Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 income to the statement ofincome. If the impairment of a debt instrument subsequently reverses and the reversal can objectively be attributed to an event after the impairment, the impairment is reversed through the statement of income. Equity instruments are impaired if cost (initial recognition) is unlikely to be recovered in the long term or if there is a significant or prolonged decline in the fair value below its cost. The recoverable amount and/or fair value of investments in unlisted equity instruments are determined using generally accepted valuation methods.The recoverable amount of listed financial assets is determined on the basis of market value. Impairment of equity instruments is never subsequently reversed through the statement ofincome. 2.8 Repurchase agreements and reverse repurchase agreements Financial assets that are sold subject to related sale and repurchase agreements are included in the financial statements under'Financial assets held for trading'or'Available-for-sale financial assets', as applicable. The liability to the counterparty is included under'Deposits from banks'or'Deposits from customers', as applicable. Financial assets acquired under reverse sale and reverse repurchase agreements are recognised as loans and advances to banks' or loans and advances to customers', as applicable. The difference between the sales and repurchasing prices is recognised as interest income/expense over the term of the agreement using the effective interest method. 2.9 Securitisations and (de)recognition of financial assets and liabilities Recognition of financial assets and liabilities Purchases and sales of financial assets and liabilities classified as fair value through profit or loss and available-for-sale financial assets which are required to be delivered within a regulatory- prescribed period or in accordance with market conventions are recognised on the transaction date. Financial instruments carried at amortised cost are recognised on the settlement date. Securitisations and derecognition of financial assets and liabilities Rabobank securitises, sells and carries various financial assets. Those assets are sometimes sold to a special purpose entity (SPE) which then issues securities to investors. Rabobank has the option of retaining an interest in these assets in the form of subordinated interest-only strips, subordinated securities, spread accounts, servicing rights, guarantees, put and call options or other constructions. A financial asset (or a portion thereof) is derecognised where: The rights to the cash flows from the asset expire; The rights to the cash flows from the asset and substantially all the risks and rewards of ownership of the asset are transferred; A commitment has been made to transfer the cash flows from the asset and a substantial portion of the risks and rewards have been transferred; or Not substantially all the risks and rewards are transferred but where control over the asset is not retained. A financial liability or a part thereof is derecognised if it ceases to exist, i.e. after the contractual obligation has been fulfilled or cancelled or has expired. Continuing involvement is recognised if Rabobank neither retains nor transfers substantially all the risks and rewards and control has retained.The asset is recognised to the extent of Rabobanks continuing involvement in it. Where a transaction does not meet these conditions for derecognition, it is recognised as a loan for which security has been provided. To the extent that the transfer of a financial asset does not qualify for derecognition, Rabobank's contractual rights are not separately recognised as derivatives if recognition of these instruments and the transferred asset, or the liability arising from the transfer, were to result in the double recognition of the same rights and obligations. Profits and losses on securitisations and sale transactions depend partly on the carrying amounts of the assets transferred. The carrying amounts of these assets are allocated to the interests sold and retained using the relative fair values of these interests on the date of sale. Any gains and losses are recognised through profit and loss at the time of transfer. The fair value of the interests sold and retained is determined on the basis of listed market prices or as the present value of the future expected cash flows based on pricing models that involve a number of assumptions regarding, for Instance, credit losses, discount rates, yield curves, payment frequency and other factors. 2.10 Cash and balances at central banks Cash equivalents are highly liquid short-term assets held to meet current cash obligations rather than for investment or other purposes.These assets have terms of less than 90 days from inception. Cash equivalents are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. 266 Rabobank Jaarverslag 2016

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Jaarverslagen Rabobank | 2016 | | pagina 267