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ANNUAL REPORT 2011
Investments include additions to tangible fixed
assets (Note 8) and intangible assets (Note 9).
Investments are distributed based on the location
where the respective assets are located.
2.4. Currency exchange rate
(a) Working currency and financial statement
currency
The Financial Statements of each group entity
are prepared using the currency of the region
in which the entity operates (“the working
currency”). The consolidated financial statements
are presented in euros since this is the working
currency which the group uses in the financial
statements.
(b) Transactions and balances
Transactions in currencies other than the euro
are converted into the working currency using the
exchange rates on the transaction date. Exchange
rate gains or losses from liquidating transactions
and from the conversion rate on the consolidated
statement of financial position date of monetary
assets and liabilities in a currency other than
the euro are recognised in the Profit and Loss
Account, except when they are qualified as cash
flow hedging or as net investment hedging, in
which case they are recorded in equity.
(c) Financial statements
Financial statements assets and liabilities of
foreign entities are converted to euro using the
exchange rates at the balance sheet date, profit
and loss as well as the cash flows statements are
translated into euro using the average exchange
rate recorded during the period. The resulting
exchange difference is recorded in equity under
the heading of exchange rate differences.
“Goodwill” and fair value adjustments arising from
the acquisition of foreign entities are treated as
assets and liabilities of that entity and translated
into euro according to the exchange rate at the
balance sheet date.
When a foreign entity is disposed, the accumulated
exchange rate difference is recognised in the
income statement as a gain or loss on disposal.
Currency exchange rate used for conversion of
the transactions and balances denominated in
Kwanzas, were respectively:
AOA: 130,531
AOA: 123,594
2.5. Tangible Fixed Assets
Buildings and other structures include own
properties assigned to the restaurant activities and