g)@
Notes to the Consolidated Financial Statements
(c) Cash flow statement
(d) Offsetting financial instruments
Q Heineken N.V. Report of the Report of the Financial Sustainability Other
xJ Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
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 2020 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.
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:
In
Year-end
2020
Year-end
2019
Average
2020
Average
2019
Brazilian Real (BRL)
0.1569
0.2215
(29.2)
0.1698
0.2265
(25.0)
Great Britain Pound (GBP)
1.1123
1.1754
(5.4)
1.1244
1.1396
(1.3)
Mexican Peso (MXN)
0.0410
0.0476
(13.9)
0.0408
0.0464
(12.1)
Nigerian Naira (NGN)
0.0020
0.0024
(16.7)
0.0023
0.0025
(8.0)
Polish Zloty (PLN)
0.2167
0.2348
(7.7)
0.2250
0.2327
(3.3)
Russian Ruble (RUB)
0.0109
0.0143
(23.8)
0.0121
0.0138
(12.3)
Singapore Dollar (SGD)
0.6166
0.6618
(6.8)
0.6354
0.6548
(3.0)
United States Dollar (USD)
0.8149
0.8902
(8.5)
0.8758
0.8932
(1.9)
Vietnamese Dong in 1,000 (VND)
0.0351
0.0385
(8.8)
0.0377
0.0384
(1.8)
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.
