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Notes to the Consolidated Financial Statements
4. Changes in accounting policies
5. General accounting policies
The following notes contain the most significant estimates and judgements:
Note
6.1 Operating segments
Introduction
Neither the above amendments, nor any other new standards or amendments to existing standards effective in
2023, had a significant impact on HEINEKEN's consolidated financial statements.
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(c) Significant accounting estimates and judgement
In preparing these consolidated financial statements, management is required to make estimates and
judgements that affect the application of accounting policies and the reported amounts of assets and liabilities,
income and expenses.
Amendment to IAS 12 - International tax reform - pillar two model rules
The amendments to IAS 12 issued in May 2023 offer temporary relief from accounting for deferred taxes
arising from the Organisation for Economic Co-operation and Development’s (OECD) international tax. Refer to
note 12.1 ‘Income tax expense’.
The application of accounting policies requires judgements that impact the amounts recognised. Additionally,
amounts recognised are based on factors that are by default associated with uncertainty. Actual results may
therefore differ from estimates. Where applicable, the estimates and judgements are described per note within
the consolidated financial statements.
(a) Changed accounting policies in 2023
The following accounting policy changes have been adopted in 2023 and are reflected in the consolidated
financial statements:
IFRS 17 - Insurance contracts
HEINEKEN has implemented IFRS 17 ‘Insurance contracts’, replacing the existing guidance on insurance
contracts in IFRS 4 ‘Insurance contracts’.
(b) Upcoming changes in accounting policies for 2024
Amendments to IAS 7 and IFRS 7 - Supplier finance arrangements
The amendments to IAS 7 and IFRS 7 introduce new disclosure requirements with regard to supplier finance
arrangements, relating to the effect on liabilities, cash flows and the exposure to liquidity risk. The amendments
apply for annual periods beginning or after 1 January 2024. HEINEKEN has not applied the amendments in
preparing the 2023 consolidated financial statements.
General
The accounting policies described in these consolidated financial statements have been applied consistently to
all periods presented in these consolidated financial statements.
(a) Basis of consolidation
The consolidated financial statements are prepared as a consolidation of the financial statements of the
Company and its subsidiaries. Subsidiaries are entities controlled by HEINEKEN. HEINEKEN controls an entity
when it has power over the investee, is exposed or has the right to variable returns from its involvement with that
entity and can affect those returns through its power over the entity. Control is generally obtained by ownership
of more than 50% of the voting rights.
The financial statements of subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by HEINEKEN.
On consolidation, intra-HEINEKEN balances and transactions, and any unrealised gains and losses or income and
expenses arising from intra-HEINEKEN transactions, are eliminated. Unrealised gains arising from transactions
with associates and joint ventures (refer to note 10.3) are eliminated against the investment to the extent of
HEINEKEN’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but
only to the extent that there is no evidence of impairment.
(b) Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of HEINEKEN entities
using the exchange rates at the transaction date, except for HEINEKEN entities in hyperinflationary economies,
refer to note 5(c). Receivables, payables and other monetary assets and liabilities denominated in foreign
currencies are re-translated to the functional currency using the exchange rates at the balance sheet date. The
resulting foreign currency differences are recognised in the income statement, except for foreign currency
differences arising on re-translation of Fair Value through Other Comprehensive Income (FVOCI) investments
and financial liabilities designated as a hedge of a net investment, which are recognised in other comprehensive
income.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are re
translated to the functional currency at the exchange rate at the date that the fair value was determined. Non
monetary items in a foreign currency that are measured at cost are translated into the functional currency at the
exchange rate at the transaction date.
Other than mentioned above, no new standards or amendments to existing standards, effective in 2024, will
have a significant impact on HEINEKEN 's consolidated financial statements.
HEINEKEN has supplier finance arrangements in place, to which the disclosure requirements will apply.
HEINEKEN is in the process of obtaining the information needed to meet the new disclosure requirements.
Heineken
N.V.
Annual
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2023
Assumptions for discount rates, future pension increases and life
expectancy to calculate the defined benefit obligation
Estimating the likelihood and timing of potential cash flows relating 9.2 Provisions and 9.3 Contingencies
to claims and litigations
Assumptions used in the valuation of acquired assets and liabilities 10.1 Acquisitions and disposals of
subsidiaries and non-controlling interests
10.1 Acquisitions and disposals of
subsidiaries and non-controlling interests
12.2 Deferred tax assets and liabilities
8.1 Intangible assets and 8.2 Property, plant
and equipment
9.1 Post-retirement obligations
Assessment of the recoverability of past tax losses
Significant estimates
Assumptions used in impairment testing
Particular area involving significant estimates and judgements
Significant judgement
Judgement on acting as principal versus agent with respect to
excise tax expense
Judgement used in the identification of acquired assets and
liabilities
