Financial statements Notes to the consolidated financial statements
3. Significant accounting policies
(t) Discontinued operations
A discontinued operation is a component of the Group's business that represents a separate major line of business or geographica
area of operations that has been disposed of or is held for sale or distribution, or is a subsidiary acquired exclusively with a view to
resale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as
held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative statement of comprehensive
income is re-presented as if the operation had been discontinued from the start of the comparative year.
(u) 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 outstandirg
during the period including the weighted average of outstanding ASDI, adjusted for the weighted average of own shares purchasec
in the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted averag
number of ordinary shares outstanding including weighted average of outstanding ASDI, adjusted for the weighted average of own
shares purchased in the year, for the effects of all dilutive potential ordinary shares, which comprise share rights granted to employee s.
(v) Cash flow statement
The cash flow statement is prepared using the indirect method. Changes in balance sheet items that have not resulted in cash flow
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 includ'd
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.
(w) 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.
(x) 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.