Jordan
Sales by Jordan Brewery Co. Ltd., of Amman, have risen very satisfactorily in the year under review.
Iraq
The sales of Amstel Gold brewed under licence by Eastern Brewery Company S.A., of Baghdad,
have again increased.
ANNUAL ACCOUNTS
Hxtent of the consolidation
In the consolidated annual accounts the participations in which Heineken N.V. has a direct or
indirect interest of more than 50% are shown as fully consolidated. The minority interests of third
parties in the group assets and in the group profit are indicated separately. Partial consolidation
has taken place in the case of those participations in which an interest of 50% or less is held, if the
influence exerted by Heineken on management policy is at least equal to that of the other partners
combined.The amounts of assets and liabilities and of items in the Statement of Income, respectively,
have been stated in proportion to our interest in the total issued capital.
The other interests are stated under Participations.
A survey of the participations, stating the percentage of the holding, is included on pages 36 and 37
of this Report.
Accounting policies
The fixed assets have been valued on the basis of replacement value, after deduction of depreciation.
The stocks have similarly been valued on the basis of replacement value. Changes in such value
are credited or debited to the Revaluation reserve, after deduction of an amount on account of
latent tax liabilities. In so far as there are grounds for doing so, depreciation is applied to stocks.
The non-consolidated participations have been valued on the basis of intrinsic value.
Goodwill paid upon the acquisition of enterprises or received in the event of sale is debited or
credited, respectively, to the General reserve.
Accounts receivable as well as Current liabilities and Long-term debts are shown at par value. The
par value of the accounts receivable has been reduced by the provision deemed necessary.
In the consolidated Statement of Financial Condition the amounts in foreign currency have been
converted at the official rate of exchange on the balance sheet date.
In so far as they relate to fixed assets of foreign consolidated participations, differences on exchange
as a result of currency changes are offset against the revaluation of these assets.
20
