(z) Recently issued IFRS
(i) Standards effective in 2009 and reflected in these consolidated financial statements
IAS 23 Revised Borrowing costs (effective from 1 January 2009). This amendment requires an entity to
capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset (one that takes a substantial period of time to get ready for use or sale) as part of the cost of that asset.
The option of immediately expensing those borrowing costs is removed. IAS 23 revised constitutes a change
in accounting policy for Heineken, refer to 3b.
IAS 1 Revised Presentation of Financial Statements (effective from 1 January 2009). The amendment
introduces the term total comprehensive income, which represents changes in equity during a period other
than those changes resulting from transactions with owners. The revised IAS 1 constitutes a change on the
presentation of the consolidated financial statements (refer to 3b). Heineken provides total comprehensive
income in an income statement and a separate statement of comprehensive income.
IFRS 7 Financial Instruments - Disclosures (amendment, effective 1 January 2009). The amendment
requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the
amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy.
This change in accounting policy only results in additional disclosures (refer 3b).
IFRS 8 Operating segments (effective from 1 January 2009). IFRS 8 replaces IAS 14 and aligns segment
reporting with the requirements of the US standard SFAS131, 'Disclosures about segments of an enterprise
and related information'. The new standard requires a 'management approach', under which segment
information is presented on the same basis as that used for internal reporting purposes. Based on the
current internal reporting, this standard does not have an impact on the reportable segments and as such,
does not represent a change in accounting policies.
Other standards: other standards and interpretations effective from 1 January 2009 did not have
a significant impact on the Company.
(ii New relevant standards and interpretations not yet adopted
Ti e following new standards and interpretations to existing standards relevant to Heineken are not yet
e! ective for the year ended 31 December 2009, and have not been applied in preparing these consolidated
fii ancial statements:
IFRS 3 Revised Business combinations (effective from 1 July 2009). This standard continues to apply the
acquisition method to business combinations, with some significant changes. For example, all payments
to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments
classified as debt subsequently re-measured through the income statement. There is a choice on an
acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair value or
at the non-controlling interest's proportionate share of the acquiree's net assets. All acquisition-related costs
should be expensed. Furthermore, tax losses from previous acquisitions and recognised subsequent to the
implementation of IFRS 3R will be recognised through the income statements instead as adjustment to
goodwill. Heineken will apply IFRS 3R prospectively to all business combinations from 1 January 2010 and
will have an impact on the consolidated financial statements as from then.
IAS 27 (Amended) Consolidated and Separate Financial Statements (effective from 1 July 2009) requires
accounting for changes in ownership interests by the Group in a subsidiary, while maintaining control, to be
recognised as an equity transaction. When the Group loses control of a subsidiary, any interest retained in
the former subsidiary will be measured at fair value with the gain or loss recognised in the income
statement. Heineken will apply this standard prospectively as from 1 January 2010 and will have an impact
on the consolidated financial statements as from then.
IFRS 9 Financial Instruments is part of the IASB's wider project to replace IAS 39 'Financial Instruments:
Recognition and Measurement'. IFRS 9 retains but simplifies the mixed measurement model and establishes
two primary measurement categories for financial assets, amortised cost and fair value. The basis of
classification depends on the entity's business model and the contractual cash flow characteristics of the
financial asset. The standard is effective for annual periods beginning on or after 1 January 2013, but has not
yet been endorsed by the EU. Heineken is in the process of evaluating the impact of the applicability of the
new standard.
Annual Report 2009 - Heineken N.V.
