(c) Basis of consolidation
Subsidiaries are entities controlled by Heineken. Control exists when Heineken has the power, directly or
indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
In assessing control, potential voting rights that currently are exercisable or convertible are taken into account.
The financial statements of subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases. Accounting policies have been changed where necessary
to ensure consistency with the policies adopted by Heineken.
(ii) Special Purpose Entities (SPEs)
An SPE is consolidated if, based on an evaluation of the substance of its relationship with Heineken and the SPE's
risks and rewards, Heineken concludes that it controls the SPE. SPEs controlled by Heineken were established
under terms that impose strict limitations on the decision-making powers of the SPE's management and that
result in Heineken receiving the majority of the benefits related to the SPE's operations and net assets, being
exposed to the majority of risks incident to the SPE's activities, and retaining the majority of the residual or
ownership risks related to the SPE or their assets.
i) Investments in associates
vestments in associates are those entities in which Heineken has significant influence, but not control, over the
lancial and operating policies. Significant influence is presumed to exist when the Group holds between 20
a id 50 per cent of the voting power of another entity. The consolidated financial statements include Heineken's
s are of the income and expenses and equity movements of equity-accounted associates, from the date that
Si tnificant influence commences until the date that significant influence ceases. When Heineken's share of
I .ses exceeds the carrying amount of the associate, the carrying amount is reduced to nil and recognition of
f rther losses is discontinued except to the extent that Heineken has an obligation or has made a payment on
bi half of the associate.
nt ventures are those entities over whose activities Heineken has joint control, established by contractual
"eement and requiring unanimous consent for strategic financial and operating decisions. The consolidated
ancial statements include Heineken's share of the income and expenses and equity movements of equity-
counted JVs, from the date that joint control commences until the date that joint control ceases. When
1 ineken's share of losses exceeds the carrying amount of the JV, the carrying amount is reduced to nil and
cognition of further losses is discontinued except to the extent that Heineken has an obligation or has made
oayment on behalf of the JV.
Annual Report 2009 - Heineken N.V.