TomTom 2010 Annual Report Download - page 91

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p 89 / TomTom Annual Report and Accounts 2010
Notes to the Company Financial Statements
1. PRESENTATION OF FINANCIAL STATEMENTS AND RECOGNITION AND MEASUREMENT PRINCIPLES
The description of the activities of TomTom NV (the “company”) and the company structure, as included in the notes to the Consolidated
Financial Statements, also apply to the Company Financial Statements.
In accordance with section 362.8 of Part 9 of Book 2 of the Netherlands Civil Code, the company has prepared its Company Financial
Statements in accordance with Part 9 of Book 2 of the Netherlands Civil Code, applying the principles of recognition and measurement
as adopted in the Consolidated Financial Statements (IFRS). Investments in subsidiaries are accounted for using the equity method. For more
information on the accounting policies applied, and on the notes to the Consolidated Financial Statements, please refer to page 59 to 86.
2. INVESTMENTS IN SUBSIDIARIES
The movements in the Investments in subsidiaries were as follows:
Investments in
(€ in thousands) subsidiaries
Balance as at 31 December 2008 2,835,649
Movements 2009
Acquisition of subsidiary 15,265
Currency translation differences -1,436
Transfer to stock compensation reserve 5,688
Other direct equity movements 68
Result of subsidiaries 164,254
Balance as at 31 December 2009 3,019,488
Movements 2010
Currency translation differences 1,071
Transfer to stock compensation reserve 12,361
Other direct equity movements 2,654
Result of subsidiaries 138,255
Balance as at 31 December 2010 3,173,829
A list of subsidiaries and affiliated companies prepared in accordance with the relevant legal requirements (the Netherlands Civil Code
Book 2, Part 9, Sections 379 and 414) is deposited at the office of the Chamber of Commerce in Amsterdam, the Netherlands.
3. OTHER INCOME AND EXPENSES AFTER TAX
Other income and expense consists of the remuneration of the Management Board and the Supervisory Board, the interest expense on the
borrowings and the interest income on the company’s outstanding cash balances. For the remuneration of the Management Board and
Supervisory Board, please refer to note 7 of the Consolidated Financial Statements.
4. DEFERRED TAXATION
As at 31 December 2010, the company has a deferred tax asset of €2.7 million (2009: €0.5 million) and a deferred tax liability of €2.7 million
(2009: €4.7 million). The deferred tax asset and deferred tax liability result from temporary differences between the tax and accounting
treatment of the stock compensation expenses and the borrowing costs respectively. The movement of the deferred tax positions during
the year were the result of changes/reversals of temporary differences and have been charged/released to the income statement.
5. SHAREHOLDERS’ EQUITY
For the statement of changes in consolidated equity for the year ended 31 December 2010, please refer to page 58 in the Consolidated
Financial Statements. Additional information on the shareholders’ equity is disclosed in note 21 in the Consolidated Financial Statements.