See the consolidated statement of changes in equity for the movements in equity.
The authorised capital as at both 31 December 2019 and 31 December 2018 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 and the profit appropriation for 2018 were adopted in the shareholders’ meeting of 18 March 2019. In accordance with the proposal, an amount of €69 million from the profit for the reporting period of €106 million was added to the reserves and an amount of €37 million was distributed as dividend.
The movements in the other reserves were as follows:
(in millions of euros) | Reserve for translation differences | Hedging reserve | Fair value reserve | Actuarial reserve | Revaluation reserve for associates | Total other reserves |
Balance as at 31 December 2017 | -14 | -4 | - | - | 15 | -3 |
Adjustments due to application of IFRS 9 | 45 | 45 | ||||
Revised balance as at 1 January 2018 | -14 | -4 | 45 | - | 15 | 42 |
Other comprehensive income | - | -3 | - | - | -3 | |
Other changes | - | - | - | - | - | |
Balance as at 31 December 2018 | -14 | -7 | 45 | - | 15 | 39 |
Adjustments due to application of IFRS 16 | -2 | -2 | ||||
Revised balance as at 1 January 2019 | -14 | -7 | 45 | - | 13 | 37 |
Other comprehensive income | 2 | 2 | 7 | - | - | 11 |
Other changes | - | - | - | - | - | |
Balance as at 31 December 2019 | -12 | -5 | 52 | - | 13 | 48 |
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 an amount of €135 million of the net profit of €208 million to the general reserves and to distribute the remaining €73 million as dividend.
Minority interests
Minority interests include minority interests as at 31 December 2019 in the equity of the group company Abellio Westmidlands Ltd.; this is not material.
Accounting policies
Translation reserve
The translation reserve consists of all exchange rate differences arising as a result of the translation of the financial statements of foreign operations and the translation 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 investments measured at fair value – other comprehensive income until the investment is derecognised.
Actuarial reserve
The actuarial reserve relates 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 the equity of associates accounted for using the equity method.
General reserve
The recognition in equity is after deduction of taxes. Dividends are recognised in the period in which the profit appropriation is decided upon and the dividends are declared.