Real estate companies
and other diversifications
A provision is made to cover the risk of a loss of income due to vacancy
during the period between completion and the first lease. The size of
this provision is calculated annually on the basis of the balance sheet-
value of the projects concerned.
WIR-premiums are accounted for in the WIR-Equalisation Account.
Short-term investment amounts are released at the expiration of
repayment periods and are added to the results.
Premiums on long-term investments are added annually to the result in
proportion to the period of repayment.
Other receipts and costs are generally accounted for in the year in which
they occur.
Corporation tax included in the profit and loss account is calculated on
the balance of the account, making allowance for tax-free profit
components.
Securities are valued at the lower of cost or market with any loss based
on this valuation included in the results. Unrealized profits based on
market value are not included in the results.
Dividends from non-consolidated participations are accounted for in
the year of distribution.
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