XML 154 R13.htm IDEA: XBRL DOCUMENT
v3.20.1

Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2019
Financial instruments [Abstract] |
Disclosure of financial instruments [text block] | Note 7 Financial Instruments Financial instruments categories The carrying amounts of each financial instrument category as of each year-end are detailed as follows:
| As of December 31, 2019 | As of December 31, 2018
| Current | Non-current | Current | Non-current
| ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 3,412,197 | - | 11,522,482 | -
Market securities and investments in other companies | 6,245,817 | - | 11,010,433 | -
Derivative hedge assets | 157,344 | 4,670,538 | 212,554 | 3,325,079
Total other financial assets | 9,815,358 | 4,670,538 | 22,745,469 | 3,325,079
Accounts receivable - trade and other receivable (net) | 300,013,940 | 3,224,627 | 320,702,339 | 3,363,123
Accounts receivable from related parties | 3,278,685 | 118,122 | 3,048,841 | 190,865
Total accounts receivables | 303,292,625 | 3,342,749 | 323,751,180 | 3,553,988
Sub-Total financial assets | 313,107,983 | 8,013,287 | 346,496,649 | 6,879,067
Cash and cash equivalents | 196,369,224 | - | 319,014,050 | -
Total financial assets | 509,477,207 | 8,013,287 | 665,510,699 | 6,879,067
Bank borrowings | 42,447,438 | 99,749,082 | 38,160,178 | 75,200,804
Bonds payable | 6,744,739 | 133,806,947 | 4,081,175 | 135,281,303
Lease Liabilities / Financial leases obligations | 4,857,097 | 28,213,259 | 365,972 | 17,546,162
Deposits for return of bottles and containers | 13,290,754 | - | 13,967,995 | -
Total financial liabilities measured at amortized cost | 67,340,028 | 261,769,288 | 56,575,320 | 228,028,269
Derivative financial instruments | 240,394 | - | 4,997,124 | -
Derivative hedge liabilities | 805,306 | - | 1,194,502 | 157,028
Total financial derivative liabilities | 1,045,700 | - | 6,191,626 | 157,028
Total other financial liabilities (*) | 68,385,728 | 261,769,288 | 62,766,946 | 228,185,297
Account payable- trade and other payable | 306,655,558 | 26,550 | 303,380,168 | 12,413
Accounts payable to related parties | 8,979,434 | - | 6,936,910 | -
Total commercial obligations and other accounts payable | 315,634,992 | 26,550 | 310,317,078 | 12,413
Total financial liabilities | 384,020,720 | 261,795,838 | 373,084,024 | 228,197,710
(*) See Note 21 - Other financial liabilities . Fair value of Financial instrument s The following tables show fair values, based on financial instrument categories, compared to the carrying amount included in the Consolidated Statements of Financial Position: a) Financial assets and liabilities are detailed as follows:
| As of December 31, 2019 | As of December 31, 2018
| Book Value | Fair Value | Book Value | Fair Value
| ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 3,412,197 | 3,412,197 | 11,522,482 | 11,522,482
Market securities and investments in other companies | 6,245,817 | 6,245,817 | 11,010,433 | 11,010,433
Derivative hedge assets | 4,827,882 | 4,827,882 | 3,537,633 | 3,537,633
Total other financial assets | 14,485,896 | 14,485,896 | 26,070,548 | 26,070,548
Accounts receivable - trade and other receivable (net) | 303,238,567 | 303,238,567 | 324,065,462 | 324,065,462
Accounts receivable from related parties | 3,396,807 | 3,396,807 | 3,239,706 | 3,239,706
Total accounts receivables | 306,635,374 | 306,635,374 | 327,305,168 | 327,305,168
Sub-Total financial assets | 321,121,270 | 321,121,270 | 353,375,716 | 353,375,716
Cash and cash equivalents | 196,369,224 | 196,369,224 | 319,014,050 | 319,014,050
Total financial assets | 517,490,494 | 517,490,494 | 672,389,766 | 672,389,766
Bank borrowings | 142,196,520 | 146,544,455 | 113,360,982 | 117,211,707
Bonds payable | 140,551,686 | 189,670,078 | 139,362,478 | 187,276,391
Lease Liabilities / Financial leases obligations | 33,070,356 | 41,851,389 | 17,912,134 | 24,278,897
Deposits for return of bottles and containers | 13,290,754 | 13,290,754 | 13,967,995 | 13,967,995
Total financial liabilities measured at amortized cost | 329,109,316 | 391,356,676 | 284,603,589 | 342,734,990
Derivative financial instruments | 240,394 | 240,394 | 4,997,124 | 4,997,124
Derivative hedge liabilities | 805,306 | 805,306 | 1,351,530 | 1,351,530
Total financial derivative liabilities | 1,045,700 | 1,045,700 | 6,348,654 | 6,348,654
Total other financial liabilities (*) | 330,155,016 | 392,402,376 | 290,952,243 | 349,083,644
Account payable- trade and other payable | 306,682,108 | 306,682,108 | 303,392,581 | 303,392,581
Accounts payable to related parties | 8,979,434 | 8,979,434 | 6,936,910 | 6,936,910
Total commercial obligations and other accounts payable | 315,661,542 | 315,661,542 | 310,329,491 | 310,329,491
Total financial liabilities | 645,816,558 | 708,063,918 | 601,281,734 | 659,413,135
(*) See Note 21 - Other financial liabilities . The carrying amount of current accounts receivable, cash and cash equivalents and other financial assets and liabilities approximate their fair value due to their short-term nature, and in the case of accounts receivable, due to the fact that any collection loss is already reflected in the impairment loss provision. The fair value of non-derivative financial assets and liabilities that are not quoted in active markets are estimated through the use of discounted cash flows calculated on market variables observed as of the date of the financial statements. The fair value of derivative instruments is estimated through the discount of future cash flows, determined according to information observed in the market or to variables and prices obtained from third parties. The fair value of bank borrowings and Bonds payable has hierarchy level 2 of fair value.
b) Financial instruments by category:
As of December 31, 2019 | Fair value with changes in income | Financial assets measured at amortized cost | Hedge derivatives | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial assets |  |  |  |
Derivative financial instruments | 3,412,197 | - | - | 3,412,197
Marketable securities and investments in other companies | 6,245,817 | - | - | 6,245,817
Derivative hedge assets | - | - | 4,827,882 | 4,827,882
Total other financial assets | 9,658,014 | - | 4,827,882 | 14,485,896
Cash and cash equivalents | - | 196,369,224 | - | 196,369,224
Trade and other receivable (net) | - | 303,238,567 | - | 303,238,567
Accounts receivable from related parties | - | 3,396,807 | - | 3,396,807
Total financial assets | 9,658,014 | 503,004,598 | 4,827,882 | 517,490,494
As of December 31, 2019 | Fair value with changes in income | Hedge derivatives | Financial liabilities measured at amortized cost | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial liabilities |  |  |  |
Bank borrowings | - | - | 142,196,520 | 142,196,520
Bonds payable | - | - | 140,551,686 | 140,551,686
Leases liabilities | - | - | 33,070,356 | 33,070,356
Deposits for return of bottles and containers | - | - | 13,290,754 | 13,290,754
Derivative financial instruments | 240,394 | - | - | 240,394
Derivative hedge liabilities | - | 805,306 | - | 805,306
Total Other financial liabilities | 240,394 | 805,306 | 329,109,316 | 330,155,016
Account payable- trade and other payable | - | - | 306,682,108 | 306,682,108
Accounts payable to related parties | - | - | 8,979,434 | 8,979,434
Total financial liabilities | 240,394 | 805,306 | 644,770,858 | 645,816,558
As of December 31, 2018 | Fair value with changes in income | Financial assets measured at amortized cost | Hedge derivatives | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial assets |  |  |  |
Derivative financial instruments | 11,522,482 | - | - | 11,522,482
Marketable securities and investments in other companies | 11,010,433 | - | - | 11,010,433
Derivative hedge assets | - | - | 3,537,633 | 3,537,633
Total other financial assets | 22,532,915 | - | 3,537,633 | 26,070,548
Cash and cash equivalents | - | 319,014,050 | - | 319,014,050
Trade and other receivable (net) | - | 324,065,462 | - | 324,065,462
Accounts receivable from related parties | - | 3,239,706 | - | 3,239,706
Total financial assets | 22,532,915 | 646,319,218 | 3,537,633 | 672,389,766
As of December 31, 2018 | Fair value with changes in income | Hedge derivatives | Financial liabilities measured at amortized cost | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial liabilities |  |  |  |
Bank borrowings | - | - | 113,360,982 | 113,360,982
Bonds payable | - | - | 139,362,478 | 139,362,478
Financial leases obligations | - | - | 17,912,134 | 17,912,134
Deposits for return of bottles and containers | - | - | 13,967,995 | 13,967,995
Derivative financial instruments | 4,997,124 | - | - | 4,997,124
Derivative hedge liabilities | - | 1,351,530 | - | 1,351,530
Total Other financial liabilities | 4,997,124 | 1,351,530 | 284,603,589 | 290,952,243
Account payable- trade and other payable | - | - | 303,392,581 | 303,392,581
Accounts payable to related parties | - | - | 6,936,910 | 6,936,910
Total financial liabilities | 4,997,124 | 1,351,530 | 594,933,080 | 601,281,734
Derivative Instruments The detail of maturities, number of derivative agreements, contracted nominal amounts, fair values and the classification of such derivative instruments by type of agreement at the closing of each year are detailed as follows:
| As of December 31, 2019 | As of December 31, 2018
Number of agreements | Nominal amounts thousand | Asset | Liability | Number of agreements | Nominal amounts thousand | Asset | Liability
ThCh$ | ThCh$ | ThCh$ | ThCh$
Cross currency interest rate swaps CLP/USD | 1 | 2,000 | 4,571,984 | 805,306 | 1 | 2,000 | 3,325,079 | 1,194,502
Less than a year | - | - | - | 805,306 | 1 | - | - | 1,194,502
Between 1 and 5 years | 1 | 2,000 | 4,571,984 | - | - | 2,000 | 3,325,079 | -
Cross currency interest rate swaps USD/EURO | 1 | 11,600 | 255,898 | - | 1 | 11,600 | 212,554 | 157,028
Less than a year | - | - | 157,344 | - | 1 | - | 212,554 | -
Between 1 and 5 years | 1 | 11,600 | 98,554 | - | - | 11,600 | - | 157,028
Total | 2 |  | 4,827,882 | 805,306 | 2 |  | 3,537,633 | 1,351,530
Forwards USD | 14 | 72,593 | 2,989,286 | 160,803 | 32 | 269,371 | 11,264,711 | 3,832,634
Less than a year | 14 | 72,593 | 2,989,286 | 160,803 | 32 | 269,371 | 11,264,711 | 3,832,634
Forwards Euro | 5 | 26,393 | 412,065 | 79,591 | 10 | 79,326 | 225,815 | 1,153,302
Less than a year | 5 | 26,393 | 412,065 | 79,591 | 10 | 79,326 | 225,815 | 1,153,302
Forwards CAD | 1 | 800 | 10,846 | - | 3 | 2,650 | 28,381 | 3,986
Less than a year | 1 | 800 | 10,846 | - | 3 | 2,650 | 28,381 | 3,986
Forwards GBP | - | - | - | - | 4 | 1,030 | 3,575 | 7,202
Less than a year | - | - | - | - | 4 | 1,030 | 3,575 | 7,202
Total | 20 |  | 3,412,197 | 240,394 | 49 |  | 11,522,482 | 4,997,124
Total instruments | 22 |  | 8,240,079 | 1,045,700 | 51 |  | 15,060,115 | 6,348,654
These derivative agreements have been entered into as a hedge of exchange rate risk exposure. In the case of forwards, the Company does not comply with the formal requirements for hedging designation; consequently their effects are recorded in Income, in Other gains (losses). In the case of Cross Currency Interest Rate Swaps and the Cross Interest Rate Swaps, these qualify as cash flow hedges of the cash flows related to loans from Banco de Chile and Scotiabank Chile. See additional disclosures in Note 21 – Other financial liabilities .
As of December 31, 2019
Entity | Nature of risks covered | Rights | Obligations | Fair value of net asset (liabilities) | Maturity
Currency | Amount | Currency | Amount | Amount |
ThCh$ | ThCh$ | ThCh$ |
Scotiabank Chile | Flow interest rate and exchange rate on bank bonds | USD | 8,820,379 | EUR | 8,564,481 | 255,898 | 06-18-2021
Banco de Chile | Flow interest rate on bank bonds | UF | 59,233,320 | CLP | 55,466,642 | 3,766,678 | 09-15-2021
As of December 31, 2018
Entity | Nature of risks covered | Rights | Obligations | Fair value of net asset (liabilities) | Maturity
Currency | Amount | Currency | Amount | Amount |
ThCh$ | ThCh$ | ThCh$ |
Scotiabank Chile | Flow interest rate and exchange rate on bank bonds | USD | 8,256,869 | EUR | 8,201,343 | 55,526 | 06-18-2021
Banco de Chile | Flow interest rate on bank bonds | UF | 60,388,039 | CLP | 58,257,462 | 2,130,577 | 09-15-2021
The Consolidated Statement of Other Comprehensive Income includes under the caption cash flow hedge, for the years ended December 31, 2019, a credit before income taxes of ThCh$ 345,986 (ThCh$ 63,008 and ThCh$ 5,661, in 2018 and 2017, respectively), related to the fair value of Cross Currency Interest Swap and Cross Interest Rate Swap derivatives instruments. Fair value hierarchies The financial instruments recorded at fair value in the Statement of Financial Position are classified as follows, depending on the method used to obtain their fair values:
Level 1 | Fair values obtained through direct reference to quoted market prices, without any adjustment.
Level 2 | Fair values obtained through the use of valuation models accepted in the market and based on prices other than those of Level 1, which may be directly or indirectly observed as of the measurement date (adjusted prices).
Level 3 | Fair values obtained through internally developed models or methodologies that use information which may not be observed or which is illiquid.
The fair value of financial instruments recorded at fair value in the Consolidated Financial Statements, is detailed as follows:
As of December 31, 2019 | Recorded fair value | Fair value hierarchy
level 1 | level 2 | level 3
ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 3,412,197 | - | 3,412,197 | -
Market securities and investments in other companies | 6,245,817 | 6,245,817 | - | -
Derivative hedge assets | 4,827,882 | - | 4,827,882 | -
Total other financial assets | 14,485,896 | 6,245,817 | 8,240,079 | -
Derivative financial instruments | 240,394 | - | 240,394 | -
Derivative hedge liabilities | 805,306 | - | 805,306 | -
Total financial derivative liabilities | 1,045,700 | - | 1,045,700 | -
As of December 31, 2018 | Recorded fair value | Fair value hierarchy
level 1 | level 2 | level 3
ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 11,522,482 | - | 11,522,482 | -
Market securities and investments in other companies | 11,010,433 | 11,010,433 | - | -
Derivative hedge assets | 3,537,633 | - | 3,537,633 | -
Total other financial assets | 26,070,548 | 11,010,433 | 15,060,115 | -
Derivative financial instruments | 4,997,124 | - | 4,997,124 | -
Derivative hedge liabilities | 1,351,530 | - | 1,351,530 | -
Total financial derivative liabilities | 6,348,654 | - | 6,348,654 | -
During the year ended as of December 31, 2019 , the Company has not made any significant instrument transfers between levels 1 and 2. Credit quality of financial assets The Company uses two credit assessment systems for its clients: a) Clients with loan insurance are assessed according to the external risk criteria (trade reports, non-compliance and protested documents that are available in the local market), payment capability and equity situation required by the insurance company to grant a loan coverage; b) All other the clients are assessed through an ABC risk model, which considers internal risk (non-compliance and protested documents), external risk (trade reports, non-compliance and protested documents that are available in the local market) and payment capacity and equity situation. The uncollectible rate during the last two years has not been significant.

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

X
- Definition The entire disclosure for financial instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2019-01-01 -Section Scope -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS07_g3-5A_TI -URIDate 2019-03-27 + Details
Name: | ifrs-full_DisclosureOfFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration