(ii) Leased assets
Leases in terms of which Heineken assumes substantially all the risks and rewards of ownership are classified
as finance leases. Upon initial recognition P, P E acquired by way of finance lease is measured at an amount
equal to the lower of its fair value and the present value of the minimum lease payments at inception of the
lease. Lease payments are apportioned between the outstanding liability and finance charges so as to achieve
a constant periodic rate of interest on the remaining balance of the liability.
Other leases are operating leases and are not recognised in Heineken's statement of financial position.
Payments made under operating leases are charged to the income statement on a straight-line basis over the
term of the lease. When an operating lease is terminated before the lease period has expired, any payment
required to be made to the lessor by way of penalty is recognised as an expense in the period in which
termination takes place.
(iii) Subsequent expenditure
The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount
of the item or recognised as a separate asset, as appropriate, if it is probable that the future economic benefits
embodied within the part will flow to Heineken and its cost can be measured reliably. The carrying amount of
the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are
recognised in the income statement when incurred.
Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount
substituted for cost, less its residual value.
1 id is not depreciated as it is deemed to have an infinite life. Depreciation on other P, P E is charged to the
ii come statement on a straight-line basis over the estimated useful lives of items of property, plant and
e uipment, and major components that are accounted for separately, since this most closely reflects the
e pected pattern of consumption of the future economic benefits embodied in the asset. Assets under
c nstruction are not depreciated. The estimated useful lives are as follows:
Buildings 30-40 years
Plant and equipment 10 - 30 years
Other fixed assets 5-10 years.
tere parts of an item of P, P E have different useful lives, they are accounted for as separate items of P, P E.
T e depreciation methods, residual value as well as the useful lives are reassessed, and adjusted if appropriate,
a each financial year-end.
Gains and losses on sale
N< gains on sale of items of P, P E are presented in the income statement as other income. Net losses on sale
a included in depreciation. Net gains and losses are recognised in the income statement when the significant
r s and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the
a ociated costs can be estimated reliably, and there is no continuing management involvement with the P, P E.
Annual Report 2009 - Heineken N.V.