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.
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