Notes to the Consolidated Balance Sheet, Profit and Loss Account and Cash Flow Statement for 2002 General The financial statements and the report of the Executive Board have been prepared in accordance with the provi sions of Part g, Book 2, of the Netherlands Civil Code. There were a number of changes in the scope of the con solidation during the year, the following being the more significant of these with regard to the financial statements. The 49.9% participating interest in BrauHolding International, in Germany, has been proportionally consolidated with effect from 1 January 2002. In 2001, this participating interest was carried at net asset value. Bravo International in Russia has been fully consolidated with effect from 1 January 2002. In addition, Al Ahram in Egypt, Almaza in Lebanon and Bard in Panama have been includ ed in the consolidation with effect from 1 October 2002. There was also a certain amount of expansion of existing interests and a number of beverage wholesalers were acquired. These changes in the consolidation led to an increase in net turnover of €468 million. The acquisitions also resulted in a goodwill charge to equity of €778 million. From 2002 part of the costs of temporary point-of-sales activities were reclassified as marketing and selling expenses, whereas previously they were deducted from net turnover. To facilitate comparison, both net turnover and marketing and selling expenses in 2001 have been increased by €170 million. The financial information relating to Heineken N.V. has been included in the consolidated balance sheet and profit and loss account. The abridged presentation permitted by Section 402, Part 9, Book 2, of the Netherlands Civil Code has accordingly been used for the Heineken N.V. profit and loss account. The amounts disclosed in the notes are in millions of euros unless otherwise indicated. Consolidation Heineken N.V. and the subsidiaries with which it forms a group are fully consolidated in the consolidated balance sheet and profit and loss account, with minority interests in group equity and group profits shown separately. Proportional consolidation is applied in the case of com panies in which the Heineken group has a direct interest and exercises a controlling influence on management decisions in partnership with other shareholders. In the analyses of movements in various assets and liabilities, disclosures of'changes in the consolidation' relate to increases or decreases in the group's interests in consolidated companies. Foreign currency Hedging transactions to limit exchange risks are entered into only in respect of actual amounts receivable and payable and highly probable future cash flows in foreign currencies. The instruments used are forward contracts and options. Before such contracts are entered into, inward and outward cash flows in a particular currency are netted off at group level as far as possible. Where foreign currency balance sheet positions have been hedged, they are translated at the exchange rate of the hedge. Recognition of results arising from hedging operations relating to future foreign currency cash flows is deferred until the relevant cash flows are accounted for. Other for eign currency transactions in the profit and loss account are recognised at spot rates unless forward contracts have been entered into in connection with these transactions, in which case the forward rate applies. The financial statements of non-eurozone companies are translated into euros. Assets and liabilities are trans lated at exchange rates on the balance sheet date. Profit and loss account items are translated at the average monthly exchange rates. The difference between the net profit based on average exchange rates and the net profit based on the exchange rates as at balance sheet date is accounted for in the revaluation reserve. The profit and loss accounts of companies in hyperinflation countries are translated at exchange rates prevailing on the balance sheet date. Differences in book value arise on translation into euros of the opening balance of the shareholders' equity of the non-eurozone consolidated companies plus intra-group long-term loans granted to these companies. These differ ences are treated as revaluations and are credited or deb ited directly to group equity, with due allowance for taxa tion. Other differences due to exchange rate movements are accounted for directly in the profit and loss account. Valuation of assets and liabilities Intangible fixed assets Goodwill, the difference between the price paid for partici pating interests and their valuation according to Heineken accounting policies, is charged to shareholders' equity where the group exercises at least a significant influence on management decisions. In the case of acquisition of beverage wholesalers, the purchase price is almost entire ly determined by the customer base and, that being the case, it is treated as goodwill. FINANCIAL STATEMENTS 2002 49

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2002 | | pagina 52