85
(ii) New standards and interpretations not yet adopted
The following new standards and interpretations to existing standards relevant to Heineken are not
yet effective for the year ended 31 December 2007, and have not been applied in preparing these
consolidated financial statements:
IAS 23 (Amendment) Borrowing costs (effective from 1 January 2009). The amendment to
the standard is still subject to endorsement by the EU. It requires an entity to capitalise borrowing
costs directly attributable to the acquisition, construction or production of a qualifying asset (one
that takes a substantial period of time to get ready for use or sale) as part of the cost of that asset.
The option of immediately expensing those borrowing costs will be removed. The revised IAS 23 will
constitute a change in accounting policy for Heineken. In accordance with the transitional provisions
the Company will apply the revised IAS 23 to qualifying assets for which capitalisation of borrowing
costs commences on or after the effective date.
IFRS 8 Operating segments (effective from 1 January 2009). The standard is still subject to endorsement
by the EU. IFRS 8 replaces IAS 14 and aligns segment reporting with the requirements of the US standard
SFAS 131, 'Disclosures about segments of an enterprise and related information'. The new standard
requires a 'management approach', under which segment information is presented on the same basis
as that used for internal reporting purposes. The Company is currently assessing the impact.
IFRIC 13 Customer loyalty programmes (effective from 1 July 2008). The interpretation is still subject
to endorsement by the EU. IFRIC 13 clarifies that where goods or services are sold together with
a customer loyalty incentive (for example, loyalty points or free products), the arrangement is a
multiple-element arrangement and the consideration receivable from the customer is allocated
between the components of the arrangement in using fair values. The Company is currently assessing
the impact, but it is not expected that it will have a material impact.
IFRIC 14 IAS 19 - The limit on a defined benefit asset, minimum funding requirements and their
interaction (effective from 1 January 2008). The interpretation is still subject to endorsement by the
EU. IFRIC 14 provides guidance on assessing the limit in IAS 19 on the amount of the surplus that can
be recognised as an asset. It also explains how the pension asset or liability may be affected by a
statutory or contractual minimum funding requirement. It is not expected that the IFRIC will have a
material impact on Heineken's accounts.
IFRIC 11 IFRS 2 - Group and Treasury Share Transactions (effective for annual periods beginning
on or after 1 March 2007). IFRIC 11 requires a share-based payment arrangement in which an entity
receives goods or services as consideration for its own equity instruments to be accounted for as
an equity-settled share-based payment transaction, regardless of how the equity instruments are
obtained. Based on the fact that the LTIP of Heineken is already accounted for as equity-settled, it
is not expected that this IFRIC will have an impact.
Heineken N.V. Annual Report 2007