Plants and installations as well as Other real estate have been valued on the
basis of replacement value, after deduction of depreciation.
The non-consolidated interests, which are shown in the balance sheet under
Participations, are stated at the net asset value according to the latest balance
sheet adopted. Changes in the net asset value as a result of retained profits,
revaluation and differences on exchange are offset against the other provisions.
Miscellaneous and non-current assets are shown at par value, less a provision
for doubtful items.
Stocks are stated at replacement value, if necessary after deduction of an amount
for depreciation.
Accounts receivable are shown at par value, after deduction of a provision for
bad debts and less the amount of deposits due on account of the obligation to
take back own packing materials.
As regards Cash and securities, cash and balances at banks as well as the short-
term cash deposits are stated at par value. The securities have been valued at
the market price on the balance sheet date.
The purpose of the Fund for equalization of investment allowance is to apportion
the tax saving as a result of the investment allowance obtained in the Netherlands
over the estimated life of the assets concerned.
The Provisions for deferred tax liabilities and for pensions are stated at the present
value of these liabilities. The other provisions which are not associated with
specific assets are related to possible risks involved in the exercise of the business.
These risks include the giving of sureties, the fact of operating in many scattered
markets with the associated risks as regards the sometimes very restrictive local
regulations in respect of transfer possibilities, and risks of nationalization of
parts of the Group.
Long-term debts and Current liabilities are shown at par value.
Sales proceeds mean the proceeds from products delivered to third parties.
Miscellaneous income arises from the rendering of services to third parties.
The Depreciation based on replacement value is applied on a straight-line basis,
in accordance with the estimated life of each asset.
Taxation on profit is calculated on the profit according to the annual accounts.
The tax on the difference between this profit and the taxable profit is offset
against the provision for deferred tax liabilities.
Dividend from participations relates to the dividends received from non-con
solidated interests.
Costs incurred for patents, licences, research and development are charged
directly to income.
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