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(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 profit or loss 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.
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
II flow to Heineken and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs
ol the day-to-day servicing of property, plant and equipment are recognised in profit or loss when incurred.
i j Depreciation
Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost,
ss its residual value.
L id is not depreciated as it is deemed to have an infinite life. Depreciation on other P, P E is charged to profit or loss on
traight-line basis over the estimated useful lives of items of property, plant and equipment, and major components that are
counted for separately, since this most closely reflects the expected pattern of consumption of the future economic benefits
nbodied in the asset. Assets under construction are not depreciated. Leased assets are depreciated over the shorter of the
ase term and their useful lives unless it is reasonable certain that Heineken will obtain ownership by the end of the lease term,
e estimated useful lives for the current and comparative years are as follows:
Buildings 30-40 years
Plant and equipment 10-30 years
Other fixed assets 5-10 years
iiere parts of an item of P, P E have different useful lives, they are accounted for as separate items of P, P E.
ie depreciation methods, residual value as well as the useful lives are reassessed, and adjusted if appropriate, at each financial
ar-end.
Gains and losses on sale
t gains on sale of items of P, P E are presented in profit or loss as other income. Net losses on sale are included in depreciation,
t gains and losses are recognised in profit or loss when the significant risks and rewards of ownership have been transferred
the buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, and there is no continuing
anagement involvement with the P, P E.
•ineken N.V. Annual Report 2010
