ANNUAL REPORT 2016
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 business segments:
- Restaurants, which includes the units with table service available offer and home delivery;
- Counters, with sales over the counter;
- Concessions and catering, which includes all other businesses, including the catering activity
and the units located in concession areas.
- Group Eat Out, and its 5 subsidiaries acquired in the fourth quarter of 2016, as described in
Note 5.2.1, whose allocation of the assets and liabilities to the Ibersol Group’s pre-existing
segmentation mentioned above (Restaurants, Counters, Concessions and catering), is not
complete.
The segments’ assets include, in particular, tangible fixed assets, intangible assets, stocks,
accounts receivable 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 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.
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