s Notes to the Consolidated Financial Statements (continued) - - - 8.4 Other non-current assets O Q, Introduction Report of the Executive Board Report of the Supervisory Board The movement in allowance for impairment losses for loans and advances to customers during the year was as follows: Allowance for credit losses 2018 - Loans and advances to customers 160 5 145 o 1 140 (2) c 1 1 135 (11) (3) 120 Balance as Policy Addition to Allowance Allowance Fx Other Balance as at at 1 January change allowance used released movements 31 December In millions of 2018 2017 Balance as at 1 January 145 132 Policy changes (2) Impairment loss recognised 5 8 Allowance used (11) (2) Allowance released (8) Effect of movements in exchange rates 1 (1) Other (3) 16 Balance as at 31 December 135 145 Accounting estimates HEINEKEN determines on each reporting date the impairment of loans and advances to customers using an expected credit loss model which estimates the credit losses over 12 months. Only in case a significant increase in credit risk occurs (e.g. more than 30 days overdue, change in credit rating, payment delays in other receivables from the customer) the credit losses over the lifetime of the asset are incurred. Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. For more information on HEINEKEN's credit risk exposure refer to note 11.5. Heineken N.V. Annual Report 2018 8 Financial Statements Sustainability Review Other Information Accounting policies Loans and advances to customers are measured at fair value and subsequently at amortised cost minus any impairment losses. Other non-current assets mainly consist of Fair Value through Other Comprehensive Income (FVOCI) investments, prepayments and other receivables with a duration longer than 12 months. In millions of Note 2018 2017 Fair value through OCI investments* 501 481 Non-current derivatives 11.6 35 36 Loans to joint ventures and associates 9 3 Long-term prepayments 330 346 Other receivables 209 193 Other non-current assets 1,084 1,059 In 2017 these investments were classified as available-for-sale investments. The FVOCI investments primarily consist of equity securities. HEINEKEN designates these investments as FVOCI as these are not held for trading purposes. As per 31 December 2018 the investment of €331 million (2017: €300 million) in the Saigon Alcohol Beer and Beverages Corporation ('SABECO', Vietnam), is the main FVOCI equity investment. The other receivables mainly originate from the acquisition of the beer operations of FEMSA and represent a receivable on the Brazilian authorities on which interest is calculated in accordance with Brazilian legislation. Collection of this receivable is expected to be beyond a period of five years. A part of the aforementioned receivables qualifies for indemnification towards FEMSA which are provided for.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 87