Real estate companies
and other diversifications
A provision is made to cover the risk of a loss of income in develop
ment projects 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 'Equalization account WIR
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.
Corporate 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 in such a way, that gains identified but
unrealized as of balance sheet date are not incorporated in earnings,
whereas equivalent losses are recognized.
