• Netherlands is included in the IFAD GAAP Convergence Studies
• National Professional Organisation Website: Koninklijk Nederlands Instituut van Registeraccountants
• Standard Setter Website: Raad voor de Jaarverslaggeving
• Response to IFAC Member Body Survey on Standard Setting and Regulation

Update for November 2009
Update for August 2009
Update for May 2008
Update for January 2008
Update for February 2007
Update for July 2003
Update for January 2003
Update for January 2002
Update for October 2001

Adoption of IFRSs in Europe Effective in 2005

In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to:

• Require or permit IFRSs for unlisted companies.
• Require or permit IFRSs in parent company (unconsolidated) financial statements.
• Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007.
• Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007.

The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) – Iceland, Liechtenstein, and Norway.

The Netherlands is an EU Member State. Consequently, Dutch companies companies listed in an EU/EEA securities market will follow IFRSs starting in 2005. In January 2005, the European Commission published the results of a survey of the 25 EU member states and the 3 EEA member states on their plans regarding the four options above. For information on each country's plans, click to download:

• Table on Use of IFRS Options in 27 Member and 3 EEA States (PDF 52k)

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'):

• "in accordance with International Financial Reporting Standards as adopted by the EU" or
• "in accordance with IFRSs as adopted by the EU".

Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case.

Comparison of IFRS for SMEs and Dutch GAAP 2009

The Deloitte IFRS Centre in The Netherlands has published the first edition of IFRS for SMEs and NL GAAP: Showing You the Key Differences. This 16-page booklet sets out some of the key differences between IFRS for SMEs and Dutch GAAP for annual periods beginning on or after 1 January 2009. It also includes general information about the IFRS for SMEs and the applicability of the IFRS for SMEs by Dutch legal entities. Click to download IFRS for SMEs and NL GAAP: Showing You the Key Differences (PDF 578k).

Comparison of IFRSs and Dutch GAAP 2009

The Deloitte IFRS Centre of Excellence in The Netherlands has published the second edition of IFRSs and NL GAAP: A Pocket Comparison. This 18-page booklet sets out some of the key differences between IFRSs and Dutch GAAP for annual periods beginning on or after 1 January 2009. It also includes new and revised IFRSs issued before 31 May 2009 that are not yet effective for annual periods beginning on or after 1 January 2009. Click to download IFRSs and NL GAAP: A Pocket Comparison (PDF 183k).

Comparison of IFRSs and Dutch GAAP 2008

The Deloitte IFRS Centre of Excellence in The Netherlands has published IFRSs and NL GAAP: A Pocket Comparison. This 19-page booklet sets out some of the key differences between IFRSs and Dutch GAAP for annual periods beginning on or after 1 January 2008. It also includes new and revised IFRSs issued before 31 March 2008 that are not yet effective for annual periods beginning on or after 1 January 2008. Click to download IFRSs and NL GAAP: A Pocket Comparison (PDF 302k).

Deloitte Netherlands webcasts on IFRSs

Deloitte Netherlands has published two webcasts (in Dutch) about IFRS 7 and the Top 10 Attention Issues for 2007 Financial Statements. The webcasts can be downloaded free of charge on computer or ipod/mp3-format. In March and May 2008 two more webcasts will follow about collective defined contribution schemes and business combinations. Click here www.deloitte.nl/ifrs to access the Deloitte Netherlands webcasts (30 minutes each).

IFRS Implementation Review Panel Formed in Netherlands

The Netherlands Authority for Financial Markets (Autoriteit Financiele Markten or AFM) has formed a Financial Reporting Committee of 12 external IFRS experts to advise the Authority on the application of IFRSs and the supervision thereof. Click for AFM's Press Release (PDF 15k).

The AFM is responsible for supervising the financial reporting of Dutch listed companies. They have announced that their 2007 reviews of the 2006 financial reporting will focus on the application of IAS 12 Income Taxes and IAS 7 Cash Flow Statements. Click for Letter Sent to Listed Companies (PDF 283k) setting out the results of AFM's review of 2005 reports and example questions for 2006.

Netherlands Accounting Guideline for Pensions Moves Closer to IFRS

In August 2002, the Netherlands Council for Annual Reporting (CAR) published a discussion memorandum on the treatment of pensions in the annual financial statements. A special working group of the CAR and the Social Economic Council (Stichting voor de Arbeid) have proposed changes and amendments to this memorandum. The CAR agreed with these changes and has decided to publish the proposed text as a final Guideline. This Guideline is based on the actual IAS 19, Employee Benefits. According to the CAR the final text does both justice to the terms of IAS 19 as well as to the particulars of the pension situation in the Netherlands.

The Guideline intends to give a direction to the consideration of the terms under which pension plans would qualify as a defined-contribution plan or as a defined-benefit plan. The Guideline also contains clear indications on how and when in determining the pension obligation one shall take into account indexing of pensions.The Guideline will become effective for financial statements starting on or after 1 January 2005. Whether this Guideline will also be applicable to small or medium-sized companies is currently under discussion. A number of exemptions for these types of companies is currently under investigation by a working group of the CAR.The actual text of the Guideline is expected to be published in August. Before this date, the final text will not be made public.

New Annual Reporting Guidelines Issued

In November 2002, the Council for Annual Reporting in the Netherlands issued new guidelines for annual reporting. These new guidelines will increase convergence of the Netherlands Standards with IAS. The following draft guidelines were made final and become effective for financial statements covering periods beginning on or after 1 January 2003.

• RJ 140, Changes in Accounting Policies, RJ 145, Change of Estimates, and RJ 150, Fundamental Errors are all based on IAS 8, Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policy. The guidelines allow in more instances the effect of these instances to be reported by adjusting retained earnings. RJ 150 prescribes that fundamental errors can only be reported by adjusting retained earnings where IAS 8 allows alternative treatment of the correction of a fundamental error to be included in the determination of net profit or loss for the current period.
• RJ 160, Events after the Balance Sheet Date, is revised based on IAS 10, Events After the Balance Sheet Date, taking into account Dutch company legislation.
• RJ 213, Investment Property, is now almost completely based on IAS 40, Improvement Property.
• RJ 270, Profit and Loss Account, was amended to bring about further convergence with IAS 23, Borrowing Costs.
• RJ 330, Related Parties, is now fully in line with IAS 24, Related Party Disclosures.

Draft guidelines were added mainly based on further incorporating IAS 1, Presentation of Financial Statements and IAS 11, Construction Contracts and IAS 19, Employee Benefits. Furthermore, amendments were made to (draft) guidelines incorporating SIC 17, Equity - Cost of an Equity Transaction, SIC 27, Evaluating the Substance of Transactions in the Legal Form of a Lease, SIC 29, Disclosure - Service Concession Agreements, SIC 30 Reporting Currency - Translation from Measurement Currency to Presentation Currency, SIC 31 Revenue - Barter Transactions Involving Advertising Services, SIC 32 Intangible Assets - Web Site Costs and SIC 33 Consolidation and Equity Method - Potential Voting Rights and Allocation of Ownership Interests.

The draft guideline on Financial Instruments has not yet been made final. The Council has decided to wait for the changes proposed by the IASB in the Exposure Draft of Proposed Amendments to IAS 32, Financial Instruments: Disclosure and Presentation, and IAS 39, Financial Instruments: Recognition and Measurement. As soon as these will be incorporated into a final Standard, the Council will incorporate these into a final guideline.

Due to the large number of comments the Council has received on its draft guideline on Post-Employment Benefits it has decided to issue a discussion memorandum on the subject. The discussion memorandum proposes a further convergence with IAS 19, Employee Benefits. A final guideline is not expected to come into effect before the year 2005.

New Annual Reporting Guidelines Issued in The Netherlands

On 8 November 2001, the Council for Annual Reporting in The Netherlands issued new guidelines for annual reporting applicable for the year 2002. Additionally a number of Draft Guidelines have been issued. These new and draft guidelines will result in increased convergence with IAS. The new Guidelines include (among others) the following requirements:

• Stock options granted to management and staff must be recognised as (staff) costs and expensed if, at the date the options are granted, the exercise price is below the market price (that is, the options having a positive intrinsic value). When there is a subsequent change in the exercise price, thereby leading to the option having a positive intrinsic value, an expense will arise at the date of this subsequent change.
• The disclosure of EBITA (Earnings Before Interest, Taxes and Amortisation) and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) within the income statement is prohibited. The use of these concepts is only allowed in the notes to the financial statements.
• Specific guidance on budgets, the composition of equity, classifications to be made in the income statement, as well as the contents of the management board's report for not-for-profit organisations.

The new Draft Guidelines (currently open for comment) include:

• Extensive guidance on the recognition and measurement of financial instruments, in order to converge closer to IAS 39.
• Further restrictions on the classification of unusual events as 'extraordinary items' have been imposed, in order to increase compliance with IAS.
• The effects of a change in accounting policy can no longer be recognised as extraordinary items, when recognised in the profit or loss. The benchmark treatment to report the effects of changes in accounting policies through equity still exists.
• The effects of changes in estimates can no longer be accounted for retrospectively but need to be accounted for on a prospective basis.
• Proposed dividends cannot be included in the balance sheet where they have not been approved at year-end. The proposed dividends should be separately disclosed in equity.
• A new benchmark treatment for the measurement of investments in real estate: fair value, without any depreciation is now the preferred method. The allowed alternative treatment remains cost less accumulated depreciation. This new draft looks for greater convergence with IAS 40.

For further information refer to the Press Release (in Dutch).