0
83
Notes to the Consolidated Financial Statements
7.3 T rade and other payables
Heineken N.V.
Annual Report 2020
Introduction
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
The movement in allowance for credit losses for trade and other receivables during the year is as follows:
Allowance for credit losses 2020 - Trade and other receivables
(23)
Balance as at
1 January
Addition to Allowance Allowance Effect of Balance as at
allowance used released movements in 31 December
exchange rates
In millions of
2020
2019
Balance as at 1 January
434
437
Changes in consolidation
1
Transfers
10
Addition to allowance
143
69
Allowance used
(58)
(73)
Allowance released
(2)
(4)
Effect of movements in exchange rates
(23)
4
Balance as at 31 December
504
434
Accounting estimates
HEINEKEN determines on each reporting date the impairment of trade and other receivables using a
model (e.g. flow rate method) which estimates the lifetime expected credit losses that will be incurred on
these receivables. Individually significant financial assets are tested for impairment on an individual basis.
The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.
Due to the uncertainty relating to the depth and duration of the COVID-19 pandemic and its related impact
on HEINEKEN's customers, more judgement is required in the calculation of expected credit losses compared
to the prior year. As part of these assessments, HEINEKEN has incorporated all reasonable and supportable
information available such as whether there has been a breach or deterioration of payments terms, a request
for extended payment terms or a request for waived payment terms. For more information on HEINEKEN's
credit risk exposure refer to note 11.5.
Accounting policies
Trade and other receivables are held by HEINEKEN in order to collect the related cash flows. These receivables
are measured at fair value and subsequently at amortised cost minus any impairment losses. Trade and other
receivables are derecognised by HEINEKEN when substantially all risks and rewards are transferred or if
HEINEKEN does not retain control over the receivables.
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
2020
2019
Trade payables
3,663
4,720
Accruals
1,232
1,386
Taxation and social security contributions
845
1,009
Interest
187
147
Dividends
13
12
Other payables
167
246
6,107
7,520
As a result of the COVID-19 pandemic, in some countries HEINEKEN was allowed a short-term postponement
of payments of certain indirect taxes, such as value-added taxes. As at 31 December 2020, an amount of
€98 million of delayed indirect tax payments is included in trade and other payables.
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.
