HEINEKEN N.V. ANNUAL REPORT 2008
(I) Non-current assets held for sale
Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be recovered
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 remeasured in accordance
with Heineken'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 is first 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 Heineken'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 cumulative impairment loss.
(m) Employee benefits
(i) Defined contribution plans
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate
er tity. The Group has no legal or constructive obligations to pay further contributions if the fund does not
he Id sufficient assets to pay all employees the benefits relating to employee service in the current and
pi or periods.
0 ligations for contributions to defined contribution pension plans are recognised as an employee benefit
e> oense in the income statement when they are due. Prepaid contributions are recognised as an asset to
th extent that a cash refund or a reduction in future payments is available.
(ii Defined benefit plans
A iefined benefit plan is a pension plan that is not a defined contribution plan. Typically defined benefit
p ns define an amount of pension benefit that an employee will receive on retirement, usually dependent
01 one or more factors such as age, years of service and compensation. Heineken's net obligation in respect
of defined benefit pension plans is calculated separately for each plan by estimating the amount of future
b lefit that employees have earned in return for their service in the current and prior periods; that benefit
is liscounted to determine its present value. Any unrecognised past service costs and the fair value of any
p n assets are deducted. The discount rate is the yield at balance sheet date on AA-rated bonds that have
m turity dates approximating the terms of Heineken's obligations and that are denominated in the same
ci rency in which the benefits are expected to be paid.
T a calculations are performed annually by qualified actuaries using the projected unit credit method.
W en the calculation results in a benefit to Heineken, the recognised asset is limited to the net total of
ai unrecognised past service costs and the present value of economic benefits available in the form of
a; future refunds from the plan or reductions in future contributions to the plan. An economic benefit
is mailable to the Group if it is realisable during the life of the plan, or on settlement of the plan liabilities.
V\ en the benefits of a plan are improved, the portion of the increased benefit relating to past service by
ei ployees is recognised as an expense in the income statement on a straight-line basis over the average
p iod until the benefits become vested. To the extent that the benefits vest immediately, the expense is
rt ognised immediately in the income statement.
Ir espect of actuarial gains and losses that arise, Heineken applies the corridor method in calculating the
o gation in respect of a plan. To the extent that any cumulative unrecognised actuarial gain or loss exceeds
1' per cent of the greater of the present value of the defined benefit obligation and the fair value of plan
a ets, that portion is recognised in the income statement over the expected average remaining working
li 5 of the employees participating in the plan. Otherwise, the actuarial gain or loss is not recognised.
