Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
New standards issued by the IASB, but not yet
endorsed by the European Union
IFRS 17Insurance contracts
In May 2017, the IASB issued 'IFRS 17 Insurance Contracts'
with an effective date of annual periods beginning on or
after 1 January 2021IFRS 17 establishes the principles for
the recognition, measurement, presentation and disclosure
of insurance contracts within the scope of the standard.
The objective of IFRS 17 is to ensure that an entity provides
relevant information that faithfully represents those contracts.
This information gives a basis for users of financial statements
to assess the effect that insurance contracts have on the
entity's financial position, financial performance and cash flows.
Rabobank is currently assessing the impact of this standard.
Other amendments to IFRS
There have been minor amendments to IFRS 2, IFRS 9, IAS
28, IAS 40, IFRIC 22, IFRIC 23 and the issue of the Annual
improvements 2014-2016 cycle.
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 net profit or equity.
Other changes in accounting principles and
presentation
Changes in presentation
The income from other operating activities and the
corresponding expenses are disclosed separately in the
consolidated statement of income to enhance transparency.
This leads to the introduction of'Net income from other
operating activities' in the consolidated statement of income
for an amount of 741 and a decrease with the same amount
in 'Other income'as per 31 December 2016. Expenses for
temporary staff in the local Rabobanks have been reclassified
from 'Other administrative expenses' to'Staff costs'for an
amount of 159 as per 31 December 2016 because this better
reflects the type of costs incurred. Some fee and commission
income in the segment of WRR have an interest character
and therefore have been reclassified to interest income for an
amount of 92 as per 31 December 2016.
The provision for tax issues has been transferred from 'Provisions'
to'Current tax liabilities'for an amount of 32 (2016: 36) as these
amounts are better presented as part of IAS 12 Income taxes
than IAS 37 Provisions.
The presentation of cash flows relating to operating leases
has been transferred from 'Cash flows from investing activities'
to 'Cash flows from operating activities'and the cash flows
relating to debt securities in issue have been transferred
from 'Cash flows from operating activities'to 'Cash flows from
financing activities'as this better represents the operating and
financing activities of Rabobank. This resulted in the following
adjustments.
in millions of euros
2016
Cash flows from operating activities
Acquisition of operational lease assets
(2,041)
Proceeds from the disposal of operational lease assets
101
Other
522
Debt securities in issue
15,649
Change in cash flows from operating activities
14,231
Cash flows from investing activities
Acquisition of property and equipment and investment properties 2,041
Proceeds from the disposal of property and equipment and
investment properties
(623)
Change in cash flows from investing activities
1,418
Cash flows from financing activities
Proceeds from issue of debt securities in issue
89,983
Redemption of debt securities in issue
(105,632)
Change in cash flows from financing activities
(15,649)
The disclosure of credit related contingent liabilities has been
adjusted to better align with supervisory reporting.The non-
credit substitute guarantees have been reclassified from
'Financial guarantees'to'Other commitments'for an amount
of 7,045 as per 31 December 2016.The undrawn (non-loan)
credit facilities have been reclassified from 'Loan commitments'
to'Other commitments'for an amount of 8,166 as per
31 December 2016.
Interest income on derivatives used for fair value hedge
accounting has been disclosed separately in section 35 Net
interest income to enhance transparency. This leads to the
addition of'lnterest income on derivatives used for fair value
hedge accounting'in section 35 Net interest income for an
amount of-703 and a decrease with the same amount in
'Interest income on derivatives held as economic hedges
as per 31 December 2016.
The comparable figures in section 4.7 have been adjusted.
The definition of remaining maturity On demand is sharpened
and therefore maturity buckets On demand and Less than
3 months are reclassified accordingly.
Going concern
The Managing Board considers it appropriate to adopt
the going concern basis of accounting in preparing these
consolidated financial statements.
Judgements and estimates
In preparing the consolidated 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
Rabobank Annual Report 2017 - Consolidated financial statements
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