Boskalis Annual Report 2020

87

87

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, dry and maritime infrastructure and maritime services sectors. Royal Boskalis Westminster N.V. (the ‘Company’) has its registered office in Sliedrecht, the Netherlands, and its head office is located at Rosmolenweg 20, 3356 LK in Papendrecht, the Netherlands. The Company is registered at the Chamber of Commerce under number 23008599 and is a publicly listed company on the Euronext Amsterdam. The consolidated financial statements of Royal Boskalis Westminster N.V. for 2020 include the Company and group companies (hereinafter referred to jointly as the ‘Group’ and individually as the ‘Group companies’) and the interests of the Group in associates and entities over which it has joint control. The consolidated financial statements were prepared by the Board of Management and were signed on 3 March 2021. The financial statements for 2020 will be submitted for approval to the Annual General Meeting of Shareholders on 12 May 2021. 2. COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS COMPLIANCE STATEMENT The consolidated financial statements and the accompanying explanatory notes have been prepared in accordance with International Financial Reporting Standards, as adopted by the European Union (EU-IFRS), and with Part 9 of Book 2 of the Dutch Civil Code. UNCHANGED STANDARDS The accounting principles applied to the valuation of assets and liabilities and the determination of results are the same as the valuation principles applied to consolidated financial statements in prior years. There are no new standards, amendment to standards or interpretations with an important consequence for the Group adopted in the consolidated financial statements. In 2019, the Group applied IFRS 16 ‘Leases’ and IFRIC 23 ‘Uncertainty over Income Tax Treatments’ for the first time. NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED In May 2020, the International Accounting Standards Board amended IAS 16 ‘Property, Plant and Equipment’ and IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ amongst minor amendments in other standards. These changes need to be applied to the financial statements in 2022 at the latest. In January 2020, IAS 1 ‘Presentation of Financial Statements’ was amended, these changes need to be applied in 2023 at the latest. The Company is analyzing the impact of these changes. These amendments and

application dates have yet to be endorsed by the European Union.

3. PRINCIPLES OF FINANCIAL REPORTING The principles of financial reporting subsequently disclosed are applied consistently for all periods included in these consolidated financial statements. The principles of financial reporting have been applied consistently by the Group companies. FORMAT AND VALUATION The consolidated financial statements are presented in euros (EUR), the Group’s presentation currency. The consolidated financial statements are based upon historical cost to the extent that IFRS does not prescribe another accounting method for specific items. For comparison purposes a limited number of comparative figures that are disclosed in the notes have been adjusted. Preparing financial statements means that estimates and assumptions made by management partially determine the amounts recognized under assets, liabilities, revenue and costs. The estimates and assumptions are mainly related to the measurement of intangible assets (including goodwill), property, plant and equipment, joint ventures and associates, expected results on the completion of projects, pension liabilities, taxation, provisions and financial instruments. Judgements made by management within the application of IFRS which have a material effect on the financial statements are the qualifications of investments as Group companies, joint operations, joint ventures or associates. Details are incorporated in the explanatory notes to these items. Other than the elements already explained in the explanatory notes to the financial statements, no critical valuation judgements relating to the application of the principles need further explanation. The estimates made and the related assumptions are based on management’s experience and understanding and the development of external factors that can be considered reasonable under the given circumstances. Estimates and assumptions are subject to alterations as a result of changes in facts and insights and may have different outcomes in different reporting periods. Any differences are recognized in the Statement of Financial Position, or the Statement of Profit or Loss, or the Statement of Other Comprehensive Income, depending on the nature of the item. Actual results may deviate from results reported previously on the basis of estimates and assumptions. Unless stated otherwise, all amounts in the notes to these financial statements are stated in thousands of euros.

ANNUAL REPORT 2020 – BOSKALIS A NUAL REPORT 2020 -- BOSKALIS