Notes to the Consolidated Balance Sheet and Statement of Income
for the financial year 1986
General
The provisions of Title 8, Book 2 of the
Netherlands Civil Code, are applicable
to the annual accounts and the annual
report.
The financial data of Heineken N.V. are
incorporated in the Consolidated Balance
Sheet and Statement of Income.
Consequently, for the Profit and Loss
Account of Heineken N.V. use has been
made of the possibility of a simplified
arrangement in accordance with Article
402, Title 8, Book 2 of the Netherlands
Civil Code.
The amounts stated in the notes are in
thousands of guilders, unless indicated
otherwise.
During the financial year Heieneken in
creased its interest in El Aguila S.A. from
37.8% to 51,2%. Consequently this Spa
nish affiliate has been fully included in
the consolidation with effect from 1986,
with separate disclosure of minority inte
rests. Proportionate consolidation already
took place in 1985. For the first time the
brewery enterprises Sarde Produzione
Agricole Industriali S.p.A., Italy, and Bras
series de Bourbon S.A., Réunion, have
also been consolidated. As a result of
this, the total assets in the consolidated
annual accounts increased by N.fl. 378
million and the net turnover by N.fl. 385
million.
Basis of consolidation
In the Consolidated Balance Sheet and
Statement of Income Heineken N.V. and
its interests of more than 50% are shown
as fully consolidated. The minority inte
rests in the Group funds and in the Group
profit are indicated separately.
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 consolidation' the following state
ments of the movements of various as
sets and liabilities show those movements
which relate to the increase or reduction
of our interests in consolidated participa
tions.
Translation of foreign currencies
The items in foreign currency in the an
nual accounts have been translated at
the rates of exchange on the balance
sheet date.
Valuation differences arise as a result of
the translation to guilders of the share
holders' equity at the beginning of the
financial year of the foreign consolidated
participations and of the financing furnis
hed to these participations within the
Group framework. These differences are
regarded as a revaluation and are credi
ted or debited to the Group funds, taking
into account the possible levying of taxa
tion.
Other differences connected with rates
of exchange are incorporated in the Sta
tement of Income.
Intangible assets
The differences between the price paid
and the valuation according to these
policies upon the acquisition of participa
tions are offset against the Group funds.
Costs of other intangible assets, including
patents, licences, software, research and
development, are charged directly to the
Statement of Income.
Accounting policies for the valuation of
assets and liabilities
Fixed assets
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 exter
nal experts, taking technical and econo
mic 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 parti
cipations is at the cost of acquisition,
