90
Notes to the Consolidated Financial Statements (continued)
14. Property, plant and equipment (continued)
Impairment losses
Property, plant and equipment under construction
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
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Information
Heineken N.V. Annual Report 2017
In 2017, no impairment loss was charged to profit or loss.
In 2016 impairment losses of €295 million were charged to profit or loss. These impairment losses were mainly related 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 related 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, Middle East and Eastern Europe segment. The determination of the
recoverable amount of these assets was based on a fair value less costs of disposal (FVLCD) valuation. The FVLCD was based on a discounted
10-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 used for the impairment in DRC in 2016:
2017-2026 After that
in
Sales volume growth (CAGR)
Cost inflation
Discount rate - post tax
3.4
4.0
16.0
0.0
4.0
16.0
P P E under construction mainly relatesto extension of brewing capacity in various countries.
