Notes to the Consolidated Balance Sheet and Statement of Income
for the financial year 1988
Heineken N.V. annual accounts 1988
31
General
The provisions of Title 9, 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
presentation in accordance with Article
402, Title 9, Book 2 of the Netherlands
Civil Code.
The amounts stated in the notes are in
thousands of guilders, unless indicated
otherwise.
Basis of consolidation
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
taxation.
Other differences connected with rates
of exchange are incorporated in the
Statement of Income.
Intangible assets
The differences between the price paid
and the valuation according to these
policies upon the acquisition of partici
pations 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.
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
interests 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 statements
of the movements of various assets
and liabilities show those movements
which relate to the increase in or
reduction of our interests in consolidated
participations.
Translation of foreign currencies
The items in foreign currency in the
annual accounts have been translated
at the rates of exchange at 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
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 deduc
tion of cumulative 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.
Projects under construction are stated
at cost.
The valuation of non-consolidated
participations is at the cost of acquisition,
after deduction of provisions considered
necessary.
The other financial fixed assets are
shown at par value, less a provision for
bad debts.
Current assets
Stocks obtained from third parties have
been valued on the basis of replacement
cost. The replacement cost is based on
the prices of current purchase contracts
