recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit, and differences relating
to investments in subsidiaries and joint ventures to the extent that the Company is able to control
the timing of the reversal of the temporary difference and they will probably not reverse in the
foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to the
temporary differences when they reverse, based on the laws that have been enacted or substantively
enacted by the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will
be available against which the asset can be utilised. Deferred tax assets are reviewed at each balance
sheet date and are reduced to the extent that it is no longer probable that the related tax benefit will
be realised.
(q Earnings per share
Heineken presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS
is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the
w ghted average number of ordinary shares outstanding during the period. Diluted EPS is determined
b} adjusting the profit or loss attributable to ordinary shareholders and the weighted average number
of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise
sh re rights granted to employees.
(r egment reporting
A egment is a distinguishable component of Heineken that is engaged either in providing related
pi ducts or services (business segment), or in providing products or services within a particular
et nomic environment (geographical segment), which is subject to risks and rewards that are different
fr n those of other segments. Heineken's primary format for segment information is based on
gf ^graphical segments.
(s ew standards not yet adopted
Ti following new standard and amendment to standard is not yet effective for the year ended
3 December 2006, and has not been applied in preparing these consolidated financial statements:
IF S 7 Financial Instruments: Disclosures and the Amendment to IAS 1 Presentation of Financial
St ements: Capital Disclosures require extensive disclosures about the significance of financial
in ruments for an entity's financial position and performance, and qualitative and quantitative
d losures on the nature and extent of risks. IFRS 7 and amended IAS 1, which will become mandatory
fc Heineken's 2007 financial statements, will require additional disclosures with respect to Heineken's
fi ncial instruments and share capital.
Heineken N.V. Q Q
Annual Report 2006OO
