XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.22.4

GOODWILL | 12 Months Ended
--- | ---
Dec. 31, 2022
Goodwill - Changes In Period |
GOODWILL |
14. | GOODWILL
Schedule of reconciliation of changes in goodwill |  |
| 2022 | 2021
Balance at the end of the previous year | 42,411.3 | 40,023.5
Effects of movements in foreign exchange in the balance sheet | (3,510.6) | 1,255.3
Effect of application of IAS 29 (hyperinflation) | 1,709.9 | 1,092.4
Acquisitions, (write-offs) and disposal through business combinations | (16.6) | 40.1
Balance at the end of the year | 40,594.0 | 42,411.3
The carrying amount of goodwill was allocated to the different CGU as follows:
Schedule of carrying amount of goodwill |  |  |
| Functional currency | 2022 | 2021
Brazil | BRL | 17,702.4 | 17,702.4
Goodwill |  | 102,945.0 | 102,945.0
Non-controlling transactions (i) | (85,242.6) | (85,242.6)
CAC: |
Dominican Republic | DOP | 4,231.6 | 4,439.3
Panama | PAB | 1,813.8 | 1,939.9
Latin America - South: |
Argentina | ARS | 3,463.0 | 3,232.6
Bolivia | BOB | 1,845.6 | 1,973.9
Chile | CLP | 53.1 | 57.4
Paraguay | PYG | 953.8 | 1,083.2
Uruguay | UYU | 193.1 | 185.2
Canada | CAD | 10,337.6 | 11,797.4
| 40,594.0 | 42,411.3
(i) | This refers to the shareholding exchange transaction in 2013 as a result of the adoption of the predecessor basis of accounting.
The impairment testing of assets with indefinite useful lives requires the use of a number of critical judgments, estimates and assumptions. Goodwill, which accounted for approximately 29% of total assets, as at December 31, 2022 (31% as at December 31, 2021) is tested for impairment at the cash-generating unit level at least annually. The cash-generating unit level is the lowest level at which assets are monitored for internal management purposes. When a business combination occurs, assets with indefinite useful lives are allocated, from the acquisition date, to each business unit that is expected to benefit from the synergies arising from the combination. Annual impairment testing The Company cannot predict whether an event that could trigger impairment will occur, when it will occur or how it will affect the value of the asset reported. The Company believes that all of its estimates are reasonable, are consistent with the Company’s internal reporting and reflect Management’s best estimates. However, inherent uncertainty exists which Management is not able to control. While changes in estimates could have a material impact on the calculation of fair values, and trigger impairment, the Company, based on the sensitivity analysis performed, is not aware of any reasonably possible changes in key assumptions that would cause a business unit’s carrying amount to exceed its recoverable amount. The Company completed its annual impairment testing for goodwill based on the assumptions described below and concluded that no impairment charge was warranted. The methodology used by the Company to determine the recoverable value of all its CGUs is the net fair value of selling expenses, using multiples of the profit before financial result, income tax and depreciation and amortization expenses (“EBITDA”), observed in the market for previous comparable business transactions in the domestic and international brewing industry. The values ​​used by the Company for this approach are based on external sources of information. This measurement is classified at Level 2 of the fair value hierarchy, since the main source of information used by the Company to determine the recoverable value was the EBITDA multiples of observable transactions involving comparable businesses. As part of this multiples analysis, the Company has established that CGUs with invested capital that exceeds seven times their EBITDA should have their recoverable value determined using the value-in-use approach, to determine whether the fair value less costs to sell exceeds the carrying amount of the CGU. Based on the most recent analysis carried out by the Company, only Chile and Panama met this criterion. Thus, for Brazil, Panama and Chile CGUs, the Company also used discounted cash flow projections to determine the CGUs’ recoverable amounts, in order to corroborate the conclusions reached by applying the fair value less disposal costs approach that he carrying amount of these CGUs does not exceed their recognized accounting values. The selection of these CGUs considered quantitative and qualitative aspects, since only the Brazil CGU, which is the most representative of the Company as a whole, and for Chile and Panama CGUs, have reached a multiple above the pre-determined parameter related to EBITDA. Sensitivity analysis Based on the probable scenario, a sensitivity analysis was carried out for a 0.5 percentage point increase or decrease in the discount rate and growth rate. In any combination, the value of the cash flow is higher than its book value. As a result of this analysis, there is no need to record any provision to impairment from these assets. The key judgments, estimates and key assumptions used for the discounted free cash flow calculations for these CGUs were as follow:
| § | The first year of the model is based on management's best estimate of the free cash flow outlook for the current year;
| § | To the second year of the model, the free cash flow is based on AB InBev's strategic plan, as approved by key management. AB InBev's strategic plan is prepared on a per country basis, and is based on external sources of macroeconomic assumptions, industry trends, inflation and foreign exchange rates, past experience and identified initiatives in terms of market share, revenue, variable and fixed costs, capital expenditure and working capital assumptions;
| § | From the third to the tenth year of the model, the cash flow is extrapolated using the growth in volumes, price indexes, and expected market share for each CGU. For the Chile and Panama CGU, the best estimates from local Management were considered; and
| § | Projections are made in the functional currency of the business unit and discounted at the unit's weighted average cost of capital (“WACC”), considering sensitivities of this metric.
Based on the cash flow analysis, the growth rates applied ranged from 3.3% to 8.7%. The nominal WACC applied in the local currency for each CGU was as follows:
Schedule of local currency |
CGU | 2022
Chile | 11.4%
Panama | 10.0%
Brazil | 12.7%
Although Ambev believes that its judgments, assumptions and estimates are appropriate, actual results may differ from these estimates based on different assumptions or conditions of market or macroeconomic.

X
- References No definition available. + Details
Name: | abev_GoodwillAbstract
Namespace Prefix: | abev_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of goodwill. [Refer: Goodwill] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2022-03-24 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2022-en-r&anchor=para_10_e&doctype=Standard -URIDate 2022-03-24 + Details
Name: | ifrs-full_DisclosureOfGoodwillExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration