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Notes to the Consolidated Financial Statements
1 1 '"y Heineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
In millions of
1 January
2019
Changes in
accounting
policy
(IFRS 16)
Changes in
consolidation
Effect of
movements
in foreign
exchange
Recognised
in income
Recognised
in equity
Transfers
31
December
2019
P,P&E
(468)
(226)
(1)
(16)
11
(5)
(705)
Intangible assets
(1,331)
(19)
(37)
49
9
(1,329)
Investments
39
2
(5)
36
Inventories
28
1
4
2
35
Borrowings
11
291
11
(15)
10
308
Post-retirement
225
6
(15)
58
274
obligations
Provisions
283
(5)
(2)
(2)
274
Other items
1
(65)
(40)
(7)
10
23
(78)
Tax losses carried
407
2
9
(7)
(1)
410
forward
Net tax assets/
(liabilities)
(805)
(18)
(69)
13
68
36
(775)
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.
- 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).
