XML 30 R13.htm IDEA: XBRL DOCUMENT
v3.22.1

Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2021
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, 2021 | As of December 31, 2020
| Current | Non-current | Current | Non-current
ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 9,838,420 | - | 222,443 | -
Market securities and investments in other companies | 14,013,076 | - | 7,329,096 | -
Derivative hedge assets | - | 31,252,095 | 4,661,049 | 11,953,435
Total other financial assets | 23,851,496 | 31,252,095 | 12,212,588 | 11,953,435
Accounts receivable - trade and other receivable (net) | 372,995,729 | 3,801,244 | 275,387,923 | 1,860,635
Accounts receivable from related parties | 5,307,264 | 104,197 | 5,313,079 | 132,555
Total accounts receivables | 378,302,993 | 3,905,441 | 280,701,002 | 1,993,190
Sub-Total financial assets | 402,154,489 | 35,157,536 | 292,913,590 | 13,946,625
Cash and cash equivalents | 265,568,125 | - | 396,389,016 | -
Total financial assets | 667,722,614 | 35,157,536 | 689,302,606 | 13,946,625
Bank borrowings | 76,169,204 | 114,492,596 | 37,754,705 | 88,151,400
Bonds payable | 8,087,630 | 339,740,414 | 7,691,023 | 324,725,456
Deposits for return of bottles and containers | 11,980,948 | - | 14,116,167 | -
Total financial liabilities measured at amortized cost | 96,237,782 | 454,233,010 | 59,561,895 | 412,876,856
Derivatives not designated as hedges | 411,954 | - | 4,243,939 | -
Derivatives designated as hedges | 4,776,623 | 4,036,833 | 5,323,640 | -
Total financial derivative liabilities | 5,188,577 | 4,036,833 | 9,567,579 | -
Total other financial liabilities (*) | 101,426,359 | 458,269,843 | 69,129,474 | 412,876,856
Lease Liabilities | 6,152,361 | 29,009,023 | 4,934,639 | 27,200,272
Total lease liabilities (**) | 6,152,361 | 29,009,023 | 4,934,639 | 27,200,272
Account payable- trade and other payable | 515,569,184 | 29,457 | 324,521,077 | 19,875
Accounts payable to related parties | 26,208,319 | - | 18,432,354 | -
Total commercial obligations and other accounts payable | 541,777,503 | 29,457 | 342,953,431 | 19,875
Total financial liabilities | 649,356,223 | 487,308,323 | 417,017,544 | 440,097,003
(*) 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, 2021 | As of December 31, 2020
| Book Value | Fair Value | Book Value | Fair Value
| ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 9,838,420 | 9,838,420 | 222,443 | 222,443
Market securities and investments in other companies | 14,013,076 | 14,013,076 | 7,329,096 | 7,329,096
Derivative hedge assets | 31,252,095 | 31,252,095 | 16,614,484 | 16,614,484
Total other financial assets | 55,103,591 | 55,103,591 | 24,166,023 | 24,166,023
Accounts receivable - trade and other receivable (net) | 376,796,973 | 376,796,973 | 277,248,558 | 277,248,558
Accounts receivable from related parties | 5,411,461 | 5,411,461 | 5,445,634 | 5,445,634
Total accounts receivables | 382,208,434 | 382,208,434 | 282,694,192 | 282,694,192
Sub-Total financial assets | 437,312,025 | 437,312,025 | 306,860,215 | 306,860,215
Cash and cash equivalents | 265,568,125 | 265,568,125 | 396,389,016 | 396,389,016
Total financial assets | 702,880,150 | 702,880,150 | 703,249,231 | 703,249,231
Bank borrowings | 190,661,800 | 193,844,871 | 125,906,105 | 131,188,200
Bonds payable | 347,828,044 | 328,366,713 | 332,416,479 | 373,570,478
Deposits for return of bottles and containers | 11,980,948 | 11,980,948 | 14,116,167 | 14,116,167
Total financial liabilities measured at amortized cost | 550,470,792 | 534,192,532 | 472,438,751 | 518,874,845
Derivatives not designated as hedges | 411,954 | 411,954 | 4,243,939 | 4,243,939
Derivatives designated as hedges | 8,813,456 | 8,813,456 | 5,323,640 | 5,323,640
Total financial derivative liabilities | 9,225,410 | 9,225,410 | 9,567,579 | 9,567,579
Total other financial liabilities (*) | 559,696,202 | 543,417,942 | 482,006,330 | 528,442,424
Lease Liabilities | 35,161,384 | 35,161,384 | 32,134,911 | 32,134,911
Total lease liabilities (**) | 35,161,384 | 35,161,384 | 32,134,911 | 32,134,911
Account payable- trade and other payable | 515,598,641 | 515,598,641 | 324,540,952 | 324,540,952
Accounts payable to related parties | 26,208,319 | 26,208,319 | 18,432,354 | 18,432,354
Total commercial obligations and other accounts payable | 541,806,960 | 541,806,960 | 342,973,306 | 342,973,306
Total financial liabilities | 1,136,664,546 | 1,120,386,286 | 857,114,547 | 903,550,641
(*) 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, 2021 | Fair value with changes in income | Financial assets measured at amortized cost | Hedge derivatives | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial assets |  |  |  |
Derivative financial instruments | 9,838,420 | - | - | 9,838,420
Marketable securities and investments in other companies | 14,013,076 | - | - | 14,013,076
Derivative hedge assets | - | - | 31,252,095 | 31,252,095
Total other financial assets | 23,851,496 | - | 31,252,095 | 55,103,591
Cash and cash equivalents | - | 265,568,125 | - | 265,568,125
Trade and other receivable (net) | - | 376,796,973 | - | 376,796,973
Accounts receivable from related parties | - | 5,411,461 | - | 5,411,461
Total financial assets | 23,851,496 | 647,776,559 | 31,252,095 | 702,880,150
As of December 31, 2021 | Fair value with changes in income | Hedge derivatives | Financial liabilities measured at amortized cost | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial liabilities |  |  |  |
Bank borrowings | - | - | 190,661,800 | 190,661,800
Bonds payable | - | - | 347,828,044 | 347,828,044
Deposits for return of bottles and containers | - | - | 11,980,948 | 11,980,948
Derivatives not designated as hedges | 411,954 | - | - | 411,954
Derivatives designated as hedges | - | 8,813,456 | - | 8,813,456
Total other financial liabilities | 411,954 | 8,813,456 | 550,470,792 | 559,696,202
Leases liabilities | - | - | 35,161,384 | 35,161,384
Account payable- trade and other payable | - | - | 515,598,641 | 515,598,641
Accounts payable to related parties | - | - | 26,208,319 | 26,208,319
Total financial liabilities | 411,954 | 8,813,456 | 1,127,439,136 | 1,136,664,546
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
Derivative hedge assets | - | - | 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
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, 2021 | As of December 31, 2020
Number of agreements | Nominal amounts thousand | Asset | Liability | Number of agreements | Nominal amounts thousand | Asset | Liability
ThCh$ | ThCh$ | ThCh$ | ThCh$
Cross currency swaps UF/CLP | 3 | 8,000 | 31,252,095 | 4,330,917 | 4 | 10,000 | 16,614,484 | 4,815,182
Less than a year |  | - | - | 4,330,917 |  | - | 4,661,049 | 4,815,182
Between 1 and 5 years |  | 8,000 | 31,252,095 | - |  | 10,000 | 11,953,435 | -
Cross currency interest rate swaps USD/EURO | - | - | - | - | 1 | 11,600 | - | 508,458
Less than a year |  | - | - | - |  | 11,600 | - | 508,458
Cross currency interest rate swaps UF/EURO | 1 | 296 | - | 1,153,698 | - | - | - | -
Less than a year |  | - | - | 65,288 |  | - | - | -
Between 1 and 5 years |  | 296 | - | 1,088,410 |  | - | - | -
Cross currency interest rate swaps UF/USD | 1 | 479 | - | 3,328,841 | - | - | - | -
Less than a year |  | - | - | 380,418 |  | - | - | -
Between 1 and 5 years |  | 479 | - | 2,948,423 |  | - | - | -
Subtotal hedging derivatives | 5 |  | 31,252,095 | 8,813,456 | 5 |  | 16,614,484 | 5,323,640
Forwards USD | 19 | 132,333 | 8,231,588 | 268,328 | 21 | 101,418 | 63,143 | 4,118,216
Less than a year |  | 132,333 | 8,231,588 | 268,328 |  | 101,418 | 63,143 | 4,118,216
Forwards Euro | 3 | 36,187 | 1,413,219 | 53,421 | 5 | 23,884 | 9,819 | 125,723
Less than a year |  | 36,187 | 1,413,219 | 53,421 |  | 23,884 | 9,819 | 125,723
Forwards CAD | 1 | 1,780 | - | 67,330 | 1 | 2,500 | 100,958 | -
Less than a year |  | 1,780 | - | 67,330 |  | 2,500 | 100,958 | -
Forwards GBP | 2 | 740 | - | 19,685 | 1 | 800 | 48,523 | -
Less than a year |  | 740 | - | 19,685 |  | 800 | 48,523 | -
Forwards CHF | 2 | - | 193,613 | 3,190 | - | - | - | -
Less than a year |  | - | 193,613 | 3,190 |  | - | - | -
Subtotal derivatives with effects on income | 27 |  | 9,838,420 | 411,954 | 28 |  | 222,443 | 4,243,939
Total instruments | 32 |  | 41,090,515 | 9,225,410 | 33 |  | 16,836,927 | 9,567,579
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, 2021
Entity | Nature of risks covered | Rights | Obligations | Fair value of net asset (liabilities) | Maturity
Currency | Amount | Currency | Amount | Amount
ThCh$ | ThCh$ | ThCh$
Banco Santander - Chile | Flow interest rate on bank bonds | UF | 97,057,334 | CLP | 86,696,081 | 10,361,253 | 08-10-2023
Scotiabank Chile | Flow interest rate on bank bonds | UF | 62,695,477 | CLP | 55,848,021 | 6,847,456 | 06-01-2023
Banco Santander - Chile | Flow interest rate on bank bonds | UF | 93,491,832 | CLP | 83,779,363 | 9,712,469 | 06-01-2023
Scotiabank Chile | Flow interest rate and exchange rate on bank loans | UF | 14,695,305 | USD | 18,024,146 | (3,328,841) | 06-01-2025
Scotiabank Chile | Flow interest rate and exchange rate on bank loans | UF | 9,095,477 | EUR | 10,249,175 | (1,153,698) | 06-02-2025
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 - Chile | 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 - Chile | Flow interest rate on bank bonds | UF | 94,206,548 | CLP | 91,920,865 | 2,285,683 | 06-01-2023
The Consolidated Statement of Other Comprehensive Income includes under the caption cash flow hedge, for the years ended December 31, 2021, a credit before income taxes of ThCh$ 2,168,254 (ThCh$ 4,068,855 and ThCh$ 345,986, in 2020 and 2019, 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 value s :
| 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, 2021 | Recorded fair value | Fair value hierarchy
level 1 | level 2 | level 3
ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 9,838,420 | - | 9,838,420 | -
Market securities and investments in other companies | 14,013,076 | 14,013,076 | - | -
Derivative hedge assets | 31,252,095 | - | 31,252,095 | -
Total other financial assets | 55,103,591 | 14,013,076 | 41,090,515 | -
Derivative financial instruments | 411,954 | - | 411,954 | -
Derivative hedge liabilities | 8,813,456 | - | 8,813,456 | -
Total financial derivative liabilities | 9,225,410 | - | 9,225,410 | -
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 | - | -
Derivative hedge assets | 16,614,484 | - | 16,614,484 | -
Total other financial assets | 24,166,023 | 7,329,096 | 16,836,927 | -
Derivative financial instruments | 4,243,939 | - | 4,243,939 | -
Derivative hedge liabilities | 5,323,640 | - | 5,323,640 | -
Total financial derivative liabilities | 9,567,579 | - | 9,567,579 | -
During the year ended as of December 31, 2021 , 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 2021-01-01 -Section Scope -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2021-en-r&doctype=Standard&dita_xref=IFRS07_g3-5A_TI -URIDate 2021-03-24 + Details
Name: | ifrs-full_DisclosureOfFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration