Notes to the parent company financial statements: Note 1, 2
Financial statements
1 SIGNIFICANT ACCOUNTING POLICIES
Change in accounting policies
Basis of preparation
Investments in subsidiaries, joint ventures and associates
2 INTANGIBLE ASSETS
2005 1
-
-
Euros in millions, except where otherwise indicated.
Effective January 1, 2005 the Netherlands Civil Code has been changed, allowing companies to use IFRS measurement
principles as adopted by the EU and applied in the consolidated financial statements as a basis for determining net income
and net equity values of group companies in the parent company financial statements prepared in accordance with the
Netherlands Civil Code. Ahold changed its accounting policies for measuring the net income and the net invested equities in
group companies accordingly, as a result of which the consolidated income (loss) and the consolidated shareholders equity in
the consolidated financial statements under IFRS are similar as the net income (loss) and the shareholders' equity in these
parent company financial statements. Comparative figures for 2004 have been adjusted to reflect this change in accounting
policy, resulting in an increase of net income 2004 by EUR 1,321 and a decrease of shareholders' equity as of January 2,
2005 by EUR 712, as compared to the net income 2004 and the shareholders' equity as of January 2, 2005 as reported in
the 2004 parent company financial statements.
The parent company financial statements of Ahold have been prepared in accordance with Part 9, Book 2 of the Netherlands
Civil Code. In accordance with subsection 8 of section 362, Book 2 of the Netherlands Civil Code, the measurement principles
applied in these parent company financial statements are the same as those applied in the consolidated financial statements
(see Note 3 to the consolidated financial statements).
The financial data of the parent company are included in the consolidated financial statements. As allowed by section 402,
Book 2 of the Netherlands Civil Code, the statements of operations of the parent company are presented in condensed form.
Subsidiaries are entities over which the Company has control. Control is the power to govern the financial and operating
policies, generally accompanying a shareholding of more than one half of the voting rights. Joint ventures are entities over which
the Company exercises joint control with a third party (or parties) co-investor(s). Associates are entities over which the Company
exercises neither control, nor joint control, but does have a significant influence on the financial and operating policies.
Investments in subsidiaries, joint ventures and associates are accounted for using the net equity value. Ahold calculates the net
equity value using the accounting policies as described in Note 3 to the consolidated financial statements. The net equity value
of subsidiaries comprises the cost, excluding goodwill, of Ahold's share in the net assets of the subsidiary, plus Ahold's share in
income or losses since acquisition, less dividends received. Goodwill paid upon acquisition of an investment in a joint venture
or associate is included in the net equity value of the investment and is not shown separately on the face of the balance sheet.
2004
Carrying amount beginning of year - 1
Acquisitions/additions
Impairment losses
1
(2)
Carrying amount
At cost
Accumulated amortization and impairment losses
39
(39)
Carrying amount end of year - -
Intangible assets mainly consisted of brand names.
212
