Notes to the company financial statements Accounting policies 7 Basis of preparation Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 The company financial statements of Rabobank, a credit institution as referred to in Section 1:1 of the Financial Supervision Act, have been prepared in accordance with accounting policies generally accepted in the Netherlands and comply with the financial reporting requirements included in Part 9 of Book 2 of the Dutch Civil Code. With one exception, these accounting policies are the same as those used in preparing the consolidated financial statements of Rabobank Group, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.The exception is the valuation of participating interests (and joint ventures). The participating interests are valued at net asset value. The hedge accounting entries used in the consolidated financial statements are also applied in the company financial statements. Due to the legal merger, the vast majority of the hedged items used for consolidated hedge accounting became part of the statement of financial position of the company financial statements.The hedge accounting adjustment in the company financial statements is therefore no longer applied to the intercompany loans but to the hedged items itself using combination 3 (Option 3 RJ).The impact of this application is shown in paragraph 'Legal merger'. Rabobank Group, the Coöperatieve Rabobank U.A. (Rabobank) and the legal entities and companies that form part of the group, is an international financial services provider operating on the basis of cooperative principles. On 1 January 2016, the local Rabobanks and the Coöperatieve Centrale Raiffeisen- Boerenleenbank B.A. entered into a legal merger. Furthermore, on 1 January 2016, the name of the Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. was changed into Coöperatieve Rabobank U.A. Rabobank has its registered office in Amsterdam. Legal merger After discussions between: 1. Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., Amsterdam; 2. The cooperative member banks of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. it was decided at the respective meetings of the members' councils of the banks concerned (2) on 2 December 2015 and at the General Meeting of Coöperatieve Centrale Raiffeisen- Boerenleenbank B.A. on 9 December 2015 to enter into a legal merger as of 1 January 2016. One of the consequences of the decisions taken was that the former bank (1) received the assets of the banks referred to (2) under universal title and the banks referred to (2) ceased to exist. During the aforementioned General Meeting, the bank (1), in connection with the merger, decided to change its name to Coöperatieve Rabobank U.A. as of 1 January 2016. Until 1 January 2016, each of the banks (2) was a 'U.A.' (cooperative with limited liability whereby the members are not liable for any deficit). Until that date, the bank (1) was a 'B.A.' (cooperative with limited liability where the members are liable for the deficit up to the level specified in the Articles of Association) with the banks as the only members (2). As a result of the merger the banks' members (2) became the only members of the merged bank (1). By changing the members' liability regime from B.A. to U.A. in the bank's (1) Articles of Association the liability regime remained de facto unchanged for the members who were members of the banks (2) before the merger and members of the merged bank (1) after the merger. The local Rabobanks'assets and liabilities are included in the company financial statements as of 1 January 2016 at the book value at which they were included in the consolidated financial statements of Rabobank Group. Find below the statement of financial position as per 1 January 2016 and the consequences of the legal merger. 258 Rabobank Jaarverslag 2016

Rabobank Bronnenarchief

Jaarverslagen Rabobank | 2016 | | pagina 259