37. Accounting principles for financial reporting

The company financial statements have been prepared in accordance with the provisions of Part 9, Book 2 of the Dutch Civil Code, and the same accounting policies have been applied as in the consolidated financial statements (Section 2:362[8]). For these policies, see 2 Accounting policies . It follows that the perpetual subordinated bond loan is classified in the same way.

In the company financial statements, the comparative figures have been adjusted due to a change in accounting policy at subsidiary Stedin Netbeheer B.V. in respect of the valuation of property, plant and equipment. See 2.2.10 Property, plant and equipment for more information. This concerns the non-current financial assets, equity, deferred taxes and the share of the results of associates.

The descriptions of the activities and structure of the company as stated in the ‘Notes to the consolidated financial statements’, including disclosures of directors’ remuneration and a list of participating interests in subsidiaries, also apply to the company financial statements.

The company financial statements of Stedin Holding N.V. consist of the company income statement and the company balance sheet. The euro is the functional currency. All amounts are in millions of euros, unless stated otherwise.

Participating interests in subsidiaries

Participating interests in subsidiaries over whose commercial and financial policies significant influence is exercised are stated at net asset value, but not for an amount lower than nil. If the net asset value is negative, the participating interest is stated at nil. In this context, other long-term interests which in effect must be qualified as part of the net investment in the subsidiary are also taken into account. Where the company provides security for all or part of the debts of the relevant subsidiary, or is in effect under an obligation (in proportion to its share) to enable this subsidiary to pay its debts, a provision is recognised. The amount of this provision is determined with due regard for any bad debt provisions already deducted from amounts receivable from the subsidiary. A statutory reserve is formed for reserves of subsidiaries that are subject to restrictions on distributions.

Expected credit losses

Expected credit losses on loans issued to and receivables from subsidiaries are eliminated. Stedin chooses to incorporate this elimination in the book value of the issued loan or receivable.