8. Goodwill The group companies included in the consolidated financial statements as from the financial year 1996/1997 are: - Teucrus B.V.: intermediate holding company (participation 100%). - Football Merchandising and Promotion Zuid Oost B.V.: merchandising activities (participation 100%). - Tekmessa B.V.: exploitation of image rights of players (participation 100%). - Exekias B.V.: running of the Ajax museum (participation 100%). - Eurysakes B.V.: conducting of Internet and mail order activities (participation 100%). 4. 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 attributed to the year to which they relate. 5. Foreign currencies Balance sheet items in foreign currencies are translated at the market rate as at the balance sheet date. Transactions expressed in foreign currencies are converted at the relevant exchange rates as at the date of transaction. Exchange differences are taken to the profit loss account. 6. Income taxes 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. Deferred tax assets and liabilities resulting from temporary differences between the commercial and fiscal capital are stated in the balance sheet under 'Deferred taxation'. The current tax liability is stated under 'Taxation and social security contributions'. Until June 30, 1994 the Association was not liable to corporation tax. The fiscal opening balance sheet was drawn up as at July 1, 1994, on which agreement was reached with the tax authorities. The advantage of the higher fiscal valuation of the transfer and signing on fees and tangible fixed assets and the relating deferred tax asset is included in equity as at July 1, 1994. Deferred tax assets and liabilities are stated at their nominal value based on the current tax rates. 7. 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 depreciated 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 agreements. The remaining capitalised 'transfer and signing on fees' for terminated players' contracts are charged to the profit 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. 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. 9. Intangible fixed assets


Jaarverslagen Ajax NV (vanaf 1997) | 1998 | | pagina 61