(v) Depreciation
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives
of items of property, plant and equipment, and major components that are accounted for separately.
Land and assets under construction are not depreciated. The estimated useful lives are as follows:
The depreciation methods, residual value as well as the useful lives are reassessed annually.
(v Gains and losses on sale
Gains and losses on sale of items of P, P E, are presented in the income statement as other income.
Gains and losses are recognised in the income statement when the significant risks and rewards
of ownership have been transferred to the buyer, recovery of the consideration is probable, the
associated costs can be estimated reliably, and there is no continuing management involvement with
the P, P E.
(f ntangible assets
(i) Goodwill
Goodwill arises on the acquisition of subsidiaries and joint ventures and represents the excess of the
cc t of the acquisition over Heineken's interest in net fair value of the net identifiable assets, liabilities
and contingent liabilities of the acquiree.
G( odwill arising on the acquisition of associates is included in the carrying value of the associate.
In espect of acquisitions prior to 1 October 2003, goodwill is included on the basis of deemed cost,
b( ng the amount recorded under previous GAAP.
G< odwill on acquisitions purchased before 1 January 2003 has been deducted from equity.
G' odwill arising on the acquisition of a minority interest in a subsidiary represents the excess of the
C( t of the additional investment over the carrying amount of the net assets acquired at the date
o exchange.
G odwill is measured at cost less accumulated impairment losses (refer accounting policy 3h(ii)).
G odwill is allocated to cash-generating units and is tested annually for impairment. In respect of
a ociates, the carrying amount of goodwill is included in the carrying amount of the associate.
N native goodwill is recognised directly in the income statement.
(i Irands
B nds acquired, separately, or as part of a business combination are capitalised as part of a brand
p tfolio if the portfolio meets the definition of an intangible asset and the recognition criteria are
s sfied. Brand portfolios acquired as part of a business combination include the customer base
r tfed to the brand because it is assumed that brands have no value without a customer base and
v e versa. Brand portfolios acquired as part of a business combination are valued at fair value based
o the royalty relief method. Brands and brand portfolio's acquired separately are measured at cost.
B nds and brand portfolio's are amortised on a straight-line basis over their estimated useful life.
Buildings
Plant and equipment
Other fixed assets
30-40 years
10-30 years
5-10 years