Legal Reserves
Other Reserves
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About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
currency interest rate swaps to protect against a potential change
in cash flows due to change in foreign currency rates. Rabobank
assesses the hedge effectiveness on the basis of statistical
regression analysis models, both prospectively and
retrospectively for IAS 39 cash flow hedges and analyses the
sources of ineffectiveness for IFRS 9 cash flow hedges. The IFRS 9
cash flow hedges are 100% effective.
Amounts in millions of euros
2018
2017
The legal reserves can be specified as follows:
Retained profits of investments in associates
214
228
Software developed in-house
351
351
Translation differences
(817)
(938)
Total legal reserves
(252)
(359)
Movements were as follows:
Balance on January 1
(359)
752
From other reserves to legal reserves
(14)
30
Exchange rate differences
121
(1,141)
Balance on December 31
(252)
(359)
Amounts in millions of euros
2018
2017
The other reserves can be specified as follows:
Recalibration of pensions
(145)
(225)
Fair value changes due to own credit risk on financial
liabilities designated at fair value
(31)
(625)
Retained earnings
24,549
23,583
Total other reserves
24,373
22,733
Movements in the recalibration of pensions:
Balance on January 1
(225)
(219)
Recalibration of pensions
80
(6)
Balance on December 31
(145)
(225)
Movements in the fair value changes due to own credit
risk on financial liabilities designated at fair value:
Balance on January 1
(625)
(303)
Change in accounting policies
483
Fair value changes
111
(318)
Realization at derecognition
(4)
Balance on December 31
(31)
(625)
Movements in retained earnings:
Balance on January 1
23,583
23,200
Change in accounting policies
(475)
Profit for previous financial year
2,616
1,960
Distribution to third parties
(1,037)
(1,091)
Transferred to legal reserves
14
(30)
Transferred to revaluation reserves
(4)
Redemption of Capital Securities
(79)
(439)
Issue of Rabobank Certificates
120
Cost of issue Rabobank Certificates
(12)
Other changes
(69)
(125)
Balance on December 31
24,549
23,583
The reserves cannot be distributed among members. The
consolidated financial statements of Rabobank include the
financial information of Rabobank and other group companies.
Consolidated net profit for Rabobank was EUR 3,004 million
(2017: EUR 2,674 million); net profit of Rabobank in the company
financial statements was EUR 2,944 million (2017:
EUR 2,616 million). The difference of EUR 60 million (2017:
EUR 58 million) represents profit attributed to the other non-
controlling interests.
The table below shows reconciliation between the equity of
Rabobank and that of Rabobank Group:
Annual Report 2018 - Company Financial Statements
231
