28 Accounting policies observed when preparing the company annual accounts
General
The company annual accounts have been prepared in compliance with the legal stipulations set out in Title 9, Book 2, Dutch Civil Code. Use has been made of the option extended under Book 2, Article 362, Section 8, Dutch Civil Code to apply the accounting policies used in the consolidated annual accounts to the company annual accounts (including the policies for presenting financial instruments as shareholders' equity or as loan capital). Reference is made to the notes appended to the consolidated annual accounts. By virtue of Title 9, Book 2, Article 402, Dutch Civil Code the company annual accounts incorporate a condensed profit and loss account.
Classification change for components of the shareholders' equity
During the financial year a change in the classification was implemented in the statutory revaluation reserve and the other reserves. The reason for the adjustment is to align the level of revaluation reserve as per 31 December for all individual assets with the additional historical details which became available during the financial year regarding purchase prices.
The amendment is a reclassification within the shareholders' equity and does not affect the result after taxes or the shareholders' equity in the financial year or in previous financial years. For an numerical explanation please refer to note the ‘shareholders' equity’ note in the company annual accounts.
Accounting policies
The accounting policies used for the company annual accounts are identical to those for the consolidated annual accounts. Provided no reference to additional accounting policies is made in the notes to the company annual accounts, reference is made to the accounting policies attached to the consolidated annual accounts.
Participating interests
Participating interests in group companies and other entities where the company may exercise control or where it has the central management are stated initially and at balance sheet date at net asset value. The value of these participating interests is corrected for the company's share in the results of the participating interest, based on the accounting policies as these are applied in the consolidated annual accounts and for the share in the other movements in the shareholders' equity of the participating interest attributable to the company after the acquisition date. The net asset value is determined by stating assets, provisions, liabilities and result using the accounting policies applied in the consolidated annual accounts.
Revaluation reserve
The revaluation reserve is held for positive unrealised movements in the fair value of the investment property. Movements in this reserve are made from the other reserves. When investment property is sold, the revaluations included in the revaluation reserve for the object concerned are released to the other reserves.
Pursuant to Title 9, Book 2 of the Dutch Civil Code the revaluations of investment property are booked to the revaluation reserve, in so far as the cumulative revaluations for each individual asset are positive. The revaluation per individual asset is determined by offsetting the market value against the historical cost price, where applicable, corrected for adjustments in the context of ‘purchasing price accounting’. In the context of determining the revaluation reserve, depreciation of the historical cost price was abstracted.
Negative unrealised changes in the fair value of investment property are not processed through the revaluation reserve, but are taken from other reserves.
The revaluation reserve recognised is based on the most recent estimate of the historical cost price. Due to the lack of the necessary detailed information, some elements of the revaluation reserve determined in this manner do not conform to the theoretical definitions given in Part 9 of Book 2 of the Netherlands Civil Code. The uncertainty has no further impact on the result after taxes or on the total shareholders' equity in the financial year or in previous financial years.