Notes to the Consolidated Financial Statements (continued)
9 Provisions and contingent liabilities
9.1 Post-retirement obligations
O Q,
Introduction Report of the Executive Board Report of the Supervisory Board
Sensitivity analysis - equity securities
An increase or decrease of 1% in the share price of the equity securities at the reporting date would not
have a material impact.
Accounting estimates
For other receivables HEINEKEN determines on each reporting date the impairment 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 other receivables 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.
Accounting policies
Fair value through OCI investments
HEINEKEN's investments in equity securities are classified as fair value through other comprehensive
income (OCI). These investments are interests in entities where HEINEKEN has less than significant
influence. This is generally the case by ownership of less than 20% of the voting rights.
Fair value through OCI investments are measured at fair value (refer to note 13.1). The fair value changes
are recognised in OCI and presented within equity in the fair value reserve. Dividend income and foreign
exchange gains and losses are recognised in profit or loss.
Non-current derivatives
Please refer to the accounting policies on derivative financial instruments in note 11.6.
Other
The remaining non-current assets as presented in the table above are initially measured at fair value and
subsequently at amortised cost minus any impairment losses.
Heineken N.V. Annual Report 2018Ï 87
Financial Statements
Sustainability Review
Other Information
HEINEKEN makes contributions to pension plans that provide pension benefits to (former) employees
upon retirement, both via defined benefit as well as defined contribution plans. Other long-term employee
benefits include long-term bonus plans, termination benefits, medical plans and jubilee benefits. Refer to
note 6.4 for the contribution to defined contribution plans. This note will relate to HEINEKEN's defined
benefit pension plans. Refer to the table below for the present value of the defined benefit plans as at
31 December.
In millions of
2018
2017
Present value of unfunded defined benefit obligations
251
296
Present value of funded defined benefit obligations
8,260
8,792
Total present value of defined benefit obligations
8,511
9,088
Fair value of defined benefit plan assets
(7,682)
(7,908)
Present value of net obligations
829
1,180
Asset ceiling items
51
19
Defined benefit plans included under non-current assets
7
10
Recognised liability for defined benefit obligations
887
1,209
Other long-term employee benefits
67
80
954
1,289
