Notes to the Consolidated Financial Statements (continued)
7.3 Trade and other payables
7.4 Returnable packaging materials
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
In the ordinary course of business, payable positions arise towards suppliers of goods and services, as well as
to other parties. Refer to the table below for the different types of trade and other payables.
In millions of
2019
2018
Trade payables
4,720
4,016
Accruals
1,386
1,334
Taxation and social security contributions
1,009
1,060
Interest
147
164
Dividends
12
19
Other payables
246
298
7,520
6,891
Accounting estimates
HEINEKEN makes estimates in the determination of discount accruals. When discounts are provided to
customers, these reduce the transaction price and consequently the revenue. The conditional discounts in
revenue (refer to note 6.1) are estimated based on accumulated experience supported by historical and
current sales information. Expected sales volumes are determined taking into account (historical) sales
patterns and other relevant information. A discount accrual is recognised for expected volume and year-end
discounts payable to customers in relation to sales made until the end of the reporting period.
Accounting policies
Trade and other payables are initially measured at fair value and subsequently at amortised cost.
Trade payables are derecognised when the contractual obligation is either discharged, cancelled or expired.
HEINEKEN uses returnable packaging materials such as glass bottles, crates and kegs in selling the finished
products to the customer.
Returnable packaging materials
The majority of returnable packaging materials is classified as Property, plant and equipment.
The category other fixed assets in Property, plant and equipment (refer to note 8.2) includes €922 million
(2018: €882 million) of returnable packaging materials.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019
Other Information
Returnable packaging deposit liability
In certain markets, HEINEKEN has the legal or constructive obligation to take back the materials from the
market. A deposit value is generally charged upon sale of the finished product, which is paid back when the
empty returnable packaging material is returned.
In millions of 2019 2018
Returnable packaging deposits 565 569
Accounting estimates
The main accounting estimate relating to returnable packaging materials is determining the returnable
packaging materials in the market and the expected return thereof. This is based on circulation times and
losses of returnable packaging materials in the market.
Accounting policies
Returnable packaging materials
Returnable packaging materials may be classified as Property, plant and equipment or inventory.
The classification mainly depends on whether the ownership gets transferred and whether HEINEKEN has
the legal or constructive obligation to buy back the materials.
Refer to note 8.2 for the general accounting policy on Property, plant and equipment. Specifically for
Returnable packaging materials, the estimated useful life depends on the loss of the materials in the market
as well as on HEINEKEN site.
Returnable packaging deposit liability
HEINEKEN recognises a deposit liability when a legal or constructive obligation exists to reimburse the
customer for returnable packaging materials that are returned. The returnable packaging deposit liability is
based on the estimated returnable packaging materials in the market, the expected return thereof and the
deposit value.
