Notes to the
Consolidated Balance Sheet,
Statement of Income and
Statement of Cash Flows for
the financial year 1993
General
The provisions of Title 9, Book 2 of the Netherlands Civil
Code, are applicable to the annual accounts and the annual
report. In 1993 a number of currencies within the European
Monetary System (EMS) were given a broader bandwidth in
relation to the central rate. The annual accounts of foreign
subsidiaries included in the consolidation, drawn up in the
currency concerned, have therefore been translated to
guilders at the year-end rates. Prior to 1993 the EMS central
rates were used for these currencies. This change does not
have any significant effect on the shareholders' equity or the
earnings.
During the financial year there were no important changes in
the extent of the participations included in the consolidation.
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
In the consolidated balance sheet and statement of income
Heineken N.V. and its subsidiaries, with which Heineken
N.V. constitutes a group, are shown as fully consolidated.
The minority interests in the Group funds and in the Group
profit are indicated separately.
Proportional consolidation takes place in the case of
participations in which the Heineken Group has a direct
interest and, in co-operation with other shareholders,
exercises control with regard to management policy if the
activities of the participations concerned are closely linked
with those of the Heineken Group.
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
Amounts in foreign currency have been translated at the rates
of exchange on the balance sheet date or at the EMS central
rates if a narrow bandwidth is applicable within the EMS to
the currency of the countries concerned. In so far as currency
hedging agreements have been entered into, however, the
rates of exchange of the relevant agreements are used for
translation. Differences in value arise as a result of the
translation into guilders of the shareholders' equity at the
beginning of the financial year of the foreign consolidated
participations and of the financing furnished to these
participations within the Group framework. These
differences are regarded as a revaluation and are credited or
debited to the Group funds, taking into account the possible
levying of taxation.
Other differences connected with changes in rates of
exchange and EMS central rates are incorporated in the
statement of income.
44
