Contents
Overview
Report of the
Executive Board
Report of the
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
2014
2013
2014
2013
BRL
0.3105
0.3070
0.3202
0.3486
GBP
1.2839
1.1995
1.2403
1.1775
MXN
0.0560
0.0553
0.0566
0.0590
NGN
0.0049
0.0047
0.0048
0.0049
PLN
0.2340
0.2407
0.2389
0.2382
RUB
0.0138
0.0221
0.0196
0.0236
SGD
0.6227
0.5743
0.5943
0.6017
USD
0.8237
0.7251
0.7527
0.7530
VND in 1,000
0.0387
0.0345
0.0355
0.0358
(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.
In 2013, hyperinflation accounting was applicable to our operations in Belarus. No hyperinflation accounting was applied in 2014
(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 below.
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, financial assets and liabilities are presented in the statement of financial position as
a net amount. The right of set-off is available today and not contingent on a future event and it is also legally enforceable for all counterparties
in a normal course of business, as well as in the event of default, insolvency or bankruptcy.
Cash and cash eguivalents comprise cash balances and call deposits. Bank overdrafts form an integral part of HEINEKEN'scash 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 3(r).
(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.
69
Heineken N.V. Annual Report 2014
