Boskalis jaarverslagen 2011

2. Principles of financial reporting

2.1 Accounting policies

The company financial statements have been drawn up using the reporting standards applied for drawing up the consolidated financial statements, in accordance with Section 362(8), Part 9 of Book 2 of the Netherlands Civil Code except for the investment in Group company, which is recognized in accordance with the equity method. Based on Section 362(1), Part 9 of Book 2 of the Netherlands Civil Code, the consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. These accounting principles are disclosed in note 3 of the consolidated financial statements.

2.2 Format

Unless stated otherwise, all amounts in these explanatory notes are stated in thousands of euros. The company balance sheet is drawn up before profit appropriation. The company income statement is limited in accordance with Section 402, Part 9 of Book 2 of the Netherlands Civil Code.

2.3 Investment in Group companies

Investments in Group companies are accounted for using the equity method, as described in the principles of Financial Reporting relating to associated companies in the consolidated Financial statements.

2.4 Amounts due from Group companies

Amounts due from Group companies are stated initially at fair value and subsequently at amortized cost using the effective intereste rate less impairments.

2.5 Amounts due to Group companies

Amounts due to Group companies are recognized initially at fair value and subsequently at amortized cost using the effective intereste rate.

2.6 Result of Group company

The result of Group company consists of the share of the Company in the result after taxation of this Group company. Results on transactions, where the transfer of assets between the Company and its Group companies and mutually between Group companies themselves are not incorporated as far as they can be deemed to be unrealised.

Added to My report add to My report Source: Annual report 2011, page 116