Annual Report and Consolidated Account
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The segments’ assets include, in particular, tangible
fixed assets, intangible assets, stocks, accounts receiv-
able and cash and cash equivalents. This category
excludes deferred taxes, financial investments and
derivatives 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 according to this business
distribution.
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 consolidat-
ed 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 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 financial
position date of monetary assets and liabilities in a cur-
rency 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 accord-
ing to the exchange rate at the balance sheet date.
When a foreign entity is disposed, the accumulated ex-
change rate difference is recognised in the income state-
ment as a gain or loss on disposal.
Currency exchange rate used for conversion of the trans-
actions and balances denominated in Kwanzas, were
respectively:
Euro exchange rates
(x foreign currency
per 1 Euro)
Rate on
December, 31
2014
Average
interest
rate
Angola Kwanza (AOA)
124,984
131,044
2.5 TANGIBLE FIXED ASSETS
Buildings and other structures include own properties
assigned to the restaurant activities and expenses on
works at third-party properties, in particular those re-
quired for setting up restaurant shops.
