Principles of valuation of assets and liabilities General accounting principles Unless otherwise indicated, assets and liabilities are stated at historical cost, and are reported in thousands of guilders. All assets and liabilities are valued at nominal value, unless otherwise indicated. Revenues and costs are attri buted to the year to which they relate. Transfer and signing on fees Transfer and signing on fees and related costs regarding players' contracts for which there are binding agreements have been capitalised as 'transfer and signing on fees' at a maximum of the expense to third parties, less depreciation on a straight-line basis. Transfer and signing on fees are depre ciated over the duration of the contract. The duration of the contracts is generally between 1 and 5 years. As at the balance sheet date, all contracts are assessed by the management for permanent impairment. The risk of unforeseen reductions in the value are not covered by insurance agree ments. The remaining capitalised 'transfer and signing on fees' for terminated players' contracts are charged to the profit and loss account in the same period as in which sales revenues are recognised. Reimbursements for continuation of a contract are assessed in the same way as the consideration for transfers and signing on. Goodwill The excess of the acquisition cost of subsidiaries and associated companies over the net asset values of the company's share in their net assets as at the dates of acquisition constitutes goodwill. This goodwill is depreciated on a straight-line basis over 5 years. Intangible fixed assets Logo, brand name, image rights and television rights have been obtained at no cost from the Association and have been valued at nil. Assets and liabilities are offset within the same tax unity. The current tax liability is stated under 'taxation and social security contributions'. Deferred tax assets and liabilities are stated at their nominal value based on the current tax rates. Principles of determination of result Net turnover The turnover recognised consists of the goods and services supplied to third parties less sales discounts, returns and value-added taxes. Cost of sales The cost of sales consist of the cost of Ajax products which are sold and the costs of the exploitation of image rights. Social security contributions Social security contributions also include pension costs. The pension plan of the Stichting Contractspelersfonds KNVB (CFK) covers in principle all contract players. The pension plan of the Stichting Pensioenfonds voor Voetbaloefenmeesters covers trainers and coaches. The pension arrangements of the other staff are with an insurance company. A defined contribution plan applies to all pension schemes referred to above. Taxation Taxation on profits is determined on the basis of the result according to the profit and loss account, the current tax rates and allowing for permanent differences between the result according to the profit and loss account and the fiscal result. Tangible fixed assets Tangible fixed assets are carried at cost less depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life, taking into account residual value. Buildings 10 to 20 years Machinery and equipment 5 years Other fixed assets 3 to 10 years Financial fixed assets Participations in which AFC Ajax NV exercises a significant influence on the business and financial policy are valued at net asset value. Other participations are valued at historical cost net of a provision for permanent impairment. Stock Stock are stated at historical cost using the fifo (first in, first out) principle or market value when this value is lower. Receivables Receivables are stated at nominal value less a provision for bad debts. Securities Trading securities are valued at their market price on the stock exchange as at the balance sheet date. Unrealised gains and losses are reflected in the profit and loss account. Deferred taxation Deferred tax assets and liabilities resulting from temporary differences between the commercial and fiscal capital as well as from future tax loss carry overs are stated in the balance sheet under 'deferred taxation'. 17


Jaarverslagen Ajax NV (vanaf 1997) | 1997 | | pagina 92