Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 is evidenced. Rabobank applies certain practices to evidence that the requirement of'intention to settle net' is met. In April 2016, an Agenda Rejection Notice was published bythelFRS Interpretations Committee ('IFRIC') on balance sheet offsetting of notional cash pooling products. The issue relates to the question whether certain cash pooling arrangements would meet the requirements for offsetting under IAS 32. The IFRIC provided further clarification that the transfer of balances into a netting account should occur at the period end to demonstrate an intention to settle on a net basis. As a result of the Agenda Rejection Note, the comparable figures have been adjusted by reversing the netting that took place in 2015.The Loans and advances to customers and Deposits from customers have been increased by EUR 5,466 million per December 2015. In the second half 2016 Rabobank re-assessed its cashpooling contracts also in light of the IFRIC clarification and the IFRS requirements around unit of accounts. This analysis showed that the contracts qualify for unit of accounts accounting.The amount involved as per 31 December 2016 is EUR 4,989 million. Structured inventory products have been reclassified from other assets to loans to customers as per 31 December 2015 foran amount of 418.This change results in a better alignment with the extent to which the risks and rewards of the underlying commodities are transferred. As per 1 January 2016, it is no longer allowed to draw up the statement of income for OOBs (organisaties van openbaar belang) in accordance with Section 402, Book 2 of the Dutch Civil Code. Going concern The Executive Board considers it appropriate to adopt the going concern basis of accounting in preparing these financial statements. Judgements and estimates In preparing these financial statements management applied judgement with respect to estimates and assumptions that affect the amounts reported for assets and liabilities, the reporting of contingent assets and liabilities on the date of the consolidated financial statements, and the amounts reported for income and expenses during the reporting period. The accounting principles listed below require critical estimates that are based on assessments and assumptions. Although management estimates are based on the most careful assessment of current circumstances and activities on the basis of available financial data and information, the actual results may deviate from these estimates. Loan impairment allowance Rabobank assesses at each reporting period whether an impairment loss should be recorded in the income statement. The impairment methodology for loans and advances results in the recognition of: Specific allowances for individual impaired loans; Collective allowances for: - Retail exposures if it is not economicallyjustified to recognise the loss on an individual basis; - Incurred but not reported losses. The detailed approach for each category is further explained in section 2.15 'Loans and advances to customers and banks'. Loan impairment allowances are recognised where there is objective evidence that not all amounts due under the original terms of the contract may be recoverable. Determining an allowance requires a significant degree of judgement, based on management's evaluation of the risks in the loan portfolio, the current economic circumstances, credit losses in previous years, and developments in financial credits, business sectors, business concentrations and geopolitical factors. Changes in management judgement formulation and further analyses may lead to changes in the magnitude of loan impairment allowances over time. Uncertainty is inherent in determining objective evidence of reduced creditworthiness and in determining the magnitude of the recoverable amounts and these involve assessing a variety of assumptions and factors regarding the creditworthiness of borrowers, the expected future cash flows and the value of collateral. See section 7 'Loans and advances to banks' and section 11 'Loans and advances to customers'of the consolidated financial statements for an analysis of the loan impairment allowances on loans to customers and banks. Fair value of financial assets and liabilities Information regarding the determination of the fair value of financial assets and liabilities is included in paragraph 4.9 'Fair value offinancial assets and liabilities'and paragraph 10 'Derivatives'of the consolidated financial statements. Impairment of goodwill, other intangible assets and investments in associates and joint ventures Goodwill and other intangible assets are assessed for impairment - at least once a year - by comparing the recoverable value to the carrying amount, while investments in associates and joint ventures are tested for impairment when specific triggers are identified. The determination of the recoverable amount in an impairment assessment of these assets requires estimates based on quoted market prices, prices of comparable businesses, present value or other valuation techniques, or a combination thereof, necessitating 263 Notes to the company financial statements

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Jaarverslagen Rabobank | 2016 | | pagina 264