annual report - Royal Haskoning

explanatory notes
financial review
determination of result
General
The result is determined as the difference between the realisable value of work done and the costs and other outgoings
incurred during the year. Profits are accounted for in the year in which they are realised; losses are accounted for as soon
as they become foreseeable. As far as projects are concerned, profit is accounted for on the basis of the percentage of
completion method.
Net turnover
Net turnover is regarded as the amounts (exclusive of VAT) charged to third parties for the services provided during the year
under review.
Operating charges
Operating charges are attributed to the year to which they relate.
Depreciation
Depreciation on tangible fixed assets is calculated on the basis of fixed percentages of the purchase cost.
Taxes
Taxes on the results are calculated by applying the applicable rates to the results of the financial year according to applicable
regulations, taking into consideration the permanent differences between the profit for financial reporting purposes and
that based on the tax requirements. These differences are included in the tax on profit from ordinary activities.
Financial risks
The exchange rate risk on (foreign) projects relating to the more common currencies is covered on the futures market or
by option contracts for long-term projects. These are based on the group-wide cash flows in foreign currencies. The risk
connected with currencies for which there is no direct futures market is covered where possible either by taking a position
in a related currency.
Guarantees, interest and credit risks
Bank guarantees are regularly issued in connection with projects, often for a deposit but sometimes also as a performance
guarantee. Some clients require the parent company to guarantee the execution of projects. Such guarantees are limited as
much as possible by pursuing an internal balance sheet policy whereby the solvency of the operating companies is sufficient
for them to operate independently in the market.
Other balance sheet risks
With a view to the continuity of the business, the exchange rate risk is not covered for subsidiary companies outside the
euro zone, unlike the case with projects.
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