Notes to the Balance Sheet and Profit and Loss Account of Heineken N.V. for 2003 Accounting policies for the valuation of assets and liabilities and for the determination of results With effect from the beginning of the 2003 financial year, goodwill is capitalised and amortised. Goodwill paid up to 31 December 2002 has been charged direct to shareholders' equity. If the goodwill had been charged to shareholders' equity in 2003 as in previous years, shareholders' equity would have been €1,124 million lower as at 31 December 2003 and the net profit would have been €31 million higher. With effect from the beginning of the 2003 financial year, the balance sheet is presented before profit appropriation, following changes in the Dutch reporting rules. Only the dividends paid during the year are charged to shareholders' equity. In 2003, the final dividend for 2002 and the interim dividend for the current year were charged to shareholders' equity. Comparative figures The presentation of the balance sheet before profit appropriation 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. Financial fixed assets Shares in group companies are carried at net asset value calculated in accordance with the accounting policies for the valuation of assets and liabilities. Other assets and liabilities Amounts receivable from group companies are stated at face value. Also stated at face value are other amounts receivable, cash, long-term borrowings and current liabilities. Goodwill Goodwill arising on acquisitions is calculated as the difference between the cost of the acquisition and its net asset value. Goodwill is carried at cost less accu mulated 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. Shareholders' equity Exchange differences Movements in exchange rates which affect foreign investments are accounted for in the statutory reserve, the revaluation reserve or the retained profit reserve. Statutory reserve This reserve relates to the net profit of participating interests over the distribution of which Heineken does not have control. The movement in the statutory reserve reflects retained profits of participating interests, exchange differences and dividends received. Financial fixed assets Position as at 1 January 2003* Revaluations Net profit of group companies Dividend payments by group companies Other movements Position as at 31 December 2003 Group companies Total Shares Receivables 2,550 603 1,947 -112 -112 819 819 -315 -315 890 - 890 3,832 995 2,837 Restated for comparison purposes FINANCIAL STATEMENTS 2003 81

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2003 | | pagina 87