Notes to the Consolidated Financial Statements continued
Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
2. Basis of preparation continued
(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 2015:
Amendments to IAS 19 Defined Benefit Plans: Employee Contributions
Amendments to IFRSs Annual Improvements to IFRSs 2010-2012 Cycle and 2011 -2013 Cycle
These changes had no significant impact on the disclosures or amounts recognised in HEINEKEN's 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 the acguiree 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.
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 H EIN EKEN 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.
68 Helneken N.V. Annual Report 2015
