92 Notes to the Consolidated Financial Statements (continued) 14. Property, plant and equipment (continued) Impairment losses Property, plant and equipment under construction Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information In 2016, a total impairment loss of EUR 295 million (2015: EUR 71 million) was charged to profit or loss. These impairment losses mainly relate to The Democratic Republic of Congo (DRC). A slowdown of the expected future economic growth in DRC due to lower commodity prices, power constraints and lower investments and consumption resulting from political uncertainties, resulted in an impairment of assets in the cash generating unit (CGU). The impairment primarily relates to property, plant and equipment and has been recorded on the line Amortisation, depreciation and impairments' in the Income Statement. The CGU DRC is part of the Africa and Middle East and Eastern Europe segment. The determination of the recoverable amount of these assets is based on a fair value less costs of disposal (FVLCD) valuation. The FVLCD is based on a discounted ten-year cash flow forecast (level 3). The key assumptions used to determine the cash flows are based on market expectations and management's best estimates. See the table below for the key assumptions: In 2017-2026 After that Sales volume growth (CAGR) 3.4 0.0 Cost inflation 4.0 4.0 Discount rate - post tax 16.0 16.0 P, P E under construction mainly relates to extension of brewing capacity in various countries.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 93