PRINCIPAL ACCOUNTING POLICIES 1. Relation with the annual accounts of the Association AFCAjax NV will continue the activities of the Vereniging Amsterdamsche Football Club "Ajax", Amsterdam (hereafter to be referred: Association). The assets and liabilities of the Association have been contributed to the NV, a public limited company, with the exception of the licence of the KNVB. As of January 1, 1998, the activities will be managed for the account and risk of this NV. The pro forma consolidated financial statements of AFC Ajax NV reflect the financial position and results as if AFC Ajax NV had already existed as from July 1, 1994. The amounts in the pro forma consolidated financial statements for 1996/1997, 1995/1996 and 1994/1995 have been derived from the adopted annual accounts of the Vereniging Amsterdamsche Football Club "Ajax", Amsterdam. Both the Association's and NV financial year runs from July 1 through June 30. The amounts for the six month period ended December 31, 1997 have been derived from the administration of the Association. Compared to the annual accounts of the Association, the following adjustments were made. - The consideration for the players' transfer and signing on fees, together with the associated costs of these contracts, have been capitalised as from the date of the binding agreement as "transfer and signing on fees", shown at a maximum of the expense to third parties less depreciation. Depreciation is calculated so as to write off the expenditures in a straight line over the term of the player's contract. In the annual accounts of the Association, such consideration was immediately charged to the profit and loss account. Moreover, in the Association's annual accounts, revenues and costs related to transfers which took place immediately after the season and in the new financial year, but before the release of the annual accounts, were incorporated into the annual accounts of the previous financial year. - The tax authorities have recently announced that the Association is liable for corporate income taxes as from July 1, 1994. In the adopted accounts of the Association, these taxes were not accounted for. Furthermore, current and deferred tax liabilities and deferred tax assets have been included in the balance sheet. - Based on information obtained after the annual accounts of the Association were adopted, some adjustments were made in the calculation of a number of provisions concerning the risks present as at the balance sheet date. 2. KNVB Licence According to the current regulations of the Dutch Football Association (KNVB), licences to play in football competitions can only be granted to associations and foundations. The "Bestuur Betaald Voetbal" (the board of directors professional football of the KNVB) has made a decision that will enable the Association to operate under this licence. The following structure is suggested: the Association will hold the licence, while the NV will make its means available to enable the Association to make use of the licence. All possible profits or losses will be for the account and risk of the NV. 3. Consolidation The pro forma consolidated financial statements as from the financial year 1996/1997 onwards include the accounts of AFC Ajax NV and the group companies in which AFC Ajax NV holds, directly or indirectly, more than half of the voting capital or in which, due to supplementary regulations, AFCAjax NV has a decisive say in matters of management and financial policy. The assets, liabilities, results and cash flows of these companies are wholly consolidated.

AJAX ARCHIEF

Jaarverslagen Ajax NV (vanaf 1997) | 1998 | | pagina 60