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Investments in joint ventures | 12 Months Ended
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Dec. 31, 2021
Investments accounted for using equity method [abstract] |
Investments in joint ventures | 10. Investment in joint venture Accounting policy A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The Company’s investment in joint venture is stated in the statement of financial position at the Company’s share of net assets under the equity method of accounting, less any impairment losses. If applicable, adjustments are made to bring into line any dissimilar accounting policies that may exist. The Company’s share of the results and reserves of joint venture is included in the statement of profit or loss, other comprehensive income and changes in equity, respectively. Unrealized gains and losses resulting from transactions between the Company and its joint venture is eliminated to the extent of the Company investment in the joint venture, except where unrealized losses provide evidence of an impairment of the asset transferred. Goodwill arising from the acquisition of joint venture is included as part of the Company’s investment in joint venture and, when necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with it carrying amount. The Company’s investment in joint venture is treated as non-current assets and are stated at cost less any impairment losses. Changes to investment in joint venture were as follows:
| Before reorganization |  |  |  |  |  |  |  |
| Raízen Combustíveis |  |  | Raízen Energia |  |  | Reorganization (note 2) |  |  | Raízen S.A. |  |
Shares issued by the joint venture | 1,661,418,472 |  |  | 7,243,283,198 |  |  | 1,447,807,814 |  |  | 10,352,509,484 |  |
Shares held by Cosan | 830,709,236 |  |  | 3,621,641,599 |  |  | 105,246,282 |  |  | 4,557,597,117 |  |
Cosan ownership interest | 50% |  |  | 50% |  |  | -6% |  |  | 44.02% |  |
At January 1, 2020 | 3,212,601 |  |  | 4,336,359 |  |  | — |  |  | 7,548,960 |  |
Interest in earnings of joint ventures | 332,240 |  |  | 250,761 |  |  | — |  |  | 583,001 |  |
Other comprehensive (losses) income | 376,053 |  |  | (446,001 | ) |  | — |  |  | (69,948 | ) |
Interest on capital | (73,388 | ) |  | — |  |  | — |  |  | (73,388 | ) |
Dividends | — |  |  | (417 | ) |  | — |  |  | (417 | ) |
At December 31, 2020 | 3,847,506 |  |  | 4,140,702 |  |  | — |  |  | 7,988,208 |  |
Interest in earnings of joint ventures (i) | 448,124 |  |  | (72,609 | ) |  | 4,215,116 |  |  | 4,590,631 |  |
Other comprehensive (losses) income | 215,787 |  |  | (491,548 | ) |  | (73,416 | ) |  | (349,177 | ) |
Interest on capital (ii) | (100,318 | ) |  | — |  |  | (122,480 | ) |  | (222,798 | ) |
Corporate reorganization (Note 2) | — |  |  | (3,204,832 | ) |  | 3,204,832 |  |  | — |  |
Dividends (ii) | (716,230 | ) |  | (371,713 | ) |  | 17,742 |  |  | (1,070,201 | ) |
At December 31, 2021 | 3,694,869 |  |  | — |  |  | 7,241,794 |  |  | 10,936,663 |  |
(i) As disclosed in Note 2, the conclusion of Raízen's IPO and the acquisition of Biosev resulted in two capitalizations in Raízen's equity of R$6,599,987 and R$2,347,281, respectively. Such capitalizations resulted in a dilution of Cosan S.A.'s interest in Raízen without the loss of shared control, keeping the investment classified as a joint venture. The following are the gains and losses recognized for the period:
Reduction on previously held interest | (896,817 | ) |
Increase in investment due to cash contribution by non-controlling shareholders in the IPO | 2,929,872 |  |
Exercise of subscription bonus - Hédera |  | 1,043,347 |  |
Other comprehensive income * | (82,243 | ) |
Gain on dilution | 2,994,159 |  |
Profit for the year under the equity method | 1,596,472 |  |
Interest in earnings of joint venture | 4,590,631 |  |
* Reclassification as part of the partial disposal. (ii) Proposed amount in the period, of which R$819,729 were paid. The statement of financial position and statement of profit or loss of the joint ventures are disclosed in Note 5 – Segment information. According to the terms of the Joint Venture - Raízen, Cosan is responsible for legal proceedings that existed before the formation of Raízen, net of judicial deposits on April 1, 2011, as well as tax installments under the terms of the tax amnesty and the Refinancing Program, or REFIS, recorded in “Other taxes payable.” In addition, Cosan granted Raízen access to a credit line (stand-by) in the amount of U.S.$350,000 thousand, unused on December 31, 2021. As of December 31, 2021, the Company was in compliance with the covenants of the contracts that govern the respective joint venture.

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- Definition The disclosure of joint ventures. [Refer: Joint ventures [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 27 -IssueDate 2021-01-01 -Paragraph 17 -Subparagraph b -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=27&code=ifrs-tx-2021-en-r&anchor=para_17_b&doctype=Standard -URIDate 2021-03-24 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 27 -IssueDate 2021-01-01 -Paragraph 16 -Subparagraph b -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=27&code=ifrs-tx-2021-en-r&anchor=para_16_b&doctype=Standard -URIDate 2021-03-24 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 12 -IssueDate 2021-01-01 -Paragraph B4 -Subparagraph b -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2021-en-r&anchor=para_B4_b&doctype=Appendix&subtype=B -URIDate 2021-03-24 + Details
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