Notes to the Consolidated Balance Sheet, Profit and Loss Account and Cash Flow Statement for 2003 Comparative figures The comparative figures in the consolidated profit and loss account have been restated to facilitate comparison, following the changes in accounting policies. The changes do not affect the reported net profit. The presentation of the consolidated balance sheet before appropriation of profit also means restating shareholders' equity in the 2002 figures. Shareholders' equity as at 31 December 2002 has been increased by €94 million, which was the amount of the final dividend for 2002 paid in 2003. Current liabilities have been reduced by the same amount. As a result of the above changes, the reported net turnover in 2002 has been reduced by €1,811 million to €8,482 million, with the same reduction in operating expenses. Valuation of assets and liabilities Intangible fixed assets Goodwill is calculated as the difference between the cost of an acquisition and its net asset value. In the case of acquisition of beverage wholesalers, the acquisition cost is almost entirely determined by the customer base, and this element is treated as goodwill. Goodwill is carried at cost less accumulated amortisation and impairment. Amortisation is calculated by the straight-line method based on the expected economic life of the assets concerned, subject to a maximum of 20 years. Other intangible fixed assets satisfying the applicable criteria are capitalised and amortised by the straight-line method over three years. If the net realisable value of intangible fixed assets is less than the carrying amount, a diminution in value is applied. Costs of internally developed brands, patents and licences and research and development are expensed. Brands, patents and licences purchased with acquisitions are treated as part of the goodwill paid. Tangible fixed assets Except for land, which is not depreciated, tangible fixed assets are stated at replacement cost less accumulated depreciation. The following average useful lives are used for depreciation purposes: Buildings 30-40 years Plant and equipment 10-30 years Other fixed assets 5-10 years The replacement cost is based on appraisals by internal and external experts, taking into account technical and economic developments. Other factors taken into account include the experience gained in the construction of breweries throughout the world. Grants received in respect of investments in tangible fixed assets are deducted from the amount of the investment. Projects under construction are included at cost. Financial fixed assets Non-consolidated participating interests where the group has a significant influence are stated at the Heineken share of the net asset value, which is determined on the basis of the Fleineken accounting policies as far as possible. Other non-consolidated participating interests are stated at cost less any necessary provisions. Loans to non-consolidated companies and other financial fixed assets are carried at face value, less provisions for credit risks. Impairment of assets Regular assessments are made for any indications that intangible and tangible fixed assets might be impaired. If any such indica tions exist, the net realisable value is determined by taking into account the future cash flows. If the net realisable value of an asset is less than its book value, the difference is deducted from the carrying amount as an impairment loss and charged to the profit and loss account. Current assets Stocks purchased from third parties are stated at replacement cost, based on prices from current purchase contracts and latest prices as at balance sheet date. Finished products and work in progress are stated at manufactured cost based on replacement cost and taking into account the production stage reached. Stocks of spare parts are depreciated on a straight-line basis taking account of obsolescence. If the recoverable amount or net realisable value of stocks is less than their replacement cost, provisions are formed in respect of the difference. Advance payments on stocks are included at face value. Receivables are carried at face value less a provision for credit risks and less the amount of deposits on returnable packaging. Securities are carried at the lower of historical cost and quoted price, or estimated market value in the case of unlisted securities. Cash is included at face value. Revaluations Differences in carrying amounts due to revaluations are credited or debited to group equity, less an amount in respect of deferred tax liabilities where applicable. HEINEKEN N.V. ANNUAL REPORT 2003

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2003 | | pagina 62