Equipment is stated at purchase cost less depre
ciation. Assets and liabilities denoted in foreign
currencies have been converted at the relevant
exchange rates as per the balance sheet date. Items
of the income statement denominated in foreign
currencies have been 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 the stockholders’ equity under the
heading “Exchange differences reserve”. Results
accruing from over and underhedging of foreign
participating interests, including the associated
hedging transactions, are reflected in the stockhol
ders’ equity under the heading “Exchange differen
ces reserve”. Other exchange differences are inclu
ded 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 refer 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 per the date of the balance sheet.
Income and expenses are generally recorded in the
year to which they relate. Incidental income and
expenses connected with lending and borrowing
activities are included in the income statement in
the year in which the assets or liabilities are con
tracted.
A list of names and registered offices of partici
pating interests has been filed with the Amsterdam
Chamber of Commerce. For the record, it should
be noted that the income statement of FGH BANK
N.V. has been prepared in accordance with the
provisions of Section 402, Book 2 of the Dutch
Civil Code, Title 9.
23
EXPLANATORY NOTES
