70 Notes to the Consolidated Financial Statements (continued) 3. Significant accounting policies (continued) (b) Foreign currency (continued) Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information (ii) Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to Euro at exchange rates at the reporting date. The income and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated to Euro at exchange rates approximating to the exchange rates ruling at the dates of the transactions. Group entities, with a functional currency being the currency of a hyperinflationary economy, first restate their financial statements in accordance with IAS 29, Financial Reporting in Hyperinflationary Economies. The related income, costs and balance sheet amounts are translated at the foreign exchange rate ruling at the balance sheet date. Foreign currency differences are recognised in other comprehensive income and are presented within equity in the translation reserve. However, if the operation is not a wholly owned subsidiary, the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When HEINEKEN disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When HEINEKEN disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss. Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income, and are presented within equity in the translation reserve. The following exchange rates, for the most important countries in which HEINEKEN has operations, were used while preparing these consolidated financial statements: In EUR Year-end 2016 Year-end 2015 Average 2016 Average 2015 Brazilian real (BRL) 0.2915 0.2319 0.2592 0.2705 Great Britain pound (GBP) 1.1680 1.3625 1.2209 1.3772 Mexican peso (MXN) 0.0463 0.0530 0.0484 0.0568 Nigerian naira (NGN) 0.0030 0.0046 0.0036 0.0047 Polish zloty (PLN) 0.2260 0.2357 0.2292 0.2390 Russian ruble (RUB) 0.0156 0.0124 0.0135 0.0147 Singapore dollar (SGD) 0.6564 0.6486 0.6547 0.6556 United States dollar (USD) 0.9487 0.9185 0.9036 0.9011 Vietnamese dollar in 1,000 (VND) 0.0417 0.0409 0.0404 0.0411 (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 equity 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.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 71