NOTES ACCOMPANYING THE GROUP
AND COMPANY BALANCE SHEETS
(NLG x 1,000)
1989
Paid-in surplus
74,865
Statutory reserves
129,197
Other reserves
128,413
Exchange differences reserve
(4,512)
327,963
In accordance with Article 389, Book 2, Title 9 of the Dutch Civil Code, it is no longer
necessary, as from the beginning of the financial year 1990, to maintain a legally required
reserve for undiscribed profits from participating interests, provided that such earnings remain
freely available in the Netherlands. As a result of this change in regulations, the legally required
reserve of NLG 103.5 million, which has been formed up to the end of 1989 in respect of
the above participating interests, has been transferred to the other reserves.
Reserves at the beginning of the year
Movements:
264,432
- due to results
77,144
- due to net exchange differences
(2,813)
- preferred dividend
(10,800)
327,963
Subordinated loans
1. Postbank N.V.
92,292
2. AEGON N.V.
100,000
192,292
This loan, placed in 1986, is subordinated in such a manner, that it can be
considered part of the capital base of the company according to the standards
applied by De Nederlandsche Bank N.V. The conversion rights attached to the
subordinated loan granted by Postbank N.V., at an interest rate of eight percent
(8%), have been rescinded. This loan will be taken over by AEGON N.V. in
due course. The loan can be repaid at any time, since AEGON N.V. has now
acquired the majority of the total shares of cumulative preferred “A” stock in issue.
The loan will in any case be repaid commencing not later than the eleventh
year following the payment date.
Item 2
This loan, placed in 1986, with an interest rate of seven percent (7%), is subordinated
in such a manner, that it can be considered part of the capital base of the company
according to the standards applied by De Nederlandsche Bank N.V.
27
1990
EQUITY RESERVES
74,865
22,026
292,058
(16,912)
372,037
327,963
67,274
(12,400)
(10,800)
372,037
92,292
100,000
192,292
ITEM 1
