Independent Auditor's Report (continued)
Implementation of IFRS 16 Leases
Report on other legal and regulatory requirements
No prohibited non-audit services
Description of responsibilities regarding the financial statements
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
Risk The Company implemented the new leasing standard through the modified retrospective
approach with cumulative effects recognised as an adjustment to retained earnings
at January 1, 2019 and no restatement of the comparative information. Following
the implementation the Company recorded an EUR 1,034 million right-of-use asset,
EUR 252 million lease receivable and EUR 1,252 million lease liability at January 1, 2019.
The implementation of the standard requires judgement in establishing among others
the incremental borrowing rate and the lease term. Because of the material impact
on the statement of financial position and these risk factors, we have considered
the implementation of IFRS 16 to be a key audit matter relevant to our audit of the
financial statements.
How the scope Our audit procedures included amongst others that together with an IFRS specialist we
of our audit have evaluated the appropriateness of the Company's accounting policies, management's
responded judgements and related disclosures which are included in note 4 to the financial
to the risk statements. At group and component level we have evaluated relevant controls and
performed substantive testing of the related assets, liabilities and flows of transactions.
Furthermore we have involved our valuation specialists to test the appropriateness of the
incremental borrowing rate applied by the Company.
Observation We did not identify any reportable matters regarding the implementation of IFRS 16 and
the corresponding disclosures in note 4.
Report on the other information included in the Annual Report 2019
In addition to the financial statements and our auditor's report thereon, the Annual report 2019 contains
other information that consists of:
- Report of the Executive Board;
- Report of the Supervisory Board;
- Other Information pursuant to Part 9 of Book 2 of the Dutch Civil Code; and
- Other information included in the Annual Report.
Based on the following procedures performed, we conclude that the other information:
- is consistent with the financial statements and does not contain material misstatements; and
- Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and understanding obtained through our
audit of the financial statements or otherwise, we have considered whether the other information contains
material misstatements.
Heineken N.V. Annual Report 2019
Financial Statements
Sustainability Review
Other Information
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil
Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the
scope of those performed in our audit of the financial statements.
The Executive Board is responsible for the preparation of the other information, including the Report of the
Executive Board in accordance with Part 9 of Book 2 of the Dutch Civil Code and other information pursuant
to Part 9 of Book 2 of the Dutch Civil Code.
Engagement
We were engaged by the supervisory board as auditor of Heineken N.V. on April 24, 2014 as of and for
the year ending 31 December 2015 and have operated as statutory auditor ever since that financial year.
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on
specific requirements regarding statutory audit of public-interest entities.
Responsibilities of the Executive Board and the Supervisory Board for the financial statements
The Executive Board is responsible for the preparation and fair presentation of the financial statements
in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, the Executive
Board is responsible for such internal control as the Executive Board determines is necessary to enable the
preparation of the financial statements that are free from material misstatement, whether due to fraud
or error.
As part of the preparation of the financial statements, the Executive Board is responsible for assessing the
Company's ability to continue as a going concern. Based on the financial reporting frameworks mentioned,
the Executive Board should prepare the financial statements using the going concern basis of accounting
unless the Executive Board either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Executive Board should disclose events and circumstances that may cast significant doubt on the
Company's ability to continue as a going concern in the financial statements.
The Supervisory Board is responsible for overseeing the Company's financial reporting process.
