Explanatory notes
General
Participations are valued at intrinsic value. In agreement with this
the consolidated profit and loss account shows the results
obtained by participations, as well as the amounts retained in
these participations.
Receivables on account of active financing as well as debts on
account of passive financing are valued at their nominal amounts.
To cover the general risks involved in lending a provision as
referred to in Section 329 of Volume 2 Civil Code was formed
figuring under 'Payables and transitory items'.
Securities are valued at purchase price or lower market value.
In calculating 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. The company
income tax figuring in the profit and loss account has been
calculated on the balance of this account with due observance of
the components of profit exempted.
The bases of valuation and determination of profits and losses
for the annual accounts of the Friesch-Groningsche Hypotheek
bank nv are equal to those applied to the consolidated annual
accounts. The explanatory notes below only show the figures of
the consolidated annual accounts. For the names and registered
seats of the majority participations reference is made to the list
filed with the Register of Business Names in Amsterdam.
Consolidated profit and loss account
To supplement the breakdown
in the profit and loss account
we give below the subdivision
of the item 'General expenses':
1978
1977
Salaries and social security
charges
18.369.000
15.866.000
Other costs
5.248.000
5.068.000
Emoluments to supervisory
directors
44.000
44.000
23.661.000
20.978.000
During the entire financial year the number
of supervisory directors was six;
none of the supervisory directors was unpaid.
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