77 (ii) Brands Brands acquired, separately or as part of a business combination, are capitalised as part of a brand portfolio if the portfolio meets the definition of an intangible asset and the recognition criteria are satisfied. Brand portfolios acquired as part of a business combination include the customer base related to the brand because it is assumed that brands have no value without a customer base and vice versa. Brand portfolios acquired as part of a business combination are valued at fair value based on the royalty relief method. Brands and brand portfolios acquired separately are measured at cost. Brands and brand portfolios are amortised on a straight-line basis over their estimated useful life. (ii i Software, research and development and other intangible assets Purchased software is measured at cost less accumulated amortisation (refer (v)) and impairment losses (refer accounting policy 3i(ii)). Expenditure on internally developed software is capitalised when the expenditure qualifies as development activities, otherwise it is recognised in the income statement when incurred. Expenditure on research activities, undertaken with the prospect of gaining new technical knowledge and understanding, is recognised in the income statement when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalised only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and Heineken intends to and has sufficient resources to complete development and to use or sell the asset. The expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directly attributable to preparing the asset for its intended use. Borrowing costs related to the development of qualifying assets are recognised in the income statement when incurred. 0 her development expenditure is recognised in the income statement when incurred. C; pitalised development expenditure is measured at cost less accumulated amortisation (refer (v)) and a< cumulated impairment losses (refer accounting policy 3i(ii)). 0' her intangible assets that are acquired by Heineken are measured at cost less accumulated amortisation (refer (v)) and impairment losses (refer accounting policy 3i(ii)). Expenditure on internally gs nerated goodwill and brands is recognised in the income statement when incurred. (i Subsequent expenditure Si osequent expenditure is capitalised only when it increases the future economic benefits embodied in he specific asset to which it relates. All other expenditure is expensed when incurred. (v Amortisation In angible assets with a finite life are amortised on a straight-line basis over their estimated useful lives fr m the date they are available for use. The estimated useful lives are as follows: Brands 15-25 years Software 3 years Capitalised development costs 3 years Heineken N.V. Annual Report 2007

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2007 | | pagina 75