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