Notes to the Consolidated Financial Statements continued
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(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
eguity 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. Subseguently, it is accounted for as an eguity-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 H EIN EKEN'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 H EIN EKEN 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 IVs 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.
69 Helneken N.V. Annual Report 2015
