EXPLANATORY NOTES
At an extraordinary general meeting of stockhol
ders held in Utrecht on May 28, 1991, a motion
was approved to amend the company’s statutes.
Pursuant to the legal requirement for a certificate
of incorporation on this subject, an order detailing
the proposed amendments was issued on
November 18, 1991, under number N.V. 3602.
The required amendments concerned changing the
company’s name from Friesch-Groningsche
Hypotheekbank N.V. to FGH BANK N.V. and
bringing the company’s business aims in fine with
those of a commercial bank. These changes to the
company’s statutes were introduced with effect
from December 3, 1991.
On August 13, 1991, the company was issued with
a license from De Nederlandsche Bank N.V. allo
wing it to act as a credit institution as defined in
Section la of the Credit Industry Supervising Act,
with effect from January 1, 1992.
The consolidated financial statements include the
accounts of FGH BANK N.V., its subsidiaries and
group companies. Joint ventures in financial insti
tutions have been consolidated on a proportional
basis, while other joint ventures have been
accounted for as participating interests. At the same
time, the results of participating interests not
consolidated in the accounts are included under
the heading “Results of participating interests”.
Unless otherwise stated, all items have been inclu
ded in the balance sheet at their nominal value.
Marketable securities are stated at their quoted pri
ces as per the balance sheet date. Unquoted secu
rities are included at their estimated market value
as per the balance sheet date.
Receivables are stated at face value less deductions
for provisions. In addition, a provision has been
formed to cover risks inherent in the granting of
credit (Section 11 (2) of the Credit Industry
Supervising Act). This provision has been included
under the heading “Payables”.
Participating interests are stated at their net worth
values, in accordance with the valuation principles
adopted by FGH BANK N.V. Participating inte
rests of more than 20% that have not been consoli
dated in the accounts have been valued on the
basis of their net asset values. Changes in net values
in respect of the results achieved are shown under
the heading “Results of participating interests”, as
are the results from sales of participating interests.
Real estate operated by the company is stated at
purchase or construction cost less depreciation,
provided this does not exceed the property’s mar
ket value.
Office buildings in use by the company are stated
at current value. Depreciation on real estate ope
rated by the company and on office buildings in
use by the company, has been calculated after
taking due account of the estimated useful life and
residual value of such property.
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GENERAL
1 BASIS OF CONSOLIDATION
I PRINCIPLES FOR EQUITY AND RESULT
DETERMINATION