69
(ii) Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated
to euro at exchange rates at the reporting date. The income and expenses of foreign operations, excluding foreign operations
in hyperinflationary economies, are translated to euro at exchange rates approximating the exchange rates ruling at the dates
of the transactions.
Foreign currency differences are recognised in other comprehensive income and are presented within equity in the translation
reserve. However, if the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation
difference is allocated to the non-controlling interests. When a foreign operation is disposed of such that control, significant influence
or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or
loss as part of the gain or loss on disposal. When Heineken disposes of only part of its interest in a subsidiary that includes a foreign
operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests.
When Heineken disposes of only part of its investment in an associate or joint venture that includes a foreign operation while
retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.
Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement
c which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign operation
a id are recognised in other comprehensive income, and are presented within equity in the translation reserve.
1 ie following exchange rates, for the most important countries in which Heineken has operations, were used while preparing these
c isolidated financial statements:
2010
Year-end
2010
Average
1.1618
1.1260
1.1657
1.1224
p
0.1287
0.1273
0.1339
0.1292
JN
0.0050
0.0047
0.0051
0.0048
0.2516
0.2436
0.2503
0.2311
0.4509
0.4001
0.4289
0.3610
<N
0.0604
0.0533
0.0598
0.0532
0.0245
0.0232
0.0248
0.0227
0.7484
0.6942
0.7543
0.7170
Hedge of net investments in foreign operations
reign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign
c eration are recognised in other comprehensive income to the extent that the hedge is effective and regardless of whether the
r t investment is held directly or through an intermediate parent. These differences are presented within equity in the translation
r serve. To the extent that the hedge is ineffective, such differences are recognised in profit or loss. When the hedged part of a net
estment is disposed of, the relevant amount in the translation reserve is transferred to profit or loss as part of the profit or loss
c disposal.
I ineken N.V. Annual Report 2010
