Explanatory notes to the Consolidated Balance Sheet and Statement of Income for the financial year 1980
The amounts stated in the notes are in thousands of
guilders, unless indicated otherwise; the figures for
1979 are shown in green.
Basis of consolidation
In the consolidated annual accounts the participations in
which Heineken NV 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 com
bined. 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
The other interests are stated under Participations.
A survey of the participations, giving the percentages of
the holding, is included on pages 42 and 43 of this
Property, plant and equipment as well as stocks are
stated in the annual accounts at replacement cost.
Differences in valuation resulting from revaluation are
credited or debited to the Special reserve, after deduc
tion of an amount on account of deferred tax liabilities.
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 conver
sion 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. These differences on exchange are included in the
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 re
Plants and installations as well as Other real estate have
been valued on the basis of replacement cost, after de
duction of depreciation. The replacement cost is based
on valuations by internal and external experts, taking
technical developments into account. They are support
ed by the experience gained in the construction of new
establishments all over the world.
The valuation of Participations is at the cost of acquisi
tion. The interests acquired prior to October 11978, are
stated, however, at the net asset value according to the
last balance sheet drawn up before the said date.
Miscellaneous and non-current assets are shown at par
value, less a provision for doubtful items.
Stocks are stated at replacement cost, if necessary after
deduction of an amount for depreciation.
Accounts receivable are shown at par value, after de
duction of a provision for bad debts and less the amount
of deposits due on account of the obligation to take back
own packing materials.
As regards Cash and securities, bank, cash and clearing
balances as well as the short-term cash deposits are
stated at par value. The securities have been valued at
the market price on the balance sheet date.
The purpose of the Investment facilities equalization ac
count is to apportion the amounts received in virtue of
the arrangements existing in a number of countries with
regard to investments over the estimated life of the as
The Provision for deferred tax liabilities has been stated
at par value.
Long-term debts and Current liabilities are shown at par
Sales proceeds mean the proceeds from products deliv
ered to third parties.
Miscellaneous income relates to the proceeds from ser
The consumption of raw materials and other materials is
stated at replacement cost in the statement of income.
The Depreciation based on replacement cost is applied
on a straight-line basis, in accordance with the estimat
ed life of each asset; the withdrawal from the Invest
ment facilities equalization account is allowed for in this
Taxation on profit is calculated on the profit according to
the annual accounts. The tax on the difference between
the profit according to the annual accounts and the
taxable profit is offset against the Provision for deferred
Dividend from participations relates to the dividends re
ceived from non-consolidated interests.
Costs incurred for patents, licences, research and dev
elopment are charged directly to income.