EXPLANATORY NOTES
valued at present value as per the date of the balance
sheet.
Corporate income taxes are included under the
heading 'Other debt1.
year of receipt. The expenses are assigned to the
financial year to which they relate.
In calculating the tax payable, 'Value adjustments to
receivables' are treated as a charge.
Premiums or discounts on securities and loans are
included under the relevant receivables or debts in the
income statement and are accounted for over the
A list of names and registered offices of participating
interests has been filed with the Amsterdam Chamber
of Commerce.
remaining life of the relevant items. Securities are
included at acquisition cost or at their cash value at
issue. Other accrued assets and liabilities are specified
separately.
Interest-bearing Securities and Stocks
Interest-bearing securities and stocks, which all form
part of the trading portfolio, are valued at their market
value as per the balance sheet date.
Foreign Currency Conversions
Assets and liabilities denoted in foreign currencies are 5
converted into Dutch guilders at the appropriate
exchange rates as per the end of the financial year.
Items in the income statement denoted in foreign
currencies are converted into Dutch guilders using a
weighted average exchange rate for the financial year in
question. Any conversion differences arising from the
application of both year-end exchange rates and
weighted average rates are reflected in the stockholders'
equity under 'Other reserves'.
The result of foreign currency transactions connected
with coverage variances in respect of foreign
participating interests, including the associated hedging
transactions, are reflected in the stockholders' equity
under 'Other reserves', after having taken due account
of all relevant fiscal implications. All other foreign
exchange differences are reflected in the result.
Result Determination
The way in which a number of the more specific items
have been reflected in the financial statements has been
discussed in the preceding sections. Income and
expense items are generally accounted for in the year to
which they relate.
Interest income, including the results of interest
instruments and credit commission, are accounted for
in the financial year to which they relate, unless they
are deemed uncollectable.
Non-recurrent receipts and expenditure, associated
with lending and borrowing activities, are generally
accounted for in the income statement of the year in
which the funds are lent out or borrowed. Other
commission income is generally accounted for in the
