Notes to the Consolidated Balance Sheet, Profit and Loss Account and Cash Flow Statement for 2002
culated at the net present value of the benefit commit
ments in connection with early retirement, relocation
and redundancy schemes. Where applicable, the expected
degree of employee participation in the schemes concern
ed is taken into account.
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.
Depreciation charges based on replacement cost are
calculated on a straight-line basis according to the esti
mated useful lives of the assets concerned.
The results of non-consolidated participating interests
consist of dividends received during the year from com
panies carried at cost and Fleineken'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 calculated 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
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
calculated and the tax actually payable for the year are
accounted for in the provision for deferred tax liabilities.
FINANCIAL STATEMENTS 2002
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