Notes to the Consolidated Financial Statements (continued) - - - - - - - - - - - - - O Q, Introduction Report of the Executive Board Report of the Supervisory Board Movement in deferred tax balances during the year Changes in Effect of Balance Balance accounting movements 31 1 January policy Changes in in foreign Recognised Recognised December In millions of 2018 (IFRS 9) consolidation exchange in income in equity Transfers 2018 P,P&E (449) (1) 6 36 (2) (410) Intangible assets (1,292) (7) (22) 60 23 (1,238) Investments 48 (10) 1 39 Inventories 22 1 5 2 30 Borrowings 4 17 (25) 18 (3) 11 Post-retirement obligations 294 5 (75) 1 225 Provisions 101 (3) 20 1 119 Other items 85 (2) 1 (7) 14 (10) 81 Tax losses carried forward 460 (19) (34) (12) 395 Net tax assets/ (liabilities) (727) (2) (8) (19) 50 (43) 1 (748) In millions of Balance 1 January 2017 Changes in consolidation Effect of movements in foreign exchange Recognised in income Balance Recognised 31 December in equity Transfers 2017 P,P&E (476) (15) 36 2 4 (449) Intangible assets (1,346) (201) 127 132 (4) (1,292) Investments 121 (8) (65) 48 Inventories 26 (3) 4 (5) 22 Borrowings (30) 21 24 (13) 2 4 Post-retirement obligations 340 5 (8) (33) (9) (1) 294 Provisions 80 2 (4) 18 5 101 Other items 233 24 (81) (51) (15) (25) 85 Tax losses carried forward 391 48 (16) 37 460 Net tax assets/ (liabilities) (661) (119) 70 44 (37) (24) (727) Heineken N.V. Annual Report 2018! 10 Financial Statements Sustainability Review Other Information Accounting estimates and judgements The tax legislation in the countries in which HEINEKEN operates is often complex and subject to interpretation. In determining the current and deferred income tax position, judgement is required. New information may become available that causes HEINEKEN to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact the income tax expense in the period that such a determination is made. Accounting policies Income tax comprises current and deferred tax. Current tax is the expected income tax payable or receivable in respect of taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to income tax payable in respect of previous years. Deferred tax is a tax payable or receivable in the future and is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax is not recognised on temporary differences related to: - Initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss - Investments in subsidiaries, associates and joint ventures to the extent that HEINEKEN is able to control the timing of the reversal of the temporary differences and it is probable (>50% chance) that they will not reverse in the foreseeable future - Initial recognition of non-deductible goodwill The amount of deferred tax provided is based on the expected manner of recovery or settlement of the carrying amount of assets and liabilities, using tax rates (substantively) enacted, at year-end. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable entities which intend either to settle current tax liabilities and assets on a net basis or to realise the assets and settle the liabilities simultaneously Current and deferred tax are recognised in the income statement (refer to note 12.1), except when it relates to a business combination or for items directly recognised in equity or other comprehensive income (refer to note 12.3).

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 107