75
Notes to the Consolidated Financial Statements (continued)
(0) Other income
(p)Expenses
(q) Government grants
(r) Interest income, interest expenses and other net finance income and expenses
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
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Information
Heineken N.V. Annual Report 2017
Other income includes gains from sale of P, P E, intangible assets and (interestsin) subsidiaries, joint ventures and associates, net of sales tax.
They are recognised in profit or loss when risks and rewards have been transferred to the buyer.
(1) Operating lease payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis overtheterm of the lease. Lease incentives received
are recognised in profit or loss as an integral part of the total lease expense, overtheterm of the lease.
(ii) Finance lease payments
Minimum lease payments under finance leases are apportioned between the finance expense and the reduction of the outstanding liability
The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining
balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments overthe remaining term of the
lease when the lease adjustment is confirmed.
Government grants are recognised at their fair value when it is reasonably assured that HEINEKEN will comply with the conditions attaching to
them and the grants will be received.
Government grants relating to P, P E are deducted from the carrying amount of the asset.
Government grants relating to costs are deferred and recognised in profit or loss overthe period necessary to match them with the costs that they
are intended to compensate.
Interest income and expenses are recognised as they accrue in profit or loss, using the effective interest method unless collectability is in doubt
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss
using the effective interest method.
Other net finance income and expenses comprises dividend income, gains and losses on the disposal of available-for-sale investments, changes
in the fair value of investments designated at fair value through profit or loss and held for trading investments, changes in fair value of hedging
instruments that are recognised in profit or loss, unwinding of the discount on provisions, impairment losses recognised on investments and interest
on the net defined benefit obligation. Dividend income is recognised in the income statement on the date that HEINEKEN's right to receive
payment is established, which in the case of quoted securities is the ex-dividend date.
Foreign currency gains and losses are reported on a net basis in the other net finance income and expenses.
