Notes to the Consolidated Balance Sheet, Profit and Loss Account and Cash Flow Statement for 2001
against deferred tax liabilities of the same kind over
matching periods. A net deferred tax asset is not
recognised unless future realisation is reasonably certain.
The provision for pension liabilities is calculated at net
present value according to actuarial principles based on
current pay levels. Full provision is made for pension liabili
ties in respect of accrued benefit rights. 'Back-service*
liabilities resulting from improvements in remuneration
packages and pension plans are added to the provision for
pension liabilities and charged directly to income.
The provision for other staff schemes is calculated at
the net present value of the benefit commitments in con
nection with early retirement, relocation, redundancy
and disablement schemes, taking account of the expected
degree of employee participation in the schemes
concerned.
reduction in interest income on surplus funds temporarily
invested in bank deposits due to falling interest rates and
higher interest charges on interest-bearing liabilities due
to interest rate rises. Interest rate hedging instruments are
not used without a corresponding underlying position.
Taxation on profits is calculated on the profit shown in
the financial statements by applying the standard tax
rates, taking into account tax payable by the group on
profit distributions by participating interests and applica
ble tax facilities. Differences between the amount thus cal
culated and taxes actually payable for the year are
accounted for in the provision for deferred tax liabilities.
Liabilities
Long-term borrowings and current liabilities are stated at
face value.
Determination of results
Income and expenses are accounted for in the profit and
loss account at the time of supply of the relevant goods or
services.
Net turnover means the proceeds from sales of
products and services supplied to third parties, net of
sales taxes and customer discounts.
Raw materials and consumables are stated at replace
ment cost in the profit and loss account.
Excise duties are stated at the actual amounts payable.
The amount of the depreciation charges based on
replacement cost is calculated on a straight-line basis
according to the estimated useful lives of the assets con
cerned, reduced by amounts released from the
investment facilities equalisation account.
The results of non-consolidated participating interests
consist of dividends received during the year from compa
nies carried at cost and Heineken's share of the net profits
of companies carried at net asset value. The share of the
results of companies carried at net asset value is calculat
ed as far as possible in accordance with group accounting
policies for the determination of results, taking account of
taxation and minority interests.
Interest expenses are allocated to the periods to which
they relate. Results arising from operations involving inter
est rate hedging instruments are also accounted for as
interest. Such instruments are used to hedge the risk of a
FINANCIAL STAT E M E NTS 2001
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