Notes to the Consolidated Financial Statements continued
Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
The following exchange rates, for the most important countries in which HEIN EKEN has operations, were used while preparing these consolidated
Year-end
Year-end
Average
Average
2015
2015
BRL
0.2319
0.3105
0.2705
0.3202
GBP
1.3625
1.2839
1.3772
1.2403
MXN
0.0530
0.0560
0.0568
0.0566
NGN
0.0046
0.0049
0.0047
0.0048
PLN
0.2357
0.2340
0.2390
0.2389
RUB
0.0124
0.0138
0.0147
0.0196
SGD
0.6486
0.6227
0.6556
0.5943
USD
0.9185
0.8237
0.9011
0.7527
VND in 1,000
0.0409
0.0387
0.0411
0.0355
(iii) 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 and commercial papers 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 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 H EIN EKEN.
71 Heineken N.V. Annual Report 2015