Explanatory Notes General Basis of Consolidation Valuation Policies and Result Determination 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 Part 9, Book 2, of the Dutch Civil Code; The Decree governing Financial Statements prepared by Banks; The Financial Statements Formats Decree; 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. All figures are expressed in thousands of guilders, unless otherwise stated. Pursuant to a resolution of the Extraordinary General Meeting of Shareholders held in Utrecht on August 31, 1995, the company's Articles of Incorporation were amended and totally revised. The amendments comprise: transfer of the company's registered place of business from Amsterdam to Utrecht withdrawal of all subscribed preference A shares totalling NLG 135 million redemption of the existing rights to earnings by AEGON N.V. and the resulting amendment to the rules on appropriation of earnings. The certificate of no objection required by law for this amendment to the articles was obtained by decision of November 3, 1995, under number N.V. 3602. The amendment to the articles took effect on December 29, 1995. The rights to earnings accruing under Article 33 of the old Articles of Incorporation totalling NLG 415 million were paid out on July 1, 1995. In accordance with Article VI (1) 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' up to 1994. With effect from January 1, 1995 the additional write-down was transferred to the shareholders' equity in order to provide a clearer view of the equity base. As a result of this change, both Loans and Equity reserves increase by NLG 133 million. The effect of this procedure on the 1995 result is negligible. The amounts shown for comparison with the previous financial year have not been adjusted. 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 held 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 the heading '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 are generally specified per item. Any subsequent upward value adjustments and re-adjustments of downward value adjustments applied to the 'Loans' item are shown in the income statement under 'Value adjustments to receivables'. Participating Interests Participating interests are valued at their net asset value on the basis of the valuation policies 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 net asset 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 replace ment value. The buildings in question are depreciated on the

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Annual Reports FGH Bank | 1995 | | pagina 16