Explanatory notes to the Consolidated Balance Sheet and Statement of Income for the financial year 1980 General 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 capital. 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 report. Accounting policies 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 Special reserve. 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 serve. 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 sets concerned. The Provision for deferred tax liabilities has been stated at par value. Long-term debts and Current liabilities are shown at par value. Sales proceeds mean the proceeds from products deliv ered to third parties. Miscellaneous income relates to the proceeds from ser vices rendered. 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 calculation. 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 tax liabilities. 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. 31

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1980 | | pagina 32