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.
