148
CONSOLIDATED FINANCIAL STATEMENTS
The group’s head office – which also hosts the largest
operating company, is in Portugal. Its business activity is
in the restaurant segment.
The Group operates in three main geographic areas
(Portugal, Spain and Angola) managed on a national lev-
el. However in this financial report we consider only two
segments, given the small size of investment in Angola,
in the year ended December 31, 2013.
Sales are broken down based on the country where the
client is located.
The segments’ assets include, in particular, tangible
fixed assets, intangible assets, stocks, accounts receiv-
able and cash and cash equivalents. This category ex-
cludes deferred taxes, financial investments and deriva-
tives held for negotiation or hedge.
The segments’ liabilities are operating liabilities. Taxes,
loans and related hedging derivatives are excluded.
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 pre-
pared using the currency of the region in which the en-
tity operates (“the working currency”). The consolidated
financial statements are presented in euros since this is
the working currency which the group uses in the finan-
cial statements.
(b) Transactions and balances
Transactions in currencies other than the euro are con-
verted into the working currency using the exchange
rates on the transaction date. Exchange rate gains or
losses from liquidating transactions and from the con-
version rate on the consolidated statement of finan-
cial 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 en-
tities 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 av-
erage exchange rate recorded during the period. The re-
sulting 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.
