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## GEOGRAPHICAL ALLOCATION OF NET REVENUE 

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## 1.2  SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS 

The classification of duties and fees paid to local authorities or brewery organisations etc. and of discounts and marketing-related activities entails significant accounting esti- mates to be made by management. 

Locally imposed duties and fees are classi- fied as either sales-related duties, which are deducted from revenue, or as fees related to the input/use of goods in production, transportation, distribution etc., which are therefore recognised as an expense in the relevant line item. 

Customer discounts are recognised in the same period as the sales to which they relate and deducted from revenue. 

Customer discounts are based on expected accumulated sales volumes over a period of time using historical and year-to-date sales figures and other current information about trading with the customer. These calculations are performed by local management in cooperation with sales managers. 

Management assesses the agreements with, services provided by and pay- ments made to customers and to their customers to determine the substance and thereby the classification as either discounts or as trade marketing expenses. Expenses incurred for activities closely related to volumes sold are classified as discounts, while costs related to more general market activities are classified as trade marketing expenses. 

## 1.2 ACCOUNTING POLICIES 

For information about segmentation, please refer to section 9.2 (General accounting policies). 

Revenue from the sale of own-produced finished goods, goods for resale (third-party products) and by-products is recognised in the income statement when all significant risks and rewards have been transferred to the buyer and when the income can be reliably measured and is expected to be received. 

Royalty and licence fees are recognised when earned according to the terms of the licence agreements. 

Revenue is measured including excise duties on beer and soft drinks and excluding discounts, VAT and duties. 

Discounts comprise off-invoice, volume and activity-related discounts, including specific promotion prices offered or listing fees paid at the point of sale and thereby closely related to the volumes sold. 

