Annual report 2019

138

EXPLANATORY NOTES TO THE COMPANY FINANCIAL STATEMENTS

1. GENERAL The company financial statements of Royal Boskalis Westminster N.V. (the ‘Company’) are included in the Consolidated Financial Statements 2019 of Royal Boskalis Westminster N.V.

2. PRINCIPLES OF FINANCIAL REPORTING ACCOUNTING POLICIES

The company financial statements have been drawn up using the reporting standards applied for preparing the consolidated financial statements, in accordance with Section 362(8), Part 9 of Book 2 of the Dutch Civil Code except for the investment in its subsidiary. Based on Section 362(1), Part 9 of Book 2 of the Dutch 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, unless stated otherwise below. FORMAT Unless stated otherwise, all amounts in these explanatory notes are stated in thousands of euros. The company statement of financial position is drawn up before profit appropriation. INVESTMENTS IN GROUP COMPANIES Investments in Group companies are accounted for using the accounting policies for assets, liabilities, provisions and profit or loss, as described in the principles of financial reporting and applied in the consolidated financial statements of Royal Boskalis Westminster N.V. AMOUNTS DUE FROM GROUP COMPANIES Amounts due from Group companies are stated initially at fair value and subsequently at amortized cost, using the effective interest rate, less impairments. AMOUNTS DUE TO GROUP COMPANIES Amounts due to Group companies are recognized initially at fair value and subsequently at amortized cost, using the effective interest rate. RESULT OF GROUP COMPANY Result of Group company consists of the share of the Company in the result after taxation of its Group company. Results on transactions, where the transfer of assets and liabilities between the Company and its participating interests, and mutually between participating interests themselves, are not incorporated as far as they can be deemed to be unrealized. 3. INVESTMENTS IN GROUP COMPANIES Investments in Group companies solely consist of the 100% investment in Boskalis Westminster Dredging B.V., Papendrecht. The table below shows the movements in this investment:

ANNUAL REPORT 2019 – BOSKALIS FINANCIAL STATEMENTS 2019 L 9 -- BOSKALIS FINANCIAL STATEMENTS 2019 Balance as at 1 January Dividend received Profit/loss (-) for the year Balance as at 31 December

2018

2019

3,020,710

2,544,020

Adjustment to first-time application of IFRS 9

- 1,408 - 51,000 - 435,850

-

- 120,000 74,887 - 14,042 2,484,865

Movements directly recognized in equity of group company

11,568

2,544,020

See notes 17 and 31.1 of the Consolidated Financial Statements 2019 for an overview of the most important directly and indirectly held Group companies.