3. Significant accounting policies
82 Annual Report 2009 - Heineken N.V.
Financial Statements
Notes to the consolidated financial statements
(e) Non-derivative financial instruments
(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 or by Heineken.
(iii) 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 - other than impairment
losses (see note 3k(i)), and foreign currency differences on available-for-sale monetary items (see note 3d(i)) -
are recognised in other comprehensive income and presented within equity in the fair value reserve. When
these investments are derecognised, the relevant cumulative gain or loss in the fair value reserve is transferred
to the income statement. Where these investments are interest-bearing, interest calculated using the effective
interest method is recognised in the income statement. Available-for-sale investments are recognised or
derecognised by Heineken on the date it commits to purchase or sell the investments.
(iv) Investments at fair value through profit or loss
An investment is classified 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 Heineken manages such
investments and makes purchase and sale decisions based on their fair value in accordance with Heineken's
documented risk management or investment strategy. Upon initial recognition, attributable transaction costs
are recognised in the income statement when incurred.
Investments at fair value through profit or loss are measured at fair value, with changes therein recognised in
the income statement as part of the other net finance income or expenses. Investments at fair value through
profit and loss are recognised or derecognised by Heineken on the date it commits to purchase or sell the
investments.
(v) Other
Other non-derivative financial instruments are measured at amortised cost using the effective interest method,
less any impairment losses. Included in non-derivative financial instruments are advances to customers.
Subsequently, the advances are amortised over the term of the contract as a reduction of revenue.
