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
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10.3 Investments in associates and joint ventures
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
Acquisitions and disposals in 2019
During 2019 no significant acquisitions or disposals took place.
Prior year adjustments
During 2019 all the provisional accounting periods of the 2018 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
2019
2018
Current assets
34
Property, plant and equipment
46
183
Intangible assets
153
Other non-current assets
65
31
Assets classified as held for sale
111
401
Current liabilities
(101)
Non-current liabilities
(31)
Liabilities associated with assets classified as held for sale
(132)
In 2018 the assets and liabilities held for sale mainly related to HEINEKEN's operating entities in China
and Hong Kong, which have been sold as part of the strategic partnership with China Resources Enterprise,
Limited ('CRE') and China Resources Beer (Holdings) Co. Ltd. ('CR Beer'). This transaction was closed in 2019
(refer to note 6.2).
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and it should be unlikely that the plan to sale will be withdrawn. This might be difficult to demonstrate
in practice and involves judgement.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019
Other Information
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 FVLCD.
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 €4,868 million as at 31 December 2019 (2018: €2,021 million) and the
total share of profit and other comprehensive income was €144 million in 2019 (2018: €174 million).
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 an
investigation in relation to allegations of price fixing. The related investigation report was communicated to UBL
on 13 December 2019. Currently, UBL is in the process of reviewing the investigation report and preparing its
response. As the decision of the Competition Commission of India is pending, UBL deems it not practicable at
this stage to estimate its potential financial effect, if any
The associate CRH (Beer) Limited ('CBL') is considered to be individually material. HEINEKEN holds a
shareholding of 40% in CRH (Beer) Limited ('CBL') as of 29 April 2019. CBL holds a controlling interest of 51.67%
in China Resources Beer (Holdings) Co. Ltd. ('CR Beet), a company incorporated in Hong Kong and listed on the
Main Board of The Stock Exchange of Hong Kong Limited, operating in the beer business in China. Consequently
HEINEKEN has an effective 20.67% economic interest in CR Beer. Based on the closing share price of HKD43.10
as at 31 December 2019 the fair value of this economic interest in CR Beer amounts to €3,304 million.
The carrying amount of CBL as at 31 December 2019 amounts to €2,716 million.
Set out below is the summarised financial information of CR Beer, not adjusted for the percentage of ownership
held by HEINEKEN. The financial information has been amended to reflect adjustments made by HEINEKEN
when using the equity method (such as fair value adjustments). Due to a difference in reporting timelines the
financial information is included with a two-month delay This means that the financial information included
relates to the period May-October 2019. The reconciliation of the summarised financial information to the
carrying amount of the effective interest in CR Beer is also presented.
