Annual Report 2009 Royal BAM Group nv

170
2009
Notes to the statutory financial statements
1. Summary of significant accounting policies
1.1 General
The statutory financial statements of Royal BAM Group nv are included in the consolidated financial statements and are
prepared in accordance with the legal requirements of Part 9, Book 2, of the Netherlands Civil Code. In preparing these
financial statements, the provision of Article 2:362 subsection 8, of the Civil Code is applied, under which the statutory
financial statements may be prepared in accordance with accounting policies as adopted in the consolidated financial
statements.
The exemption laid down in Article 402 Book 2 of the Netherlands Civil Code has been used with regard to the statutory
income statement of Koninklijke BAM Groep nv.
If no other policies are mentioned, the applicable policies are those of the consolidated financial statements of Royal BAM
Group nv. The consolidated financial statements of Royal BAM Group nv should be consulted for an appropriate
interpretation of the statutory financial statements.
The Group’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards
(IFRS) as endorsed by the European Union.
1.2 Financial fixed assets
Subsidiaries
Subsidiaries include all entities over which Royal BAM Group nv has directly or indirectly the power to control financial
and operational policies. Subsidiaries are accounted for based on the equity method. The equity value is measured by
valuation of assets, provisions and liabilities and determination of results based on the accounting policies of the
consolidated financial statements.
Associates with significant influence
Associates are all entities over which Royal BAM Group nv has significant influence but no control, generally accompanied
by the possession of more than one fifth of the voting shares and taking into account the potential voting rights which
are exercisable at the balance sheet date.
Investments in associates are initially recognised at cost and subsequently based on the equity method. Investments in
associates include goodwill (net of any accumulated impairment losses) identified on acquisition. Royal BAM Group nv
recognises its part of the associates’ changes in reserves and attributable results in the carrying amount of the
participating interest. The Royal BAM Group’s share in the participating interest’s results is recognised in the income
statement. The Royal BAM Group’s share in the participating interest’s changes in reserves after the acquisition date is
recognised in the Royal BAM Group’s reserves. Royal BAM Group nv does not recognise any losses exceeding the carrying
amount of the investment (including other unsecured receivables), unless it has an obligation to do so.
Associates are recognised from the date on which Royal BAM Group nv obtains significant influence, until the date on
which that significant influence ceases to exist.
Associates: recognition of losses
If the share in losses, attributable to Royal BAM Group nv, exceeds the carrying amount of the investment (including
separately presented goodwill and other unsecured receivables), further losses will not be recognised, unless the Group
has provided securities to the associate, committed to liabilities or paid on behalf of the associate. In that case, the excess
will be provided for.