Financial Reporting and Operating Results
Net earnings for the 1985 financial year were NLG 10.6 million.
This figure is made up as follows:
(in millions of guilders) 1985
Finance business 44.3
Real estate and
other activities 7.3
Total 51.6
Addition to reserve for
general contingencies 38.0 60.0
Corporate income tax 3^0 41.0 2.5
Net earnings 10.6
With effect from the 1985 financial year, the financial statements have been drawn up
in conformity with the stipulations of Title 8, Book 2 of the Dutch Civil Code and
the model accounts adopted by De Nederlandsche Bank N.V., (The Dutch Central
Bank). The changes in presentation this means are set forth in the explanatory notes
to the financial statements (page28).
In addition, interest due the collectability of which is in doubt is no longer included
in the gross result. This causes both a lower gross operating result and a lower
reserve for doubtful debts. The effect on the gross operating result on the one hand
and on the addition to the reserve for general contingencies on the other amounts
to NLG 30 million.
The movements in net interest are analyzed below:
1984
62.3
5.3
67.6
62.5
5.1
(in thousands of guilders)
1985
1984
Interest income
Add: capitalized interest included
530,867
588,803
in Result on real estate
development and sales
21,393
21,252
552,260
610,055
Interest expense
518,663
543,969
33,597
66,086
An amount of NLG 30 million of the decline in net interest is due to the aforemen
tioned change in presentation of the income statement.
