |
Net assets | 780 | |
Group's share (82%) of net assets | 640 | |
Goodwill | 192 | |
Joint operations [member] | Joint ventures [member] | ||
Share of the joint control companies' statement of financial position: | ||
Carrying amount of investment in joint venture companies | ₽ 832 |
Investment in Joint Ventures115
Investment in Joint Ventures - Summary of Financial Information of Group's Investment in Flocktory Joint Venture (Parenthetical) (Detail) - Flocktory Ltd (Cyprus) [member] | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of joint venture financial information [Line Items] | |
Percentage of group's share in joint venture | 82.00% |
Joint operations [member] | |
Disclosure of joint venture financial information [Line Items] | |
Percentage of group's share in joint venture | 82.00% |
Investment in Joint Ventures116
Investment in Joint Ventures - Summary of Joint Venture's Revenue and Net Income (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of joint ventures [line items] | |||
Revenue | ₽ 20,897 | ₽ 17,880 | ₽ 17,717 |
Cost of revenues | 9,763 | 8,646 | 8,695 |
including selling, general and administrative expenses | 6,243 | 3,423 | 3,469 |
including depreciation and amortization | 796 | 796 | 689 |
Total comprehensive income | 3,009 | ₽ 2,159 | ₽ 5,561 |
Joint ventures [member] | |||
Disclosure of joint ventures [line items] | |||
Revenue | 187 | ||
Cost of revenues | (79) | ||
Other income and expenses, net | (107) | ||
including selling, general and administrative expenses | (55) | ||
including depreciation and amortization | (59) | ||
Total comprehensive income | 1 | ||
Group's share (82%) of total comprehensive income | ₽ 1 |
Investment in Joint Ventures117
Investment in Joint Ventures - Summary of Joint Venture's Revenue and Net Income (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Joint ventures [member] | |
Disclosure of joint ventures [line items] | |
Percentage of group's share in joint venture | 82.00% |
Revenue - Schedule of Revenue (
Revenue - Schedule of Revenue (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Payment processing fees | ₽ 18,575 | ₽ 16,289 | ₽ 14,935 |
Interest revenue | 1,052 | 899 | 731 |
Cash and settlement services | 670 | 130 | 557 |
Other revenue | 600 | 562 | 1,494 |
Total revenue | ₽ 20,897 | ₽ 17,880 | ₽ 17,717 |
Revenue - Schedule of Interest
Revenue - Schedule of Interest Income Net (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Interest revenue | ₽ (1,052) | ₽ (899) | ₽ (731) |
Interest expense classified as part of cost of revenue | 42 | 37 | 79 |
Interest income from non-banking loans classified separately in the consolidated statement of comprehensive income | (35) | (36) | (16) |
Interest expense from non-banking loans classified separately in the consolidated statement of comprehensive income | 29 | 64 | 109 |
Interest income, net, for the purposes of consolidated cash flow statement | ₽ (1,016) | ₽ (834) | ₽ (559) |
Cost of Revenue Exclusive of De
Cost of Revenue Exclusive of Depreciation and Amortization - Schedule of Cost of Revenue Excluding Depreciation and Amortization (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosures of Cost of Revenue [Abstract] | |||
Transaction costs | ₽ 6,756 | ₽ 6,490 | ₽ 6,300 |
Payroll and related taxes | 2,059 | 1,377 | 1,206 |
Other expenses | 948 | 779 | 1,189 |
Total cost of revenue (exclusive of depreciation and amortization) | ₽ 9,763 | ₽ 8,646 | ₽ 8,695 |
Selling, General and Adminis121
Selling, General and Administrative Expenses - Summary of Selling, General and Administrative Expenses (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of selling general and administrative expenses [Abstract] | |||
Compensation to employees, related taxes and other personnel expenses | ₽ 2,227 | ₽ 1,682 | ₽ 1,511 |
Rent of premises and related utility expenses | 391 | 346 | 338 |
Bad debt expense | 220 | 215 | 362 |
Advertising, client acquisition and related expenses | 1,294 | 165 | 242 |
Advisory and audit services | 433 | 297 | 357 |
Tax expenses, except of income and payroll relates taxes | 407 | 175 | 155 |
IT related services | 236 | 180 | 176 |
Other expenses | 1,035 | 363 | 328 |
Total selling, general and administrative expenses | ₽ 6,243 | ₽ 3,423 | ₽ 3,469 |
Selling, General and Adminis122
Selling, General and Administrative Expenses - Additional Information (Detail) ₽ in Millions | 12 Months Ended |
Dec. 31, 2017RUB (₽) | |
Otkritie Bank [member] | Other expense [member] | |
Disclosure of general and administrative expense [Line items] | |
Recognized loss | ₽ 350 |
Dividends Paid and Proposed - S
Dividends Paid and Proposed - Summary of Dividends Paid and Proposed (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Dividends Paid and Proposed [Abstract] | |||
Dividends proposed, declared and approved during the year | ₽ 2,207 | ₽ 4,843 | ₽ 694 |
Dividends paid during the period | 2,148 | 4,628 | 699 |
Dividends proposed for approval (not recognized as a liability as of December 31 ) | 679 | 2,237 | |
Dividends payable as of December 31 | ₽ 0 | ₽ 0 | ₽ 0 |
Dividends Paid and Proposed 124
Dividends Paid and Proposed - Summary of Dividends Paid and Proposed (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Dividends Paid and Proposed [Abstract] | |||
Final dividend proposed, declared and approved | $ 11,520,798 | $ 30,210,153 | |
Interim dividend proposed, declared and approved | 26,113,788 | 39,943,003 | $ 13,640,343 |
Final dividend paid | 11,520,798 | 30,210,153 | |
Interim dividend | 26,113,788 | 39,943,003 | 13,640,343 |
Final dividends proposed for approval | $ 0 | $ 11,513,436 | $ 30,209,301 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - RUB (₽) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of income taxes [line Items] | |||
Accumulated undistributed foreign earnings | ₽ 2,473,000,000 | ₽ 2,690,000,000 | |
Tax payable to distribute the earnings | 124,000,000 | 149,000,000 | |
Foreign exchange gain | 0 | 0 | |
Unused tax losses [member] | |||
Disclosure of income taxes [line Items] | |||
Deferred tax asset | ₽ 9,000,000 | ₽ 15,000,000 | ₽ 68,000,000 |
CYPRUS [member] | |||
Disclosure of income taxes [line Items] | |||
Corporate income tax rate | 12.50% | ||
Capital gains tax | 20.00% | ||
CYPRUS [member] | Top of range [member] | |||
Disclosure of income taxes [line Items] | |||
Corporate income tax rate | 6.25% | ||
Percentage of income not lead to investment income | 50.00% | ||
Russia [member] | |||
Disclosure of income taxes [line Items] | |||
Corporate income tax rate | 20.00% | ||
Tax rate on income received from Russia government bonds | 15.00% | ||
Withholding tax rate on payment of dividends | 15.00% | ||
Russia [member] | Top of range [member] | |||
Disclosure of income taxes [line Items] | |||
Corporate income tax rate | 10.00% | ||
Reduced withholding tax rate on payment of dividends | 5.00% | ||
Kazakhstan [member] | |||
Disclosure of income taxes [line Items] | |||
Corporate income tax rate | 20.00% |
Income Tax - Summary of Deferre
Income Tax - Summary of Deferred Income Tax Assets and Liabilities (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred tax assets and liabilities [abstract] | ||
Intangible assets | ₽ (719) | ₽ (784) |
Trade and other payables | 166 | 130 |
Trade and other receivables | 101 | 138 |
Loans issued | 48 | 27 |
Taxes on unremitted earnings | (184) | (75) |
Other | 7 | (17) |
Net deferred income tax asset/(liability) | (581) | (581) |
Deferred tax asset | 245 | 270 |
Deferred tax liability | (826) | (851) |
Intangible assets | 65 | 265 |
Trade and other payables | 36 | 9 |
Trade and other receivables | (37) | (20) |
Loans issued | 21 | 7 |
Taxes on unremitted earnings | (109) | 19 |
Other | ₽ 24 | (27) |
Net deferred income tax asset/(liability) | ₽ 253 |
Income Tax - Summary of Reconci
Income Tax - Summary of Reconciliation of Deferred Income Tax Assets (Liability), Net (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in deferred tax liability asset [line items] | |||
Deferred income tax asset/(liability), net as of January 1 | ₽ (581) | ||
Deferred tax benefit/(expense) | ₽ 253 | ||
Deferred income tax asset/(liability), net as of December 31 | (581) | (581) | |
Deferred income taxes [member] | |||
Disclosure of reconciliation of changes in deferred tax liability asset [line items] | |||
Deferred income tax asset/(liability), net as of January 1 | (581) | (834) | ₽ 203 |
Effect of acquisitions of subsidiaries | 0 | (1,037) | |
Deferred tax benefit/(expense) | 0 | 253 | |
Deferred income tax asset/(liability), net as of December 31 | ₽ (581) | ₽ (581) | ₽ (834) |
Income Tax - Summary of Income
Income Tax - Summary of Income Tax Expense (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total tax expense | |||
Current income tax expense | ₽ (698) | ₽ (871) | ₽ (877) |
Deferred tax benefit/(expense) | 0 | 253 | 0 |
Income tax expense for the year | ₽ (698) | ₽ (618) | ₽ (877) |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between Theoretical and Actual income Tax Expense (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Profit before tax | ₽ 3,840 | ₽ 3,107 | ₽ 6,151 |
Theoretical income tax expense at the domestic rate in each individual jurisdiction | (370) | (278) | (802) |
(Increase)/decrease resulting from the tax effect of: | |||
Non-taxable income | 12 | 39 | 200 |
Non-deductible expenses | (222) | (269) | (105) |
Income tax associated with earnings of foreign subsidiaries | (109) | (95) | (102) |
Unrecognized deferred tax assets | (9) | (15) | (68) |
Income tax expense for the year | ₽ (698) | ₽ (618) | ₽ (877) |
Commitments, Contingencies a130
Commitments, Contingencies and Operating Risks - Additional Information (Detail) | 12 Months Ended | 36 Months Ended | |||||
Dec. 31, 2017RUB (₽) | Dec. 30, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2014RUB (₽) | Oct. 31, 2017RUB (₽) | Dec. 31, 2017EUR (€) | |
Disclosure of contingent liabilities [line items] | |||||||
Maximum effect of additional losses on consolidated financial statements | ₽ 2,500,000,000 | ₽ 2,000,000,000 | |||||
Customers undergone Simplified identification procedure electronic money transfer limit | 15,000 | ||||||
Customers undergone fully identified procedure electronic money transfer limit per month | 0 | ||||||
Lease expense | 154,000,000 | 172,000,000 | |||||
Commitments on lease expenses | 461,000,000 | ||||||
Pledged debt instruments carrying amount | 1,319,000,000 | 1,687,000,000 | |||||
Coverage for supporting short-term overnight credit facility | 486,000,000 | 484,000,000 | |||||
Purchase of advertising services | ₽ 260,000,000 | ||||||
Advertising expense | ₽ 50,000,000 | 0 | ₽ 0 | ₽ 0 | |||
Within one year [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Commitments on lease expenses | 307,000,000 | ||||||
Later Than Five Years [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Commitments on lease expenses | 0 | ||||||
Office Buildings [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Lease Expense | ₽ 357,000,000 | ₽ 307,000,000 | |||||
Russia [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Withholding income tax rate | 15.00% | ||||||
Reduction in with holding taxes | 10.00% | ||||||
Applicable tax rate | 20.00% | ||||||
Withholding tax on dividends paid | 15.00% | ||||||
Russia [member] | Cypriot [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Minimal direct investments in subsidiary to apply 5% tax rate | € | € 100,000 | ||||||
Top of range [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Customers not undergone any identification procedure electronic money account balance limit | ₽ 15,000 | ||||||
Customers undergone Simplified identification procedure electronic money account balance limit | 60,000 | ||||||
Customers undergone Simplified identification procedure electronic money transfer limit per month | 200,000 | ||||||
Customers undergone fully identified procedure electronic money account balance per month | ₽ 600,000 | ||||||
Top of range [member] | Office Buildings [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Average life of commercial lease agreement | 5 years | ||||||
Top of range [member] | Russia [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Applicable tax rate | 10.00% | ||||||
Bottom of range [member] | Office Buildings [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Average life of commercial lease agreement | 1 year | ||||||
Bottom of range [member] | Russia [member] | |||||||
Disclosure of contingent liabilities [line items] | |||||||
Applicable tax rate | 5.00% |
Commitments, Contingencies a131
Commitments, Contingencies and Operating Risks - Summary of Future Minimum Lease Rentals Under Non Cancellable Operating Lease Commitments for Office Premises (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Within one year [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease rentals | ₽ 397 | ₽ 244 |
After one year but not more than five years [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Future minimum lease rentals | ₽ 693 | ₽ 583 |
Commitments, Contingencies a132
Commitments, Contingencies and Operating Risks - Schedule of Outstanding Credit Limits Possible to Be Used and Related Commitments (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Financial Commitments [Abstract] | ||
Unused limits on instalment card loans | ₽ 8,603 | ₽ 127 |
Balances and Transactions wi133
Balances and Transactions with Related Parties - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Benefits of key management and board of directors generally comprise of short-term benefits and share-based payments | ₽ 137 | ₽ 136 | ₽ 142 |
Key Management Personnel of Entity or Parent [member] | |||
Disclosure of transactions between related parties [line items] | |||
Customer accounts | ₽ 97 | ₽ 27 |
Risk Management - Additional In
Risk Management - Additional Information (Detail) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Disclosure of risk management [line Items] | ||||
Effect of exchange rate depreciation and appreciation | 5.00% | 17.00% | ||
Foreign exchange (loss) gain | ₽ 257 | ₽ 1,040 | ₽ 2,801 | |
Description of functional currency | The following tables demonstrate the sensitivity to a reasonably possible change in US Dollar and Euro exchange rates against Ruble, with all other variables held constant. The impact on the Group's profit before tax is due to changes in the carrying amount of monetary assets and liabilities denominated in US Dollar and Euro when these currencies are not functional currencies of the respective Group subsidiary. The Group's exposure to foreign currency changes for all other currencies is not material. | |||
Class B shares [member] | ||||
Disclosure of risk management [line Items] | ||||
Proceeds from issuance of shares | $ | $ 89 | |||
Cash received upon Secondary Public Offering [Member] | ||||
Disclosure of risk management [line Items] | ||||
Foreign exchange (loss) gain | ₽ 236 | ₽ 975 |
Risk Management - Change in US
Risk Management - Change in US Dollar and Euro Exchange Rates against Ruble, with all Other Variable Held Constant (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign exchange rates [abstract] | ||
Changes in US Dollar currencies gain on exchange rates | 11.00% | 20.00% |
Changes in US Dollar currencies loss on exchange rates | (11.00%) | (20.00%) |
Changes in Euro currencies gain on exchange rates | 12.50% | 20.00% |
Changes in Euro currencies loss on exchange rates | (12.50%) | (20.00%) |
Effect on profit before tax gain on US Dollar currencies | ₽ 83 | ₽ 655 |
Effect on profit before tax loss on US Dollar currencies | (83) | (655) |
Effect on profit before tax gain on euro currencies | 36 | 40 |
Effect on profit before tax loss on euro currencies | ₽ (36) | ₽ (40) |
Risk Management - Summary of Ma
Risk Management - Summary of Maturity Profile of Company Financial Liabilities Based on Contractual Undiscounted Payments (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities based on contractual undiscounted payments [line Items] | ||
Trade and other payables | ₽ 19,599 | ₽ 16,328 |
Customer accounts and amounts due to banks | 3,182 | 2,342 |
Total as of December 31 | 22,781 | 18,670 |
On demand [member] | ||
Disclosure of financial liabilities based on contractual undiscounted payments [line Items] | ||
Trade and other payables | 19,599 | 16,328 |
Customer accounts and amounts due to banks | 3,071 | 2,342 |
Total as of December 31 | 22,670 | ₽ 18,670 |
Within one year [member] | ||
Disclosure of financial liabilities based on contractual undiscounted payments [line Items] | ||
Customer accounts and amounts due to banks | 111 | |
Total as of December 31 | ₽ 111 |
Risk Management - Summary of La
Risk Management - Summary of Largest Counter Parties Balance as Percentage of Respective Totals (Detail) - Credit risk [member] - Other receivables [member] | Dec. 31, 2017 | Dec. 31, 2016 |
Top five counter parties [member] | ||
Concentration of credit risks by main counterparties, % from total amount | ||
Concentration of credit risks by main counterparties, % from total amount | 47.00% | 60.00% |
Individually insignificant counterparties [member] | ||
Concentration of credit risks by main counterparties, % from total amount | ||
Concentration of credit risks by main counterparties, % from total amount | 53.00% | 40.00% |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Value of Type Financial Instrument (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | ₽ 1,968 | ₽ 2,291 |
HTM [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Debt instruments | 1,804 | 2,171 |
LAR [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Long-term loans | 164 | 120 |
At fair value [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 1,991 | 2,315 |
At fair value [member] | HTM [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Debt instruments | 1,827 | 2,195 |
At fair value [member] | LAR [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Long-term loans | ₽ 164 | ₽ 120 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |
Marketable interest rate | 10.00% |
Government bonds [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Debt instrument maturity date | 2019-05 |
Bottom of range [member] | Government bonds [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Debt instrument interest rate | 6.70% |
Top of range [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Loans to legal entities due date | 10 years |
Top of range [member] | Government bonds [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Debt instrument interest rate | 7.50% |
Financial Instruments - Summ140
Financial Instruments - Summary of Fair Value Measurement Hierarchy of Assets and Liabilities (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
Fair value debt instruments | ₽ 1,827 | ₽ 2,195 |
Long-term loans | ₽ 164 | ₽ 120 |
Date of valuation, Debt instruments | Dec. 31, 2017 | Dec. 31, 2016 |
Date of valuation, Long-term loans | Dec. 31, 2017 | Dec. 31, 2016 |
Quoted prices in active markets (Level 1) [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value debt instruments | ₽ 1,827 | ₽ 2,195 |
Significant unobservable inputs (Level 3) [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Long-term loans | ₽ 164 | ₽ 120 |
Share-based Payments - Schedule
Share-based Payments - Schedule of Option Plans (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
2012 Employee stock option plan (ESOP) [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | $ 23.94 | $ 13.65 | ||
Adoption date | 2012-10 | |||
Type of shares | class B shares | |||
Number of options or RSUs reserved | Up to 7 % of total amount of shares | |||
Exercise basis | Shares | |||
Expiration date | December 2,020 | |||
Vesting period | Up to 4 years | |||
Other major terms | The options are not transferrable | |||
2012 Employee stock option plan (ESOP) [member] | Bottom of range [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | $ 34.09 | $ 41.24 | ||
2012 Employee stock option plan (ESOP) [member] | Top of range [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | $ 37.89 | $ 46.57 | ||
2015 Restricted stock unit Plan (RSU) [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Adoption date | 2015-07 | |||
Type of shares | class B shares | |||
Number of options or RSUs reserved | Up to 7 % of total amount of shares | |||
Exercise basis | Shares | |||
Expiration date | December 2,022 | |||
Vesting period | Three vesting during up to 2 years | |||
Other major terms | The units are not transferrable.All other terms of the units under 2015 RSU Plan are to be determined by the Company’s BOD or the CEO, if so resolved by the BOD, acting as administrator of the Plan. |
Share-based Payments - Sched142
Share-based Payments - Schedule of Changes in Outstanding Options (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
2012 Employee stock option plan (ESOP) [member] | |
Disclosure of number and weighted average exercise prices of stock options [line Items] | |
Ending Balance | 4,128,521 |
2015 Restricted stock unit Plan (RSU) [member] | |
Disclosure of number and weighted average exercise prices of stock options [line Items] | |
Ending Balance | 1,095,708 |
Share Option [Member] | 2012 Employee stock option plan (ESOP) [member] | |
Disclosure of number and weighted average exercise prices of stock options [line Items] | |
Beginning Balance | 1,929,089 |
Granted | 27,743 |
Forfeited | (282,000) |
Exercised | (146,692) |
Ending Balance | 1,528,140 |
Share Option [Member] | 2015 Restricted stock unit Plan (RSU) [member] | |
Disclosure of number and weighted average exercise prices of stock options [line Items] | |
Beginning Balance | 414,035 |
Granted | 512,108 |
Forfeited | (66,732) |
Exercised | (314,033) |
Ending Balance | 545,378 |
Share Option [Member] | Employee stock options [member] | |
Disclosure of number and weighted average exercise prices of stock options [line Items] | |
Beginning Balance | 2,343,124 |
Granted | 539,851 |
Forfeited | (348,732) |
Exercised | (460,725) |
Ending Balance | 2,073,518 |
Share-based Payments - Addition
Share-based Payments - Additional Information (Detail) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Forfeiture rate used in valuation models granted | 9.00% | 9.00% | ||
Equity-settled share-based payment transactions | ₽ | ₽ 398 | ₽ 224 | ₽ 88 | |
Restricted stock units [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of share options outstanding | 545,378 | 545,378 | ||
Number of share options vested | 51,912 | 51,912 | ||
Number of share options unvested | 493,466 | 493,466 | ||
Weighted average price, options unvested | $ 0 | |||
ESOP [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of share options outstanding | 1,528,140 | 1,528,140 | ||
Number of share options vested | 1,528,140 | 1,528,140 | ||
Weighted average price, options unvested | $ 13.65 |
Share-based Payments - Sched144
Share-based Payments - Schedule of Valuations of share-based payments (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Sep. 30, 2017 | Dec. 31, 2017USD ($) | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Dividend yield, percentage | 0.00% | 5.03% | 2.83% | 0.00% | |
2012 Employee stock option plan (ESOP) [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of options/ RSUs | 4,128,521 | 4,128,521 | |||
Weighted average share price | $ 28.10 | ||||
Weighted average fair value per option | $ 7.14 | $ 7.14 | |||
Valuation method | Black- Scholes- Merton | ||||
2015 Restricted stock unit Plan (RSU) [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of options/ RSUs | 1,095,708 | 1,095,708 | |||
Weighted average share price | $ 15.04 | ||||
Weighted average fair value per option | $ 14.41 | $ 14.41 | |||
Valuation method | Binominal | ||||
Bottom of range [member] | 2012 Employee stock option plan (ESOP) [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Dividend yield, percentage | 0.00% | ||||
Volatility, percentage | 28.00% | ||||
Risk-free interest rate, percentage | 0.29% | ||||
Expected term, years | 2 years | ||||
Bottom of range [member] | 2015 Restricted stock unit Plan (RSU) [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Dividend yield, percentage | 0.00% | ||||
Volatility, percentage | 50.65% | ||||
Risk-free interest rate, percentage | 2.89% | ||||
Expected term, years | 0 years | ||||
Top of range [member] | 2012 Employee stock option plan (ESOP) [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Dividend yield, percentage | 5.03% | ||||
Volatility, percentage | 49.85% | ||||
Risk-free interest rate, percentage | 3.85% | ||||
Expected term, years | 4 years | ||||
Top of range [member] | 2015 Restricted stock unit Plan (RSU) [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Dividend yield, percentage | 5.03% | ||||
Volatility, percentage | 64.02% | ||||
Risk-free interest rate, percentage | 3.19% | ||||
Expected term, years | 2 years |