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Notes to the Consolidated Financial Statements
1. Reporting entity
2. Basis of preparation
(a) Statement of compliance
(b) Basis of measurement
(c) Functional and presentation currency
(d) Use of estimates and judgements
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
Heineken N.V. (the 'Company') is a company domiciled in the Netherlands. The address of the Company's registered office is Tweede
Weteringplantsoen 21, Amsterdam. The consolidated financial statements of the Company as at and for the year ended 31 December
2017 comprise the Company, its subsidiaries (together referred to as'HEINEKEN') and HEINEKEN's interest in joint ventures and associates.
The Company is registered in the Trade Register of Amsterdam No. 33011433. HEINEKEN is primarily involved in the brewing and selling of beer
and cider. Led by the Heineken® brand, HEINEKEN has a portfolio of more than 300 international, regional, local and speciality beers and ciders.
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed
by the European Union (EU) and also comply with the financial reporting requirements included in Part 9 of Book 2 of the Dutch Civil Code.
All standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting
Interpretations Committee (IFRIC) effective year-end 2017 have been adopted by the EU. Consequently, the accounting policies applied by the
Company also comply fully with IFRS as issued by the IASB.
The consolidated financial statements have been prepared by the Executive Board of the Company and authorised for issue on 9 February 2018
and will be submitted for adoption to the Annual General Meeting of Shareholders on 19 April 2018.
The consolidated financial statements have been prepared on the historical cost basis unless otherwise indicated. The methods used to measure
fair values are discussed further in notes 3 and 4.
These consolidated financial statements are presented in Euro, which is the Company's functional currency. All financial information presented in
Euro has been rounded to the nearest million unless stated otherwise.
The preparation of consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisionsto accounting estimates are recognised in the period in which
the estimates are revised and in any future periods affected.
Information about assumptions and estimation uncertainties and critical judgements in applying accounting policies that have the most
significant effect on the amounts recognised in the consolidated financial statements are described in the following notes and related
accounting policies:
Note 5 Operating segments, particularly the estimation of discount accruals in revenue at the end of the year based on the individual
customer agreements.
Note 6 Acquisitions and disposals of subsidiaries, particularly with regard to the identification and valuation of acquired assets and liabilities.
Note 15 Intangible assets, particularly the assumptions used in goodwill impairment testing.
Note 18 Deferred tax assets and liabilities, particularly with regard to the assessment of the recoverability of past tax losses.
Note 26 Employee benefits, particularly with regard to assumptions for discount rates, future pension increases and life expectancy to calculate the
defined benefit obligation.
Note 28 Provisions and note 32 Contingencies, particularly with regard to estimating the likelihood and timing of potential cash outflows relating
to claims and litigations.
Note 29 Trade and other payables, particularly with regard to the estimation of circulation times and market losses in determining the returnable
packaging deposit liability.
Note 30 Financial risk management and financial instruments, particularly with regard to the estimation of the recoverability of loans and
advances to customers and trade receivables.
