Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
Other standards issued by the IASB, but not yet
endorsed by the European Union
IFRS 14 Regulatory Deferral Accounts
IFRS 15 Revenue from Contracts with Customers
Amendments to IFRS 10 and IAS 28: Sale or Contribution of
Assets between an Investor and its Associate or Joint venture
Although these new requirements are currently being analysed
and their impact is not yet known, Rabobank does not
expect the implementation of these other standards to have
a significant impact on profit or equity.
Other changes in accounting principles and
presentation
Changes in presentation
On 31 December 2015, the net profit attributable to and the
dividends paid out directly to holders of equity instruments
by the Coöperatieve Rabobank U.A. will be shown as part of
changes to equity of Rabobank and local Rabobanks in the
consolidated statement of changes in equity and no longer
as changes to the respective instruments. Furthermore, the
dividends paid out are now specified in the movements and no
longer the amounts of profit attribution of the current financial
year.These adjustments have been made in order to render the
movements of the equity of Rabobank Group more transparent
and to bring it into line with that of peers. Comparative figures
have been adjusted accordingly.
In Section 35 'Net income from financial assets and liabilities
at fair value through profit or loss', the derivatives used for
hedging the interest rate risk of the liabilities designated at
fair value are no longer included in the trading gains, but in
the income from other financial assets and liabilities.This gives
a better insight into the results of the other financial liabilities.
On 31 December 2015, the presentation of the impairment of
goodwill in the profit and loss account has changed from 'Other
income'to 'Impairment losses on goodwill'. Comparative figures
have been adjusted accordingly.
Insofar as other insights prompted reclassifications, the
comparative figures have been adjusted accordingly.
Adjustments in the primary statements of
31 December 2014
In the consolidated statement of income, the Income from
associates has been presented 64 too high and the other results
64 too low.This adjustment has no effect on the total income.
In the statement of comprehensive income, the sign before
the 'Exchange differences of equity instruments issued by
subsidiaries' has been inadvertently reversed. The amount
of the 'Exchange differences equity instruments issued by
subsidiaries'has been adjusted from 156 to-156. Furthermore,
the 'Exchange differences' have been adjusted from 325 to
637.This adjustment has no effect on the total comprehensive
income.
Judgements and estimates
These financial statements were prepared on the basis of the
principle of a going concern because there are no indications
to the contrary. The preparation of the financial statements
requires management to make estimates and assumptions
that affect the amounts reported for assets and liabilities, the
reporting of contingent assets and liabilities on the date of
the financial statements, as well as the amounts reported for
income and expenses during the reporting period.
Some accounting principles require critical estimates that are
based on assessments and the use of assumptions. Although
management bases their estimates 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.The following accounting
principles have been identified as principles which lead to
a high degree of assessment and estimation uncertainty.
Loan impairment allowance
Loan impairment allowances are recognised if there is
objective evidence that Rabobank will not be able to collect
all amounts due under the original terms of the contract.
Determining a provision requires a significant degree of
judgement formulation, based on the evaluation by the
management of the risks in the loan portfolio, the current
economic circumstances, credit losses over the previous years,
as well as developments in financial credits, business sectors,
business concentrations and geopolitics. Changes in judgement
formulation as well as further analyses may lead to changes in
the magnitude of loan impairment allowance overtime.
Determining objective evidence for decreased creditworthiness
and determining the magnitude of the recoverable amount
form part of the processes that are surrounded by inherent
uncertainty and which involve various assumptions and factors
regarding the creditworthiness of the borrowers, expected
future cash flows and the value of collateral.
180 Rabobank Annual Report 2015
