71
In particular, information about significant areas of estimation uncertainty and critical judgements
in applying accounting policies that have the most significant effect on the amounts recognised in the
financial statements are described in the following notes:
Note 6 Acquisitions and disposals of subsidiaries, joint ventures and minority interests.
Note 15 Intangible assets.
Note 18 Deferred tax assets and liabilities.
Note 26 Employee benefits.
Note 27 Share-based payments - Long-Term Incentive Plan.
Note 28 Provisions and 32 Contingencies.
Note 30 Financial risk management and financial instruments.
3. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements and have been applied consistently by Heineken entities.
Certain comparative amounts have been reclassified or line items have been added in order to conform
with current year's presentation, in accordance with IFRS 7, of the consolidated balance sheet, the
consolidated statement of recognised income and expense, net finance expenses (see note 12), other
investments (see note 17), prepayments and accrued income, trade and other receivables (see note 20)
and financial risk management and financial instruments (see note 30). In addition certain comparative
amounts in the consolidated statement of cash flows have been reclassified to conform with current
year's presentation.
Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by Fleineken. Control exists when Fleineken has the power, directly
oi indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from
its activities. In assessing control, potential voting rights that currently are exercisable or convertible
are taken into account. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases. Accounting policies
have been changed where necessary to ensure consistency with the policies adopted by Heineken.
Associates
Associates are those entities in which Heineken has significant influence, but not control, over the
financial and operating policies. Significant influence is presumed to exist when the Group holds between
20 and 50 per cent of the voting power of another entity. The consolidated financial statements include
Heineken's share of the total recognised income and expenses of associates on an equity-accounted
basis, from the date that significant influence commences until the date that significant influence ceases.
When Heineken's share of losses exceeds the carrying amount of the associate, the carrying amount is
duced to nil and recognition of further losses is discontinued except to the extent that Heineken has an
obligation or has made a payment on behalf of the associate.
Joint ventures
Jc.int ventures are those entities over whose activities Heineken has joint control, established by
ci itractual agreement and requiring unanimous consent for strategic financial and operating decisions,
he consolidated financial statements include Heineken's proportionate share of the entities' assets,
abilities, revenue and expenses with items of a similar nature on a line-by-line basis, from the date that
joint control commences until the date that joint control ceases.
Transactions eliminated on consolidation
lr ra-Heineken balances and transactions, and any unrealised gains and losses or income and expenses
a> sing from intra-Heineken transactions, are eliminated in preparing the consolidated financial statements.
I nrealised income arising from transactions with associates and joint ventures are eliminated to the
extent of Heineken's interest in the entity. Unrealised expenses are eliminated in the same way as
unrealised income, but only to the extent that there is no evidence of impairment.
Heineken N.V. Annual Report 2007