Notes to the Consolidated Financial Statements continued
Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
3. Significant accounting policies continued
(j) Assets or disposal groups classified as held for sale
Assets or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sale rather than through continuing use are
classified as held for sale. Immediately before classification as held for sale, the assets, or components of a disposal group, are measured at the lower of
their carrying amount and fair value less cost to sell. Any impairment loss on a disposal group is first allocated to goodwill, and then to remaining assets and
liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets and employee defined benefit plan assets,
which continue to be measured in accordance with HEINEKEN's accounting policies. Impairment losses on initial classification as held for sale and
subseguent gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss.
Intangible assets and P, P E once classified as held for sale are not amortised or depreciated. In addition, eguity accounting of eguity-accounted investees
ceases once classified as held for sale.
(k) Employee benefits
(i) Defined contribution plans
A defined contribution plan is a post-employment benefit plan (pension plan) under which HEINEKEN pays fixed contributions into a separate entity.
HEINEKEN has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits
relating to employee service in the current and prior periods.
Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods during
which services are rendered by employees. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future
payments is available. Contributions to a defined contribution plan that are due more than 12 months after the end of the period in which the employee
renders the service are discounted to their present value.
(ii) Defined benefit plans
A defined benefit plan is a post-employment benefit plan (pension plan) that is not a defined contribution plan. Typically, defined benefit plans define
an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service
and compensation.
HEINEKEN's net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit
that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair
value of any defined benefit plan assets is deducted. The discount rate is the yield at balance sheet date on AA-rated bonds that have maturity dates
approximating to the terms of HEINEKEN's obligations and that are denominated in the same currency in which the benefits are expected to be paid.
The calculations are performed annually by qualified actuaries using the projected unit credit method. When the calculation results in a benefit to
HEINEKEN, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or
reductions in future contributions to the plan. In order to calculate the present value of economic benefits, consideration is given to any minimum
funding reguirements that apply to any plan in HEINEKEN. An economic benefit is available to HEINEKEN if it is realisable during the life of the plan,
or on settlement of the plan liabilities.
When the benefits of a plan are changed, the expense or benefit is recognised immediately in profit or loss.
HEINEKEN recognises all actuarial gains and losses arising from defined benefit plans immediately in other comprehensive income and all expenses
related to defined benefit plans in personnel expenses and other net finance income and expenses in profit or loss.
78 Helneken N.V. Annual Report 2015