Notes to the consolidated financial statements continued
3. Significant accounting policies continued
(iii) Tax exposures
In determining the amount of current and deferred income tax, the Company takes into account the impact of uncertain tax positions and whether
additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgments about future
events. New information may become available that causes the Company to change its judgment regarding the adequacy of existing tax liabilities;
such changes to tax liabilities will impact the income tax expense in the period that such a determination is made.
(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 represented 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 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.
(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 P, P E, and intangible assets other than goodwill.
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Heineken N.V. Annual Report 2012
