EXPLANATORY
NOTES
amortization or at realizable value, if this represents a
lower figure.
- Properties to be kept as long-term investments are
valued at realizable value.
- Development properties are valued at construction
costs or in terms of their realizable value, if this
represents a lower figure.
Equipment:
Equipment is valued at acquisition costs less
amortization; the latter is calculated on a straight-line
basis over the estimated economic life.
Taxation
Deferred assets are included under 'Accrued assets' and
deferred liabilities under 'Provisions'.
»Deferred assets and liabilities, arising from differences
in the fiscal treatment of assets and liabilities, are
valued at present value as per the date of the balance
sheet.
Corporate income taxes are included under 'Other
debt'.
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
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
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 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.
A list of names and registered offices of participating
interests has been filed with the Amsterdam Chamber
of Commerce.
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