CHILE: CCU records $2.8m accoutancy loss on Argentine operations
Compania Cervecerias Unidas (CCU), Chile's leading brewer, will record the equivalent of a US$2.8m accounting loss on its 2001 financial statement because of the devaluation in Argentina.
Chilean companies with operations in Argentina have in recent weeks been submitting filings with the Chilean securities regulator, or the SVS, detailing the effect of Argentina's devaluation on January 6th on balance sheets.
And the SVS has told companies to use a 1.7 Argentine peso to the US dollar exchange to more accurately reflect the value of both assets and liabilities in post-devaluation Argentina.
In a company statement CCU said it would report a 1.81 billion Chilean peso (US$2.8m) charge for its stake in its operation in the country, CCU Argentina.
And the impact of devaluation in its investment in an Argentine winery will see it charge close to another US$1 million. The winery's negative impact will be charged directly against equity because it is still in development.
CCU is expected to report year-end earnings in the coming days.
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