EXPLANATORY
NOTES
Taxation
Deferred tax assets and liabilities, arising from
differences in the fiscal treatment of assets and
liabilities, are calculated at present value as at the
balance sheet date.
Net deferred tax assets are shown under 'Prepayments
and accrued income'.
Corporate income taxes due 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 accruals and deferrals are specified
separately.
Interest-bearing Securities and Shares
Interest-bearing securities and shares, which all form
part of the trading portfolio, are valued at their market
value as at the balance sheet date.
Foreign Currency Conversions
Assets and liabilities expressed in foreign currencies are
translated into Dutch guilders at the appropriate
exchange rates as at the end of the financial year.
Items in the income statement expressed in foreign
currencies are translated into Dutch guilders using a
weighted average exchange rate for the financial year in
question.
Any translation differences arising from the application
of both year-end exchange rates and weighted average
rates are reflected in the shareholders' equity under
'Other reserves'.
The result of foreign currency transactions connected
with hedging differences in respect of foreign
participating interests, including the associated results
on hedging transactions, are reflected in the
shareholders' equity under 'Other reserves', after having
taken due account of all relevant fiscal implications.
All other foreign exchange differences are taken to the
1| result.
Determination of Result
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-efedit^^ommission, are accounted for
in the financial year to whibh they relate, unless they
are deemed uncollectible. J
Non-recurring 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 allocated to the
financial year to which they relate.
The calculation of the rate of tax is based on the 'Result
before taxation' shown in the income statement, taking
account of sums which are not tax-deductible or where
scope for deduction is limited.
