81
Notes to the Consolidated Financial Statements
The application of IAS 29 includes the following:
Introduction
In
0.1865
0.1774
5.1
0.1852
0.1846
0.3
1.1507
1.1275
2.1
1.1497
1.1735
0.0109
0.0113
0.0112
0.0121
0.0532
0.0485
0.0521
0.0472
0.0010
0.0020
0.0015
0.0022
0.2300
0.2132
0.2203
0.2129
0.0100
0.0126
0.0109
0.0139
0.6854
0.6993
0.6886
0.6897
0.9050
0.9376
0.9246
0.9518
0.0373
0.0396
0.0388
0.0407
0.0492
0.0553
0.0502
0.0582
(50.0)
7.9
(20.6)
(2.0)
(3.5)
(5.8)
(11.0)
(3.5)
9.7
(31.8)
3.5
(21.6)
(0.2)
(2.9)
(4.7)
(13.7)
(2.0)
(7.4)
10.4
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:
Sustainability
Review
Financial
Statements
Other
Information
Report
of the
Supervisory
Board
Report
of the
Executive
Board
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 the exchange rates at
the reporting date. The income and expenses of foreign operations are translated to Euro at the exchange rates
that approximates the exchange rates ruling at the dates of the transactions, except for 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.
(c) Hyperinflation economies
To determine the existence of hyperinflation, HEINEKEN assesses the qualitative and quantitative characteristics
of the economic environment of the country, such as the cumulative inflation rate over the previous three years.
The Ethiopian economy was designated as hyperinflationary from the period ended 31 December 2022 and the
Haitian economy was designated as hyperinflationary for the period ended 31 December 2023. As a result,
application of IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ has been applied to Heineken
Ethiopia, whose functional currency is the Ethiopian Birr and to Brasserie Nationale d'Haiti S.A., whose functional
currency is the Haitian Gourde.
On the application of IAS 29 to Heineken Ethiopia, a cumulative inflation factor was applied using the consumer
price index (CPI) in Ethiopia, published by the Central Statistics Agency of Ethiopia. The movement in the CPI for
the year ended 31 December 2023 was 29% (2022: 34%).
On the application of IAS 29 to Brasserie Nationale d’Haiti S.A., a cumulative inflation factor was applied using
the consumer price index (CPI) in Haiti, published by the L'Institut Haïtien de Statistique et d'Informatique (IHSI).
The movement in the CPI for the year ended 31 December 2023 was 21% (2022: 48%).
Brazilian Real (BRL)
Great Britain Pound (GBP)
Indian Rupee (INR)
Mexican Peso (MXN)
Nigerian Naira (NGN)
Polish Zloty (PLN)
Russian Ruble (RUB)
Singapore Dollar (SGD)
United States Dollar (USD)
Vietnamese Dong in 1,000 (VND)
South African Rand (ZAR)
- Adjustment of historical cost non-monetary assets and liabilities for the change in purchasing power caused by
inflation from the date of initial recognition to the balance sheet date
- Adjustment of the income statement for inflation during the reporting period
- The income statement is translated at the period-end foreign exchange rate instead of an average rate
- A net monetary gain/(loss) adjustment, recognised in the income statement, to reflect the impact of inflation and
exchange rate movement on holding monetary assets and liabilities in local currency
- Reduction of the restated amount of a non-monetary item, in accordance with the appropriate standards, when
it exceeds its recoverable amount
(d) Cash flow statement
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.
(e) Offsetting financial instruments
If HEINEKEN has a legal right to offset financial assets with financial liabilities and if HEINEKEN intends to 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.
Heineken
N.V.
Annual
Report
2023
Year-end
2023
Year-end
2022
Average
2023
Average
2022
