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Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
In millions of euros
2017
2016
Legal reserves
Movements were as follows:
This concerns the reserve for retained earnings of associates,
Balance on 1 January
7,821
8,002
software developed in-house and translation differences.
Issuance of Capital Securities
1,250
Costs of issuance of Capital Securities
(9)
In millions of euros
2017
2016
Redemption of Capital Securities
(1,894)
(1,437)
The legal reserves can be specified as follows:
Other
(2)
15
Retained profits of associates
228
166
Balance on 31 December
5,925
7,821
Software developed in-house
351
383
Translation differences
(938)
203
Total legal reserves
(359)
752
Revaluation reserves
In millions of euros
2017
2016
In millions of euros
2017
2016
The revaluation reserves and translation differences can be specified as
Movements were as follows:
follows:
Balance on 1 January
752
641
Cash flow hedges
(42)
(70)
From other reserves to legal reserves
30
(168)
Interest-bearing securities
205
316
Exchange rate differences
(1,141)
279
Shares and non-interest-bearing securities
223
185
Balance on 31 December
(359)
752
Total revaluation reserves 386 431
Movements were as follows:
Balance on 1 January
Exchange rate differences
Revaluations
Other
Transferred to profit or loss
Balance on 31 December
431
9
(633)
(3)
582
386
792
(6)
(291)
(77)
13
431
Other reserves
Rabobank's cash flow hedges consist mainly of cross-currency
interest rate swaps which serve to protect against a potential
change in cash flows from financial assets in foreign currencies
with floating interest rates.
Rabobank tests the hedge effectiveness on the basis of
statistical regression analysis models, both prospectively and
retrospectively. At year-end 2017 and 2016, the hedge relations
were highly effective within the range set by IAS 39.
In 2017, Rabobank accounted for an amount of-594 (2016:
-87) after taxation in other comprehensive income as effective
changes in the fair value of derivatives in cash flow hedges.
In 2017, an amount of 622 (2016: 56) aftertaxation of cash
flow hedge reserves was reclassified to the income statement.
On 31 December 2017, the cash flow hedge reserves as part
of equity totalled -42 (2016: -70) after taxation. This amount
fluctuates along with the fair value of the derivatives in the cash
flow hedges and is accounted for in the income statement over
the term of the hedged positions as trading result. The cash
flow hedge reserve relates to a large number of derivatives and
hedged positions with different terms.The maximum term is
23 years, with the largest concentrations exceeding five years.
The IFRS ineffectiveness for the year ended 31 December 2017
was 178 (2016: 148).
1 Created in accordance with IAS 19.122
In millions of euros
2017
2016
The remaining reserves can be specified as follows:
Recalibration of pensions1
(225)
(219)
Fair value changes due to own credit risk on
financial liabilities designated at fair value
(625)
(303)
Retained earnings
23,583
23,200
Total other reserves
22,733
22,678
In millions of euros
Movements in the recalibration of pensions:
Balance on 1 January
Recalibration of pensions
Balance on 31 December
2017
(219)
(6)
(225)
2016
(175)
(44)
(219)
Movements in the fair value changes due to own credit risk on financial
liabilities designated at fair value:
Balance on 1 January
Adjustment opening balance
Fair value changes
Realisation at derecognition
Balance on 31 December
(303)
(318)
(4)
(625)
62
(365)
(303)
In millions of euros
2017
2016
Movements in retained earnings:
Balance on 1 January
23,200
(3,304)
Changes due to legal merger
26,761
Adjustment opening balance
(62)
Profit for previous financial year
1,960
908
Distribution to third parties
(1,091)
(1,230)
Transferred to legal reserves
(30)
168
Transferred to revaluation reserves
319
Redemption of Capital Securities
(439)
(316)
Issue of Rabobank Certificates
120
Cost of issue Raboban k Certificates
(12)
Other changes
(125)
(44)
Balance on 31 December
23,583
23,200
Rabobank Annual Report 2017 - Company financial statements
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