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

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2012 | | pagina 80