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 the mortgage business as well as debts on
account of concern financing are valued at nominal value.
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.
With effect from 1980 all assets and liabilities, which are denominated in
foreign currencies, are recalculated at exchange rates as at the balance
sheet date. The currency differences in respect of the whole concern
resulting therefrom are passed onto a central account with the parent
company. The balance of currency differences thus obtained is booked
as a change in the equity capital.
The influence of these new principles of valuation of assets and
liabilities on the capital as at 1st January 1980 amounts to 240.000
(negative).
The effect of this change on the financial result of 1980 is almost nihil.
The incidental gains (one time commission charged, etc.) and costs
(one time commission paid, etc.) attendant upon mortgage and concern
financing are accounted for in the profit and loss account of the year in
which the money is invested or raised.
The corporation tax figuring in the profit and loss account has been
calculated on the balance of this account with due observance of tax-
exempt profit components.
The principles of valuation and determination of profits and losses for
the annual accounts of the Friesch-Groningsche Hypotheekbank 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.
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