Notes to the Consolidated Financial Statements continued
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Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
Fair value hierarchy
The tables below present the financial instruments accounted for at fair value and amortised cost by level of the following fair value
measurement hierarchy:
Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly
(that is, derived from prices) (level 2)
Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)
Level 1
Level 2
Level 3
Available-for-sale investments
98
105
84
Non-current derivative assets
210
Current derivative assets
52
Investments held for trading
16
114
367
84
Non-current derivative liabilities
(32)
Loans and borrowings
(10,025)
(1,870)
Current derivative liabilities
(89)
(10,025)
(1,991)
Level 1
Level 2
Level 3
Available-for-sale investments
99
86
68
Non-current derivative assets
97
Current derivative assets
122
Investments held for trading
13
112
305
68
Non-current derivative liabilities
(8)
Loans and borrowings
(9,296)
(1,829)
Current derivative liabilities
(104)
(9,296)
(1,941)
There were no transfers between level 1 and level 2 of the fair value hierarchy during the period ended 31 December 2015.
HEINEKEN determines level 2 fair values for over-the-counter securities based on broker quotes. The fair values of simple over-the-counter derivative
financial instruments are determined by using valuation techniques. These valuation techniques maximise the use of observable market data
where available.
The fair value of derivatives is calculated as the present value of the estimated future cash flows based on observable interest yield curves, basis spread and
foreign exchange rates. These calculations are tested for reasonableness by comparing the outcome of the internal valuation with the valuation received
from the counterparty. Fair values reflect the credit risk of the instrument and include adjustments to take into account the credit risk of H EIN EKEN and
counterparty when appropriate.
125 Heineken N.V. Annual Report 2015