Deferred tax assets and liabilities are not recognised for the following temporary differences: (i) the initial recognition of goodwill, (ii) the initial
recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss,
(iii) differences relating to investments in subsidiaries, joint ventures and associates resulting from translation of foreign operations and (iv) differences
relating to investments in subsidiaries and joint ventures to the extent that the Company is able to control the timing of the reversal of the temporary
difference and they will probably not reverse in the foreseeable future.
Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected
to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income
taxes levied by the same tax authority on the same taxable entity, or on different taxable entities which intend either to settle current tax liabilities
and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.
In determining the amount of current and deferred tax the Company takes into account the impact of uncertain tax positions and whether additional
taxes and interest may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment
of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve
a series of judgements about future events. New information may become available that causes the Company to change its judgement regarding
the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future
taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each balance sheet date and are reduced to
the extent that it is no longer probable that the related tax benefit will be realised.
(t) Discontinued operations
A discontinued operation is a component of the Group's business that represents a separate major line of business or geographical 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
HEIN EKEN 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 outstanding during the period including the weighted
average of outstanding ASDI, adjusted for the weighted average of own shares purchased in the year. Diluted EPS is determined by adjusting the
profit or loss attributable to ordinary shareholders and the weighted average 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 employees.
(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 flows 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 included 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.
Heineken N.V. Annual Report 2011