Explanatory Notes Valuation Principles and Result
General Determination
Basis of Consolidation
FGH BANK N.V. is a group company of AEGON N.V.,
registered in The Hague.
The present financial statements have been drawn up in
accordance with the provisions laid down in Book 2,
Title 9 of the Dutch Civil Code,- The Decree governing
Financial Statements prepared by Banks; The Decree
governing Draft Financial Statements; and relevant
recommendations made by De Nederlandsche
Bank N.V.
The company's financial statements are incorporated in
the published financial statements of AEGON N.V.,
The Hague. A copy of these financial statements is
available there.
With effect from the 1994 financial year, amounts
recharged to group companies in respect of personnel
and other administrative expenses are no longer set off
against these expenses but disclosed under
'Commission income'. The figures for 1993 included
for comparative purposes have been restated to provide
as accurate a view as possible.
All figures are expressed in thousands of guilders, unless
otherwise stated.
The group financial statements include the figures for
FGH BANK N.V., its subsidiaries and group companies,
but do not include the results of those companies which
together only make a very minor contribution to the
overall result nor do they include the results of those
companies that are only retained with a view to
disposal.
Proportional consolidation has been applied to
participating interests designated as joint ventures,
where the joint ventures in question are financial
institutions. Other joint ventures have been included in
the group financial statements as participating interests.
The income from non-consolidated participating
interests has been included under 'Income from
securities and participating interests'.
Assets and Liabilities
Assets and liabilities are valued at nominal value,
unless otherwise stated. Where appropriate, the
value of the assets has been reduced accordingly.
Reductions in value arising out of bad debts are
generally specified per item. In accordance with
Article VI of the 'Act dated March 17, 1993,
concerning the provisions governing the financial
statements prepared by banks' an additional
write-down has been applied to the item 'Loans'.
Any subsequent upward or downward revisions to
this extra write-down will be accounted for under
'Value adjustments to receivables' in the income
statement. Every effort will be made to ensure
that the level of the extra write-down will closely
reflect the associated risks. Any taxes connected
with upward and downward revisions to the extra
write-down will be routed via this item. The new
procedure has been introduced to replace the
system used prior to 1993, which involved the
establishment of a provision for general
contingencies.
Participating interests
Participating interests are valued at their intrinsic
value on the basis of the valuation principles as
applied by FGH BANK N.V. Interests in non-
consolidated participating interests in excess of
20% are valued on the basis of their net asset
value. Changes in the intrinsic value of
participating interests are included with the
income from the sale of participating interests
under 'Income from securities and participating
interests', insofar as such value changes affect the
results obtained.
Real Estate and Equipment
Real Estate for own use:
Office buildings in own use are valued at
replacement value.
The buildings in question are amortized on the
basis of replacement value over their estimated
economic life with allowance being made for a
residual value. The change in value as a result of
this new accounting policy has been taken to the
revaluation reserve with allowance being made
for deferred taxation.
Real estate not for own use:
- Properties earmarked for sale are valued at
acquisition or development cost, less
