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valued at acquisition or development
costs, less depreciation or, if lower,
at net realizeable value.
Properties to be kept as long-term
investments are valued at net
realizeable value.
Development properties are valued
at the lower of construction cost and
net realizeable value.
Equipment
Equipment is valued at acquisition
cost less depreciation; the latter
is calculated on a straight-line basis
over the estimated useful life.
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'.
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
income statement.
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 commissions are accounted
for in the financial year to which
they relate, unless they are deemed
uncollectable.
Non-recurring receipts and
expenditure associated with lending
and borrowing activities are
generally accounted for 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
in which they are received. 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.