XML 33 R13.htm IDEA: XBRL DOCUMENT
v3.21.1

Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2020
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, 2020 | As of December 31, 2019
| Current | Non-current | Current | Non-current
| ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 222,443 | - | 3,412,197 | -
Market securities and investments in other companies | 7,329,096 | - | 6,245,817 | -
Derivatives designated as hedges | 4,661,049 | 11,953,435 | 157,344 | 4,670,538
Total other financial assets | 12,212,588 | 11,953,435 | 9,815,358 | 4,670,538
Accounts receivable - trade and other receivable (net) | 275,387,923 | 1,860,635 | 300,013,940 | 3,224,627
Accounts receivable from related parties | 5,313,079 | 132,555 | 3,278,685 | 118,122
Total accounts receivables | 280,701,002 | 1,993,190 | 303,292,625 | 3,342,749
Sub-Total financial assets | 292,913,590 | 13,946,625 | 313,107,983 | 8,013,287
Cash and cash equivalents | 396,389,016 | - | 196,369,224 | -
Total financial assets | 689,302,606 | 13,946,625 | 509,477,207 | 8,013,287
Bank borrowings | 37,754,705 | 88,151,400 | 42,447,438 | 99,749,082
Bonds payable | 7,691,023 | 324,725,456 | 6,744,739 | 133,806,947
Deposits for return of bottles and containers | 14,116,167 | - | 13,290,754 | -
Total financial liabilities measured at amortized cost | 59,561,895 | 412,876,856 | 62,482,931 | 233,556,029
Derivatives not designated as hedges | 4,243,939 | - | 240,394 | -
Derivatives designated as hedges | 5,323,640 | - | 805,306 | -
Total financial derivative liabilities | 9,567,579 | - | 1,045,700 | -
Total other financial liabilities (*) | 69,129,474 | 412,876,856 | 63,528,631 | 233,556,029
Lease Liabilities | 4,934,639 | 27,200,272 | 4,857,097 | 28,213,259
Total lease liabilities (**) | 4,934,639 | 27,200,272 | 4,857,097 | 28,213,259
Account payable- trade and other payable | 324,521,077 | 19,875 | 306,655,558 | 26,550
Accounts payable to related parties | 18,432,354 | - | 8,979,434 | -
Total commercial obligations and other accounts payable | 342,953,431 | 19,875 | 315,634,992 | 26,550
Total financial liabilities | 417,017,544 | 440,097,003 | 384,020,720 | 261,795,838
(*) See Note 21 - Other financial liabilities . (**) See Note 22 - Lease 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, 2020 | As of December 31, 2019
| Book Value | Fair Value | Book Value | Fair Value
| ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 222,443 | 222,443 | 3,412,197 | 3,412,197
Market securities and investments in other companies | 7,329,096 | 7,329,096 | 6,245,817 | 6,245,817
Derivatives designated as hedges | 16,614,484 | 16,614,484 | 4,827,882 | 4,827,882
Total other financial assets | 24,166,023 | 24,166,023 | 14,485,896 | 14,485,896
Accounts receivable - trade and other receivable (net) | 277,248,558 | 277,248,558 | 303,238,567 | 303,238,567
Accounts receivable from related parties | 5,445,634 | 5,445,634 | 3,396,807 | 3,396,807
Total accounts receivables | 282,694,192 | 282,694,192 | 306,635,374 | 306,635,374
Sub-Total financial assets | 306,860,215 | 306,860,215 | 321,121,270 | 321,121,270
Cash and cash equivalents | 396,389,016 | 396,389,016 | 196,369,224 | 196,369,224
Total financial assets | 703,249,231 | 703,249,231 | 517,490,494 | 517,490,494
Bank borrowings | 125,906,105 | 131,188,200 | 142,196,520 | 149,583,520
Bonds payable | 332,416,479 | 373,570,478 | 140,551,686 | 189,670,078
Deposits for return of bottles and containers | 14,116,167 | 14,116,167 | 13,290,754 | 13,290,754
Total financial liabilities measured at amortized cost | 472,438,751 | 518,874,845 | 296,038,960 | 352,544,352
Derivatives not designated as hedges | 4,243,939 | 4,243,939 | 240,394 | 240,394
Derivatives designated as hedges | 5,323,640 | 5,323,640 | 805,306 | 805,306
Total financial derivative liabilities | 9,567,579 | 9,567,579 | 1,045,700 | 1,045,700
Total other financial liabilities (*) | 482,006,330 | 528,442,424 | 297,084,660 | 353,590,052
Lease Liabilities | 32,134,911 | 32,134,911 | 33,070,356 | 33,070,356
Total lease liabilities (**) | 32,134,911 | 32,134,911 | 33,070,356 | 33,070,356
Account payable- trade and other payable | 324,540,952 | 324,540,952 | 306,682,108 | 306,682,108
Accounts payable to related parties | 18,432,354 | 18,432,354 | 8,979,434 | 8,979,434
Total commercial obligations and other accounts payable | 342,973,306 | 342,973,306 | 315,661,542 | 315,661,542
Total financial liabilities | 857,114,547 | 903,550,641 | 645,816,558 | 702,321,950
(*) See Note 21 - Other financial liabilities . (**) See Note 22 - Lease liabilities . The carrying amount of cash and cash equivalents, other financial assets, financial derivative liabilities, and lease liabilities approximate their fair value due to their short-term nature or by its valuation methodology while loans receivable and accounts receivable are 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, 2020 | Fair value with changes in income | Financial assets measured at amortized cost | Hedge derivatives | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial assets |  |  |  |
Derivative financial instruments | 222,443 | - | - | 222,443
Marketable securities and investments in other companies | 7,329,096 | - | - | 7,329,096
Derivatives designated as hedges | - | - | 16,614,484 | 16,614,484
Total other financial assets | 7,551,539 | - | 16,614,484 | 24,166,023
Cash and cash equivalents | - | 396,389,016 | - | 396,389,016
Trade and other receivable (net) | - | 277,248,558 | - | 277,248,558
Accounts receivable from related parties | - | 5,445,634 | - | 5,445,634
Total financial assets | 7,551,539 | 679,083,208 | 16,614,484 | 703,249,231
As of December 31, 2020 | Fair value with changes in income | Hedge derivatives | Financial liabilities measured at amortized cost | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial liabilities |  |  |  |
Bank borrowings | - | - | 125,906,105 | 125,906,105
Bonds payable | - | - | 332,416,479 | 332,416,479
Deposits for return of bottles and containers | - | - | 14,116,167 | 14,116,167
Derivatives not designated as hedges | 4,243,939 | - | - | 4,243,939
Derivatives designated as hedges | - | 5,323,640 | - | 5,323,640
Total Other financial liabilities | 4,243,939 | 5,323,640 | 472,438,751 | 482,006,330
Leases liabilities | - | - | 32,134,911 | 32,134,911
Account payable- trade and other payable | - | - | 324,540,952 | 324,540,952
Accounts payable to related parties | - | - | 18,432,354 | 18,432,354
Total financial liabilities | 4,243,939 | 5,323,640 | 847,546,968 | 857,114,547
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
Derivatives designated as hedges | - | - | 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
Deposits for return of bottles and containers | - | - | 13,290,754 | 13,290,754
Derivatives not designated as hedges | 240,394 | - | - | 240,394
Derivatives designated as hedges | - | 805,306 | - | 805,306
Total Other financial liabilities | 240,394 | 805,306 | 296,038,960 | 297,084,660
Leases liabilities | - | - | 33,070,356 | 33,070,356
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
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, 2020 | As of December 31, 2019
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 | 4 | 10,000 | 16,614,484 | 4,815,182 | 1 | 2,000 | 4,571,984 | 805,306
Less than a year | - | - | 4,661,049 | 4,815,182 | - | - | - | 805,306
Between 1 and 5 years | 4 | 10,000 | 11,953,435 | - | 1 | 2,000 | 4,571,984 | -
Cross currency interest rate swaps USD/EURO | 1 | 11,600 | - | 508,458 | 1 | 11,600 | 255,898 | -
Less than a year | 1 | 11,600 | - | 508,458 | - | - | 157,344 | -
Between 1 and 5 years | - | - | - | - | 1 | 11,600 | 98,554 | -
Total | 5 |  | 16,614,484 | 5,323,640 | 2 |  | 4,827,882 | 805,306
Forwards USD | 21 | 101,418 | 63,143 | 4,118,216 | 14 | 72,593 | 2,989,286 | 160,803
Less than a year | 21 | 101,418 | 63,143 | 4,118,216 | 14 | 72,593 | 2,989,286 | 160,803
Forwards Euro | 5 | 23,884 | 9,819 | 125,723 | 5 | 26,393 | 412,065 | 79,591
Less than a year | 5 | 23,884 | 9,819 | 125,723 | 5 | 26,393 | 412,065 | 79,591
Forwards CAD | 1 | 2,500 | 100,958 | - | 1 | 800 | 10,846 | -
Less than a year | 1 | 2,500 | 100,958 | - | 1 | 800 | 10,846 | -
Forwards GBP | 1 | 800 | 48,523 | - | - | - | - | -
Less than a year | 1 | 800 | 48,523 | - | - | - | - | -
Total | 28 |  | 222,443 | 4,243,939 | 20 |  | 3,412,197 | 240,394
Total instruments | 33 |  | 16,836,927 | 9,567,579 | 22 |  | 8,240,079 | 1,045,700
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, 2020
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 loans | USD | 8,288,973 | EUR | 8,797,431 | (508,458) | 06-18-2021
Banco de Chile | Flow interest rate on bank bonds | UF | 53,163,284 | CLP | 48,502,235 | 4,661,049 | 09-15-2021
Banco Santander | Flow interest rate on bank bonds | UF | 99,523,402 | CLP | 96,705,562 | 2,817,840 | 08-10-2023
Scotiabank Chile | Flow interest rate on bank bonds | UF | 63,400,143 | CLP | 61,365,413 | 2,034,730 | 06-01-2023
Banco Santander | Flow interest rate on bank bonds | UF | 94,206,548 | CLP | 91,920,865 | 2,285,683 | 06-01-2023
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
The Consolidated Statement of Other Comprehensive Income includes under the caption cash flow hedge, for the years ended December 31, 2020, a credit before income taxes of ThCh$ 4,068,855 (ThCh$ 345,986 and ThCh$ 63,008, in 2019 and 2018, 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, 2020 | Recorded fair value | Fair value hierarchy
level 1 | level 2 | level 3
ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 222,443 | - | 222,443 | -
Market securities and investments in other companies | 7,329,096 | 7,329,096 | - | -
Derivatives designated as hedges | 16,614,484 | - | 16,614,484 | -
Total other financial assets | 24,166,023 | 7,329,096 | 16,836,927 | -
Derivatives not designated as hedges | 4,243,939 | - | 4,243,939 | -
Derivatives designated as hedges | 5,323,640 | - | 5,323,640 | -
Total financial derivative liabilities | 9,567,579 | - | 9,567,579 | -
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 | - | -
Derivatives designated as hedges | 4,827,882 | - | 4,827,882 | -
Total other financial assets | 14,485,896 | 6,245,817 | 8,240,079 | -
Derivatives not designated as hedges | 240,394 | - | 240,394 | -
Derivatives designated as hedges | 805,306 | - | 805,306 | -
Total financial derivative liabilities | 1,045,700 | - | 1,045,700 | -
During the year ended as of December 31, 2020 , 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 the other 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 2020-01-01 -Section Scope -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IFRS07_g3-5A_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration