EXPLANATORY NOTES 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 “participating interests”. 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 interests”. 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 Act). 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. GENERAL BASIS OF CONSOLIDATION I EQUITY AND RESULT DETERMINATION PRINCIPLES 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.

Rabobank Bronnenarchief

Annual Reports FGH Bank | 1990 | | pagina 24