AMBEV S.A. | CIK:0001565025 |

 

 

The items included in the financial statements of each subsidiary of the Company are measured using the currency of the primary economic environment in which the entity operates (“functional currency”).

 

The functional and presentation currency of the Company financial statements is the Brazilian Real.

 

 

Foreign currency transactions are accounted for at exchange rates prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the balance sheet date rate. Non-monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rate prevailing at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated at exchange rates ruling at the dates the fair value was determined. Gains and losses arising from the settlement of transactions in foreign currencies and resulting from the conversion of assets and liabilities denominated in foreign currencies are recognized in the income statement.

 

The foreign exchange gains and losses related to loans and cash and cash equivalents are presented in the income statement as finance cost or finance income.

 

 

Assets and liabilities of subsidiaries located abroad are translated at foreign exchange rates prevailing at the balance sheet date, while amounts from income statement and cash flows are translated at average exchange rates for the year and the changes in equity are translated at historical exchange rates of each transaction. The translation adjustments arising from the difference between the average exchange rates and the historical rates are recorded directly in Carrying value adjustments.

 

On consolidation, exchange differences arising from translation of equity in foreign operations and borrowings and other currency instruments designated as net investment hedges are recognized in Carrying value adjustments, an equity reserve, and included in Other comprehensive income.

 

The goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

 

An entity have a monetary item that is receivable from or payable to a foreign operation which settlement is neither planned nor likely to occur in the foreseeable future and do include trade receivables or trade payables. Exchange differences arising shall be recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

 

 

The most significant exchange rates used in the preparation of the Company’s financial statements are as follows:

 

						Closing rate												Average rate
Currency		Name		Country		2017				2016				2015				2017				2016				2015
CAD		Canadian Dollars		Canada and Cuba			2.6380				2.4214				2.8124				2.4567				2.6348				2.5661
DOP		Dominican Pesos		Dominican republic			0.0685				0.0700				0.0860				0.0674				0.0755				0.0725
USD		US Dollar		Ecuador (i) , Panamá and Cuba (ii)			3.3080				3.2591				3.9048				3.2017				3.4749				3.2596
GTQ		Quetzal		Guatemala			0.4500				0.4343				0.5129				0.4344				0.4570				0.4265
PEN		Novo Sol		Peru (i)			-				0.9720				1.1440				-				1.0269				1.0396
ARS		Argentinean Peso		Argentina			0.1762				0.2056				0.3003				0.1931				0.2354				0.3581
BOB		Bolivian Peso		Bolivia			0.4753				0.4683				0.5610				0.4600				0.4993				0.4683
PYG		Guarani		Paraguai			0.0006				0.0006				0.0007				0.0006				0.0006				0.0006
UYU		Uruguayan Peso		Uruguay			0.1151				0.1114				0.1304				0.1116				0.1166				0.1197
CLP		Chilean Peso		Chile			0.0054				0.0049				0.0055				0.0049				0.0051				0.0050
COP		Peso colombiano		Colômbia (i)			-				0.0011				0.0012				-				0.0011				0.0012
BBD		Barbadian Dollar		Barbados			1.6307				1.6075				-				1.5783				1.7139				-

 

(i) Until due to exchange of shareholdingsaccording the Note - .

 

(ii) The functional currency of Cuba, the Cuban convertible peso (“CUC”), has a fixed parity with the dollar (“USD”) at balance sheet date.