SEPTEMBER 2011

Dutch Accounting Standards for large

and medium-sized legal entities
2011 edition
Related parties
Following a legal amendment (section
2:381.3 of the Netherlands Civil Code
(BW)), the DASB revised DAS 330
Related parties. Pursuant to the law,
the legal entity is required to disclose
the following information in the notes
to the nancial statements if the entity
concluded signicant transactions with
related parties and these transactions
did not take place under normal market
conditions:
information about the size of the
transactions;
the nature of the relationship with
the related parties; and
other information about the
transactions that is required for
providing insight into the nancial
position of the legal entity.
The DASB further recommends that
transactions with related parties that
did take place under normal market
conditions also be disclosed.
The Dutch Accounting Standards Board
(DASB) recently published the 2011
edition of the Dutch Accounting
Standards for large and medium-sized
legal entities. This edition contains a
small number of changes as compared
to the previous edition. The revised
Standards are effective for nancial
years starting on or after 1 January 2012,
unless specically stated otherwise.
This factsheet presents an overview of
the most important changes published
in the 2011 edition. It does not identify
changes with respect to the guidance
for specic industries. In order to
provide a complete overview, this
factsheet starts with a summary of
the main changes to the standards
that frst become effective in the 2011
nancial year.
Contents

Introduction 1
Major changes applicable from
1 January 2011 1
Important changes effective
from 1 January 2012 4
Other changes 6
Draft Standards 7
Finally 8
Major changes applicable
from 1 January 2011
Medium-sized legal entities, other than
listed and/or public limited liability
companies, are exempt from these
disclosure requirements. With respect
to medium-sized public limited liability
companies (not listed), disclosure of
this information may be limited to
transactions concluded directly or
Introduction
1 | Dutch Accounting Standards for large and medium-sized legal entities
indirectly between the company and its
principal shareholders and between the
company and members of its executive,
managerial and/or supervisory bodies.
Transactions between two or more
members of a group are also exempt
from the identied disclosure
requirements, provided that the
subsidiaries that are party to the
transaction are wholly owned by one or
more members of the group.
Segment reporting
In response to international
developments with respect to annual
reporting, the 2010 edition includes a
new DAS 350 Segment reporting. In
addition to the legal requirements for
segmentation of net turnover according
to business segment and geographic
area, this Standard discusses voluntary
additional segment information.
An entity may disclose additional
segmented information to provide
insight into the results, assets,
provisions and liabilities of its operating
segments. An operating segment is an
activity of the entity:
that is capable of generating
revenues and incurring expenses
(even if the revenues and expenses
arise from transactions with other
segments of the entity);
whose results are regularly reviewed
by management in order to come to
decisions regarding resources to be
allocated and to assess the nancial
performance; and
for which separate fnancial
information is available.
Similar operating segments that
satisfy certain qualitative criteria
may be aggregated. The Standard
then identies quantitative thresholds
for designating operating segments as
reportable segments.
There may be differences between
the accounting policies applied for
segment information and those for
the nancial statements.
The accounting policies applied to
transactions between reportable
segments, the nature of any differences
between accounting policies, and the
nature of any changes to those policies
should be disclosed.
Operating segments
Business segments
Geographical segments
X
X
Additional segment information
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2011 KPMG Accountants N.V.
Other information to be disclosed in
the notes
In response to a legal amendment
(section 2:381.2 BW), the DASB added
a new paragraph to DAS 390 Other
information to be disclosed in the notes.
Accordingly, the legal entity is required
to disclose information in the notes
to the fnancial statements about the
nature, the business objective and the
fnancial consequences of off-balance
sheet arrangements if the risks or
benefts fowing from these
arrangements are signicant and to
the extent that the disclosure of such
risks and benefts is necessary in order
to assess the entitys nancial position.
Examples include prot-sharing
schemes, debt factoring, pledged
assets and operating lease contracts.
Medium-sized legal entities are
exempt from the disclosure
requirements concerning the nancial
consequences: These entities can
sufce with disclosing the nature and
the business objective of off-balance
sheet arrangements.
Annual report
The 2010 edition contains a revised
DAS 400 Annual report. Subparagraph
110a of this Standard includes a listing
of risk categories (strategy, operational,
nancial, nancial reporting and
legislation and regulations) with
reference to which the entity can
provide the legally required description
of the main risks and uncertainties
facing it.
Furthermore, DAS 400.112 stipulates
that a legal entity (in the context of
corporate governance) discloses
information in the annual report
concerning codes of conduct that it
applies and whether these are applied
voluntarily or by law or regulation.
In addition, the subparagraphs dealing
with disclosures about corporate social
responsibility have been expanded.
The DASB recommends that the annual
report include information about the
main issues of relevant social aspects
of the entitys business operations,
including its domestic and/or
international supply chain management.
Further details on corporate social
responsibility reporting can be found in
the Recommendations for social
reporting (2009), which is included
separately in an appendix (chapter 920)
of the 2010 edition. Medium-sized legal
entities, in fact, are legally exempt
from the requirements to disclose
information in the annual report about
(similar) non-nancial performance
indicators.
Finally, a separate paragraph was added
to DAS 400 dealing with listed legal
entities. This paragraph discusses legal
requirements, codes of conduct and
management statement for listed
companies.
Annual report
Performance indicators
(including CSR*)
Additional information
on items in financial
statements
Outlook section
Financial analysis
Risks and
uncertainties
Use of financial
instruments
Corporate
governance*
Annual report
* = new
Dutch Accounting Standards for large and medium-sized legal entities | 3
2011 KPMG Accountants N.V.
Important changes effective from
1 January 2012
In the 2011 edition, a number of draft
requirements from the Standards and
draft Standards were made nal. In
addition, since the publication of the
previous edition of the Standards, the
DASB has published a number of DASB
statements that have been incorporated
in the 2011 edition. A list of the main
changes can be found below.
Impairment of xed assets
In DAS 121.514, the tests for the
allocation of goodwill to cash generating
units for determining a possible
impairment loss have been replaced by
a simplied method. Under this new
method, goodwill is allocated to all cash
generating units and groups of cash
generating units that are expected to
gain synergy benefts after an acquisition.
This allocation takes place at the lowest
level at which goodwill is reviewed for
internal management purposes, though
not higher than an operating segment
as dened in DAS 350.
Investment property under
development
Previously, the DASB made a distinction
between the accounting treatment of
investment property under development
(treatment in accordance with DAS 212
Tangible xed assets) and investment
property that is being redeveloped or
renovated (treatment in accordance
with DAS 213 Investment property).
Given the fact that there is no
fundamental difference between
development and redevelopment, the
relevant Standards now stipulate that
investment property under development
should also be treated in accordance
with the requirements of DAS 213
Investment property.
Loyalty programmes
Following international developments,
subparagraph 109a was added to DAS
270 The prot and loss account with
stipulations concerning loyalty
programmes. These are dened as
credits awarded by the entity to its
clients in the form of, for example,
loyalty points and/or bonus cards.
Credits in respect of loyalty
programmes are identied as a separate
component of a transaction if the
following conditions are met:
the credits can be exchanged for
goods or services that the entity
provides as part of its normal
operations; and
the value of the credits is not
insignicant to the value of the sales
on which these credits are awarded.
The revenue attributable to this separate
component is allocated to the period in
which the credit is cashed in.
If the relevant conditions are not
satised, the revenues from the entire
transaction are recognised at the time of
the sale when the credits are awarded.
In that case, the costs of the loyalty
programme are recognised in the same
period.
Financial instruments, accounting
principles for foreign currency and
securities
In DAS 290 Financial instruments and,
related to it, DAS 122 Accounting
principles for foreign currency and DAS
226 Securities, a number of paragraphs
have been included or changed in order
to eliminate ambiguities identifed in
practice.
DAS 290, paragraphs 513 and 541,
clarify that if at the balance sheet date
the fair value of derivatives measured
at cost, to which no cost price hedge
accounting is applied, is lower than the
historical cost price of the derivative, the
difference must always be recognised in
the prot and loss account. This lower
4 | Dutch Accounting Standards for large and medium-sized legal entities
2011 KPMG Accountants N.V.
fair value has to be established in a
manner that does not take account of
accrued interest.
In addition, the view contained in DAS
122 and DAS 290 that forward exchange
contracts are monetary items has
changed. Currency elements in
derivatives are now recognised at cost
or lower market value instead of at
period-end exchange rates as is the
case with monetary items. This can
have consequences for hedge
documentation. A mismatch can now
arise in the result of a forward exchange
contract entered into to hedge the
foreign currency risk on a balance sheet
position (for example, a receivable)
denominated in foreign currency.
The receivable is translated at balance
sheet date at the exchange rate
applicable at that date, and the
exchange rate gains or losses are taken
to the prot and loss account, whereas
this only applies to a forward exchange
contract if the market value is below
cost. To prevent such a mismatch,
application of cost price hedge
accounting, including the relevant hedge
documentation, is essential.
In addition, paragraphs 537a and 537b in
DAS 290 contain a simplied alternative
for the impairment of nancial assets
that is aligned with the principle of cost
or lower market value.
Further, the international environment,
partly under the infuence of the credit
crisis, offers the option to value listed
bonds at cost, provided they are
not held for trading. This option has
been incorporated in the Standards.
In connection with these changes,
paragraphs 207 and 304 in DAS 226
have been abolished and the reference
to unlisted bonds has been adjusted
in paragraph 208.
Finally, transitional provisions have been
added to DAS 290 in response to these
changes.
Forward exchange contract: exchange differences to
profit and loss
Receivable: exchange differences to profit and loss
Forward exchange contract: do not recognise
any value adjustments unless fair value < cost

Receivable: exchange differences to profit and loss
Mismatch
Cost price hedge
accounting
No hedge
accounting
Forward exchange contract at cost
hedge
documen-
tation
Example forward exchange contract and receivable
Dutch Accounting Standards for large and medium-sized legal entities | 5
2011 KPMG Accountants N.V.
Other changes
Paragraphs 211 of DAS 140 Changes
in accounting principles and 201 of
DAS 265 have been revised to
clarify that the effect of changes in
accounting principles is not part of
the Statement of total result.
Paragraph 206 of DAS 160 Events
after balance sheet date claries that
events occurring after balance sheet
date that do not provide any further
information as to the situation as
at balance sheet date are not
recognised in the nancial
statements, unless the going
concern assumption is no longer
effective and the nancial statements
are prepared on the basis of
liquidation of the operations of the
entity.
Paragraph 506 of DAS 212 Tangible
xed assets (and the related
paragraphs 201 in DAS 270 and 217 in
DAS 360) recommends that income
from the regular sale of tangible fxed
assets in the context of ordinary
activities be recognised as net
turnover.
The description of the items that
form part of the net investment in a
participating interest has been
brought in line in paragraph 340 of
DAS 214 Financial xed assets with
paragraph 112 of DAS 122 Accounting
principles for foreign currency.
For example, an item for which
settlement is not planned for the
near future and will probably not be
settled in the near future is
essentially an increase of the net
investment in the participating
interest. Trade receivables and trade
payables do not form part of the net
investment.
Paragraph 201 of DAS 273 Interest
expenses has been brought in line
with paragraph 201 of DAS 254
Liabilities.
It is recommended to recognise
the discount of liabilities not yet
recognised in the prot and loss
account as reduction of the liability
to which they relate. Pursuant to
section 2:375(5) BW, it is allowed to
capitalise the discount (the difference
between amount received and
redemption payable amounts)
allocated to successive periods
instead of deducting it from the
amount repayable.
6 | Dutch Accounting Standards for large and medium-sized legal entities
2011 KPMG Accountants N.V.
Draft Standards
Introduction, Financial xed assets
and Shareholders equity: application
of combination 3 (DAS 100, DAS 214
and DAS 240)
Various Standards of the 2011 edition
include a number of draft paragraphs
for legal entities that prepare their
consolidated nancial statements in
accordance with EU-IFRS in
combination with the company fnancial
statements in accordance with Part 9
Book 2 BW, with the entity applying the
same accounting principles as for the
consolidated nancial statements
(combination 3). The basic principle
here is to keep shareholders equity in
accordance with the company nancial
statements equal to shareholders
equity according to the consolidated
nancial statements.

Draft paragraph 107 of DAS 100
Introduction claries that it is permitted
to recognise participating interests
consolidated in the consolidated
nancial statements at net equity value
or in accordance with the equity method
in the company nancial statements.
When using each of the two options,
the entity applies the accounting
principles in accordance with EU-IFRS
that are applied in the consolidated
nancial statements. The difference
between the two options solely
concerns the presentation of goodwill.
Three draft paragraphs have been added
to DAS 214 Financial xed assets that
describe the recognition in the company
nancial statements of a phased
acquisition (214.312), the loss of control
with retention of a remaining interest
(214.312a) and transactions with
minority shareholders with retention
of actual control (214.312b) in the
application of combination 3. In all these
cases, recognition is in accordance with
EU-IFRS. Finally, draft paragraph 227c
has been added to DAS 240
Shareholders equity that stipulates
when the legal entity is required to
form a revaluation reserve with respect
to these transactions.
Impairment of xed assets (DAS 121)
Draft paragraph 515 of DAS 121
Impairment of xed assets stipulates
that, upon disposal of an activity of the
cash generating unit, goodwill has to be
allocated to the activity for determining
the result. Draft DAS 121.516
subsequently stipulates that, when a
change occurs in the composition of
cash generating units, goodwill has to
be allocated anew to the units.
Allocation takes place on the basis of
the relative value of the activities or the
units, unless the entity can demonstrate
that a different method is more suitable.
In addition, a stipulation was added to
paragraph 519 that, to the extent that
the general operating assets cannot be
allocated to the cash generating unit
fairly and consistently, the impairment
test for this unit will take place without
these general operating assets. A test is
also performed on the group of cash
generating units to which it is possible
to allocate these general operating
assets fairly and consistently.
Participating
interest in group
company 120
Equity method
Goodwill 20
Participating
interest in group
company 100
Net equity value
Equity method compared to net equity value:
difference in presentation of goodwill.
Dutch Accounting Standards for large and medium-sized legal entities | 7
2011 KPMG Accountants N.V.
KPMG
Laan van Langerhuize 1
1186 DS AMSTELVEEN
T +31 (0)20 656 78 90
Katja van der Kuij-Groenberg
Tel. +31 (0)20 656 7092
vanderkuij-groenberg.katja@kpmg.nl
www.kpmg.nl
Deadline for comments
The Dutch Accounting Standards Board
invites comments and reactions to the
draft Standards. The DASB would like to
receive these reactions and comments
no later than 1 December 2011.
No deadline applies to other reactions
and comments.
Finally
Acknowledgement of sources
The information contained in this
factsheet is primarily derived from
the introduction to the 2010 and 2011
editions of the Dutch Accounting
Standards.
Further information
Your KPMG contact person would
be pleased to expand further on
the information contained in this
publication and its consequences
for your company.
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