The following exchange rates, for most important countries in which Heineken has operations, were used whilst
preparing these consolidated financial statements:
Hedge of net investments in foreign operations
Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net
investment in a foreign operation are recognised in other comprehensive income to the extent that the hedge is
effective, and are presented within equity in the translation reserve. To the extent that the hedge is ineffective,
siich differences are recognised in the income statement. When the hedged part of a net investment is disposed
ol, the relevant amount in the translation reserve is transferred to the income statement as part of the profit or
loss on disposal.
Non-derivative financial instruments
N m-derivative financial instruments comprise investments in equity and debt securities, trade and other
r ceivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non-derivative
fh ancial instruments are recognised initially at fair value plus, for instruments not at fair value through profit
loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial
ruments are measured as described subsequently.
C sh and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on
cf ;nand and form an integral part of Heineken's cash management are included as a component of cash and
c sh equivalents for the purpose of the statement of cash flows.
A counting policies for interest income, interest expenses and other net finance income and expenses are
d cussed in note 3t.
Annual Report 2009 -