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(ii) Non-financial assets
The carrying amounts of Heineken's non-financial assets, other than inventories (refer accounting
policy (h)) and deferred tax assets (refer accounting policy (s)), are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists then the asset's
recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or that are
not yet available for use, the recoverable amount is estimated at each reporting date.
The recoverable amount of an asset or cash-generating unit is considered the value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group
of assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of other assets or groups of assets (the 'cash-generating unit'). The goodwill acquired in a
business combination, for the purpose of impairment testing, is allocated to cash-generating units that
are expected to benefit from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds
its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates
cash flows that largely are independent from other assets and groups. Impairment losses are recognised
in the income statement. Impairment losses recognised in respect of cash-generating units are allocated
first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying
amount of the other assets in the unit (group of units) on a pro rata basis. An impairment loss in respect
of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods
are assessed at each reporting date for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount
does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
Non-current assets held for sale
Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be
1 covered primarily through sale rather than through continuing use are classified as held for sale.
Immediately before classification as held for sale, the assets (or components of a disposal group) are
r measured in accordance with Fleineken's accounting policies. Thereafter the assets (or disposal group)
are measured at the lower of their carrying amount and fair value less cost to sell. Any impairment loss
on a disposal group first is allocated to goodwill, and then to remaining assets and liabilities on pro rata
basis, except that no loss is allocated to inventories, financial assets, deferred tax assets and employee
benefit assets, which continue to be measured in accordance with Fleineken's accounting policies.
Impairment losses on initial classification as held for sale and subsequent gains or losses on
remeasurement are recognised in the income statement. Gains are not recognised in excess of any
emulative impairment loss.
Employee benefits
Defined contribution plans
A defined contribution plan is a pension plan under which the Group pays fixed contributions into
a separate entity. The Group has no legal or constructive obligations to pay further contributions if the
ind does not hold sufficient assets to pay all employees the benefits relating to employee service in
thecurrent and prior periods.
0 ligations for contributions to defined contribution pension plans are recognised as an employee
benefit expense in the income statement when they are due. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in future payments is available.
Heineken N.V. Annual Report 2007
