Notes to the Consolidated Balance Sheet and Statement of Income for the financial year 1985 General The provisions of Title 8, Book 2 of the Netherlands Civil Code, are applicable to the annual accounts and the annual report. The amounts stated in the notes are in thousands of guilders, unless indicated otherwise. Basis of consolidation In the Consolidated Balance Sheet and Statement of Income Heineken NVand its interests of more than 50% are shown as fully consolidated. The minority interests in the Group funds and in the Group profit are indicated separa tely. Proportionate 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 equal to that of the other partners combined. Under the heading 'Changes in the extent of the consoli dation' the following statements of the movements of various assets and liabilities show those movements which relate to the increase or reduction of our interests in consolidated participations. Accounting policies for the valuation of assets and the determination of income Tangible fixed assets have been valued on the basis of replacement cost and, with the exception of sites, after deduction of depreciation. The replacement cost is based on valuations by internal and external experts, taking technical and economic developments into account. They are supported by the experience gained in the construction of new establishments all over the world. The valuation of Non-consolidated participations is at the cost of acquisition, after deduction of provisions con sidered necessary. The Other financial fixed assets are shown at par value, less a provision for doubtful items. Depending on the customary method of price determina tion, the stocks obtained from third parties are valued on the basis of current contracts, market prices or purchase prices applicable on the balance sheet date. Finished products and products in process are valued at manufacturing cost, based on replacement cost and taking into account the stage of processing. Stocks of returnable packing materials and spare parts are depreciated on a straight-line basis in view of the reduction of the possibility of use. Provisions on stocks are made up to the recoverable amount or net realizable value, respectively, if this is lower than the replacement cost. Prepayments on stocks are stated at par value, if neces sary after deduction of a provision. Accounts receivable are shown at par value, after deduc tion of a provision for bad debts and less the amount of deposits due on account of the obligation to take back own packing materials. Securities have been valued at the cost of acquisition, unless the market price or the estimated value of unlisted securities is lower. Bank, cash and clearing balances, as well as the short- term cash deposits, are stated at par value. The purpose of the Investment facilities equalization account 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 assets concerned. The Provision for deferred tax liabilities is calculated on the differences in valuation between the balance sheet and the statement of financial condition for fiscal purposes, in so far as these differences will be taken into account in the levying of taxation. Calculation takes place at the nominal rates of the taxes on profit in the various countries and the taxes on profit distributions which are borne by the Group. The Provision for pension liabilities is determined on the basis of present value. The Provision for other personnel schemes is calculated on the basis of the present value of the benefit commitments on account of retirement, transfer, retaining pay and disability, taking into account where necessary the expec ted degree of participation. Long-term debts and Current liabilities are shown at par value. In the Statement of Income proceeds and expenses are in principle accounted for at the time when the relevant goods or services are supplied. Net turnover means the proceeds of products supplied and services rendered to third parties, after deduction of turnover taxes and discounts. The consumption of raw materials and other materials is stated at replacement cost in the Statement of Income. Excise duties are stated at the actual amount incurred. The depreciation based on replacement cost is applied on a straight-line basis, in accordance with the estimated life of each asset; the withdrawal from the Investment facilities equalization account is allowed for in this calculation. Dividend from non-consolidated participations relates to the dividends received in the financial year. Taxation on profit, which also includes the taxes on profit distributions which are borne by the Group, is calculated on the profit according to the annual accounts, on the basis of the nominal rates and the facilities applicable. The differences from the taxes actually payable in respect of the financial year are offset against the Provision for deferred tax liabilities. 37

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1985 | | pagina 34