Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are
generally recognised in profit or loss.
Costs related to the acguisition, other than those associated with the issue of debt or eguity securities, that HEINEKEN incurs in
connection with a business combination are expensed as incurred.
Any contingent consideration payable is recognised at fair value at the acguisition date. If the contingent consideration is classified
as eguity, it is not remeasured and settlement is accounted for within eguity. Otherwise, subseguent changes to the fair value of the
contingent considerations are recognised in profit or loss.
(ii) Acquisitions of non-controlling interests
Acguisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no
goodwill is recognised as a result. Adjustments to non-controlling interests arising from transactions that do not involve the loss of
control are based on a proportionate amount of the net assets of the subsidiary.
(Hi) Subsidiaries
Subsidiaries are entities controlled by HEINEKEN. HEINEKEN controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial
statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date
that control ceases. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by HEINEKEN. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests
even if doing so causes the non-controlling interests to have a deficit balance.
(iv) Loss of control
Upon the loss of control, HEINEKEN derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the
other components of eguity related to the subsidiary. Any resulting gain or loss is recognised in profit or loss. If HEINEKEN retains
any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subseguently it is
accounted for as an eguity-accounted investee or as an available-for-sale financial asset depending on the level of influence retained.
(v) Interests in equity-accounted investees
HEINEKEN's investments in associates and joint ventures are accounted for using the eguity method of accounting. Investments
in associates are those entities in which HEINEKEN has significant influence, but no control or joint control, over the financial and
operating policies. Joint ventures are the arrangements in which HEINEKEN has joint control, whereby El EINEKEN has rights to the
net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Investments in associates and joint ventures are recognised initially at cost. The cost of the investment includes transaction costs.
The consolidated financial statements include HEINEKEN's share of the profit or loss and other comprehensive income, after
adjustments to align the accounting policies with those of El EINEKEN, from the date that significant influence or joint control
commences until the date that significant influence or joint control ceases.
When HEINEKEN's share of losses exceeds the carrying amount of the associate or joint venture, including any long-term investments,
the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that HEINEKEN has an
obligation or has made a payment on behalf of the associate or joint venture.
(vi) Transactions eliminated on consolidation
Intra-HEINEKEN balances and transactions, and any unrealised gains and losses or income and expenses arising from intra-HEINEKEN
transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with
eguity-accounted associates and JVs are eliminated against the investment to the extent of HEINEKEN's interest in the investee.
Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Eleineken N.V. Annual Report 2013
65