95
Notes to the Consolidated Financial Statements
2023
2022
Introduction
Sustainability
Review
Financial
Statements
Other
Information
Report
of the
Supervisory
Board
Report
of the
Executive
Board
Impairment of non-financial assets
At each reporting date, HEINEKEN reviews the carrying amounts of its non-financial assets (except for
inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such
indication exists, the recoverable amount is estimated. The existence of any immediate or short-term physical
threats due to climate change were also considered in assessing for any indication of impairment. Furthermore,
HEINEKEN assesses goodwill and other intangible assets with an indefinite useful life annually for impairment.
For impairment testing, assets are grouped into the smallest group of assets that generate cash inflows from
continuing use. The CGU for other non-financial assets is often the operating company on a country level. The
recoverable amount of an asset or CGU is the higher of an asset’s FVLCD and VIU. In assessing the VIU, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and risks specific to the asset or CGU.
An impairment loss is recognised in profit or loss if the carrying amount of an asset or its CGU exceeds its
recoverable amount, except where IAS 29 requires entities that apply hyperinflation accounting for the first time to
recognise impairment related to prior periods in opening equity. Impairment losses are first allocated to goodwill
and intangible assets with an indefinite useful life. A remaining impairment loss is then allocated to the other assets
in the unit on a pro-rata basis. In respect of other assets, impairment losses recognised in prior periods are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortisation if no impairment loss had been recognised.
8.2 Property, plant and equipment
Property, plant and equipment (P,P&E) are fixed assets that are owned by HEINEKEN, as well as ROU assets
under a lease agreement. Owned and ROU assets are held for use in HEINEKEN's operating activities. Refer to
the table below for the split between owned assets and ROU assets as per balance sheet date:
Heineken
N.V.
Annual
Report
2023
In millions of
Property, plant and equipment - owned assets
Right of use assets
13,732
1,040
14,772
12,610
1,013
13,623
