(q: Provisions
(ij Restructuring
A provision for restructuring is recognised when Heineken has approved a detailed and formal restructuring
plan, and the restructuring has either commenced or has been announced publicly. Future operating costs
are not provided for. The provision is calculated at the net present value of the benefit commitments
in connection with early retirement, relocation and redundancy schemes.
(ii Other
A provision is recognised in the balance sheet when Heineken has a legal or constructive obligation as
result of a past event, and it is probable that an outflow of economic benefits will be required to settle
the obligation. If the effect is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the liability.
(r Trade and other payables
Tt ie and other payables are stated at (amortised) cost.
Revenue
I loods sold and services rendered
R venue from the sale of products is recognised in the income statement when the significant risks and
r( vards of ownership have been transferred to the buyer.
N t revenue are proceeds from sales of products and services supplied to third parties, net of sales tax,
e cise duties, customer discounts and other sales related discounts.
Other revenue
C ïer revenue are proceeds from sales of by-products, POS material, royalties, rental income and technical
s vices to third parties, net of sales tax. Sales of by-products and POS materials are recognised in the
ir ome statement when ownership has been transferred to the buyer. Royalties are recognised in the
in ome statement on an accrual basis in accordance with the substance of the relevant agreement,
R ntal income and technical services are recognised in the income statement when the services have
b en delivered.
xpenses
i Operating lease payments
P ments made under operating leases are recognised in the income statement on a straight-line basis
0 r the term of the lease. Lease incentives received are recognised in the income statement as an
ii egral part of the total lease expense.
1 inance lease payments
f limum lease payments are apportioned between the finance charge and the reduction of the outstanding
jility. The finance charge is allocated to each period during the lease term so as to produce a constant
p iodic rate of interest on the remaining balance of the liability.
Heineken N.V. - Annual Report 2005