ANNUAL REPORT 2004 - Breevast

FI NANCIAL STATEMENTS 2004Accounting policies for consolidation, valuation and determination of resultsBREEVAST ANNUAL REPORT 200422GENERALThe 2004 financial statements include both the financialstatements of the company and the consolidated financialstatements. The accounting policies and the method fordetermining the results of the consolidated financial statementsand the company financial statements are identical.Consequently, the shareholders’ equity and the result of thefinancial statements of the company are the same as theconsolidated figures. All amounts included in this annualreport are in thousands of euros unless otherwise stated.CONSOLIDATION POLICYThe companies in which Breevast B.V. has direct or indirectfinal control have been fully included in the consolidatedfinancial statements.Third-party shares in the group equity are stated separately.A summary of group companies and subsidiaries is includedon pages 40 and 41. For the company financial statements,the opportunity afforded by Article 402, Book 2 of theNetherlands Civil Code has been employed to prepare asummary profit and loss account.Newly acquired participating interests are included in theconsolidation from the moment that Breevast B.V. has gainedcontrol. In the fourth quarter of 2004, control has beengained of Tanforan Park Shopping Center, LLC due to thebuy-out of a joint shareholder. Therefore, the balance sheetand profit and loss account of this company are included inthe consolidated figures with effect from the fourth quarterof 2004.The results denominated in foreign currency are translatedon the basis of the average exchange rate for the year underreview.ACCOUNTING POLICIES FOR THEVALUATION OF ASSETS AND LIABILITIESProperties under management and properties under developmentare carried at fair value. The fair value of real estate isdetermined by means of external and internal appraisals atthe market value minus the sales costs. Each year, 25% ofthe portfolio is valued externally on a rotational basis.The contractual annual rent prevails as the basis for thedetermination of the market value. In addition, vacantproperty, the state of repair, long lease, and differencesbetween the market rent and the contractual rent are takeninto account.In the case of property under development that will not becompleted or sold in the near future, the determination ofa fair value will be accompanied by a high degree of uncertainty.In these cases, valuation is based on the historicalcost.Changes in the fair value of the properties under managementand under development are incorporated in the profitand loss account under the unrealized capital gains oninvestments item. The ensuing deferred taxes are added tothe provisions via the profit and loss account.Subsidiaries are stated at net asset value, determined inaccordance with the relevant policies prevailing atBreevast B.V.FOREIGN CURRENCIESAssets and liabilities denominated in foreign currencies aretranslated into the prevailing exchange rates on the balancesheet date. The differences emanating from this are eithercredited or debited directly to the other reserves. In the caseof conversion, the exchange difference originating from thiswill be either to the credit or debit of the shareholders’ equity.Receivables are carried at face value, less any provisionsdeemed necessary. This item includes receivables that areexpected to be collected within one year.Other tangible fixed assets are carried at purchase price lessdepreciation on a time-weighted basis.