44 Transactions with related parties
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43 Non-current assets held for sale
Management report Corporate governance Consolidated financial statements Financial statements
Two parties are considered related if one party exercises control
or has significant influence over the other party with regard
to financial or operating decisions. In the normal course of
business, Rabobank conducts a wide variety of transactions
with related entities which involve different types of loans,
deposits and transactions in foreign currencies.Transactions
between related parties also includes transactions with
associates, pension funds, joint ventures, the Executive Board
and the Supervisory Board. These transactions are conducted
against commercial terms and conditions and market prices.
In accordance with IAS 24.4, transactions within Rabobank
Group are not disclosed in the consolidated financial
statements.
In the normal course of Rabobank's business operations,
banking transactions are carried out with related parties.
These involve loans, deposits and transactions in foreign
currencies. These transactions are conducted against
commercial terms and conditions and market prices.
The volumes of related party transactions, year-end outstanding
balances and the corresponding income and expenses during
the year are presented in the following table.Transactions and
balances outstanding with members of the Executive Board and
members of the Supervisory Board are disclosed in Section 47.
Transactions with pension funds are disclosed in Section 25.
Investments in associates
Other related parties
in millions of euros
2015
2014
2015 2014
Loans
Outstanding at beginning of year
360
490
11 68
Provided during the year
9
14
Redeemed during the year
(8)
(144)
(57)
Other -
Loans as of 31 December
361
360
11 11
Due to banks and due to customers
Outstanding at beginning of the year
6,822
6,544
Received during the year
829
573
Repaid during the year
(382)
(295)
Other -
Debts as of 31 December
7,269
6,822
Other liabilities
39
23
Credit guarantees and other guarantees issued by Rabobank
28
37
Income
Net interest income
10
84
Fee and commission income
234
234
Trading income -
Other
2
Total income from transactions with related parties
244
320
Expenses
Interest expense
347
358
Fee and commission expense -
Impairments
25
20
Total expenses from transactions with related parties 372 378
The non-current assets held for sale amount to 155 (2014: 327)
mainly comprise various types of real estate (including
residential and commercial) in a variety of countries and
recognised in the segment Real Estate.The book value is
expected to be realised through sale rather than through
continued operation.The real estate classified as held for sale
are mostly unique objects. There is often no active market
for similar real estate at the same location and in the same
condition. A large number of parameters are used for the
valuations of the various types of property investments, where
possible based on existing contracts and market data. A certain
level of assessment and estimation is unavoidable. It is forthis
reason that all non-current assets classified as 'held for sale' are
classified in Category 3. The parameters used to determine the
fair value of the property investments, depending on the type
of real estate, include: the current and expected market rent
per m2, current and expected future vacancy rates, the location
of the property, the marketability of the property, the average
discount rate, development budget and any credit risk.
239 Notes to the consolidated financial statements
