I 1 j 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.

Rabobank Bronnenarchief

Annual Reports FGH Bank | 1998 | | pagina 20