Transfer and signing fees
(x NLG 'ooo) 01/07/97- 96/97 95/96 94/95
31/12/97
Depreciation transfer income result (10,134) (10,643) (5,008) (6,459)
Result on transfer and signing fees 20,917 n,337 6,763 8,909
Ajax has capitalised the total of transfer fees, signing fees and other costs of its players
as 'Transfer and signing fees', and depreciates this using straight-line depreciation over
the contract period of the player. These depreciations increased strongly as a result of
investments that have been made in the financial year 1996/1997. These investments are a
result of the Bosman ruling and the increase of the number of players in the selection.
The transfer income result is defined by the difference between a player's transfer fee and
his book value.
Financial income and costs
(x NLG '000) 01/07/97- 96/97 95/96 94/95
31/12/97
Interest received and similar income 1,352 4,826 3,268 2,415
Change in value of securities 991
Balance 2,343 4,826 3,268 2,415
The interest received and similar income is mainly the interest received on the bond
portfolio. Similar income is among others the result on the U.S. dollar accounts due to
currency fluctuations.
An important part of the changes in value of securities is the change in value of the bond
portfolio. This change has not been accounted for in the pro forma consolidated financial
statements of the financial years 1994/1995, 1995/ 1996 and 1996/1997, as the bond
portfolio was valued at historical cost in these years.
Taxation on result from ordinary activities
Arrangements have been made with the Dutch Tax Authorities as to the corporate taxes
owed from 1 July 1994. Under these arrangements, Ajax must pay NLG 12 million in taxes
for the period between 1 July 1994 and 30 June 1997, which amounts to 12% of the total
pre-tax profit for this period. The tax amount shown in the profit and loss account is
significantly higher: NLG 31.4 million, approximately 35%. Part of the difference, NLG 15.9
million, was income due to a fiscal revaluation at the start of the Company paying taxes
as from July 1, 1994. This profit has been included in to the equity position, and is
therefore not included in the P&L statement. Another part of the difference between the
total tax liability and the liability shown in the consolidated balance sheet is caused by
facilities that enable extension of payment, sometimes over a large number of years.
Extraordinary income and costs
(x NLG '000) 01/07/97- 96/97 95/96 94/95
31/12/97
Extraordinary income - - 20,325
Taxation on extraordinary result - - (7,114)
Extraordinary result after taxation - - 13,211
The extraordinary income in the financial year 1995/1996 reflects the disposal of the long-
lease contract for the 'De Meer' stadium and the 'Voorland' sports park.
