Notes to the Consolidated
Financial Statements
Financial statements I Notes to the consolidated financial statements continued
1. Reporting entity
Heineken N.V. (the 'Company') is a company domiciled in the Netherlands. The address of the Company's registered office is Tweede Weteringplantsoen
21Amsterdam. The consolidated financial statements of the Company as at and for the year ended 31 December 2011 comprise the Company, its
subsidiaries (together referred to as 'HEINEKEN' or the 'Group' and individually as 'HEINEKEN' entities) and HEINEKEN's interest in jointly controlled
entities and associates.
A summary of the main subsidiaries, jointly controlled entities and associates is included in note 36 and 16 respectively.
HEINEKEN is primarily involved in the brewing and selling of beer.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the
EU and also comply with the financial reporting requirements included in Part 9 of Book 2 of the Dutch Civil Code. All standards and interpretations
issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC)
effective year-end 2011 have been adopted by the EU, except that the EU carved out certain hedge accounting provisions of IAS 39. The Company
does not utilise this carve-out permitted by the EU, as it is not applicable. Consequently, the accounting policies applied by the Company also comply
fully with IFRS as issued by the IASB. The Company presents a condensed income statement, using the facility of Article 402 of Part 9, Book 2, of the
Dutch Civil Code.
The consolidated financial statements have been prepared by the Executive Board of the Company and authorised for issue on 14 February 2012
and will be submitted for adoption to the Annual General Meeting of Shareholders on 19 April 2012.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for the following:
Available-for-sale investments
Derivative financial instruments
Liabilities for equity-settled share-based payment arrangements
Long-term interest-bearing liabilities on which fair value hedge accounting is applied
The defined benefit assets
The financial statements of subsidiaries whose functional currency is the currency of a hyperinflationary economy are stated in terms of the
measuring unit current at the end of the reporting period.
The methods used to measure fair values are discussed further in note 4.
(c) Functional and presentation currency
These consolidated financial statements are presented in euro, which is the Company's functional currency. All financial information presented
in euro has been rounded to the nearest million unless stated otherwise.
(d) Use of estimates and judgements
The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimates are revised and in any future periods affected.
74 Heineken N.V. Annual Report 2011
