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
Acquisitions 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.
(iii) 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 equity related to the subsidiary. Any resulting gain or loss is recognised in profit or loss. If HEINEKEN retains any interest
in the previous subsidiary, such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for as an
equity-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 equity 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 HEINEKEN 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 HEINEKEN, 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 equity-
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.
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Heineken N.V. Annual Report 2014