Notes to the Consolidated Financial Statements (continued)
(513)
(1,405)
48
20
4
294
280
22
472
(778)
(1)
(7)
(2)
(2)
(8)
12
(12)
1
17
(19)
1
(19)
(19)
36
67
(10)
5
(25)
5
14
(14)
(34)
44
18
(75)
14
(43)
(2)
26
1
2
(3)
1
8
(20)
(12)
1
(468)
(1,331)
39
28
11
225
283
1
407
(805)
12.3 Income tax on other comprehensive income
-
-
-
-
-
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
In millions of
Changes in Effect of
Balance accounting movements
1 January policy Changes in in foreign Recognised Recognised
2018* (IFRS 9) consolidation exchange in income in equity
2018
Balance
31
December
Transfers 2018
P,P&E
Intangible assets
Investments
Inventories
Borrowings
Post-retirement
obligations
Provisions
Other items
Tax losses carried
forward
Net tax assets/
(liabilities)
Restated for IAS 37 and to reflect the correct breakdown per category. Refer to note 4 for further details on IAS 37.
Accounting estimates and judgements
The tax legislation in the countries in which HEINEKEN operates is often complex and subject to
interpretation. In determining the current and deferred income tax position, judgement is required.
New information may become available that causes HEINEKEN to change its judgement regarding
the adequacy of existing tax liabilities; such changes to tax liabilities will impact the income tax
expense in the period that such a determination is made.
Accounting policies
Income tax comprises current and deferred tax. Current tax is the expected income tax payable or
receivable in respect of taxable income or loss for the year, using tax rates enacted or substantively enacted
at the balance sheet date, and any adjustment to income tax payable in respect of previous years.
Deferred tax is a tax payable or receivable in the future and is recognised in respect of temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases.
Deferred tax is not recognised on temporary differences related to:
- The initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profit or loss.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2O19B^0
Other Information
- The investments in subsidiaries, associates and joint ventures to the extent that HEINEKEN is able to
control the timing of the reversal of the temporary differences and it is probable (>50% chance) that
they will not reverse in the foreseeable future.
- The initial recognition of non-deductible goodwill.
The amount of deferred tax provided is based on the expected manner of recovery or settlement
of the carrying amount of assets and liabilities, using tax rates (substantively) enacted, at year-end.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be
available against which they can be utilised.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different taxable entities which intend either to settle current tax liabilities and
assets on a net basis or to realise the assets and settle the liabilities simultaneously
Current and deferred tax are recognised in the income statement (refer to note 12.1), except when
it relates to a business combination or for items directly recognised in equity or other comprehensive
income (refer to note 12.3).
2019
2018
In millions of
Amount
before tax
Tax
Amount
net of tax
Amount
before tax
Tax
Amount
net of tax
Remeasurement of
post-retirement obligations
(268)
58
(210)
296
(75)
221
Currency translation differences
412
(43)
369
(134)
28
(106)
Change in fair value of net
investment hedges
(43)
(43)
(3)
(3)
Change in fair value of cash
flow hedges
52
12
64
(96)
29
(67)
Cash flow hedges reclassified
to profit or loss
27
(6)
21
(77)
(77)
Net change in fair value through
OCI investments
7
3
10
8
3
11
Cost of hedging
(6)
1
(5)
7
(1)
6
Share of other comprehensive
income of associates/
joint ventures
(20)
(20)
(36)
(36)
Other comprehensive income
161
25
186
(35)
(16)
(51)
