Notes to the Consolidated Balance Sheet, the Statement of Income and the Cash Flow Statement
for the Financial Year 2000
Revaluation
Valuation differences resulting from revaluation are credited or debited to Group funds, where
applicable after deduction of an amount for deferred tax liabilities.
Investment facilities equalization account
The purpose of the investment facilities equalization account is to apportion the amounts received
under arrangements in a number of countries regarding investments over the estimated life of the
assets concerned.
Provisions
The provision for deferred tax liabilities is formed for timing differences in valuation between the
balance sheet and the statement of financial condition for tax purposes and for the tax on profit
distributions borne by the Group. The liabilities are calculated at the tax rates applicable on the
balance sheet date and stated at par value. Deferred tax assets are offset against deferred tax
liabilities, taking into account the terms of the tax deferrals. Net deferred tax assets are valued at
zero unless their future realization can reasonably be expected.
The provision for pension liabilities is determined using the accrued benefit valuation method
based on present value in accordance with actuarial principles.
Full provision is made for pension liabilities based on previous service. Back-service liabilities origi
nating from improvements in remuneration and pension schemes are added to the provision for
pension liabilities and charged directly to the statement of income.
The provision for other personnel schemes is calculated at the present value of the benefit commit
ment based on retirement, relocation, redundancy pay and disability, where applicable taking into
account the expected degree of utilization of the relevant scheme.
Debts
Long-term debts and current liabilities are stated at par value.
Accounting policies for the determination of income
Proceeds and expenses are in principle accounted for in the statement of income at the time the
relevant goods or services are supplied.
Net turnover means the proceeds from products supplied and services rendered to third parties
after deduction of turnover taxes and discounts given to customers.
The consumption of raw materials and other materials is stated at replacement cost in the state
ment of income.
Excise duties are stated at the nominal amount incurred.
Depreciation based on replacement cost is applied on a straight-line basis in accordance with the
estimated useful life of each asset, allowing for the withdrawal from the investment facilities equal
ization account.
The earnings of non-consolidated companies consist of the dividend received in the financial year
from the investments valued at historical cost and the Heineken share in the net profit of invest
ments valued at net asset value. The share in the earnings of investments valued at net asset value
is determined as far as is possible in accordance with the Heineken accounting policies for deter
mining income, taking into account taxation and minority interests.
Interest expenses are allocated to the period to which they relate.
The interest differences resulting from the use of financial instruments are recorded as interest
income and/or expense. These interest instruments are used to hedge the risk of a reduction in
HEINEKEN N.V. FINANCIAL STATEMENTS 2000
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