See the consolidated statement of changes in equity for the movements in equity.
The authorised capital as at both 31 December 2017 and 31 December 2016 consisted of 4 million ordinary shares with a nominal value of €453.78 (originally NLG 1,000). There are 2,230,738 issued and fully paid up shares. All issued shares are held by the State of the Netherlands. The shareholders are entitled to a dividend, which is declared annually based on the resolution of the General Meeting of Shareholders regarding the profit appropriation. The shareholders have the right to cast one vote per share at meetings of the company.
The financial statements for 2016 and the profit appropriation were determined in the shareholders’ meeting of 27 February 2017. In accordance with the proposal, a sum of €133.3 million from the profit over the reporting period of €212 million was added to the reserves and a sum of €78.7 million was paid out as a dividend.
The movements in the other reserves were as follows.
(in millions of euros) | Translation reserve | Hedging reserve | Fair value reserve | Actuarial reserve | Revaluation reserve for associates | Total other reserves |
Balance as at 1 January 2016 | 8 | -43 | - | 17 | 21 | 3 |
Other comprehensive income | -19 | 36 | - | 12 | 3 | 32 |
| | | | | | | |
Revised balance as at 31 December 2016 | -11 | -7 | - | 29 | 24 | 35 |
Other comprehensive income | -3 | 3 | | 19 | 2 | 21 |
| | | | | | | |
Balance as at 31 December 2017 | -14 | -4 | - | 48 | 26 | 56 |
Profit appropriation as stipulated by the Articles of Association
In accordance with Article 21 paragraph 2 of the Articles of Association of NV Nederlandse Spoorwegen, the Annual General Meeting of Shareholders decides on the appropriation of any positive balance in the income statement.
Profit appropriation proposal
A proposal will be put to the Meeting to add €15.6 million of the net profit of €24 million to the general reserves and to distribute the remaining €8.4 million as dividend.
Accounting policies
Translation reserve
The translation reserve covers all exchange-rate differences arising as a result of the conversion of the financial statements of foreign operations, as well as the conversion of liabilities hedging the company's net investment in a foreign group company.
Hedging reserve
The hedging reserve consists of the cumulative change in the fair value of hedging instruments (derivatives) where the hedged transaction has not yet taken place or the hedged position has not yet been settled.
Fair value reserve
The fair value reserve consists of the cumulative change in the fair value of available-for-sale investments until such time as the investment is no longer recognised in the balance sheet.
Actuarial reserve
The actuarial reserve refers to the actuarial gains and losses, which comprise the difference between the actual and projected changes in the pension liabilities and investment returns on pension assets (see note 29).
Revaluation reserve for associates
The revaluation reserve for associates comprises the cumulative unrealised results, recognised directly in associates’ equity in accordance with the equity method.
General reserve
The recognition in equity is after deduction of taxes. Dividends are included in the period over which the profit appropriation is decided upon and the dividends are declared.