Notes to the Consolidated Financial Statements continued
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An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present
value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale financial
asset is calculated by reference to its current fair value.
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups
that share similar credit risk characteristics.
All impairment losses are recognised in profit or loss. Any cumulative loss in respect of an available-for-sale financial asset recognised previously in other
comprehensive income and presented in the fair value reserve in eguity is transferred to profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets
measured at amortised cost and available-for-sale financial assets that are debt securities, the reversal is recognised in profit or loss. For available-for-sale
financial assets that are eguity securities, the reversal is recognised in other comprehensive income.
(ii) Non-financial assets
The carrying amounts of HEINEKEN's non-financial assets, other than inventories (refer to accounting policy (h)) and deferred tax assets (refer to
accounting policy (s)), are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the
asset's recoverable amount is estimated. For goodwill and intangible assets that are not yet available for use. the recoverable amount is estimated each
year at the same time.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit. 'CGU').
The recoverable amount of an asset or CGU is the higher of an asset's fair value less costs to sell and value in use. In assessing value in use. the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset or CGU.
For the purpose of impairment testing, goodwill acguired in a business combination is allocated to each of the acguirer's CGUs, or groups of CGUs expected
to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity
at which the goodwill is monitored for internal management purposes. Goodwill is monitored on regional, sub-regional or country level depending on the
characteristics of the acguisition, the synergies to be achieved and the level of integration.
An impairment loss is recognised in profit or loss if the carrying amount of an asset or its CGU exceeds its recoverable amount. Impairment losses
recognised in respect of CGU are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying
amounts of the other assets in the unit (group of units) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other
assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only
to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
Goodwill that forms part of the carrying amount of an investment in an associate and joint venture is not recognised separately, and therefore is not tested
for impairment separately. Instead, the entire amount of the investment in an associate and joint venture is tested for impairment as a single asset when
there is objective evidence that the investment in an associate may be impaired.
77 Helneken N.V. Annual Report 2015
