(ii) Held to maturity investments If Heineken has the positive intent and ability to hold debt securities to maturity, they are classified as held-to-maturity. Debt securities are loans and long-term receivables and are measured at amortised cost using the effective interest method, less any impairment losses. Investments held-to-maturity are recognised or derecognised on the day they are transferred to/by Heineken. Held to maturity investments include advances and loans to customers of Heineken. (Hi) Available-for-sale investments Heineken's investments in equity securities and certain debt securities are classified as available-for- sale. Subsequent to initial recognition, they are measured at fair value and changes therein, except for impairment losses (see note 3h(i)), and foreign exchange gains and losses on available-for-sale monetary items (see note 3b(i)), are recognised directly in equity, When these investments are derecognised, the cumulative gain or loss previously recognised directly in equity is recognised in th income statement. Where these investments are interest bearing, interest calculated using the ef ective interest method is recognised in the income statement. Available-for-sale investments are re ognised/derecognised by Heineken on the date it commits to purchase/sell the investments. (i\ investments at fair value through profit or loss An investment is classified as at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Investments are designated at fair value through profit or loss if Hi neken manages such investments and makes purchase and sale decisions based on their fair value. U| on initial recognition, attributable transactions costs are recognised in the income statement when in urred. In astments at fair value through profit or loss are classified as current assets and are measured at fa value, with changes therein recognised in the income statement. Investments at fair value through pi >fit and loss are recognised/derecognised by Heineken on the date it commits to purchase/sell the in estments. (v hare capital - repurchase of share capital W en share capital recognised as equity is repurchased, the amount of the consideration paid, in uding directly attributable costs, is recognised as a deduction from equity. Repurchased shares ai classified as treasury shares and are presented in the reserve for own shares. )erivative financial instruments (i eneral H neken uses derivative financial instruments to hedge its exposure to foreign currency and interest r; e risks exposures. D ivative financial instruments are recognised initially at fair value, with attributable transaction cost n ognised in the income statement as incurred. Derivatives for which hedge accounting is not applied a accounted for as instruments at fair value through profit or loss. When derivatives qualify for hedge a ounting, subsequent measurement is at fair value, and changes therein accounted for as described ir lote 3d(ii). T 2 fair value of interest rate swaps is the estimated amount that Heineken would receive or pay t erminate the swap at the balance sheet date, taking into account current interest rates and the c rent creditworthiness of the swap counter parties. i ash flow hedges C anges in the fair value of the derivative hedging instrument designated as a cash flow hedge are r ognised directly in equity to the extent that the hedge is effective. To the extent that the hedge is ïeffective, changes in fair value are recognised in the income statement. Heineken N.V. 71* Annual Report 2006 I O

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2006 | | pagina 78