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.