(iii) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by Heineken from
a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is
measured at the present value of the lower of the expected cost of terminating the contract and the expected
net cost of continuing with the contract. Before a provision is established, Heineken recognises any impairment
loss on the assets associated with that contract.
(0) Loans and borrowings
Loans and borrowings are recognised initially at fair value, net of transaction costs incurred. Loans and
borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction
costs) and the redemption value is recognised in the income statement over the period of the borrowings using
the effective interest method. Loans and borrowings included in a fair value hedge are stated at fair value in
respect of the risk being hedged.
Loans and borrowings for which the Group has an unconditional right to defer settlement of the liability for
at least 12 months after the balance sheet date, are classified as non-current liabilities.
(1) Products sold
Revenue from the sale of products in the ordinary course of business is measured at the fair value of the
consideration received or receivable, net of sales tax, excise duties, returns, customer discounts and other
sales-related discounts. Revenue from the sale of products is recognised in the income statement when the
amount of revenue can be measured reliably, the significant risks and rewards of ownership have been
t ansferred to the buyer, recovery of the consideration is probable, the associated costs and possible return
of products can be estimated reliably, and there is no continuing management involvement with the products.
ther revenues are proceeds from royalties, rental income, pub management services and technical services
i third parties, net of sales tax. Royalties are recognised in the income statement on an accrual basis in
cordance with the substance of the relevant agreement. Rental income and technical services are recognised
the income statement when the services have been delivered.
her income are gains from sale of P, P E, intangible assets and (interests in) subsidiaries, joint ventures and
sociates, net of sales tax. They are recognised in the income statement when ownership has been transferred
t the buyer.
Annual Report 2009 - Heineken N.V.