99
Notes to the Consolidated Financial Statements
Note
2023
2022
14
9
33
56
11.6
10
15
504
461
417
544
Other non-current assets
978
1,085
Introduction
Note
2023
2022
395
167
145
Equity instruments
562
145
Loans to joint ventures and associates
Long-term prepayments
Other receivables
In millions of
Fair value through OCI debt investments
Non-current derivatives
Accounting policies
Loans and advances to customers are initially measured at fair value and subsequently at amortised cost minus
any impairment losses.
Sustainability
Review
Financial
Statements
Other
Information
Report
of the
Supervisory
Board
Report
of the
Executive
Board
Accounting estimates
HEINEKEN determines at each reporting date the impairment of loans and advances to customers using an
expected credit loss model, which estimates the credit losses over 12 months. If a significant increase in credit
risk occurs (e.g. more than 30 days overdue, change in credit rating, payment delays in other receivables from
the customer), credit losses over the lifetime of the asset are incurred. 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 macro-economic environment and uncertainties including
increasing inflationary pressure on HEINEKEN’s customers, more judgement is required for the calculation of
expected credit losses compared to the prior years. For more information on HEINEKEN's credit risk exposure
refer to note 11.5.
8.4 Equity instruments
Equity instruments mainly consist of shares in Heineken Holding N.V., which HEINEKEN acquired from FEMSA
during 2023 as part of the accelerated bookbuild offering. The investment is not held for trading purposes. Refer
to note 13.3 ‘Related parties’. In the financial statements 2022, equity instruments were presented under other
non-current assets.
Sensitivity analysis - equity securities
An increase or decrease of 1 in the share price of the equity securities at the reporting date would not have a
material impact.
Accounting policies
HEINEKEN’s investments in equity securities are classified as FVOCI. These investments are interests in entities
where HEINEKEN has less than significant influence. This is generally the case when ownership is less than 20%
of the voting rights. Upon the sale of these equity securities the accumulated fair value and currency translation
changes are transferred to retained earnings.
FVOCI investments are measured at fair value (refer to note 13.1). The fair value changes are recognised in
other comprehensive income (OCI) and presented within equity in the fair value reserve. Dividend income is
recognised in profit or loss.
Accounting estimates
HEINEKEN determines on each reporting date the impairment of other receivables using an expected credit loss
model, which estimates the credit losses over 12 months. Only in case of a significant increase in credit risk occurs
(e.g. more than 30 days overdue, change in credit rating, payment delays in other receivables from the
customer) the credit losses over the lifetime of the asset are incurred. Individually significant other receivables
are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in
groups that share similar credit risk characteristics. For more information on HEINEKEN's credit risk exposure refer
to note 11.5.
Other
The remaining non-current assets as presented in the previous table are initially measured at fair value and
subsequently at amortised cost minus any impairment losses.
Other receivables include lease receivables of €115 million (2022: €137 million). The average outstanding term
of the lease receivables, including the short-term portion of lease receivables, is 3.0 years (2022: 2.9 years). The
remainder of other receivables mainly originate from the acquisition of the beer operations of FEMSA and
represent a receivable on the Brazilian authorities on which interest is calculated in accordance with Brazilian
legislation. The collection of this receivable is expected to be beyond a period of five years. A part of the
aforementioned qualifies for indemnification towards FEMSA and is provided for.
Accounting policies
Non-current derivatives
Refer to the accounting policies on derivative financial instruments in note 11.6.
Heineken
N.V.
Annual
Report
2023
In millions of
Shares in Heineken Holding N.V.
Other
8.5 Other non-current assets
Other non-current assets mainly consist of long-term prepayments and other receivables with a duration longer
than 12 months.
