Achmea Hypotheekbank N.V. annual report 2011

administers the portfolios of Achmea Covered Bond Company B.V. The shares of Achmea Covered Bond Company B.V. are held
by Stichting Holding Achmea Covered Bond Company with its registered office in Amsterdam.
The Stichting Incasso Achmea Hypotheken has been set up to collect and distribute mortgage receivables to Achmea
Hypotheekbank and related group companies.
Although Achmea Hypotheekbank has no direct control over the above mentioned companies, these entities are consolidated
based on an evaluation of the substance of its relationship with Achmea Hypotheekbank and the entities risks and rewards.
The following circumstances may indicate a relationship in which, in substance, Achmea Hypotheekbank controls and
consequently consolidates an entity:
• The entity conducts its activities to meet Achmea Hypotheekbank’s specific needs;
• Achmea Hypotheekbank has decision-making powers to obtain the majority of the benefits of the entities activities;
• Achmea Hypotheekbank is able to obtain the majority of the benefits of the entities activities through an ‘auto-pilot’
mechanism;
• By having a right to the majority of the entities benefits, Achmea Hypotheekbank is exposed to the entities business risks;
• The entity has the majority of residual interest in the SPV.
Elimination of intragroup transactions and accounts
Intragroup accounts and any unrealised gains and losses on transactions within the Group or income and expenses from such
transactions are eliminated from the consolidated financial statements.
Related-party disclosures
Any operations and transactions relating to group companies are specifically disclosed in the notes. All transactions with group
companies are subject to market conditions.
2.4 Segment information
In the internal reports used by the Executive Board to allocate resources and monitor performance targets, Achmea
Hypotheekbank is regarded as one single operating segment.
2.5 Recognition and derecognition
An asset is recognised on the consolidated statement of financial position when it is probable that the future economic
benefits will flow to Achmea Hypotheekbank and the asset has a cost or value that can be measured reliably. A liability is
recognised on the consolidated statement of financial position when it is probable that an outflow of resources embodying
economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take
place can be measured reliably.
Financial assets (or parts of a financial assets) are derecognised when the contractual right to receive cash flows from
the financial assets have expired or where Achmea Hypotheekbank has transferred substantially all risks and rewards of
ownership. If Achmea Hypotheekbank neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset, it derecognises the financial asset if it no longer has control over the asset. In transfers where control over the
asset is retained, Achmea Hypotheekbank continues to recognise the asset to the extent of its continuing involvement.
The extent of continuing involvement is determined by the extent to which Achmea Hypotheekbank is exposed to changes in
the value of the asset.
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