(jij Calculation of recoverable amount
The recoverable amount of Heineken's investments in held-to-maturity securities and receivables is calculated
as the present value of expected future cash flows, discounted at the original effective interest rate inherent
in the asset. Receivables with a short duration are not discounted.
The recoverable amount of other assets is the greater of their net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined
for the cash-generating unit to which the asset belongs.
(ii Reversal of impairments
An impairment loss in respect of a held-to-maturity security or receivable is reversed if the subsequent
increase in recoverable amount can be related objectively to an event occurring after the impairment
lo s was recognised.
A impairment loss in respect of an investment in an equity instrument classified as available for sale
is lot reversed through the income statement. If the fair value of a debt instrument classified as available-
fc sale increases and the increase can be objectively related to an event occurring after the impairment
lo s was recognised in the income statement, the impairment loss shall be reversed with the amount
0' the reversal recognised in the income statement.
A impairment loss in respect of goodwill is not reversed.
Ir respect of other assets, an impairment loss is reversed when there is an indication that the impairment
lo s may no longer exist and there has been a change in the estimates used to determine the recoverable
ai ïount.
A impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the
c rying amount that would have been determined, net of depreciation or amortisation, if no impairment
Ic s had been recognised.
(i Share capital
S are capital is classified as equity. Dividends are recognised as a liability in the period in which they
a declared.
i Interest-bearing borrowings
Ir erest-bearing borrowings are recognised initially at fair value, less attributable transaction costs.
S osequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any
d ference between cost and redemption value being recognised in the income statement as finance
c sts over the period of the borrowings on an effective interest basis.
Heineken
