Investment facilities equalization account
The purpose of the investment facilities equalization account
is to apportion the amounts received in virtue of
arrangements in a number of countries with regard to
investments over the estimated life of the assets concerned.
Provisions
The provision for deferred tax liabilities is calculated at the
nominal value for timing differences in valuation between the
balance sheet and the statement of financial condition for
fiscal purposes, and the taxes on profit distributions which are
borne by the Group. Calculation of the liabilities takes place
at the tax rates applicable on the balance sheet date.
The provision for pension liabilities is determined on the
basis of present value according to actuarial principles.
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 applicable the expected degree of
participation.
Debts
Long-term debts and current liabilities are shown at par
value.
Accounting policies for the determination of income
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.
Earnings of non-consolidated participations consist of the
dividends received in the financial year from participations
valued at cost of acquisition and the Heineken share in the
profit of participations valued at net asset value. The share in
the earnings of participations valued at net asset value is
determined as far as possible according to the Heineken
policies for the determination of income, taking account of
taxation and minority interests.
Taxation on profit is calculated on the income according to
the annual accounts on the basis of nominal rates. The
taxation on profit distributions which is borne by the Group
and the facilities applicable are taken into account. The
differences from the taxes actually payable in respect of the
financial year are offset against the provision for deferred tax
liabilities.