(Hi) Other inventories and spare parts
The cost of other inventories is based on weighted averages.
Spare parts are valued at the lower of cost and net realisable value. Value reductions and usage of
parts are charged to the income statement. Spare parts that are acquired as part of an equipment
purchase and only to be used in connection with this specific equipment are initially capitalised and
amortised as part of the equipment.
(h)lmpairment
(i) Financial assets
A financial asset is considered to be impaired if objective evidence indicates that one or more events
have had a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the
difference between its carrying amount, and the present value of the estimated future cash flows
discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale
financial asset is calculated by reference to its current fair value.
In vidually significant financial assets are tested for impairment on a individual basis. The remaining
fii tncial assets are assessed collectively in groups that share similar credit risk characteristics.
A' impairment losses are recognised in the income statement. Any cumulative loss in respect of an
ilable-for-sale financial asset recognised previously in equity is transferred to the income statement.
A impairment loss is reversed if the reversal can be related objectively to an event occurring after the
in >airment loss was recognised. For financial assets measured at amortised cost and available-for-sale
fi ncial assets that are debt securities, the reversal is recognised in the income statement. For
a ilable-for-sale financial assets that are equity securities, the reversal is recognised directly in equity.
(i ion-financial assets
T carrying amounts of Fleineken's non-financial assets, other then inventories (refer accounting
p icy g) and deferred tax assets (refer accounting policy p), are reviewed at each reporting date to
d ermine whether there is any indication of impairment. If any such indication exists then the asset's
r overable amount is estimated. For goodwill and intangible assets that have indefinite lives or that
a not yet available for use, recoverable amount is estimated at each reporting date.
A impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds
it ecoverable amount. A cash-generating unit is the smallest identifiable asset group that generates
c h flows that largely are independent from other assets and groups. Impairment losses are
r ognised in the income statement. Impairment losses recognised in respect of cash-generating units
a allocated first to reduce the carrying amount of any goodwill allocated to the units and then to
r uce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
T recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
v je less costs to sell. In assessing value in use, the estimated future cash flows are discounted to
t ir present value using a pre-tax discount rate that reflects current market assessments of the time
v je of money and the risks specific to the asset.
A impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
r ognised in prior periods are assessed at each reporting date for any indications that the loss has
c reased or no longer exists. An impairment loss is reversed if there has been a change in the
f mates used to determine the recoverable amount. An impairment loss is reversed only to the
e ent that the asset's carrying amount does not exceed the carrying amount that would have been
c ermined, net of depreciation or amortisation, if no impairment loss had been recognised.
Heineken N.V. "70
Annual Report 2006 I Zs
