Unilever 2012 Annual Report Download - page 137

134 Unilever Annual Report and Accounts 2012Financial statements
NOTES TO THE OMPANY AOUNTS UNILEVER NV
Accountng nformaton and polces
Bass of preparaton
The company accounts of Unilever N.V. comply in all material
respects with legislation in the Netherlands. As allowed by Article
362.1 of Book2 of the Civil Code in the Netherlands, the company
accounts are prepared in accordance with United Kingdom
accounting standards, unless such standards conflict with the
Civil Code in the Netherlands which would in such case prevail.
The accounts are prepared under the historical cost convention
unless otherwise indicated, in accordance with theaccounting
policies set out below which havebeen consistentlyapplied.
Accountng polces
The principal accounting policies are as follows:
Intangble assets
Intangible assets are amortised in the profit and loss account
over their expected useful lives of up to a maximum of 20 years.
These assets are held at cost less accumulated amortisation.
They are subject to review for impairment in accordance with
United Kingdom Financial Reporting Standard 11 ‘Impairment
of Fixed Assets and Goodwill’ (FRS 11). Any impairment is
charged to the profit and loss account as it arises.
Fxed nvestments
Shares in group companies are stated at cost less any amounts
written off to reflect a permanent impairment. Any impairment
ischarged tothe profit and loss account as it arises. In
accordance with Article 385.5 of Book 2 of the Civil Code in
the Netherlands, Unilever N.V. shares held by Unilever N.V.
subsidiaries are deducted from the carrying value of those
subsidiaries. This differs from the accounting treatment under
UKGAAP, whichwould require these amounts to beincluded
within fixed investments.
Fnancal nstruments
NV accounting policies under United Kingdom generally
accepted accounting principles (UK GAAP) namely FRS 25
‘FinancialInstruments: Presentation’, FRS 26 ‘Financial
Instruments: Measurement’ and FRS 29 ‘Financial Instruments:
Disclosures’ are thesame as the Unilever Group’s accounting
policies under International Financial Reporting Standards
(IFRS) namely IAS 32 ‘Financial Instruments: Presentation’,
IAS 39 ‘Financial Instruments: Recognition and Measurement’
and IFRS 7 ‘Financial Instruments: Disclosures’. The policies
are set out under the heading ‘Capital and funding’ in note 15
to the consolidated accounts on pages 112 to115. NV is taking
the exemption for not providing all the financial instruments
disclosures, because IFRS 7 disclosures are given in note 15
to note 18to the consolidated accounts on pages 112 to 124.
Deferred taxaton
Full provision is made for deferred taxation on all significant
timing differences arising from the recognition of items for
taxation purposes in different periods from those in which they
are included in NV accounts. Full provision is made at the rates
of tax prevailing at the year end unless future rates have been
enacted or substantively enacted. Deferred tax assets and
liabilities have not been discounted.
Own shares held
Own shares held by NV are accounted for in accordance with
Dutch law and UK GAAP, namely FRS 25 ‘Financial Instruments:
Presentation’. All differences between the purchase price of the
shares held to satisfy options granted and the proceeds received
for the shares, whether on exercise or lapse, are charged to other
reserves. In respect to option plans, disclosures are given in
note 4C to the consolidated accounts on pages 101 to 102.
Retrement benefts
Unilever N.V. has accounted for pensions and similar benefits
under the United Kingdom Financial Reporting Standard 17
‘Retirement benefits’ (FRS 17). The operating and financing costs
of defined benefit plans are recognised separately in the profit
andloss account; service costs are systematically spread over
theservice lives of employees, and financing costs are recognised
in the periods in which they arise. Variations from expected costs,
arising from the experience of the plans or changes inactuarial
assumptions, are recognised immediately in equity. The costs
of individual events such as past service benefit enhancements,
settlements and curtailments arerecognised immediately in
the profit and loss account. The liabilitiesand, where applicable,
the assets of defined benefit plans arerecognised at fair value
in the balance sheet. The charges to the profit and loss account
for defined contribution plans are NV contributions payable and
theassets of such plans are not included inNV’s balancesheet.
Dvdends
Under Financial Reporting Standard 21 ‘Events after the
Balance Sheet Date’ (FRS 21), proposed dividends do not meet the
definition of a liability until such time as they have been approved
by shareholders at the Annual General Meeting. Therefore, we do
not recognise a liability in any period for dividends that have been
proposed but will not be approved until after the balance sheet
date. This holds for external dividends as well as intra-group
dividends paid to the parent company.
Taxaton
Unilever N.V., together with certain of its subsidiaries, is part of
atax grouping for Dutch corporate income tax purposes, Unilever
N.V. is the head of the fiscal unity. The members ofthe fiscal entity
are jointly and severally liable forany taxes payable by the Dutch
tax grouping.
Provsons
Provisions are recognised where a legal or constructive obligation
exists at the balance sheet date, as a result of a past event, where
the amount of the obligation can be reliably estimated and where
the outflow of economic benefit is probable.
Intangble assets
 mllon
2012
€ million
2011
Intangible assets(a) 1,010 –
(a) The increase in intangible assets relates to an internal transfer of the
economic ownership of trademarks rights amounting to €1,010 million
(after deduction of the 2012 depreciation) of which €465 million has been
transferred at book value.
Fxed nvestments
 mllon
2012
€ million
2011
1 January 28,426 27,294
Additions –1,178
Decreases(b) (26) (46)
31 December 28,400 28,426
(b) Thedecrease relates to the divestment of shares in a group company.