3- Significant accounting policies
(s) Government grants
(t) Interest income, interest expenses and other net finance income and expenses
Notes to the consolidated financial statements
(i) Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis over the
term of the lease. Lease incentives received are recognised in the income statement as an integral part of the
total lease expense, over the term of the lease.
(ii) Finance lease payments
Minimum lease payments under finance leases are apportioned between the finance expense and the reduction
of the outstanding liability. The finance expense is allocated to each period during the lease term so as to
produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments
are accounted for by revising the minimum lease payments over the remaining term of the lease when the
lease adjustment is confirmed.
Government grants are recognised at their fair value when it is reasonably assured that Heineken will comply
with the conditions attaching to them and the grants will be received.
Government grants relating to P, P E are deducted from the carrying amount of the asset.
Government grants relating to costs are deferred and recognised in the income statement over the period
necessary to match them with the costs that they are intended to compensate.
Interest income and expenses are recognised as they accrue, using the effective interest method unless
collectability is in doubt.
Other net finance income comprises dividend income, gains on the disposal of available-for-sale investments,
changes in the fair value of investments designated at fair value through profit or loss and held for trading
investments and gains and losses on hedging instruments that are recognised in the income statement.
Dividend income is recognised in the income statement on the date that Heineken's right to receive payment
is established, which in the case of quoted securities is the ex-dividend date.
Other net finance expenses comprise unwinding of the discount on provisions, changes in the fair value of
investments designated at fair value through profit or loss and held for trading investments, impairment losses
recognised on investments, and gains or losses on hedging instruments that are recognised in the income
Foreign currency gains and losses are reported on a net basis in the other net finance expenses.
Annual Report 2009 - Heineken N.V.