Explanatory Notes Changes in Presentation and Accounting Policies The 1985 financial statements have been prepared in accordance with the model approved by the Dutch Central Bank on September 23, 1985, and with due regard to the recommendations of the Central Bank with respect to the valuation of a number of balance sheet items. The Explanatory Notes comply with the provisions of the Dutch Civil Code, Title 8, Book 2, insofar as the Dutch Central Bank has not stipulated otherwise. The most important changes are: altered composition and order of balance sheet and income statement items consolidation of all majority participating interests sub-division of the item Commission into: commission on lending business (arrangement fees and premature repayment penalties) now included in Incidental income other commission income (commitment and guarantee commission) now included in Commission sub-division of the item Real estate in operation into: Buildings used by the company, included in Buildings and equipment and Real estate operated by the company change in the valuation of real estate development projects due to capitalization of interest together with part of the overhead during the actual construction period (previously interest was capitalized until sale or lease and no overhead was capitalized) reduction of the item Mortgage loans due to elimination of intercompany mortgages as a consequence of total consolidation valuation of Marketable securities at quoted price or redemption value (previously stated at cost or lower quoted price) application of current value for the capitalized amount for office premises. As a consequence of these changes, equity has altered due to revaluation of office premises by (xNLG 1,000) 455 while equity and results have been reduced by a net 123) Total effect on equity 332 Additionally, interest due the collection of which is in doubt is no longer included in the result. This causes both a lower gross operating result and a lower provision 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 approximately NLG 30 million.

Rabobank Bronnenarchief

Annual Reports FGH Bank | 1985 | | pagina 30