In connection with the amended regulations
governing consolidated financial statements and the
associated requirements of De Nederlandsche Bank
N.V., the figures for the 50% interest in
N.V. Algemene Bouwkredietbank have now been
consolidated on a proportional basis and are no
longer treated as a participating interest. Investment
interests in American real estate covered by partner
ship agreements, which were formerly consolidated
on a proportional basis, have now been listed under
As a result of these changes, adjustments have
been made to the follwing items in the Group’s
financial statement: “mortgages”, “real estate
operated by the company” and “participating
interests”. Accordingly, the 1989 figures have been
adjusted to facilitate historical comparison.
The consolidated financial statements include the
accounts of the Friesch-Groningsche Hypotheek
bank N.V., its subsidiaries and group companies.
Joint ventures in financial institutions have
been consohdated on a proportional basis, while
other joint ventures have been accounted for as
participating interests. The results of participating
interests not consohdated in the accounts are inclu
ded under the heading “Results of participating
Marketable securities are stated at their quoted prices
as per the balance sheet date. Unquoted securities are
included at their estimated market value as per
balance sheet date.
Receivables are included at face value less
deductions for provisions. Additionally a provision,
which is included in Payables, has been formed to
cover risks inherent in the granting of credit
(Section II (2) of the Credit Industry Supervising
Participating interests are stated at their net
worth values, applying the valuation principles used
by Friesch-Groningsche Hypotheekbank N.V.
Participating interests of more than 20% that have
not been consohdated in the accounts have been
valued on the basis of their net asset value.
Movements in net value due to the results achieved
are shown in “Results of participating interests”, as
are results from sales of participating interests.
Real estate operated by the company, is stated
at purchase or construction cost less depreciation or
at market value, whichever is the lower. With respect
to the results from disposals of real estate operated by
the company, the difference between sales proceeds
and book value is taken.
BASIS OF CONSOLIDATION
I EQUITY AND RESULT DETERMINATION
I Office buildings in use by the company are
stated at current value. Depreciation is provided on
real estate operated by the company and on office
buildings in use by the company, taking estimated
useful hfe and residual values into account.