In particular, information about assumptions and estimation uncertainties and critical judgements in applying accounting policies that have the
most significant effect on the amounts recognised in the consolidated financial statements are described in the following notes:
Note 6 Acquisitions and disposals of subsidiaries and non-controlling interests
Note 15 Intangible assets
Note 16 Investments in associates and joint ventures
Note 17 Other investments and receivables
Note 18 Deferred tax assets and liabilities
Note 28 Employee benefits
Note 29 Share-based payments - Long-Term Variable award (LTV)
Note 30 Provisions
Note 32 Financial risk management and financial instruments
Note 34 Contingencies.
(e) Changes in accounting policies
Accounting for employee benefits
On 1 January 2011 HEINEKEN changed its accounting policy with respect to the recognition ofactuarial gains and losses arising from defined benefit
plans. After the policy change, HEINEKEN recognises all actuarial gains and losses arising immediately in other comprehensive income (OCI). In prior
years, HEINEKEN applied the corridor method. To the extent that any cumulative unrecognised actuarial gain or loss exceeds ten percent of the
greater of the present value of the defined benefit obligation and the fair value of plan assets, that portion was recognised in profit or loss over
the expected average remaining working lives of the employees participating in the plan. Otherwise, the actuarial gain or loss was not recognised.
As such, this change means that deferral of actuarial gains and losses within the corridor are no longer applied.
HEINEKEN believes this accounting policy change provides more relevant information as all amounts will be recognised on balance, which is
consistent with industry practice and in accordance with the amended reporting standard of Employee Benefits as issued by the International
Accounting Standards Board on 16 June 2011.
The change in accounting policy was recognised retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors', and comparatives have been restated. This results in a EUR15 million and EUR11 million positive impact on 'Results from operating activities'
and 'Net profit'for the year ended 31 December 2010, respectively. The adjustment results in a EUR296 million decline in 'Total Equity'for the full
year 2010 on Group level. No statement of financial position as at 1 January 2010 has been included. The information included below provides
insight in all balance sheet items affected by this change in policy.
The following table summarises the transitional adjustments on implementation of the new accounting policy for the full year 2010:
Employee Benefit Deferred Tax Retained earnings/
In millions of EURobligationAssetsprofit or loss
Balance as reported at 1 January 2010
Effect of policy change on 1 January 2010 retained earnings
Restated balance at 1 January 2010
Balance as reported at 31 December 2010
Effect of policy change during 2010 on retained earnings
P&L impact for the period 2010
The 2010 amounts as included in the notes to these consolidated financial statements as at and for the year ended 31 December 2010 have been
restated as a result of this policy change.
Heineken N.V. Annual Report 2011