CONSOLIDATED FINANCIAL STATEMENTS
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 state-
ments 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 trea-
ted 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 transactions and balances denominated in
Kwanzas in December 31st, 2016 and 2015 were respectively:
Dec. 2016
Euro exchange rates
(x foreign currency per 1 Euro)
Rate on
December 31st
2016
Average
interest rate
year 2016
Kwanza de Angola (AOA)
181,468
181,554
Dec. 2015
Euro exchange rates
(x foreign currency per 1 Euro)
Rate on
December 31st
2015
Average
interest rate
year 2015
Kwanza de Angola (AOA)
147,842
134,409
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 required for setting up
restaurant shops.
Tangible fixed assets are shown at the acquisition cost, net of the respective amortisation and
accumulated impairment losses.
The historic cost includes all expenses attributable directly to the acquisition of goods.
Costs with loans incurred and with loans obtained for the construction of fixed tangible assets
are recognized as part of the construction cost of the asset.
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