Notes to the Consolidated Financial Statements (continued) 10 Acquisitions, disposals and investments 10.1 Acquisitions and disposals 10.2 Assets or disposal groups classified as held for sale - - 10.3 Investments in associates and joint ventures O Q, Introduction Report of the Executive Board Report of the Supervisory Board Acquisitions and disposals in 2018 During 2018 no significant acquisitions or disposals took place. Prior year adjustments During 2018 all the provisional accounting periods of the 2017 acquisitions have been closed without material adjustments. The assets and liabilities below are classified as held for sale following the commitment of HEINEKEN to a plan to sell these assets and liabilities. Efforts to sell these assets and liabilities have commenced and are expected to be completed within one year. Assets held for sale and liabilities associated with assets classified as held for sale In millions of 2018 2017 Current assets 34 Property, plant and equipment 183 29 Intangible assets 153 3 Other non-current assets 31 1 Assets classified as held for sale 401 33 Current liabilities (101) (2) Non-current liabilities (31) Liabilities associated with assets classified as held for sale (132) (2) In 2018 the assets and liabilities held for sale mainly relate to HEINEKEN's operating entities in China and Hong Kong. On 5 November 2018, HEINEKEN signed definitive agreements with China Resources Enterprise, Limited ('CRE') and China Resources Beer (Holdings) Co. Ltd. ('CR Beer') to create a strategic partnership. In the context of this partnership, the HEINEKEN operating entities in China and Hong Kong will be sold to CR Beer, for a total consideration of HK$2.4 billion, through a share sale transaction. The transaction is expected to close in 2019. The disposal group is included in reportable segment Asia Pacific in note 6.1. Accounting estimates and judgements HEINEKEN classifies assets or disposal groups as held for sale when they are available for immediate sale in its present condition and the sale is highly probable. HEINEKEN should be committed to the sale and it Heineken N.V. Annual Report 2018 Financial Statements Sustainability Review Other Information should be unlikely that the plan to sale will be withdrawn. This might be difficult to demonstrate in practice and involves judgement. Accounting policies Assets or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Immediately before classification as held for sale, the assets, or components of a disposal group, are measured at the lower of their carrying amount and fair value less costs of disposal. Intangible assets and PP&E once classified as held for sale are not amortised or depreciated. In addition, equity accounting of equity-accounted investees ceases once classified as held for sale. HEINEKEN has interests in a number of joint ventures and associates. The total carrying amount of these associates and joint ventures was €2,021 million as per 31 December 2018 (€1,841 million in 2017) and the total share of profit was €174 million in 2018 (€68 million in 2017). The investments in associates and joint ventures includes the interest of HEINEKEN in United Breweries Limited (UBL) in India. On 10 October 2018, officials from the Competition Commission of India visited UBL for their investigation in relation to allegations of price fixing and performed search of the premises and inquiries with certain officials of UBL at its registered office. As UBL has not received any demand order in respect of this matter and the investigation is ongoing, UBL deems it not practicable to estimate its potential financial effect, if any. Summarised financial information for equity accounted joint ventures and associates The following table includes, in aggregate, the carrying amount and HEINEKEN's share of profit and OCI of joint ventures and associates (net of income tax): Joint ventures Associates In millions of 2018 2017 2018 2017 Carrying amount of interests 1,748 1,612 273 229 Share of: Profit or loss from 192 43 18 32 continuing operations Other comprehensive income (37) (13) 1 6 155 30 19 38 Accounting policies Associates are those entities in which HEINEKEN has significant influence, but not control or joint control. Significant influence is generally obtained by ownership of more than 20% but less than 50% of the voting rights. Joint ventures (JVs) are the arrangements in which HEINEKEN has joint control.

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