Disclosure Of Material Accounting Policy Information [Text Block]

JDE Peet's N.V. - Filing #1882521

Concept	2022-01-01 to 2022-12-31
Disclosure of material accounting policy information [text block]	—
Description of accounting policy for borrowing costs [text block]	Borrowing Costs
Description of accounting policy for borrowings [text block]	Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.
Description of accounting policy for business combinations [text block]	JDE Peet's applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued and includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisitions where a sequence of transactions begins with JDE Peet's gaining control, followed by acquiring additional ownership interests shortly thereafter, typical in public offers where offers are made to a group of shareholders, are accounted for as a single transaction. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and (contingent) liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.
Description of accounting policy for customer loyalty programmes [text block]	Customer loyalty programmes
Description of accounting policy for deferred income tax [text block]	Deferred income tax
Description of accounting policy for depreciation expense [text block]	Property, plant and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets, except land and assets under construction which are not depreciated. JDE Peet's believes that the wear and tear on each category of assets is spread evenly over the useful life. The estimated useful lives, which are reviewed annually and adjusted if appropriate, are presented as follows:
Description of accounting policy for derivative financial instruments and hedging [text block]	JDE Peet's applies the hedge accounting requirements in IFRS 9. Derivatives are initially recognised at fair value through profit and loss ("FVTPL") on the date a derivative contract is entered into and are subsequently remeasured at fair value. The method of recognising the resulting gain or loss from the measurement depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. To qualify for hedge accounting, the hedging relationship must meet all of the following requirements:
Description of accounting policy for determining components of cash and cash equivalents [text block]	In the statements of financial position, cash and cash equivalents include cash on hand and other short-term highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Any bank overdrafts are included in trade and other payables. In the statements of cash flows, any bank overdrafts are included as an offset to cash and cash equivalents.
Description of accounting policy for discounts and rebates [text block]	Discounts, coupons and rebates
Description of accounting policy for earnings per share [text block]	Basic earnings per share (“EPS”) is calculated by dividing the profit for the year attributable to the shareholders of the Company by the time-weighted average number of common shares outstanding during the year.
Description of accounting policy for employee benefits [text block]	Employee benefit expense
Description of accounting policy for exceptional items [text block]	Adjusted EBIT
Description of accounting policy for expenses [text block]	Advertising Expense
Description of accounting policy for fair value measurement [text block]	This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value. To provide an indication about the reliability of the inputs used to determine fair value, financial instruments are classified into the three levels as prescribed under IFRS. An explanation of each level follows below:
Description of accounting policy for finance income and costs [text block]	JDE Peet's receives finance income primarily representing i
Description of accounting policy for financial assets [text block]	Financial assets are classified as follows:
Description of accounting policy for financial instruments [text block]	I
Description of accounting policy for financial instruments at fair value through profit or loss [text block]	Assets and liabilities that do not meet the criteria for amortised cost or fair value through OCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognised in the income statement (in finance expense except for the change in fair value of commodity derivative financial instruments which are included in the cost of sales) and presented net within other gains/(losses) in the period in which it arises.
Description of accounting policy for foreign currency translation [text block]	Foreign currency translation
Description of accounting policy for functional currency [text block]	Functional currency
Description of accounting policy for goodwill [text block]	Goodwill
Description of accounting policy for impairment of assets [text block]	The assets’ residual values are reviewed annually and adjusted, if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the assets and are recognised in the income statement within selling, general and administrative expenses. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Description of accounting policy for impairment of financial assets [text block]	I
Description of accounting policy for impairment of non-financial assets [text block]	Assets that are subject to amortisation or depreciation are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Assets that have an indefinite useful life, such as trademarks and brands, are not subject to amortisation and are tested at least annually for impairment. This test was performed on the last day of the third quarter of the fiscal year and whenever a significant event occurs or circumstances change that might reduce the recoverable amount of the goodwill.
Description of accounting policy for income tax [text block]	Income tax expense for the period comprises of current and deferred tax. Current and deferred tax is recognised in the income statement, except when it relates to a business combination or for items recognised in OCI or directly in Equity.
Description of accounting policy for leases [text block]	Leases
Description of accounting policy for measuring inventories [text block]	Inventories are stated at the lower of cost or net realisable value. Cost is determined by the first-in, first-out method and includes the impact of rebates, discounts and other cash consideration received from a vendor related to inventory purchases and the reclassification from equity of any gains or losses on qualifying cash flow hedges relating to purchases of raw material. The cost of finished goods and work in progress comprises design costs, raw materials, direct labour, and other direct costs, including transportation costs incurred in bringing inventories to their location immediately prior to external sale, and condition and related production overheads based on normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses (i.e. less all estimated costs of completion and costs necessary to make the sale). In addition, as discussed in the Leasing Policy, inventories include coffee machines that have not yet been leased.
Description of accounting policy for intangible assets and goodwill [text block]	JDE Peet's determined that an indefinite useful life is appropriate based on an analysis of all of the relevant factors, including the long history of the brands, and because there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for JDE Peet's.
Description of accounting policy for intangible assets other than goodwill [text block]	Trademarks and other identifiable intangible assets
Description of accounting policy for investment in associates [text block]	Investments in associates
Description of accounting policy for offsetting of financial instruments [text block]	Offsetting financial assets and financial liabilities
Description of accounting policy for property, plant and equipment [text block]	Property, plant and equipment is carried at historical cost, less accumulated depreciation and any impairment losses. The cost of purchased property, plant and equipment is the value of the consideration given to acquire the assets and the value of other directly attributable costs including, for qualifying assets, capitalised borrowing costs and asset retirement obligations. Leasehold improvements and other property additions and improvements are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to JDE Peet's and the cost of the item can be measured reliably. The carrying amount of any replaced part is derecognised at the time it is disposed and charged to expense. All repair and maintenance costs are charged to expense as incurred.
Description of accounting policy for recognition of revenue [text block]	Revenue Recognition
Description of accounting policy for share-based payment transactions [text block]	All JDE and JDE Peet's plans qualify as equity-settled. The Peet’s plans partly qualify as equity-settled and partly as cash-settled.
Description of accounting policy for subsidiaries [text block]	Subsidiaries—Subsidiaries are all entities over which the Company has control. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases.
Description of accounting policy for termination benefits [text block]	Termination Benefits
Description of accounting policy for trade and other payables [text block]	Trade payables are obligations to pay for goods or services that were acquired in the ordinary course of business. Trade and other payables are classified as current liabilities if payment is due within 12 months or less. If not, they are presented as non-current liabilities. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Description of accounting policy for trade and other receivables [text block]	Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in 12 months or less, they are classified as current. If not, then they are presented as non-current assets. Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method, less a provision for impairment.