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.
Intangible assets
The differences between the price paid and the valuation,
calculated according to the policies stated here, of newly
acquired participations in which at least significant influence
is exercised over management policy, are offset against the
Group funds. Costs of other intangible assets, including
brands, 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 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
establishments all over the world.
Projects under construction are stated at cost of acquisition.
The non-consolidated participations in which a significant
influence is exercised over management policy are stated at
the Heineken share in the net asset value. This net asset value
is determined as far as possible on the basis of the Heineken
accounting policies. The other non-consolidated
participations are valued 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 and on market 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 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 value.
Prepayments on stocks are stated at par value.
Accounts receivable are shown at par value, after deduction
of a provision for bad debts and less the amount of deposits
due on account of the obligation to take back own packaging
materials.
Securities have been valued at the cost of acquisition, unless
the market price or the estimated market value of unlisted
securities is lower.
Cash at bank and in hand is stated at par value.