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HEINEKEN N.V. ANNUAL REPORT 2008
(vi) Amortisation
Intangible assets with a finite life are amortised on a straight-line basis over their estimated useful lives from
the date they are available for use. The estimated useful lives are as follows:
(vii) Gains and losses on sale
Net gains on sale of intangible assets are presented in the income statement as other income. Net losses on
sale are included in depreciation. Net gains and losses are recognised in the income statement when the
significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration
is probable, the associated costs can be estimated reliably, and there is no continuing management
involvement with the intangible assets.
(j) Inventories
(i) General
In entories are measured at the lower of cost and net realisable value. The cost of inventories is based
or the weighted average cost formula, and includes expenditure incurred in acquiring the inventories,
pr iduction or conversion costs and other costs incurred in bringing them to their existing location and
cc idition. Net realisable value is the estimated selling price in the ordinary course of business, less the
e; imated costs of completion and selling expenses.
(ii Finished products and work in progress
Fi ished products and work in progress are measured at manufacturing cost based on weighted averages
ar i takes into account the production stage reached. Costs include an appropriate share of direct production
o\ rheads based on normal operating capacity.
(ii Other inventories and spare parts
Tl -3 cost of other inventories is based on weighted averages. Spare parts are valued at the lower of cost and
n< realisable value. Value reductions and usage of parts are charged to the income statement. Spare parts
th t are acquired as part of an equipment purchase and only to be used in connection with this specific
ei lipment are initially capitalised and amortised as part of the equipment.
(k Impairment
(i) Financial assets
A nancial asset is assessed at each reporting date to determine whether there is any objective evidence that
it impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more
e\ nts have had a negative effect on the estimated future cash flows of that asset.
A impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
bi ween its carrying amount, and the present value of the estimated future cash flows discounted at the
oi ginal effective interest rate. An impairment loss in respect of an available-for-sale financial asset is
c. culated by reference to its current fair value.
Ir ividually significant financial assets are tested for impairment on an individual basis. The remaining
fi ancial assets are assessed collectively in groups that share similar credit risk characteristics.
Strategic brands
Other brands
Customer-related and contract-based intangibles
Software
Capitalised development costs
40 - 50 years
15 - 25 years
5-30 years
3 years
3 years
