Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
3. Significant accounting policies
(j) Non-current assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sale
rather than through continuing use, are classified as held for sale. Immediately before classification as held for sale, the assets, or
components of a disposal group, are measured at the lower of their carrying amount and fair value less cost to sell. Any impairment
loss on a disposal group is first allocated to goodwill, and then to remaining assets and liabilities on a pro rata basis, except that no
loss is allocated to inventories, financial assets, deferred tax assets and employee defined benefit plan assets, which continue to be
measured in accordance with HEINEKEN's accounting policies. Impairment losses on initial classification as held for sale and subseguent
gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment
Intangible assets and P, P E once classified as held for sale are not amortised or depreciated. In addition, eguity accounting of
eguity-accounted investees ceases once classified as held for sale.
(k) Employee benefits
(i) Defined contribution plans
A defined contribution plan is a post-employment benefit plan (pension plan) under which HEINEKEN pays fixed contributions into
a separate entity. HEINEKEN has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the current and prior periods.
Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss
in the periods during which services are rendered by employees. Prepaid contributions are recognised as an asset to the extent that
a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan that are due more than
12 months after the end of the period in which the employee renders the service are discounted to their present value.
(ii) Defined benefit plans
A defined benefit plan is a post-employment benefit plan (pension plan) that is not a defined contribution plan. Typically defined
benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more
factors such as age, years of service and compensation.
HEINEKEN's net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount
of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to
determine its present value. The fair value of any defined benefit plan assets is deducted. The discount rate is the yield at balance
sheet date on AA-rated bonds that have maturity dates approximating the terms of HEINEKEN's obligations and that are denominated
in the same currency in which the benefits are expected to be paid.
The calculations are performed annually by gualified actuaries using the projected unit credit method. When the calculation results
in a benefit to HEINEKEN, the recognised asset is limited to the present value of economic benefits available in the form of any future
refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of economic benefits,
consideration is given to any minimum funding reguirements that apply to any plan in HEINEKEN. An economic benefit is available
to HEINEKEN if it is realisable during the life of the plan, or on settlement of the plan liabilities.
When the benefits of a plan are changed, the expense or benefit is recognised immediately in profit or loss.
HEINEKEN recognises all actuarial gains and losses arising from defined benefit plans immediately in other comprehensive income
and all expenses related to defined benefit plans in personnel expenses and other net finance income and expenses in profit or loss.
Heineken N.V. Annual Report 2013