O A Notes to the Consolidated Financial Statements (continued) - - - - 5 General accounting policies General (a) Basis of consolidation Introduction Report of the Executive Board Report of the Supervisory Board For the contracts that will be capitalised as per 1 January 2019, the estimated impact on the income statement will be as follows: Estimated IFRS16 Income statement impact Remarks Revenue (52) The decrease in revenue (income from subleases) is fully offset by a decrease in expenses on the head leases (relates primarily to The Netherlands and Belgium). Excise tax expense Net revenue (52) Other income Raw materials, consumables and services 259 A decrease in raw materials, consumables and services, as a result of the shift of operating lease expenses to depreciation and interest. Personnel expenses Amortisation, depreciation and impairments (186) An increase in depreciation, amortisation and impairments, as a result of depreciation of the Right-of-Use Assets. Total other expenses 73 Operating profit 21 Net finance expenses (40) An increase in net finance expenses as a result of the unwinding of the discount on lease liabilities and accretion of interest on lease receivables. Share of profit of associates and joint ventures Profit before income tax (19) Income tax expense 5 Profit (14) For the contracts that will be capitalised as per 1 January 2019, the impact on the cash flow statement is estimated to be: - An increase of €0.2 billion on cash flows from operating activities (and free operating cash flow) and a corresponding decrease in cash flow from financing - The impact on net cash flow will be neutral Financial Statements Sustainability Review Heineken N.V. Annual Report 2018^ 69 Other Information It is expected that the actual impact on the financial statements in 2019 will be different as a result of: - The finalisation of the validation of completeness and accuracy of the identified contracts - The finalisation of the identification of embedded leases - New lease contracts to be entered into in 2019 Reconciliation of the off-balance sheet commitments with the estimated impact As at 31 December 2018, HEINEKEN reports a total off-balance sheet commitment for leases of €2.0 billion. The difference between the estimated opening balance sheet impact of €1.2 billion (lease liabilities) and the off balance sheet commitments is primarily due to low value and short-term lease commitments, which are not included in the lease liability, and the impact of discounting of future lease payments. Refer to note 13.2 for more information of the off balance sheet commitments. The accounting policies described in these consolidated financial statements have been applied consistently to all periods presented in these consolidated financial statements. The consolidated financial statements are prepared as a consolidation of the financial statements of the Company and its subsidiaries. Subsidiaries are entities controlled by HEINEKEN. HEINEKEN controls an entity when it has power over the investee, is exposed or has the right to variable returns from its involvement with that entity and has the ability to affect those returns through its power over the entity. Control is generally obtained by ownership of more than 50% of the voting rights. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by HEINEKEN. On consolidation, intra-HEINEKEN balances and transactions, and any unrealised gains and losses or income and expenses arising from intra-HEINEKEN transactions, are eliminated. Unrealised gains arising from transactions with associates and JVs (refer note 10.3) are eliminated against the investment to the extent of HEINEKEN's interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 70