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