Notes to the consolidated financial statements continued
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Executive Board
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statements
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2. Basis of preparation
(e) Changes in accounting policies
HEINEKEN has adopted the following new standards and amendments to standards, including any conseguential amendments to other
standards, with a date of initial application of 1 January 2014:
Offsetting Financial Assets and Financial Liabilities (amendments to IAS 32)
Recoverable Amount Disclosures for Non-Financial Assets (amendments to IAS 36)
Novation of Derivatives and Continuation of Hedge Accounting (amendments to IAS 39)
IFRIC 21 Levies
Offsetting Financial Assets and Financial liabilities (amendments to IAS 32)
The amendments to IAS 32 clarify the offsetting rules for financial assets and financial liabilities on the statement of financial position.
The clarifications of the offsetting principle in IAS 32 did not result in any changes to the financial assets and liabilities compared with the
practice adopted before these amendments.
Recoverable Amount Disclosures for Non-Financial Assets (amendments to IAS 36)
HEINEKEN will comply with the extended disclosure reguirements on the recoverable amount of non-financial assets, when applicable.
Novation of Derivatives and Continuation of Hedge Accounting (amendments to IAS 39)
As the result of this amendment, HEINEKEN has changed its accounting policy for novation of derivatives and continuation of hedge
accounting. These amendments, however, did not have an impact on the consolidated financial statements of HEINEKEN.
IFRIC 21 Levies
IFRIC 21, Levies, clarifies that a levy is not recognised until the obligating event specified in the legislation occurs, even if there is no realistic
opportunity to avoid the obligation. HEINEKEN has reassessed the timing of when to accrue levies imposed by legislation and concluded
that the interpretation does not have a material impact on the consolidated financial statements.
3. Significant accounting policies
General
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements
and have been applied consistently by HEINEKEN entities.
(a) Basis of consolidation
(i) Business combinations
Business combinations are accounted for using the acguisition method as at the acguisition date, which is the date on which control
is transferred to 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.
HEINEKEN measures goodwill at the acguisition date as the fair value of the consideration transferred plus the fair value of any previously
held eguity interest in theacguiree and the recognised amount of any non-controlling interests in the acguiree, less the net recognised
amount (generally fair value) of the identifiable assets acguired and liabilities assumed. When the excess is negative, a bargain purchase gain
is recognised immediately in profit or loss.
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Heineken N.V. Annual Report 2014