Notes to the Consolidated Financial Statements (continued)
12.3 Income tax on other comprehensive income
13.1 Fair value
Introduction Report of the Executive Board Report of the Supervisory Board
In millions of
net of tax
net of tax
Actuarial gains and losses
Currency translation differences
Recycling of currency translation
differences to profit or loss
Effective portion of net
Effective portion of changes
in fair value of cash flow hedges
Effective portion of cash flow
hedges transferred to profit or loss
Net change in fair value through
Share of other comprehensive
income of associates/joint ventures
Other comprehensive income
In 2017 these investments were classified as available-for-sale investments.
Heineken N.V. Annual Report 2018! 10
In this note more information is disclosed regarding the fair value and the different methods of
determining fair values.
Financial instruments - hierarchy
The financial instruments included on the HEINEKEN statement of financial position are measured at
either fair value or amortised cost. To measure the fair value HEINEKEN generally uses external valuations
with market inputs. In some cases however the measurement of this fair value can be subjective and is
dependent on inputs used in the calculations. The different valuation methods are called 'hierarchies' and
are described below.
- Level 1 - The fair value is determined using quoted prices (unadjusted) in active markets for identical
assets or liabilities.
- Level 2 - The fair value is calculated using 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
- Level 3 - The fair value is determined using inputs for the asset or liability that are not based on
observable market data (unobservable inputs).