AMBEV S.A. | CIK:0001565025 | 3

  • Filed: 3/19/2018
  • Entity registrant name: AMBEV S.A. (CIK: 0001565025)
  • Generator: Thunderdome
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1565025/000129281418000752/0001292814-18-000752-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1565025/000129281418000752/abev-20171231.xml
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    • ifrs-full:DisclosureOfIntangibleAssetsExplanatory

    15.
    INTANGIBLE
     
        2017  
              Distribution                    
       
    Brands
    		    
    contracts
    		    
    Software
    		    
    Others
    		    
    Total
    		  
    Acquisition cost                                        
    Balance at end of previous year    
    4,160.8
    		      
    2,319.4
    		      
    888.5
    		      
    460.7
    		      
    7,829.4
    		  
    Effect of movements in foreign exchange    
    (10.5
    		 )    
    7.5
    		      
    (12.1
    		 )    
    (1.2
    		 )    
    (16.3
    		 )
    Acquisitions    
    18.8
    		      
    -
    		      
    2.9
    		      
    8.8
    		      
    30.5
    		  
    Acquisitions through business combination    
    (4.0
    		 )    
    -
    		      
    -
    		      
    -
    		      
    (4.0
    		 )
    Transfers to other assets categories    
    (650.4
    		 )    
    6.4
    		      
    265.3
    		      
    26.4
    		      
    (352.3
    		 )
    Others    
    -
    		      
    -
    		      
    -
    		      
    46.0
    		      
    46.0
    		  
    Balance at end of year    
    3,514.7
    		      
    2,333.3
    		      
    1,144.6
    		      
    540.7
    		      
    7,533.3
    		  
                                             
    Amortization and Impairment losses
    (i)
    		                                        
    Balance at end of previous year    
    (1.9
    		 )    
    (1,760.8
    		 )    
    (597.0
    		 )    
    (223.8
    		 )    
    (2,583.5
    		 )
    Foreing exchange effects    
    -
    		      
    4.9
    		      
    5.5
    		      
    5.1
    		      
    15.5
    		  
    Amortization    
    -
    		      
    (138.7
    		 )    
    (118.9
    		 )    
    (32.9
    		 )    
    (290.5
    		 )
    Transfers to other assets categories    
    -
    		      
    -
    		      
    (1.4
    		 )    
    1.3
    		      
    (0.1
    		 )
    Balance at end of year    
    (1.9
    		 )    
    (1,894.6
    		 )    
    (711.8
    		 )    
    (250.3
    		 )    
    (2,858.6
    		 )
    Carrying amount:                                        
    December 31, 2016    
    4,158.9
    		      
    558.6
    		      
    291.5
    		      
    236.9
    		      
    5,245.9
    		  
    December 31, 2017    
    3,512.8
    		      
    438.7
    		      
    432.8
    		      
    290.4
    		      
    4,674.7
    		  
     
    (i) The period of amortization of intangible assets of definite useful life is
    five
    years and amortization is calculated at the rate of
    20
    %
    and recognized in income on a straight-line method.
     
        2016  
              Distribution                    
       
    Brands
    		    
    contracts
    		    
    Software
    		    
    Others
    		    
    Total
    		  
    Acquisition cost                                        
    Balance at end of previous year    
    3,908.2
    		      
    2,387.4
    		      
    788.4
    		      
    356.8
    		      
    7,440.8
    		  
    Effect of movements in foreign exchange    
    (645.9
    		 )    
    (68.3
    		 )    
    (50.3
    		 )    
    (93.6
    		 )    
    (858.1
    		 )
    Acquisitions    
    3.0
    		      
    -
    		      
    4.1
    		      
    19.0
    		      
    26.1
    		  
    Disposal    
    -
    		      
    -
    		      
    (0.4
    		 )    
    (0.3
    		 )    
    (0.7
    		 )
    Acquisitions through business combination    
    1,043.1
    		      
    -
    		      
    -
    		      
    30.7
    		      
    1,073.8
    		  
    Acquisitions through exchange transaction of shareholdings    
    228.1
    		      
    -
    		      
    20.6
    		      
    -
    		      
    248.7
    		  
    Disposals through exchange transaction of shareholdings    
    (58.0
    		 )    
    -
    		      
    (9.4
    		 )    
    (0.1
    		 )    
    (67.5
    		 )
    Transfers to other assets categories    
    (317.7
    		 )    
    0.3
    		      
    135.5
    		      
    (24.1
    		 )    
    (206.0
    		 )
    Others    
    -
    		      
    -
    		      
    -
    		      
    172.3
    		      
    172.3
    		  
    Balance at end of year    
    4,160.8
    		      
    2,319.4
    		      
    888.5
    		      
    460.7
    		      
    7,829.4
    		  
                                             
    Amortization and Impairment losses (i)                                        
    Balance at end of previous year    
    (1.9
    		 )    
    (1,622.2
    		 )    
    (539.7
    		 )    
    (184.8
    		 )    
    (2,348.6
    		 )
    Foreing exchange effects    
    -
    		      
    9.9
    		      
    29.0
    		      
    40.9
    		      
    79.8
    		  
    Amortization    
    -
    		      
    (148.6
    		 )    
    (94.4
    		 )    
    (80.0
    		 )    
    (323.0
    		 )
    Disposal    
    -
    		      
    -
    		      
    0.1
    		      
    -
    		      
    0.1
    		  
    Disposals through exchange transaction of shareholdings    
    -
    		      
    -
    		      
    8.0
    		      
    0.1
    		      
    8.1
    		  
    Transfers to other assets categories    
    -
    		      
    0.1
    		      
    -
    		      
    -
    		      
    0.1
    		  
    Balance at end of year    
    (1.9
    		 )    
    (1,760.8
    		 )    
    (597.0
    		 )    
    (223.8
    		 )    
    (2,583.5
    		 )
    Carrying amount:                                        
    December 31, 2015    
    3,906.3
    		      
    765.2
    		      
    248.7
    		      
    172.0
    		      
    5,092.2
    		  
    December 31, 2016    
    4,158.9
    		      
    558.6
    		      
    291.5
    		      
    236.9
    		      
    5,245.9
    		  
     
    (i) The period of amortization of intangible assets of definite useful life is
    five
    years and amortization is calculated at the rate of
    20%
    and recognized in income on a straight-line method.
     
    The Company is the owner of some of the world’s leading brands in the beer industry. As a result, brands are expected to generate positive cash flows for as long as the Company owns the brands and accordingly have been assigned indefinite lives. The most representative brands that have been registered as result of fair value determination of past acquisitions are
    Quilmes
    in Argentina,
    Pilsen
    in Paraguay and Bolivia and
    Presidente
    and
    Presidente Light
    in Dominican Republic.
     
    The carrying value of intangible assets with indefinite useful lives classified as brands was allocated to the following CGU:
     
        2017     2016  
    Argentina    
    348.8
    		      
    373.5
    		  
    Bolivia    
    567.1
    		      
    558.7
    		  
    Brazil    
    4.6
    		      
    575.5
    		  
    Canada    
    223.9
    		      
    205.6
    		  
    Chile    
    69.5
    		      
    63.1
    		  
    Luxembourg    
    339.6
    		      
    419.1
    		  
    Paraguay    
    447.5
    		      
    429.4
    		  
    Dominican Republic    
    1,396.6
    		      
    1,422.4
    		  
    Uruguay    
    115.2
    		      
    111.6
    		  
         
    3,512.8
    		      
    4,158.9
    		  
     
    Intangible assets with indefinite useful lives have been tested for impairment at a cash-generating unit level basis consistent with the same approach described in Note
    14
    –
    Goodwill
    .