Consolidated figures and appropriation of profit.
Notes on the Consolidated Balance Sheet and
Profit and Loss Account Figures
The preceding sections have described the
developments in the results and in the principle
balance sheet items of ABN, looking separately
at developments in the Netherlands and
developments abroad. In the following notes on
the consolidated balance sheet and profit and
loss account figures, reference is made to tables
based on a similar analysis into domestic and
foreign activities.
Changes in the Annual Accounts for 1985
The most important change is the way in which
the currency translation differences on the
balance of monetary assets and liabilities of
foreign establishments are treated. In 1984, these
differences, including the results on the
associated forward exchange transactions and
taking into account the effects of taxation, were
charged directly against the result (Other income
and Taxation, respectively). With effect from
1985, the profit and loss account is charged with
differences of this kind only where they relate to
results on investments in countries with
exceptionally high rates of inflation, which in
general will be losses. The results on the
investments in other countries, which may be
either profits or losses in any one year, are added
to or charged against the Exchange differences
reserve accordingly, thus providing a better
comparability of operating results from one year
to the next. This explains why an amount of
Fl. 74 million was charged against the Exchange
differences reserve in 1985 whereas the
equivalent result in 1984 was virtually nil. For
details of the other changes, reference is made to
the Accounting Principles accompanying the
Accounts (page 68).
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