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Rothschild & Co Continuation Finance B.V.
Annual report 2023
Conversion of amounts denominated in foreign currency
Assets and liabilities denominated in foreign currencies are translated at period-end exchange rates. Foreign
currency transactions are accounted for at the exchange rates prevailing at the date of the transactions. Gains and
losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies, are recognised in the income statement. Non-monetary balance sheet items,
which are valued at cost and resulting from transactions in foreign currencies, are translated at the rate prevailing
on the date of the transaction.
The exchange rates of the Company as at 31 December 2023 is to 1 USD = EUR 0.90600 (31 December 2022: 1
USD = EUR 0.93605).
Financial instruments
Financial instruments include both primary financial instruments, such as receivables and liabilities, and financial
derivatives. Reference is made to the recognition per balance sheet item for the principles of primary financial
instruments. Financial instruments are valued at amortised cost unless explained otherwise in the notes. Due to the
short-term nature of the financial instruments included in these financial statements, the estimated fair value for
these financial instruments approximates the book value.
Financial and non-financial contracts may contain terms and conditions that meet the definition of derivative
financial instruments. Such an agreement is separated from the host contract if its economic characteristics and
risks are not closely related to the economic characteristics and risks of the host contract, a separate instrument
with the same terms and conditions as the embedded derivative would meet the definition of a derivative, and the
combined instrument is not measured at fair value with changes in fair value recognised in the profit and loss
account.
Accounting principles
Impairment of non-current assets
On each balance sheet date, the Company assesses whether there are any indications that an asset may be
subject to impairment. If there are such indications, the recoverable amount of the asset is determined. If it is not
possible to determine the recoverable amount of the individual asset, the recoverable amount of the cash-
generating unit to which the asset belongs is determined. An impairment occurs when the carrying amount of an
asset is higher than the recoverable amount; the recoverable amount is the higher of the realisable value and the
value in use. An impairment loss is directly recognised in the income statement while the carrying amount of the
asset concerned is concurrently reduced.
The realisable value is initially based on a binding sale agreement; if there is no such agreement, the realisable
value is determined based on the active market, whereby usually the prevailing bid price is taken as market price.
For the determination of the value in use, an estimate is made of the future net cash flows in the event of continued
use of the asset / cash-generating unit; these cash flows are discounted.
If it is established that an impairment that was recognised in the past no longer exists or has reduced, the increased
carrying amount of the asset concerned is set no higher than the carrying amount that would have been determined
if no impairment value adjustment for the asset concerned had been reported. An impairment of goodwill is not
reversed.
Receivables
Receivables are initially valued at the fair value of the consideration to be received, including transaction costs if
material. Receivables are subsequently valued at the amortised cost price. If there is no premium or discount and
there are no transaction costs, the amortised cost price equals the nominal value of the accounts receivable.
Provisions for bad debts are deducted from the carrying amount of the receivable.
Cash and cash equivalents
Cash and cash equivalents represent cash in hand, bank balances and deposits with terms of less than twelve
months. Overdrafts at banks are recognised as part of debts to lending institutions under current liabilities. Cash
and cash equivalents are valued at nominal value.