3- Significant accounting policies
96
Financial Statements
Notes to the consolidated financial statements
(v) Earnings per share
Heineken presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or 1
oss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for
the effects of all dilutive potential ordinary shares, which comprise share rights granted to employees.
(w) Cash flow statement
The cash flow statement is prepared using the indirect method. Changes in balance sheet items that have not
resulted in cash flows such as translation differences, fair value changes, equity-settled share-based payments
and other non-cash items, have been eliminated for the purpose of preparing this statement. Assets and
liabilities acquired as part of a business combination are included in investing activities (net of cash acquired).
Dividends paid to ordinary shareholders are included in financing activities. Dividends received are classified
as operating activities. Interest paid is also included in operating activities.
(x) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the Executive
Board, who is considered to be the Group's chief operating decision maker. An operating segment is a
component of Heineken that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of Heineken's other
components. All operating segments' operating results are reviewed regularly by the Executive Board to make
decisions about resources to be allocated to the segment and to assess its performance, and for which discrete
financial information is available.
Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions
that would also be available to unrelated third parties.
Segment results, assets and liabilities that are reported to the Executive Board include items directly
attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated result items
comprise net finance expenses and income tax expenses. Unallocated assets comprise current other
investments and cash call deposits.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.
(y) Emission rights
Emission rights are related to the emission of C02, which relates to the production of energy. These rights are
freely tradable. Bought emission rights and liabilities due to production of C02 are measured at cost, including any
directly attributable expenditure. Emission rights received for free are also recorded at cost, I.e. with a zero value.
Annual Report 2009 - Heineken N.V.
