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Note 11 - Finance Cost and Income
 12 Months Ended
Dec. 31, 2018
Statement Line Items [Line Items]  
Disclosure of finance income (cost) [text block]
11.
FINANCE COST AND INCOME
 
(a)
Finance costs
 
      2018       2017       2016  
Interest expense    
(1,281.2
 )    
(1,571.6
 )    
(1,547.3
 )
Capitalized borrowings    
0.4
      
2.3
      
3.9
  
Net Interest on pension plans    
(103.0
 )    
(77.6
 )    
(105.6
 )
Losses on hedging instruments  and exclusive investment funds    
(1,266.1
 )    
(616.7
 )    
(1,575.1
 )
Interest on provision for disputes and litigations    
(132.7
 )    
(225.9
 )    
(619.5
 )
Exchange variation    
(756.9
 )    
(339.5
 )    
(310.4
 )
Interest and foreign exchange rate on loans    
(8.0
 )    
(16.8
 )    
–
  
Financial instruments at fair value through profit or loss    
(107.1
 )    
–
      
–
  
Tax on financial transactions    
(337.6
 )    
(179.7
 )    
(224.6
 )
Bank guarantee expenses    
(126.3
 )    
(89.5
 )    
(87.1
 )
Other financial results    
(264.6
 )    
(176.5
 )    
(132.2
 )
     
(4,383.1
 )    
(3,291.5
 )    
(4,597.9
 )
                         
Non-recurring finance cost    
(179.1
 )    
(976.8
 )    
–
  
     
(4,562.2
 )    
(4,268.3
 )    
(4,597.9
 )
 
The exceptional net finance cost refers to the realization of the exchange variation of loans settled with related parties, historically recognized in shareholders' equity, in the amount of
R$179.1
in
December 31
st
,
2018
(
R$835.7
in
December 31
st
,
2017
). Additionally, in
2017
the Company recorded an amount of
R$141.0
related to PERT
2017
which Ambev applied for – see Note
19
-
Income tax and social contribution
.
 
Interest expenses are presented net of the effect of interest rate derivative financial instruments which mitigate Ambev interest rate risk (Note
27
–
Financial instruments and risks
). The interest expense are as follows:
 
      2018       2017       2016  
Financial instruments measured at amortized cost    
(597.6
 )    
(477.6
 )    
(545.6
 )
Financial instruments at fair value through profit or loss    
(683.6
 )    
(1,076.2
 )    
(961.0
 )
Fair value hedge - hedged items    
–
      
(19.7
 )    
(49.3
 )
Fair value hedge - hedging instruments    
–
      
1.9
      
8.6
  
     
(1,281.2
 )    
(1,571.6
 )    
(1,547.3
 )
 
(b)
Finance income
 
      2018       2017       2016  
Interest income    
454.0
      
458.8
      
513.6
  
Gains on  derivative and exclusive investment funds    
84.9
      
73.7
      
113.5
  
Financial instruments at fair value through profit or loss    
–
      
227.6
      
247.5
  
Other financial results    
17.4
      
14.3
      
21.3
  
     
556.3
      
774.4
      
895.9
  
                         
Effect of application of IAS 29 (hyperinflation)    
182.5
      
–
      
–
  
     
738.8
      
774.4
      
895.9
  
 
Interest income arises from the following financial assets:
 
      2018       2017       2016  
Cash and cash equivalents    
270.7
      
233.4
      
241.5
  
Investment securities held for trading    
12.9
      
26.9
      
51.1
  
Other receivables    
170.4
      
198.5
      
221.0
  
     
454.0
      
458.8
      
513.6