Report of the
Report of the
(ii) Leased assets
Leases in terms of which H EINEKEN assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition
P, P E acguired by way of finance lease is measured at an amount egual to the lower of its fair value and the present value of the minimum lease
payments at inception of the lease. Lease payments are apportioned between the outstanding liability and finance charges so as to achieve a constant
periodic rate of interest on the remaining balance of the liability.
Other leases are operating leases and are not recognised in HEINEKEN's statement of financial position. Payments made under operating leases are
charged to profit or loss on a straight-line basis over the term of the lease. When an operating lease is terminated before the lease period has expired,
any payment reguired to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.
(iii) Subsequent expenditure
The cost of replacing a part of an item of P, P E is recognised in the carrying amount of the item or recognised as a separate asset, as appropriate, if it is
probable that the future economic benefits embodied within the part will flow to El EINEKEN and its cost can be measured reliably. The carrying amount
of the replaced part is derecognised. The costs of the day-to-day servicing of P, P E are recognised in profit or loss when incurred.
Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.
Land except for financial leases on land over the contractual period, is not depreciated as it is deemed to have an infinite life. Depreciation on other
P, P E is charged to profit or loss on a straight-line basis over the estimated useful lives of items of P, P E, and major components that are accounted
for separately, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Assets under
construction are not depreciated. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonable certain
that HEINEKEN will obtain ownership by the end of the lease term. The estimated useful lives for the current and comparative years are as follows:
Buildings 30-40 years
Plant and eguipment 10-30 years
Other fixed assets 3-10 years
Where parts of an item of P, P E have different useful lives, they are accounted for as separate items of P, P E.
The depreciation methods, residual value as well as the useful lives are reassessed, and adjusted if appropriate, at each financial year-end.
(v) Gains and losses on sale
Net gains on sale of items of P, P E are presented in profit or loss as other income. Net losses on sale are included in depreciation. Net gains and losses
are recognised in profit or loss when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration
is probable, the associated costs can be estimated reliably, and there is no continuing management involvement with the P, P E.
(g) Intangible assets
Goodwill arises on the acguisition of subsidiaries, associates and joint ventures and represents the excess of the cost of the acguisition over HEINEKEN's
interest in net fair value of the net identifiable assets, liabilities and contingent liabilities of the acguiree.
Goodwill on acguisitions of subsidiaries is included in 'intangible assets'. Goodwill arising on the acguisition of associates and joint ventures is included
in the carrying amount of the associate, respectively the joint ventures. In respect of acguisitions prior to 1 October 2003, goodwill is included on the
basis of deemed cost, being the amount recorded under previous GAAP. Goodwill on acguisitions purchased before 1 lanuary 2003 has been deducted
Heineken N.V. Annual Report 2012