EXPLANATORY NOTES TO THE CONSOLIDATED BALANCE
SHEET AND STATEMENT OF INCOME FOR THE
FINANCIAL YEAR 1 976/1 977
GENERAL
In the Consolidated Statement of Income for 1976/1977 the cost of raw
materials, other materials and services has been reduced by N.fl. 9.5 million,
as a result of restatement, and the charge for salaries and social security costs
has been increased by the same amount. The comparative figures for 1975/1976
for the relevant items have been correspondingly adjusted by N.fl. 7.6 million.
The amounts stated in the notes are in thousands of guilders, unless indicated
otherwise; the figures for the financial year 1975/1976 are shown in green.
basis of 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 in the group funds 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, giving the percentage of the holding, is included
on pages 44 and 45 of this Report.
accounting policies The valuation of the assets on the balance sheet as well as the depreciation and
the consumption of raw materials and other materials in the statement of income
are based on replacement value.
Differences in valuation resulting from revaluation are credited or debited to the
Revaluation reserve, after deduction of an amount on account of deferred tax
liabilities. These differences in valuation are offset against the other provisions,
however, if the revaluation relates to parts of the Group in which the risks in
volved in the exercise of the business are significantly greater than normal.
The items in foreign currency in the annual accounts have been converted at
the official rates of exchange on the balance sheet date.
Differences on exchange arise as a result of the conversion of the balance
sheets of the foreign consolidated participations at the beginning of the
financial year at the rates of exchange which have altered at the end of the
year. In so far as they relate to the fixed assets of these participations, the
differences on exchange are offset against the revaluation of the said assets.
The differences on the other balance sheet items are included in other provisions.
Other differences on exchange are incorporated in the statement of income.
Goodwill upon the acquisition or sale of enterprises is debited or credited,
respectively, to the General reserve.
35
