Notes to the Consolidated Balance Sheet, the Statement oflncomeandtheCashFlow Statement for the Financial Year 2000 General The financial statements and annual report are governed by the provisions of Title 9, Book 2 of the Netherlands Civil Code. A number of changes in the size of the consolidation took place during the financial year. The most important changes in regard to the financial statements were as follows. As of 1 February 2000 Cruzcampo in Spain was fully consolidated. After the interest in Cruzcampo was increased to 99.1%, the company was merged with El Aguila to form a new company, Heineken Espana, in which Heineken N.V. holds an interest of 80.9%. The Gemer and Martiner companies in Slovakia were con solidated as of 1 January 2000. As of this same date Affligem Brouwerij BDS in Belgium was propor tionally (50%) consolidated. Added to these, a number of beverage wholesalers was fully consoli dated. These changes resulted in an increase in net turnover of EUR 494 million and a goodwill charge of EUR 778 million to shareholders' equity. The financial data of Heineken N.V. are incorporated in the consolidated balance sheet, state ment of income and cash flow statement. Consequently, a simplified presentation has been effected for the profit and loss account of Heineken N.V., as permitted under the provisions of Title 9, Book 2, Article 402 of the Netherlands Civil Code. The amounts given in the notes are in millions of euros, unless stated otherwise. Consolidation principles In the consolidated balance sheet and statement of income Heineken N.V. and its subsidiaries, with which Heineken N.V. forms a group, are shown as fully consolidated. The minority interests in Group funds and in Group profit are indicated separately. Companies in which the Heineken Group has a direct interest and exercises control with regard to management policy together with other share holders, are proportionally consolidated if the activities of the companies concerned are closely linked with those of the Heineken Group. Under the heading 'Changes in the consolidation' in the statements given below of the movements in various assets and liabilities, the movements relating to the increase in or reduction of our inter ests in consolidated companies, are shown. Translation of foreign currencies Hedging transactions are concluded solely to minimize the foreign exchange risks on receivables and debts as well as on future cash flows in foreign currencies which are virtually certain to occur. Forward contracts and options are used for this purpose. Before hedging, the incoming and outgo ing cash flows of a given currency are netted centrally as far as is possible. Where forward contracts have been concluded to hedge positions in foreign currencies, these positions are translated at the rate of exchange at which they were hedged. The recognition of gains and losses arising from the translation of currency transactions entered into for the purpose of hedging future cash flows in foreign currencies is deferred until the time the relevant cash flows are accounted for. Commercial transactions denominated in foreign currencies are entered in the statement of income at the cur rent spot rate or at the forward rate where forward contracts have been concluded in connection with these transactions. The financial statements of foreign companies are translated into euro. Assets and liabilities are translated at the exchange rate on the balance sheet date. The statement of income is translated at the average monthly rate of exchange. The statement of income of companies in countries with hyperinflation is translated at the rate of exchange on the balance sheet date. Differences in value arise as a result of the translation into euros of the shareholders' equity of the foreign consolidated companies at the beginning of the financial year and of the intra Group HEINEKEN N.V. FINANCIAL STATEMENTS 2000 57

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2000 | | pagina 65