Notes to the Consolidated Financial Statements continued - - - - - - - - - - - - - - - - - - - - - - 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

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2015 | | pagina 126