Financial statements Notes to the consolidated financial statements
3. Significant accounting policies
(m) Loans and borrowings
Loans and borrowings are recognised initially at fair value, net of transaction costs incurred. Loans and borrowings are subsequent
stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised
in profit or loss over the period of the borrowings using the effective interest method. Loans and borrowings included in a fair valu<
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.
(i) 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 profit or loss when the amount of revenue can be measured reliably, the significant risks and rewards
of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible retu
of products can be estimated reliably, and there is no continuing management involvement with the products.
If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognised as a reductio
of revenue as the sales are recognised.
(ii) Other revenue
Other revenues are proceeds from royalties, rental income, pub management services and technical services to third parties, net of
sales tax. Royalties are recognised in profit or loss on an accrual basis in accordance with the substance of the relevant agreement
Rental income and technical services are recognised in profit or loss when the services have been delivered.
(0) Other income
Other income are gains from sale of P, P E, intangible assets and (interests in) subsidiaries, joint ventures and associates,
net of sales tax. They are recognised in profit or loss when ownership has been transferred to the buyer.
(1) Operating lease payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease
incentives received are recognised in profit or loss 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.
(q) Government grants
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 profit or loss over the period necessary to match them with th
costs that they are intended to compensate.