I
98
Notes to the Consolidated Financial Statements
In millions of
2023
2022
Loans to customers
60
61
Advances to customers
179
155
Loans and advances to customers
239
216
Allowance for credit losses 2023 - Loans and advances to customers
Introduction
80
4
69
60
(6)
40
20
0
Transfers
In millions of
2023
2022
69
69
2
1
Addition to allowance
4
9
Allowance used
Allowance released
60
69
60
15-40 years
5-30 years
3-10 years
Balance as at 1 January
T ransfers
Sustainability
Review
Financial
Statements
Other
Information
Report
of the
Supervisory
Board
Report
of the
Executive
Board
Depreciation and impairments
Depreciation is calculated using the straight-line method, based on the estimated useful life of the asset class.
The estimated useful lives of the main asset classes are as follows:
- Buildings
- Plant and equipment
- Other fixed assets
The depreciation method, residual value and useful lives are reassessed annually. Changes in useful lives or
residual value are recognised prospectively.
HEINEKEN reviews whether indicators for impairment exist on a CGU level. When an indicator of impairment
exists, assets are tested for impairment. Impairment losses on assets, other than goodwill, recognised in prior
periods are assessed at each reporting date for any indication of a reversal, due to observable indications that
the asset's value has increased significantly or other significant changes with favourable effects.
Derecognition of Property, plant and equipment
P,P&E is derecognised when it is scrapped or sold. Gains on sale of P,P&E are presented in profit or loss as other
income (refer to note 6.2); losses on sale are included in depreciation.
Right of use (ROU) assets
Definition of a lease
A contract contains a lease if it provides the right to control the use of an identified asset for a period of time in
exchange for an amount payable to the lessor. The right to control the use of the identified asset exists when
having the right to obtain substantially all of the economic benefits from the use of that asset and when having
the right to direct the use of that asset.
HEINEKEN as a lessee
At the start date of the lease, HEINEKEN (lessee) recognises a ROU asset and a lease liability on the balance
sheet. The ROU asset is initially measured at cost, and subsequently at cost less accumulated depreciation and
impairment losses, and adjusted for certain remeasurements of the lease liability. For measurement of the lease
liability, refer to note 11.3.
HEINEKEN applies the following practical expedients for the recognition of leases:
- The short-term lease exemption means that leases with a duration of less than a year are expensed in the income
statement on a straight-line basis.
- The low-value lease exemption, meaning that leased assets with an individual value of €5,000 or less if bought
new, are expensed in the income statement on a straight-line basis.
HEINEKEN as a lessor
A lease is classified as a finance lease when it transfers substantially all the risks and rewards relating to
ownership of the underlying asset to the lessee. For contracts where HEINEKEN acts as an intermediate lessor,
the subleases are classified with reference to the ROU asset.
Land and assets under construction are not depreciated. When assets under construction are ready for their
intended use, they are transferred to the relevant category and depreciation starts. All other P,P&E items are
depreciated over their estimated useful life to the asset's residual value.
Lease related notes
For lease liabilities, refer to note 11.3 Borrowings. For short-term and low-value leases, refer to other expenses in
note 6.3 Raw materials, consumables and services. For the lease receivables, refer to other receivables in note 8.5
Other non-current assets and other receivables in note 7.2 Trade and other receivables. For the contractual
maturities of lease liabilities, refer to note 11.5 Credit, liquidity and market risk.
The movement in allowance for impairment losses for loans and advances to customers during the year is as
follows:
8.3 Loans and advances to customers
Loans and advances to customers are inherent to HEINEKEN's business model. Loans to customers are repaid in
cash on fixed dates while the settlement of advances to customers is linked to the sales volume of the customer.
Loans and advances to customers are usually backed by collateral such as properties.
Balance as
at 1
January
Addition to
allowance
Allowance
used
Allowance
released
Effect of
movements
in
exchange
rates
(12)
(6)
3
(8)
(5)
3
Heineken
N.V.
Annual
Report
2023
Balance as
at 31
December
UP
o
Effect of movements in exchange rates
Balance as at 31 December
3
