Dd. Month 2019	Example financial report 2018 De Kleine B.V. Registered place of business

Contents

Financial statements	11

Balance sheet as at 31 December 2018	12

Profit and loss account for 2018	15

Disclosure notes to the balance sheet and profit and loss account	16

Accountant’s report

Compilation report

Results

Development of income and expenses

As presented in the profit and loss account, the net result for 2018 amounts to € 0 (2017: € 0).

To provide insight into the development of the result for 2018, below an outline has been prepared based on the profit and loss account of 2018 compared to the profit and loss account of 2017. Income and expenses are expressed in thousands of euros and as a percentage of the net turnover.

2018	2017
€	%	€	%
Gross margin	0	0,0	0	0,0
Wages and salaries	0	0,0	0	0,0
Social security charges	0	0,0	0	0,0
Amortisation and depreciation	0	0,0	0	0,0
Changes in value of investment properties	0	0,0	0	0,0
Impairment on current assets	0	0,0	0	0,0
Other operating expenses	0	0,0	0	0,0
Total operating expenses	0	0,0	0	0,0
Operating result	0	0,0	0	0,0
Income from securities	0	0,0	0	0,0
Interest income and similar income	0	0,0	0	0,0
Interest expenses and similar expenses	0	0,0	0	0,0
0	0,0	0	0,0
Result before tax	0	0,0	0	0,0
Income taxes	0	0,0	0	0,0
Share in profit/loss of participations	0	0,0	0	0,0
Result after tax	0	0,0	0	0,0

The profit/loss before taxation of 2018 compared to 2017 has increased/decreased/did not change.

The profit/loss before taxation of 2018 compared to 2017 can be presented as follows:

2018
€
The result has been positively influenced by:
Increase (income)	0
Decrease (expenses)	0
0
The result has been negatively influenced by:
Increase (expenses)	0
Decrease (income)	0
0
Increase/decrease/unchanged profit (loss) before taxation	0

Development of turnover and gross margin

Turnover
Year	Monetary value	Index 2012 = 100	Increase / decrease as compared to prior year	Gross margin as a percentage of turnover
€	%	%
2013	0	0	0,0	0,0
2014	0	0	0,0	0,0
2015	0	0	0,0	0,0
2016	0	0	0,0	0,0
2017	0	0	0,0	0,0
2018	0	0	0,0	0,0

Following, some items with regard to the paragraph ‘Results’ have been presented graphically.

Financial position

Below we provide an analysis of your company’s financial position. Note that the balance sheet items can fluctuate during the course of the year and the value as at the balance sheet date could deviate considerably from any randomly chosen date in the financial year. This might have influenced the impact on ratios would another date have been selected.

A summary of the balance sheet as at December 31, 2018 in comparison with prior year is presented below:

31 December 2018 31 December 2017 € € € €
Assets Fixed assets 0 0 Inventories 0 0 Construction contracts 0 0 Accounts receivable 0 0 Securities 0 0 Cash at bank and in hand 0 0 0 0 Equity and liabilities Shareholders’ equity 0 0 Provisions 0 0 Long-term debts 0 0 Current liabilities 0 0 0 0

Working capital

A statement of the working capital has been prepared based on the above summary. Working capital is defined as all current assets less current liabilities. The amount of working capital provides information on the liquidity position of the company.

31 December 2018	31 December 2017	Movement
€	€	€
Inventories	0	0	0
Construction contracts	0	0	0
Accounts receivable	0	0	0
Securities	0	0	0
Cash at bank and in hand	0	0	0
Total current assets	0	0	0
Less: current liabilities	0	0	0
Working capital	0	0	0

Solvency

The solvency – defined as the ratio of the equity divided by the liabilities or, alternatively, the ratio of equity divided by the sum of equity and liabilities – shows the resilience of the company.

General principles for the solvency level are not available, as this depends on the nature of the company. The ratios presented below provide insight into the company’s solvency.

2018	2017	2016	2015
Ratio equity / sum of equity and liabilities	0,0	0,0	0,0	0,0
Ratio equity / liabilities	0,0	0,0	0,0	0,0

Liquidity

The liquidity – defined as the ratio of current assets divided by current liabilities – shows to what extent the company is able to settle its financial liabilities in the short term. The ratios presented below provide insight into the company’s liquidity.

2018	2017	2016	2015
Quick ratio
Ratio receivables, securities and cash / current liabilities	0,00	0,00	0,00	0,00
Current ratio
Ratio current assets / current liabilities	0,00	0,00	0,00	00,0

Earning capacity

The earning capacity of the liabilities indicates the rate of expenses compared to liabilities operative in the company. The ratios presented below provide insight into the company’s earning capacity.

2018	2017	2016	2015
Interest expenses / average liabilities	0,0	0,0	0,0	0,0

The earning capacity of the equity consists of an interest allowance for the use of the equity and an allowance for taking risks (entrepreneurs’ risk). The ratios presented below provide insight into the earning capacity of the equity in the company.

2018	2017	2016	2015
Result after taxation / average equity	0,0	0,0	0,0	0,0

Employees

2018	2017	2016	2015
€	€	€	€
Average net turnover per employee (net turnover / average number of employees)	0	0	0	0
Average personnel expenses per employee (personnel expenses / average number of employees)	0	0	0	0
2018	2017	2016	2015
%	%	%	%
Personnel expenses in % of net turnover	0	0	0	0

Fiscal position

Fiscal unity

Effective day/month/year, De Kleine B.V. is the head of/forms part of the fiscal unity for corporate income tax purposes with the following companies:

B.V. Q;

B.V. R;

Etc.

Effective day/month/year, the following companies are no longer part of the fiscal unity for corporate income tax purposes, of which De Kleine B.V. is part:

B.V. Q;

B.V. R;

Etc.

The other companies forming part of the fiscal unity for corporate income tax are charged as if they were separately liable for tax, taking into account an allocation of the benefits of the fiscal unity to the various companies.

The company forms part of the fiscal unity with ….. B.V. and is therefore not separately liable for income tax. The corporate income tax is calculated as if the company was separately liable for income tax and is offset against the current account with ….. B.V. Reference is made to the financial statements of ….. B.V. for the calculation of the tax liability of the fiscal unity.

Taxable amount and tax financial year

The taxable amount can be calculated as follows:

€	€
Result before taxation	0
Lower amortisation/depreciation for tax purposes	0
Non-deductible expenses for tax purposes	0
Capital disposal charge, 0,0% of € 0	0
0
0
Higher amortisation/depreciation for tax purposes	(0)
Share in profit/loss of participations	(0)
Investment allowance, 0,0% of € 0	(0)
(0)
Taxable amount	0

The taxation according to the profit and loss account can be calculated as follows:

€	€
0,0% of the taxable amount	0
Adjustments prior years	0
Movement in provision for deferred tax liabilities	0
0
Taxation according to the profit and loss account	0

Provision for deferred tax liabilities

Due to differences between the valuation principles in the financial statements and the valuation for tax purposes of the respective balance sheet items, a provision for deferred tax liabilities has been recognised in the financial statements.

The calculation of the provision as at year-end 2018 is as follows:

€
Valuation (name of item) according to the financial statements	0
Valuation (name of item) for tax purposes	0
Difference between commercial and fiscal valuation	0
Provision for deferred tax liabilities: 0,0% of € 0	0

Movements during the year

Liability/ receivable as at 1 January	Corporate income tax charge/gain for the year	Paid/ received during the year	Liability/ receivable per 31 December
€	€	€	€
2017	0	0	0	0
2018	0	0	0	0
0	0	0	0

The assessment imposed are final through 2017.

Tax losses carried forward

To be settled	Available for compensation until
€
2017	0	2026
2018	0	2027
0

These losses can be offset against expected future fiscal profits for a period of nine years and have been recognised on the balance sheet as a deferred income tax receivable, under the item Financial fixed assets.

Signing of the accountant’s report

We trust to have been of service. Should you have any questions or comments, we are available to provide a more detailed explanation.

Name, place, date

Financial statements

Balance sheet as at 31 December 2018
2:362-2 DCC	(after profit appropriation)
Model B Assets 31 December 2018 31 December 2017 Ref. € € € €
2:364-1 DCC Fixed assets 2:364-2 DCC Intangible fixed assets 5. Costs related to the incorporation and issue of shares 0 0 Development costs 0 0 Goodwill 0 0 0 0 2:364-2 DCC Tangible fixed assets 6. Land and buildings 0 0 Other fixed operating assets 0 0 0 0 B2.211 Investment properties 7. 0 0 2:364-2 DCC Financial fixed assets 8. Participations in group companies 0 0 Receivables from group companies 9. 0 0 Deferred tax assets 0 0 0 0 2:364-1 DCC Current assets 2:364-3 DCC Inventories 10. 0 0 B5.322 Construction contracts 11. 0 0 2:364-3 DCC Accounts receivable 12. Trade debtors 0 0 Accounts receivable from group companies 0 0 Requested deposits issued capital 0 0 Other accounts receivable, prepayments and accrued income 0 0 0 0 2:364-3 DCC Securities 13. 0 0 2:364-3 DCC Cash at banks and in hand 0 0 0 0

Liabilities	31 December 2018	31 December 2017
Ref.	€	€	€	€

2:364-4 DCC	Equity (Capital and reserves) *)
2:373-1aDCC	Called-up share capital	14.	0	0
2:373-1bDCC	Share premium account	15.	0	0
2:373-1cDCC	Revaluation reserve	16.	0	0
2:373-1dDCC	Other legal reserves	17.	0	0
2:373-1fDCC	Other reserves	18.	0	0
0	0
2:364-4 DCC	Provisions	19.
Provision for pension	0	0
Deferred tax liabilities	0	0
Reorganisation provision	0	0
Other	0	0
0	0
2:364-4 DCC	Long-term debts	20.
Subordinated loans *)	0	0
Debts to lending institutions	0	0
Financial lease obligations	0	0
Other debts	0	0
0	0
2:364-4 DCC	Current liabilities	21.
Debts to lending institutions	22.	0	0
Debts to suppliers and trade credits	0	0
Accounts payable to group companies	0	0
Tax and social insurance	23.	0	0
Pension liabilities	0	0
Other liabilities, accruals and deferred income	0	0
0	0
0	0

B8.132	*) The liability capital comprises share capital and subordinated loan(s).
The liability capital as at 31 December 2018 amounts to € 0 (31 December 2017: € 0).

Costs related to the incorporation and issue of shares” within the intangible fixed assets (section 2:365-1a DCC);

Displaying separately “Requested deposits issued capital” (section 2:375-1d DCC); and

Profit and loss account for 2018

2018	2017
Model I	Ref.	€	€	€	€
2:396-4DCC	Gross margin *)	0	0
2:377-3e DCC	Wages and salaries	26	0	0
2:377-3f DCC	Social security charges	26	0	0
2:377-3hDCC	Amortisation of intangible fixed assets and depreciation of tangible fixed assets	0	0
B2.211	Changes in value of investment properties	0	0
Impairment on current assets
2:377-3jDCC	Other operating expenses	0	0
2:377-1aDCC	Total operating expenses	0	0
Operating result	0	0
2:377-3lDCC	Income from securities	0	0
2:377-3mDCC	Interest income and similar income	0	0
2:377-3oDCC	Interest expenses and similar expenses	27	0	0
0	0
2:377-1aDCC	Result before tax	0	0
2:377-1aDCC	Income taxes	0	0
2:377-3nDCC	Share in profit/loss of participations	0	0
2:377-1dDCC	Result after tax	0	0

Disclosure notes to the balance sheet and profit and loss account

General notes
Activities
B18.104	The activities of De Kleine B.V. and its group companies consist mainly of:
the production of and trade in electronic goods and computer components;
services in the area of IT processes and the implementation of software at third parties;
the development of tailor-made software on the instructions of third parties.
Sales take place both domestically and internationally, whereby the countries of the European Union are the most important markets.
Continuity
B18.104	The equity of De Kleine B.V. amounts to € x negative as at 31 December 2018. It is financed in full with current liabilities/long-term debts, including current account funds provided by group entities / loans provided by banks / etc. The continuity of the company depends to a significant extent on the willingness of group entities / banks to continue these financing facilities. At present, no concrete commitments have yet been made in this respect by the group entities / banks. For this reason, there is an uncertain element of material importance based on which there could be reasonable doubt about the continuity of the activities of De Kleine B.V. as a whole. We expect that the cash flow will develop positively in the next few financial years as a result of the following measures we have already taken and the plans we have made:
……
……
Based on the conversations held with the group entities / banks in respect of our measures and plans, we expect that the financing facilities will be continued.
The accounting principles applied to the valuation of assets and liabilities and the determination of results in these financial statements are based on the assumption of continuity of the company.
Registered office, legal form and registration number at the chamber of commerce
B18.104	De Kleine B.V. is located in Registered place of business and is registered at the chamber of commerce under number 00000000.
Group relationships
2:396-5 BW 2:407-2 DCC	XYZ B.V. in Registered place of business prepares the consolidated financial statements of the part of the group to which Kleine B.V. belongs. Because De Kleine B.V. can also be classified as small after consolidation, consolidation has been dispensed pursuant to art. 407, sub 2, under a of book 2 of the Dutch Civil Code (‘Burgerlijk Wetboek’).
A3.1 A3.2	Changes in accounting policies
Changes in accounting estimates
Estimates
2:362-1 DCC	In applying the principles and policies for drawing up the financial statements, the directors of De Kleine B.V. make different estimates and judgments that may be essential to the amounts disclosed in the financial statements. If it is necessary in order to provide the transparency required under art. 362, sub 1, book 2 of the Dutch Civil Code the nature of these estimates and judgments, including related assumptions, is disclosed in the Notes to the relevant financial statement item.
A3.3	Correction of errors
Correction of errors is included in RJk A3.3 If errors are detected in already completed financial statements of previous reporting periods, the legal entity will correct these errors. A distinction must be made between material errors and other errors. The correction of other errors from previous reporting periods takes place prospectively in the profit and loss account. The comparative figures are not adjusted in this case. A material error is such an inaccuracy in the financial statements - established after the adoption of these financial statements - that the financial statements fail to provide the insight referred to in art. 2:362 sub 1 DCC. The legal entity reports and corrects a material error in the first financial statements that have not yet been adopted following the financial statements in which the material error was made. The legal entity processes the effect of the material error in the opening equity or in the closing equity of the previous financial year and adjusts the comparative figures. The previously adopted (incorrect) financial statements are not adjusted. The legal provisions of art. 2:362 sub 6 DCC apply to the correction of errors. In the situation where the already adopted financial statements seriously fail to provide the legally required insight, the management of the legal entity is obliged to inform the members or shareholders about this immediately and the legal entity should submit a notice to the trade register

General principles
General
The financial statements are drawn up in accordance with the provisions of Title 9, Book 2, of the Dutch Civil Code and the Dutch Accounting Standards applicable to small legal entities, as published by the Dutch Accounting Standards Board (‘Raad voor de Jaarverslaggeving’).
B18.102	Assets and liabilities are generally valued at historical cost, production cost or at fair value at the time of acquisition. If no specific valuation principle has been stated, valuation is at historical cost. In the balance sheet and profit and loss account, references are made to the Notes.

Comparison with previous year
B18.107	The valuation principles and method of determining the result are the same as those used in the previous year, with the exception of the changes in accounting policies as set out in the relevant notes.
Foreign currency
Functional currency
A2.403	Items included in the financial statements of De Kleine B.V. are valued with due regard for the currency in the economic environment in which the company carries out most of its activities (the functional currency). The financial statements are denominated in euros; this is both the functional currency and presentation currency of De Kleine B.V.
Transactions, receivables and liabilities
A2.409 A2.412	Transactions in foreign currencies are stated in the financial statements at the exchange rate of the functional currency on the transaction date.
Monetary assets and liabilities in foreign currencies are converted to the closing rate of the functional currency on the balance sheet date. The translation differences resulting from settlement and conversion are credited or charged to the profit and loss account.
Non-monetary assets valued at historical cost in a foreign currency are converted at the exchange rate on the transaction date.
Non-monetary assets valued at fair value in a foreign currency are converted at the exchange rate on the date on which the fair value was determined.

Leasing
Financial leasing
B18.106 B11.107 B11.108	The company leases some of the machinery, whereby it retains substantially all the risks and rewards of ownership of these assets. These assets are recognised on the balance sheet upon commencement of the lease contract at the lower of the fair value of the asset or the discounted value of the minimum lease payments. The lease instalments to be paid are divided into a repayment and an interest portion, using the annuity method. The liabilities under the lease, excluding the interest payments, are included under long-term debts. The interest component is included in the profit and loss account for the duration of the contract on the basis of a fixed interest percentage of the average remaining redemption component. The assets are depreciated over the remaining economic life or, if shorter, the duration of the contract.

Operational leasing
B18.106 B11.111	The company may have lease contracts whereby a large part of the risks and rewards associated with ownership are not for the benefit of or incurred by the company. The lease contracts are recognised as operational leasing. Lease payments are recorded on a straight-line basis, taking into account reimbursements received from the lessor, in the profit and loss account for the duration of the contract.
Exceptional items
B13.112 Art. 2:377.8 BW	Exceptional items are items of income and expense from the normal, non-incidental activities or transactions, but which need to be disclosed separately on the basis of the nature, size or incidental character of the item.
Hedge-accounting

Accounting principles applied to the measurement of assets and liabilities

Intangible fixed assets

B1.119 B1.106	Intangible fixed assets are stated at historical cost less amortisation. Impairments are taken into consideration; this is relevant in the event that the carrying amount of the asset (or of the cash-generating unit to which the asset belongs) is higher than its recoverable amount.
B1.118	With regard to the determination as to whether an intangible fixed asset is subject to an impairment, please refer to note 3.5 “Impairment of fixed assets”.

Development costs
B1.101 B1.105	Expenditure on development projects is capitalised as part of the production cost if it is likely from both a commercial and technical perspective that the project will be successful (i.e.: if it is likely that economic benefits will be realised) and the cost can be determined reliably. A legal reserve has been formed within equity with regard to the recognised development costs for the capitalised amount. The amortisation of capitalised development costs commences at the time when the commercial production starts and takes place on a straight-line basis over the expected future useful life of the asset. Research costs are recognised in the profit and loss account.

Goodwill
B1.114	Positive goodwill resulting from acquisitions and calculated in accordance with note "Participations" is capitalised and amortised on a straight-line basis over the estimated economic life.

B1.122 RJ216	Negative goodwill is released in the profit and loss account to the extent that charges and losses occur, if it is taken into account in the allocation of the acquisition and these charges and losses can be measured reliably. If expected charges and losses have not been taken into account, the negative goodwill is released based on the weighted average of the remaining life of the acquired amortisable assets. Insofar as the negative goodwill exceeds the fair value of the non-monetary assets identified, the surplus is recognised directly in the profit and loss account.

Tangible fixed assets

B2.107 B2.113 B2.212 B2.117 B2.124	Land and buildings are valued at historical cost plus additional costs or production cost less straight-line depreciation based on the expected life. Land is not depreciated. Impairments expected on the balance sheet date are taken into account. With regard to the determination as to whether a tangible fixed asset is subject to an impairment, please refer to the relevant note.
B2.113	Other tangible fixed assets are valued at historical cost or production cost including directly attributable costs, less straight-line depreciation based on the expected future life and impairments.

B17.112	Subsidies on investments will be deducted from the historical cost price or production cost of the assets to which the subsidies relate.
B2.120	For obligations to restore the asset after use (dismantling cost) a provision is recognised for the expected amount at the time of capitalisation. This amount is recognised as part of the carrying amount of the asset against which a provision is formed for the full amount.
B2.122	A provision for major maintenance has been created for the future costs of major maintenance to the buildings. The addition to the provision is determined based on the expected amount of the maintenance work and the intervals between the times when major maintenance work is carried out.
Investment properties
B2.201 B2.203 B2.204 B2.205 B2.206 B2.206	Investment properties are properties held to generate rental income, to achieve capital appreciation or both. Investment properties, including investment properties under construction, are valued initially at historical cost and subsequently at fair value. The details of this are, amongst others, based on the available market data and compiled by external appraisers. Changes in value of investment properties are included in the profit and loss account. In addition, a revaluation reserve is formed and charged against Other reserves. The revaluation reserve is formed for the positive difference between the fair value and initial historical or production cost (excluding any depreciation or impairment costs) and after deduction of relevant (deferred) tax liabilities. Investment properties are not depreciated. Investment properties under construction for which the fair value cannot be determined reliably are valued at cost until such time as the fair value can be determined reliably.

Financial fixed assets
Participations
B3.105 B3.110	Participations, over which significant influence can be exercised, are valued according to the net asset value method. In the event that 20% or more of the voting rights can be exercised, it may be assumed that there is significant influence.
B3.111 B3.112	The net asset value is calculated in accordance with the accounting principles that apply for these financial statements; with regard to participations in which insufficient data is available for adopting these principles, the valuation principles of the respective participation are applied.
B3.119	If the valuation of a participation based on the net asset value is negative, it will be stated at nil. If and insofar as De Kleine B.V. can be held fully or partially liable for the debts of the participation, or has the firm intention of enabling the participation to settle its debts, a provision is recognised for this.
B3.108	Newly acquired participations are initially recognised on the basis of the fair value of their identifiable assets and liabilities at the acquisition date. For subsequent valuations, the principles that apply for these financial statements are used, with the values upon their initial recognition as the basis.
B3.125	The amount by which the carrying amount of the participation has changed since the previous financial statements as a result of the net result achieved by the participation is recognised in the profit and loss account.

B3.109	Participations over which no significant influence can be exercised are valued at historical cost. The result represents the dividend declared in the reporting year, whereby dividend not distributed in cash is valued at fair value.
A2.3	In the event of an impairment, valuation takes place at the recoverable amount (see also note “Impairment of fixed assets"); an impairment is recognised and charged to the profit and loss account.

Accounts receivable from group companies
B3.122	Receivables recognised under financial fixed assets are initially valued at the fair value including transaction cost (if material). These receivables are subsequently valued at amortised cost price, which is, in general, equal to the nominal value. For determining the value, any depreciation is taken into account.
Deferred tax assets
B15.106 B15.107	Deferred tax assets are recognised for all deductible temporary differences between the value of the assets and liabilities under tax regulations on the one hand and the accounting policies used in these financial statements on the other, on the understanding that deferred tax assets are only recognised insofar as it is probable that future taxable profits will be available to offset the temporary differences and available tax losses.
B15.112	The calculation of the deferred tax assets is based on the tax rates prevailing at the end of the reporting year or the rates applicable in future years, to the extent that they have already been enacted by law.
B15.114	Deferred tax assets are valued at their nominal value.

Impairments of fixed assets
2:387-3+4 DCC A2.303 A2.304 A2.305 A2.315	On each balance sheet date, the company assesses whether there are any indications that a fixed asset may be subject to impairment. If there are such indications, the recoverable amount of the asset is determined. If it is not possible to determine the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined. An impairment occurs when the carrying amount of an asset is higher than the recoverable amount; the recoverable amount is the higher of the realisable value and the value in use. An impairment loss is directly recognised in the profit and loss account while the carrying amount of the asset concerned is concurrently reduced.
A2.306 A2.309	The realisable value is initially based on a binding sale agreement; if there is no such agreement, the realisable value is determined based on the active market, whereby usually the prevailing bid price is taken as market price. The costs deducted in determining net realizable value are based on the estimated costs that are directly attributable to the sale and are necessary to realize the sale. For the determination of the value in use, an estimate is made of the future net cash flows in the event of continued use of the asset / cash-generating unit; these cash flows are discounted, based on a discount rate of ...% (2017: ...%). The discount rate does not reflect risks already taken into account in future cash flows.
A2.320 2:387-5 BW	If it is established that an impairment that was recognised in the past no longer exists or has reduced, the increased carrying amount of the asset concerned is set no higher than the carrying amount that would have been determined if no impairment value adjustment for the asset concerned had been reported. An impairment of goodwill cannot be reversed.
Inventories
Inventories for own use and sales
B4.103 B4.105	Inventories (stocks) are valued at historical price or production cost based on the FIFO method (first in, first out) or lower realisable value.
B4.104	The historical price or production cost consists of the historical cost or production cost (all costs relating to the acquisition or production) and costs incurred in order to bring the stocks to their current location and current condition. The production cost includes direct labour and fixed and variable production overheads, taking into account the costs of the operations office, the maintenance department and internal logistics.
The realisable value is the estimated sales price less directly attributable sales costs. In determining the realisable value the obsolescence of the inventories is taken into account.

Construction contracts
B5.304	Construction contracts commissioned by third parties comprises the balance of project costs realised, profit attributed, and if applicable, recognised losses and instalments already invoiced. Construction contracts are separately presented in the balance sheet under current assets. If it shows a credit balance, this will be presented under current liabilities.
Expenditure relating to project costs for work not yet performed is recognised under inventories.

Accounts receivable
B5.103	Receivables are initially valued at the fair value of the consideration to be received, including transaction costs if material. Receivables are subsequently valued at the amortised cost price. Provisions for bad debts are deducted from the carrying amount of the receivable.

Securities
2:384-1 DCC B6.103	Listed securities that are held for trading are carried at current value (fair value). The fair value of listed securities is the same as the market price. Listed bonds that are not held for trading are measured at amortised cost.
B6.103 B6.105	Securities other than listed securities are valued at historical cost or lower fair value. In the latter situation, the fair value is estimated in accordance with generally accepted valuation models and techniques.
B6.106	Fair value gains of securities measured at fair value are directly recognised in the profit and loss account. Fair value losses of securities measured at fair value are also directly recognised in the profit and loss account.
Transaction costs directly attributable to the acquisition of securities are directly recognised in the profit and loss account.

Cash at banks and in hand
B7.101 B7.103	Cash at banks and in hand represent cash in hand, bank balances and deposits with terms of less than twelve months. Overdrafts at banks are recognised as part of debts to lending institutions under current liabilities. Cash at banks and in hand is valued at nominal value.
Equity
B8.107	If De Kleine B.V. purchases some of its own shares, the historical cost of the purchased shares is deducted from the “other reserves”, or from any other reserves, provided that this is permitted under the articles of association, until these shares are cancelled or sold. If purchased shares are sold, any proceeds are added to the reserve from which the purchase of these shares was initially deducted.
B8.107	Costs directly related to the purchase, sale and/or issue of new shares are recognised directly in share capital, net of any relevant tax effects.

Revaluation reserve
B8.110	If revaluations have been recognised in the revaluation reserve after the deduction of relevant (deferred) tax liabilities, the gross result of the realised revaluations is recognised in the profit and loss account. The corresponding release of the (deferred) tax liabilities is charged to the operating result as tax on the result.

Provisions
General
B10.105	Provisions are recognised for legally enforceable or constructive obligations that exist at the balance sheet date, and for which it is probable that an outflow of resources will be required and a reliable estimate can be made.
B10.106	Provisions are measured at the best estimate of the amount that is necessary to settle the obligation as per the balance sheet date. Provisions for pension are valued on the basis of actuarial principles. The other provisions are carried at the nominal value of the expenditure that is expected to be necessary in order to settle the obligation, unless stated otherwise.
If obligations are expected to be reimbursed by a third party, such reimbursement is included as an asset in the balance sheet if it is probable that such reimbursement will be received when the obligation is settled.
Provision for pension
B14.117	De Kleine B.V. has a number of pension schemes for employees. The most important characteristics of these schemes are: - ………………….. (refer below)

Self-administered pension obligation

Deferred tax liabilities
B15.105	Deferred tax liabilities are recognised for temporary differences between the value of the assets and liabilities under tax regulations on the one hand and the book values applied in these financial statements on the other. The computation of the deferred tax liabilities is based on the tax rates prevailing at the end of the reporting year or the rates applicable in future years, to the extent that they have already been enacted by law.
B15.114	Deferred tax balances are valued at nominal value.

Reorganisation provision
B10.118	This provision relates to the costs made in connection with the restructuring of activities and is recognised when a constructive or legal obligation has arisen for the legal entity.
Warranty provision
B10.115	This provision relates to costs that must be reimbursed for products that have been sold or services that have been performed, if the legal entity has an obligation because the agreed quality standards have not been met.
Other provisions
B10.124 B2.122 B2.123	A provision is recognised for expenditures incurred on major maintenance work on buildings in order to spread these costs over a number of financial years. The addition to the provision is determined based on the expected amount of the maintenance work and the intervals between the times when major maintenance work is carried out.
B10.106	Other kinds of provision are included in accordance with the nominal value of the expenditure which is expected to be necessary to settle the obligations.

Long-term debts
B9.104 B9.202	On initial recognition long-term debts are recognised at fair value. Transaction costs which can be directly attributed to the acquisition of the long-term debts are included in the initial recognition. After initial recognition long-term debts are recognised at the amortised cost price, being the amount received taking into account premiums or discounts and minus transaction costs.
The difference between stated book value and the mature redemption value is accounted for as interest cost in the profit and loss account on the basis of the effective interest rate during the estimated term of the long-term debts.

Current liabilities
B9.301 B9.303	On initial recognition current liabilities are recognised at fair value. After initial recognition current liabilities are recognised at the amortised cost price, being the amount received taking into account premiums or discounts and minus transaction costs. This is usually the nominal value.

Principles for the determination of the result

General
B18.106 2:362-2 DCC	The result is the difference between the realisable value of the goods/services provided and the costs and other charges during the year. The results on transactions are recognised in the year in which they are realised.
In the determination of the result the unrealised movements in value are also taken into account for the following items recognised at fair value : Investment properties; Securities included in current assets.
Revenue recognition

General
B13.110 2:377-6 DCC	Net turnover comprises the income from the supply of goods and services and realised income from construction contracts after deduction of discounts and such like and of taxes levied on the turnover.
Supply of goods
B13.104	Revenues from the goods supplied are recognised when all significant risks and rewards in respect of the goods have been transferred to the buyer.
Supply of services
B13.105	Revenues from the services rendered are recognised in proportion to the services delivered, based on the services rendered up to the balance sheet date in proportion to the total of services to be rendered.
Contract (project) revenue and costs
B5.308	If the outcome of a project can be estimated reliably, contract revenue and contract costs are recognised as net revenue and expenses in the profit and loss account by reference to the stage of completion of the contract as at the balance sheet date (the ‘Percentage of Completion’ method, or PoC method).
The progress made on the contract is determined based on the contract costs incurred as at the balance sheet date in proportion to the total estimated contract costs. If the result of the contract cannot (yet) be estimated reliably, the revenue is recognised in the profit and loss account for the amount of the contract costs incurred from which it is likely that they can be recovered; the contract costs are then recognised in the profit and loss account for the period in which they were incurred. As soon as the result can be estimated reliably, revenue recognition takes place in accordance with the PoC method in proportion to the stage of completion of the contract as at the balance sheet date.
The result is the difference between the contract revenue and - costs. Contract revenue is the contractually agreed revenues and revenues from extra work and less work, claims and compensations if and insofar as it is likely that they are realised and can be estimated reliably. Contract costs are the expenditures directly related to the project, which in general can be attributed to project activities and allocated to the project, and other costs which can be attributed under the contract to the commissioner of the project.
If it is probable that the total contract costs exceed the total revenue, the expected losses will be directly recognised in the profit and loss account. This loss is taken into account in the cost price of the operating result. The provision for the loss is included in the balance sheet under Current projects.
Other operating income
B13.102	Other operating income include results which are not directly linked to the supply of goods or services as part of the ordinary, not-incidental business activities. The other operating income consists of royalty income. These revenues are allocated to the reporting period in accordance with the content of the agreement.
Costs
B18.104	Costs are determined on a historical basis and are attributed to the reporting year to which they relate.
Employee benefits
Benefits to be paid periodically
B14.103	The benefits payable to personnel are recorded in the profit and loss account on the basis of the employment conditions.
Pension
B14.113	De Kleine B.V. applies the liability approach to account for all pension schemes. The premium payable during the reporting year is recorded as an expense.
The provisions of the Netherlands Pensions Act (‘Pensioenwet’) apply to the Dutch pension schemes and De Kleine B.V. pays compulsory, contractual or voluntary contributions to pension funds and insurance companies. The contributions are recorded as personnel costs from the date that they become payable. Prepaid contributions are reported as accrual if this results in a repayment or a reduction in future payments. Contributions that are not yet paid are included as a liability in the balance sheet.
Amortisation of intangible fixed assets and depreciation of tangible fixed assets
B1.108 B2.116 B2.117 B2.119	Intangible fixed assets including goodwill and tangible fixed assets are amortised and depreciated from the date of when they are available for use, based on the estimated economic life / expected future useful life of the asset. Land and investment properties are not depreciated.

Exceptional items
2:377-7 BW 2:377-8 BW B13.112	Exceptional items are items of income and expense from the normal, non-incidental activities or transactions, but which need to be disclosed separately on the basis of the nature, size or incidental character of the item for reasons of analysis and comparability of the results.
Government subsidies
B17.108	Operating subsidies are recorded as income in the profit and loss account in the year in which the subsidised costs were incurred or income was lost or when there was a subsidised operating deficit. Income is recognised when it is probable that it will be received.
B17.112	Subsidies related to investments in tangible fixed assets are deducted from the asset to which they relate and recorded in the profit and loss account as part of the amortisation costs.
Financial income and expenses
Interest income and interest expenses
B16.104	Interest income and expenses are recognised on a pro rata basis, taking account of the effective interest rate of the assets and liabilities to which they relate. In accounting for interest expenses, the recognised transaction expenses for loans received are taken into consideration.
Exchange differences
A2.407 A2.409	Exchange differences that arise from the settlement or translation of monetary items are recorded in the profit and loss account in the period in which they occur, unless hedge-accounting is applied.
Dividends
B3.109	Dividends to be received from participations and securities not carried at net asset value are recognised as soon as De Kleine B.V. has acquired the right to them.

Changes in value of financial instruments recognised at fair value
2:384-7 DCC	Changes in the value of financial instruments recognised at fair value are recorded in the profit and loss account.
Capitalisation of interest charges
A2.209 B16.105	Interest charges are capitalised during the manufacturing period of an asset, if it requires a significant amount of time to bring the asset into a condition for its use or sale. The interest to be capitalised is calculated based on the interest payable on loans specifically taken out for the manufacturing or based on the weighted interest rate of loans which cannot be explicitly attributed to the manufacturing of an asset, in proportion to the manufacturing expenses and period.
Taxes
B15.102	Tax on the result is calculated based on the result before tax in the profit and loss account, taking account of the losses available for set-off from previous financial years (to the extent that they have not already been included in the deferred tax assets) and exempt profit components and after the addition of non-deductible costs. Due account is also taken of changes which occur in the deferred tax assets and deferred tax liabilities in respect of changes in the applicable tax rate.
In the financial statements of subsidiaries, a tax charge is calculated based on the commercial result. The taxes owed by subsidiaries are settled through the intercompany account with De Kleine B.V.
Result from participations (valued at net asset value)
B3.111	The result is the amount by which the carrying amount of the participation has changed since the previous financial statements as a result of the earnings achieved by the participation to the extent that this can be attributed to De Kleine B.V.

Intangible fixed assets

An impairment loss of € 0 has been charged to the result of the financial year, visible in the .... [Concerning financial statement item] in the profit and loss account.

Except for the internally generated computer software and the development costs, the other intangible fixed assets have been purchased or accounted for as part of an acquisition.

Tangible fixed assets

An impairment loss of € 0 has been charged to the result of the financial year, visible in the .... [Concerning financial statement item] in the profit and loss account.

Land and buildings serve as security for the mortgage loans provided by X bank. See also note 21.2 in the disclosure notes to the financial statements.

Investment properties

Financial fixed assets

Upon the acquisition of participation B.V. Q, a reorganisation provision has been taken into account in the determination of the fair value of the liabilities.

With regard to deductible temporary differences between the commercial value and fiscal value of the provision for the pension of the director-owner, a deferred tax asset has been recognised for the amount in respect of which it is probable that profit for tax purposes will be available for set-off.

Accounts receivable from group companies

Accounts receivable from group companies include loans in line with market conditions taken out for Q B.V. and R B.V. for € 0 (2017: € 0) and € 0 (2017: € 0) respectively. They concern fixed-rate loans with an interest percentage of 0,0% (2017: 0,0%). The remaining maturity period of these receivables is 0 and 0 years respectively. Nothing has been agreed with respect to securities.

Inventories

Construction contracts

Accounts receivable

General

Accounts receivable all have a remaining term to maturity of less than one year, unless stated otherwise.

Trade debtors

Receivables with an (expected) remaining term of maturity of more than one year amounting to € 0 have been included under trade debtors.

Other accounts receivables and prepayments and accrued income

This includes the loans provided to company directors amounting to € 0 (2017: € 0) at 0% and € 0 (2017: € 0) interest-free respectively. The remaining terms of maturity amount to 0 and 0 years respectively. The loans need to be repaid in full by the company director concerned at the latest in the year in which he/she stands down. In the year under review the company directors repaid € 0 on their loans.

For all loans provided to members of the Supervisory Board an interest rate of 0% applies. The remaining term of maturity varies between 0 and 0 years. In this reporting year, no repayments were made.

Securities

31-12-2018	31-12-2017
€	€
Listed securities	0	0
Non-listed securities	0	0
0	0

Called-up share capital

The part withheld from the profit for 2018 amounts to € 0 (2017: € 0).

Share premium account

An amount of € 0 of the share premium account can be considered as fiscally non-paid up capital.

In 2018, an amount of € 0 was paid up by the shareholders without issuing shares. The capital duty payable has been deducted from the payment on shares, after the deduction of € 0 in tax on profits.

Revaluation reserve

Total
€
Balance as at 1 January 2018	0
Realised revaluations:
through profit and loss account	0
to other reserves	0
through hedged asset or liability	0
Tax effects	0
Created revaluations:
through other reserves	0
change in valuation of financial instruments	0
change in valuation of hedge instrument	0
Tax effects	0
Balance as at 31 December 2018	0

Other legal reserves

The legal reserves are maintained for an amount of € 0 (2017: € 0) for capitalised development costs.

Other reserves

Provisions

The movements in the provisions are as follows:

Deferred tax liabilities	Other	Total
€	€	€
Balance as at 1 January 2018	0	0	0
Addition / Contribution	0	0	0
0	0	0
Release	0	0	0
Withdrawal	0	0	0
Balance as at 31 December 2018	0	0	0

Deferred tax liabilities

Deferred tax liabilities are recognised for the taxable temporary differences between the tax base and the accounting base of tangible fixed assets and construction contracts. It is expected that € 0 will be offset in 2018.

Other

The provision for restoration costs was created at the time of the acquisition of the machinery and covers the dismantling of the machinery at the end of its life cycle. The provision amounts to € 0 (2017: € 0) as at the end of the year under review.

The provision for major maintenance, covering future costs of major maintenance to buildings, amounts to € 0 (2017: € 0) as at the end of the year under review.

Long-term debts

2018	2017
€	€
Subordinated loans	0	0
Debts to lending institutions	0	0
Financial lease obligations	0	0
Retirement obligation	0	0
Other debts	0	0
0	0

Repayment obligations within 12 months after the end of the financial year are not included in the above figures but in current liabilities. All liabilities are denominated in euros.

Of the total amount of long-term liabilities an amount of € 0 (2017: € 0) has a remaining duration of longer than 5 years.

Subordinated loans

The subordinated loan is subordinated to all other existing and future debts of the company. The interest rate on this loan amounts to x%. No repayment scheme has been agreed.

Debts to lending institutions

X Bank has provided a mortgage loan for an amount of € 0 with a remaining term of maturity of 20 years. The interest rate on this loan is variable and amounts to x%. Land and buildings serve as security for this loan.

This item also includes a private loan. The interest rate is variable and on average amounted to x% in 2018. The remaining term of maturity amounts to 0 years; an amount of € 0 needs to be repaid on an annual basis.

The fair value of both loans is close to the amortised cost price.

Financial lease obligations

Of the financial lease obligations an amount of € 0 (2017: € 0) has a remaining duration of longer than 5 years. The interest rate amounts to 0% for the entire term of maturity. The carrying amount of the leased assets amounts to € 0.

Other debts

Other debts includes loans with an average interest rate of 0%.

Current liabilities

The current liabilities have a remaining term of maturity of less than one year. The fair value of current liabilities approximates the carrying amount because of their short-term character. Current liabilities include the repayment obligation for the mortgage loan to X Bank for the next 12 months.

The final dividend payable to holders of ordinary shares has been recognised as a current liability in the balance sheet.

Debts to lending institutions

This is a current account credit facility with a maximum credit of € 0 that can be withdrawn. An (undisclosed) pledge has been established on trade debtors and stocks to serve as security.

Tax and social insurance

31-12-2018	31-12-2017
€	€
Turnover tax	0	0
Wage tax and social insurance charges	0	0
Corporate income tax	0	0
0	0

The movements in corporate income tax are as follows:

Total	2018	2017
€	€	€
Corporate income tax payable as at 1 January	0	0	0
Payable for financial year	0	0	0
Total	0	0	0
Paid in 2018	0	0	0
Payable as at 31 December	0	0	0

Assets and liabilities not recognised in balance sheet

Contingent liabilities

The group companies are severally liable to the lender.

In addition, De Kleine B.V. is partner in V.o.f. Z in Amsterdam and as such severally liable for this general partnership’s debts in full.

(Multiyear) financial liabilities

Liabilities in respect of the purchase of machinery not recognised in the balance sheet amount to € 0 (2017: € 0).

Liabilities in British pounds in respect of the purchase of raw materials and consumables not recognised in the balance sheet amount to € 0 (2017: € 0). The liabilities are due to expire on 31 December 20xx.

Liabilities relating to operational leasing amount to € 0 as at 31 December 2018 (31 December 2017: € 0) and have an average remaining term of maturity of 0 years (2017: 0 years).

Fiscal unity

De Kleine B.V. is included in the fiscal unity for corporate income tax and value added tax purposes together with BV Q and BV R.

Pursuant to the Collection of State Taxes Act (‘Invorderingswet’), the company and its consolidated subsidiaries are each severally liable for taxes payable in this respect by the combination.

In the financial statements of both subsidiaries a tax expense is calculated based on the commercial results realised by BV Q and BV R respectively. The taxes owed by both subsidiaries are settled through the current account.

Contingent liabilities

De Kleine B.V. has received a claim from a customer for incorrectly assembled products. The company disputes the claim. At present, the customer has initiated legal proceedings. The board is of the opinion that it is not likely that the claim will be accepted and has therefore not made a provision. The costs related to legal assistance are charged to the profit and loss account.

Wages, salaries and social security charges

2018	2017
€	€
Wages and salaries	0	0
Social security contributions	0	0
Pension costs	0	0
0	0

Interest expenses and similar expenses

2018	2017
€	€
Interest on subordinated loan	0	0
Interest on mortgage loan X bank	0	0
Other interest expenses	0	0
Bank charges	0	0
0	0
During the year under review no interest was capitalised as part of the production cost of an asset.

Average number of employees

During 2018, on average 2,0 employees were employed on a full-time basis (2017: 2.0).

Subsequent events

A contract with an important customer is due to expire in 2019. In the financial statements for 2018 approximately 40% of the net turnover was realised under this contract. The expiration of this contract will have a significant impact on the operating result.

In February 2018 own shares were issued for an amount of € 0.

Income and expenses from previous years

Exceptional items

The ‘…. (e.g. other operating expenses)’ include exceptional items to an amount of € 0. This amount can be specified as follows:

2018	2017
€	€
Additional wage tax assessment	0	0
Claim relating to ...	0	0
0	0

Registered place of business, XX month 2019

De Kleine B.V.

Director (current)