explanatory notes general With effect from the financial year 1976 the bases of valuation and the fixation of profits and losses have been changed with regard to: - Participations: They are valued at intrinsic value, previously at acquisition value. In agreement with this revised method of valuation the consolidated profit and loss account shows the results obtained by participations, as well as the amounts retained in these participations. - Securities: They are valued at purchase price or lower market value, previously at market value, changes in market value being reflected in the provision for differences in market value. These modified bases are also included in the corresponding figures for 1975. The change in the basis of valuation for participations results in an increase in the reserves at 31st December 1976 of f 65,976,000 (in 1975: 57,865,000). The provision for differences in market value, which amounted to f 1,297,000 at the end of 1975, was liquidated per that date. The modified bases with regard to participations do not affect the profit available, while the net profit before company income tax and addition to the provision for general contingencies is 9,901,000 (in 1975: f 11,267,000) higher than would have been the case with the bases previously applied. As a result of the modified bases with regard to securities 1976 shows a gain of 237,000 on account of realized profit on market value of securities. For the rest the bases applied in the annual account have remained unchanged as compared with the previous year. They are as follows: Receivables on account of active financing as well as debts on ac count of passive financing are valued at their nominal amounts. To cover the general risks on account of lending, a provision as referred to in Section 329 of Volume 2 Commercial Code was formed, figuring under 'Payables and transitory items'. In the calculation of the results the interest gains and charges as well as the other gains and charges are accounted for in the year to which they relate. The incidental gains (one time commission charged, etc.) and costs (one time commission paid, etc.) attendant upon active and passive financing are accounted for in the profit and loss account of the year in which the money is invested or raised. Cityplan Kronenburg, Amstelveen photograph Studio Lanza b.v., 's-Gravenhage

Rabobank Bronnenarchief

Annual Reports FGH Bank | 1976 | | pagina 29