Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
3. Significant accounting policies
The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow the manner in which the
Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted at 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.
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.
(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 HEINEKEN'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
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 year, adjusted for the weighted average number of own shares purchased in the year. Diluted EPS is determined by
dividing the profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding,
adjusted for the weighted average number of own shares purchased in the year and for the effects of all dilutive potential ordinary
shares which comprise share rights granted to employees.
(v) Cash flow statement
The cashflow statement is prepared using the indirect method. Changes in balance sheet items that have not resulted in cashflows
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 2013
78