Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
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
In EUR
2013
2012
2013
2012
BRL
0.3070
0.3699
0.3486
0.3987
GBP
1.1995
1.2253
1.1775
1.2332
MXN
0.0553
0.0582
0.0590
0.0592
NGN
0.0047
0.0049
0.0049
0.0050
PLN
0.2407
0.2455
0.2382
0.2390
RUB
0.0221
0.0248
0.0236
0.0250
SGD
0.5743
0.6207
0.6017
0.6229
VND in 1000
0.0345
0.0364
0.0358
0.0373
USD
0.7251
0.7579
0.7530
0.7783
(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 eguity on adoption.
(iv) Hedge of net investments in foreign operations
Foreign currency differences arising on the translation 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 eguity 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 eguity and debt securities, trade and other receivables, cash and cash
eguivalents, 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. Subseguent 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 eguivalents comprise cash balances and call deposits. Bank overdrafts form an integral part of HEINEKEN's cash
management and are included as a component of cash and cash eguivalents 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.
Heineken N.V. Annual Report 2013
67