EXPLANATORY NOTES Equipment is stated at purchase cost less depreciation. Assets and liabilities in foreign currencies are translated at the exchange rates as per the balance sheet date. Items of the income statement denominated in foreign currencies are translated at the weighted average exchange rates for the year. The translation differences arising out of the application of both year-end rates and weighted average rates are reflected in stockholders’ equity in the item “Exchange differences reserve”. Results on exchange due to over and underhedging with respect to the standard stockholders’ equity stockholders’ equity necessary for maintaining ordinary activities) of foreign participating interests are reflected in stockholders’ equity in the item “Exchange differences reserve”. Other exchange differences are included in the result. Accrued corporate income tax and provisions for deferred tax liabilities have been included under the heading “Payables”. In this context, deferred liabilities refers to the tax resulting from differences in the fiscal valuation of assets and liabilities. Such assets and liabilities are valued on a current value basis as of the date of the balance sheet. Income and expenses are generally recorded in the year to which they relate. Incidental income and expenses in connection with lending and borrowing activities are recognized in the income statement in the year in which the assets or liabilities are contracted. A list of names and registered offices of parti cipating interests has been filed with the Amsterdam Chamber of Commerce. The company income statement of Friesch- Groningsche Hypotheekbank N.V. has been prepa red in conformity with the provisions of Section 402, Book 2 of the Dutch Civil Code. 23

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Annual Reports FGH Bank | 1990 | | pagina 25