Notes to the consolidated financial statements continued 32. Financial risk management and financial instruments ontinued The movement in the allowance for impairment in respect of trade and other receivables (excluding derivatives) during the year was as follows: 2012 Balance as at 1 January 478 446 Changes in consolidation 1 - Impairment loss recognised 104 104 Allowance used (60) (17) Allowance released (66) (47) Effect of movements in exchange rates 4 (8) Balance as at 31 December 461 478 The movement in the allowance for impairment in respect of loans during the year was as follows: 2012 Balance as at 1 January 170 171 Changes in consolidation Impairment loss recognised 38 10 Allowance used - (3) Allowance released (53) (9) Effect of movements in exchange rates 3 1 Balance as at 31 December 158 170 Impairment losses recognised for trade and other receivables (excluding derivatives) and loans are part of the other non-cash items in the consolidated statement of cash flows. The income statement impact of EUR15 million (2011: EUR1 million) in respect of loans and the income statement impact of EUR38 million (2011: EUR57 million) in respect of trade receivables (excluding derivatives) were included in expenses for raw materials, consumables and services. The allowance accounts in respect of trade and other receivables and held-to-maturity investments are used to record impairment losses, unless HEINEKEN is satisfied that no recovery of the amount owing is possible, at that point the amount considered irrecoverable is written off against the financial asset. Liquidity risk Liquidity risk is the risk that HEINEKEN will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. HEINEKEN's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. under both normal and stressed conditions, without incurring unacceptable losses or risking damage to HEINEKEN's reputation. Recent times have proven the credit markets situation could be such that it is difficult to generate capital to finance long-term growth of the Company. Although currently the situation is more stable, the Company has a clear focus on ensuring sufficient access to capital markets to finance long-term growth and to refinance maturing debt obligations. Financing strategies are under continuous evaluation. In addition, the Company focuses on a further fine-tuning of the maturity profile of its long-term debts with its forecasted operating cash flows. Strong cost and cash management and controls over investment proposals are in place to ensure effective and efficient allocation of financial resources. 128 Heineken N.V. Annual Report 2012

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2012 | | pagina 130