Investment in unconsolidated subsidiaries and affiliates
ings The unconsolidated subsidiaries more than 20% owned by Ahold are stated at their net asset value. The
ock- other unconsolidated subsidiaries and affiliates are stated at historic cost unless there is a lasting deprecia
tion in value.
Intangible fixed assets
Goodwill paid or received upon the acquisition or sale of subsidiaries and affiliates is charged or credited
1 52 directly to stockholders' equity.
The capitalized intangible fixed assets represent the discounted value of the difference between the fair
rental value of comparable stores and the rentals actually due at the time of acquisition of the subsidiaries
or takeover of leases. Intangible assets are amortized over the remaining length of the lease agreements.
the
it of Capitalized lease commitments
This refers to the discounted value of future payments due under real estate leases.
are
;nts Provision for deferred income taxes
e of Adjustments to taxes arising from temporary differences between reported earnings and fiscal income
ers' are based on the tax rates prevailing at the end of the fiscal year. The differences arising from changes in
tax rates are charged or credited directly to stockholders' equity. The balance is stated at face value.
188 Statement of earnings General
Income and expenses are recorded in the year they pertain to.
)95 Sales
This represents sales to third parties, including the value added tax inherent in the retail sales in The
713 Netherlands.
>80
45 Net sales
177 Sales less value added tax.
Cost of sales
ite- This includes the historic or manufacturing costs of the products sold, as well as the costs of purchasing,
ax storage and transport.
iai Selling expenses
This consists of direct costs incurred in connection with selling and promotional activities.
General and administrative expenses
This includes all other costs not covered in cost of sales or selling expenses.
Income from unconsolidated subsidiaries ami affiliates
This represents Ahold's share in the results of the unconsolidated subsidiaries that are stated on the
balance sheet at net asset value, as well as dividends received or receivable with respect to the unconsoli-
;ir dated subsidiaries and affiliates that are stated at historic cost.
>le
Income taxes
This represents current and deferred taxes based on earnings before income taxes.
re Third parties
This represents the share of third-party stockholders in the net earnings of consolidated subsidiaries.
:e
37
