tiï O A Notes to the Consolidated Financial Statements (continued) (b) Foreign currency (c) Cash flow statement (d) Offsetting financial instruments Introduction Report of the Executive Board Report of the Supervisory Board Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of HEINEKEN entities using the exchange rates at transaction date. Receivables, payables and other monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the exchange rates at the balance sheet date. Resulting foreign currency differences are recognised in the income statement, except for foreign currency differences arising on retranslation of Fair Value through Other Comprehensive Income (FVOCI) investments and financial liabilities designated as a hedge of a net investment, which are recognised in other comprehensive income. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured at cost are translated into the functional currency at the exchange rate at transaction date. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, and of intercompany loans with a permanent nature (quasi-equity) are translated to Euro at exchange rates at the reporting date. The income and expenses of foreign operations are translated to Euro at exchange rates approximating to the exchange rates ruling at the dates of the transactions, except for foreign operations in hyperinflationary economies. In 2018 HEINEKEN did not have any significant foreign operations in hyperinflationary economies. 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. The cumulative amount in the translation reserve is (either fully or partly) reclassified to the income statement upon disposal (either fully or partly) or liquidation. Financial Statements Sustainability Review Heineken N.V. Annual Report 2018^ 70 Other Information Exchange rates of key currencies The following exchange rates, for the most important countries in which HEINEKEN has operations, were used while preparing these consolidated financial statements: Year-end Year-end Average Average In 2018 2017 2018 2017 Brazilian Real (BRL) 0.2250 0.2517 (10.6) 0.2322 0.2774 (16.3) Great Britain Pound (GBP) 1.1179 1.1271 (0.8) 1.1303 1.1410 (0.9) Mexican Peso (MXN) 0.0446 0.0425 4.9 0.0440 0.0469 (6.2) Nigerian Naira (NGN) 0.0024 0.0025 (4.0) 0.0024 0.0027 (11.1) Polish Zloty (PLN) 0.2327 0.2398 (3.0) 0.2347 0.2349 (0.1) Russian Ruble (RUB) 0.0125 0.0144 (13.2) 0.0135 0.0152 (11.2) Singapore Dollar (SGD) 0.6414 0.6241 2.8 0.6279 0.6417 (2.2) United States Dollar (USD) 0.8734 0.8338 4.7 0.8466 0.8854 (4.4) Vietnamese Dollar in 1,000 (VND) 0.0376 0.0367 2.5 0.0368 0.0389 (5.4) The cash flow statement is prepared using the indirect method. Assets and liabilities acquired as part of a business combination are included in investing activities (net of cash acquired). Dividends paid to shareholders are included in financing activities. Dividends received are classified as operating activities, as well as interest paid. 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.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 71