Notes to the consolidated financial statements continued
3. Significant accounting policies continued
The following exchange rates, for the most important countries in which HEINEKEN has operations, were used while preparing these consolidated
financial statements:
Year-end
Year-end
Average
Average
2012
2012
BRL
0.3699
0.9139
0.3987
0.9298
GBP
1.2253
1.1972
1.2332
1.1522
MXN
0.0582
0.0559
0.0592
0.0578
NGN
0.0099
0.0099
0.0050
0.0097
PLN
0.2955
0.2293
0.2390
0.2927
RUB
0.0298
0.0239
0.0250
0.0295
SGD
0.6207
0.5996
0.6229
0.5718
VND in 1,000
0.0369
0.0367
0.0373
0.0398
USD
0.7579
0.7729
0.7783
0.7189
(iii) Reporting in hyperinflationary economies
When the economy of a country in which we operate is deemed hyperinflationary and the functional currency of a Group entity is the currency of that
hyperinflationary economy, the financial statements of such Group entities are adjusted so that they are stated in terms of the measuring unit current
at the end of the reporting period. This involves restatement of income and expenses to reflect changes in the general price index from the start of the
reporting period and, restatement of non-monetary items in the balance sheet, such as P, P E to reflect current purchasing power as at the period end
using a general price index from the date when they were first recognised. Comparative amounts are not adjusted. Any differences arising were recorded
in equity on adoption.
(iv) 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 regardless of whether the net investment is held directly or
through an intermediate parent. These differences are presented within equity in the translation reserve. To the extent that the hedge is ineffective,
such differences are recognised in profit or loss. When the hedged part of a net investment is disposed of, the relevant amount in the translation reserve
is transferred to profit or loss as part of the profit or loss on disposal.
(c) Non-derivative financial instruments
(i) General
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans
and borrowings, and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss, any directly attributable
transaction costs. Subsequent to initial recognition non-derivative financial instruments are measured as described hereafter.
If HEINEKEN has a legal right to offset financial assets with financial liabilities and if HEINEKEN intends either to settle on a net basis or to realise the
asset and settle the liability simultaneously then financial assets and liabilities are presented in the statement of financial position as a net amount.
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts form an integral part of H EINEKEN's cash management and
are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
Accounting policies for interest income, interest expenses and other net finance income and expenses are discussed in note 3r.
(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.
78
Heineken N.V. Annual Report 2012
