Royal Decree of 17 November 1994 on the Annual Accounts of Insurance and Reinsurance Undertakings

Title

1994011372

17 NOVEMBER 1994. - [Royal Decree on the annual accounts of insurance and reinsurance undertakings] <AR 2014-10-09/04, art. 2, 008; In force: 20-10-2014> (NOTE 1: the terms "Office of Insurance Control", "Office of Control" and "Office" are replaced by either "CBFA" or "Banking, Financial and Insurance Commission", according to arts. 26 and 33 of the Royal Decree of 25 March 2003-34; In force: 01-01-2004) (NOTE: Consultation of versions prior to 30-08-1996 and updated as of 14-07-2025)

Source: Economic Affairs

Publication: 21 December 1994

Number: 1994011372

page: 31367

File number: 1994-11-17/48

Entry into force: 1 January 1995

Erratum: Publication of 29 November 1995, number 1995011379, page 32407, Errata

This text modifies the following text:

1979111202

11 archived versions

10 implementing decrees

CHAPTER I. - Scope.
Art. 1
CHAPTER II. - Form and content of the annual accounts.
Section 1. - General principles.
Art. 2, 2bis, 3-6
Section 2. - Structure of the annual accounts.
Art. 7, 7bis, 8-10
Section 3. - Specific provisions relating to the annual accounts.
Art. 11, 11bis, 12, 12bis, 13-14
CHAPTER III. - Valuation rules.
Section 1. - General principles.
Art. 15-19, 19bis
Section 2. - Acquisition value.
Art. 20-22, 22bis, 23
Section 3. - Specific rules.
Art. 24-27, 27bis, 27ter, 28-34, 34bis, 34ter, 34quater, 34quinquies, 34sexies, 34septies, 35-36, 36bis, 36ter, 36quater, 36quinquies, 36sexies CHAPTER IV. - Miscellaneous and transitional provisions.
Art. 37-50, 50bis, 50ter, 51
Annexes.
Art. N1-3N3

Text

CHAPTER I. - Scope.

Article 1.[1] This decree is applicable:
1° to insurance undertakings, within the meaning of the Law of 9 July 1975 on the control of insurance undertakings, which are of Belgian law or subject to the law of a State not a member of the European Economic Area; 2° to reinsurance undertakings, within the meaning of the Law of 16 February 2009 on reinsurance, which are of Belgian law or subject to the law of a State not a member of the European Economic Area. The application of this decree to undertakings subject to foreign law concerns only their branches and operational headquarters established in Belgium. For the application of this decree, the totality of branches and operational headquarters in Belgium is considered as one undertaking.1 ---------- (1)<AR 2014-10-09/04, art. 3, 008; In force: 20-10-2014>

CHAPTER II. - Form and content of the annual accounts.

Section 1. - General principles.

Art. 2. The annual accounts comprise the balance sheet, the income statement, and the notes, referred to in Chapter I of the Annex to this decree. These documents form a whole.
The annual accounts are drawn up in Belgian francs (or in euro). <AR 1998-12-07/37, art. 1, 003; In force: 01-01-1999>

Art. 2bis. The annual accounts may, in addition to the publication, imposed by [1 the Companies Code]1, in the currency in which they are drawn up in application of Article 2, be published (...) in the currency of a Member State of the Organisation for Economic Co-operation and Development, using the exchange rate on the balance sheet closing date. This rate is indicated in the notes. <AR 1998-12-07/37, art. 2, 003; In force: 01-01-1999> ---------- (1)<AR 2014-10-09/04, art. 4, 008; In force: 20-10-2014>

Art. 3. The annual accounts must give a true and fair view of the assets, financial position, and results of the undertaking.
They must be drawn up with clarity and must systematically indicate, on the one hand, at the closing date of the financial year, the nature and amount of the undertaking's assets and rights, its debts, obligations, and commitments, as well as its own funds, and, on the other hand, for the financial year closing on that date, the nature and amount of its expenses and income. The annual accounts are adopted each year on 31 December. Unless, possibly, cases of formation and liquidation of the undertaking, the financial year is twelve months.

Art. 4. The annual accounts are drawn up in conformity with the provisions of this decree.
If the application of the provisions of this decree is not sufficient to satisfy the requirement of Article 3, additional information must be provided in the notes.

Art. 5. The undertaking's chart of accounts must be designed or adjusted in such a way that the balance sheet and income statement result, without addition or omission, from the trial balance of the corresponding accounts, after reconciliation with the data of the inventory. The chart of accounts comprises at least the accounts corresponding to the items of the detailed balance sheet and the detailed income statement referred to in Chapter II of the Annex to this decree, as well as to the items of the notes referred to in Chapter I, Section 3, of the Annex to this decree. Upon simple request of [1 the [2 National Bank of Belgium]2]1, undertakings communicate their chart of accounts to it. The opening balance sheet of a financial year must, without prejudice to the application of Article 11, paragraph 3, correspond to the closing balance sheet of the previous financial year. ---------- (1)<AR 2011-03-03/01, art. 331, 006; In force: 01-04-2011> (2)<AR 2014-10-09/04, art. 5, 008; In force: 20-10-2014>

Art. 6. Any offsetting between assets and liabilities, between rights and commitments, between expenses and income is prohibited, except in the cases provided for by this decree. [1 In such cases, the offset amounts are indicated as gross amounts in the notes.]1 ---------- (1)<AR 2016-12-05/08, art. 14, 010; In force: 17-02-2017>

Section 2. - Structure of the annual accounts.

Art. 7.§ 1. The balance sheet and income statement are drawn up in accordance with the schemes referred to in Chapter I of the Annex to this decree.
The notes comprise the statements and information provided for in Chapter I, Section 3 of the Annex to this decree. ([2 The notes also comprise the statements and information provided for in Article 91, point B. Social balance sheet or in Article 94, point B. Social balance sheet of the Royal Decree of 30 January 2001 implementing the Companies Code, presented according to the social balance sheet scheme which appears in the "Complete model of annual accounts" or the "Abbreviated model of annual accounts" established by the National Bank of Belgium in application of Article 174, § 2, of the Royal Decree of 30 January 2001 implementing the Companies Code.]2 [2 Article 82, § 2, of the Royal Decree of 30 January 2001 implementing the Companies Code]2 applies by analogy for the use of the complete or abbreviated social balance sheet scheme.) <AR 1996-08-04/81, art. 11, 002; In force: 09-09-1996> § 2. They are [2 ...]2 presented in thousands of francs (or in euro, without decimals); they explicitly mention this. <AR 1998-12-07/37, art. 3, 003; In force: 01-01-1999> § 3. The items of the balance sheet, the income statement, and the mentions in the notes referred to in § 1 may be omitted if they are irrelevant for the financial year considered; when the figures relating to the previous financial year must be mentioned, they may only be omitted if they are also irrelevant for the previous financial year. § 4. The content of the items is, insofar as it calls for precision for certain of them, defined in Chapter III of the Annex to this decree. [4 Without prejudice to contrary provisions, for the purposes of the Law of 13 March 2016 on the status and control of insurance or reinsurance undertakings, and the decrees and regulations taken for its implementation, "net turnover" means the amount of "gross premiums" as defined in item 1.a) of Section 2 of Chapter III of the Annex to this decree.]4 § 5. The indication of the mechanical indexing of the items of the annual accounts is required only when they are communicated to [1 the [3 National Bank of Belgium]3]1. ---------- (1)<AR 2011-03-03/01, art. 331, 006; In force: 01-04-2011> (2)<AR
2014-10-09/04, art. 6, 008; In force: 20-10-2014> (3)<AR 2014-10-09/04, art. 5, 008; In force: 20-10-2014> (4)<AR 2025-06-30/08, art. 1, 012; In force: 01-01-2025>

Art. 7bis.§ 1. The annual accounts referred to in Chapter I of the Annex to this decree, as well as the detailed balance sheet and the detailed technical and non-technical accounts referred to in Chapter II, are communicated on computer media to [1 the [2 National Bank of Belgium]2]1 according to the forms and procedures it determines. These detailed technical accounts are drawn up by activity group and allocated by activity in accordance with the schemes referred to in Chapter II, Section 2 of the Annex to this decree. § 2. The distinct activity groups and distinct activities referred to in § 1 are:
A. Activity group: NON-LIFE.

Direct insurance operations " IARD " (Fire, Accidents, Various Risks) carried out in Belgium by establishments located in Belgium (branches 1 to 18).
Direct insurance operations carried out in Belgium by establishments located in Belgium, covered by the Law of 10 April 1971 on work accidents.
Direct insurance operations carried out in Belgium by establishments located in Belgium, covered by the Law of 3 July 1967 on the repair of damages resulting from work accidents, accidents on the way to work, and occupational diseases in the public sector.
Direct insurance operations of establishments abroad of Belgian undertakings and direct insurance operations carried out abroad by establishments located in Belgium.
Accepted reinsurance operations.
B. Activity group: LIFE.
Direct "Life" insurance operations carried out in Belgium by establishments located in Belgium (branches 21 to 27), including:
a) Direct "health" insurance operations carried out in Belgium by establishments located in Belgium which only practice these operations, and this exclusively or mainly according to the life insurance technique. b) Operations relating to the statutory pension of salaried workers "extra-legal benefits" (Royal Decree of 14 May 1969 concerning the granting of extra-legal benefits to workers referred to in Royal Decree No. 50 of 24 October 1967 relating to the retirement and survivor's pension of salaried workers).
Statutory pensions of salaried workers (Law of 28 May 1971 implementing the unification and harmonization of capitalization schemes instituted within the framework of laws relating to life insurance for old age and premature death).
Direct insurance operations of establishments abroad of Belgian undertakings and direct insurance operations carried out abroad by establishments located in Belgium.
Accepted reinsurance operations.

(1)<AR 2011-03-03/01, art. 331, 006; In force: 01-04-2011> (2)<AR 2014-10-09/04, art. 5, 008; In force: 20-10-2014>

Art. 8.When an element of the assets or liabilities could simultaneously fall under several items of the balance sheet or when an income or expense could simultaneously fall under several items of the income statement, it is recorded under the most appropriate item with regard to the requirement of Article 3. [1 In such a case, the relationship with other items is indicated in the notes. ]1 ---------- (1)<AR 2016-12-05/08, art. 15, 010; In force: 17-02-2017>

Art. 9. Undertakings have the option to subdivide further in the notes the items whose mention is imposed.

Art. 10. The presentation of the annual accounts must be identical from one financial year to the next.
However, it is modified in the event that, notably following a significant modification of the structure of the undertaking's assets, income, and expenses, it no longer meets the requirement of Article 3. These modifications are mentioned and justified in the notes relating to the financial year during which they are introduced.

Section 3. - Specific provisions relating to the annual accounts.

Art. 11. The balance sheet is drawn up after allocation, that is to say taking into account the decisions on the allocation of the balance of the income statement of the financial year and the carried-forward result. When, in the absence of a decision taken by the competent body, this allocation is not definitive, the balance sheet is drawn up subject to the suspensive condition of this decision. The balance sheet and income statement indicate for each of the items the corresponding amounts of the previous financial year. If the figures relating to the financial year are not comparable to those of the previous financial year, the figures of the previous financial year may be adjusted to make them comparable; in this case, the notes must mention and comment, with reference to the relevant items, on the adjustments made, if these are significant. If the figures of the previous financial year are not adjusted, the notes must contain the necessary indications to allow comparison.

Art. 11bis. Unless express provisions referring to the residual duration, the allocation of items according to the duration of assets, liabilities, rights, and commitments is carried out on the basis of the initial duration of the elements in question. In the case of claims or debts with scheduled repayment, residual duration means the period between the balance sheet closing date and the due date of each repayment.

Art. 12. By "amortization" is meant the amounts charged to the income statement, relating to establishment costs, intangible and tangible fixed assets whose use is limited in time, in order either to spread the amount of these establishment costs and the acquisition cost, possibly revalued, of these fixed assets over their probable useful or use life, or, to charge these costs and expenses at the time they are incurred. By "impairment losses" is meant the deductions applied to the acquisition price of other asset elements than those referred to in the preceding paragraph and intended to take into account the depreciation, definitive or not, of these latter at the closing date of the financial year. The cumulative amortizations and impairment losses are deducted from the asset items to which they relate. By tangible fixed assets is meant the asset elements recorded under the items "I.F. Land and buildings" and "F.I. Tangible assets" with the exception of stocks.

Art. 12.§ 1. The expenses and income relating to the "Life" activity group, referred to in Article 7bis, § 2 of this decree, are indicated in the "life" technical account.
§ 2. The expenses and income relating to the "Non-life" activity group, referred to in Article 7bis, § 2 of this decree, are indicated in the "non-life" technical account.
§ 3. The other expenses and income are indicated in the non-technical account. Common expenses and income are allocated between the technical and non-technical accounts as adequately as possible.
§ 4. The allocation of technical expenses and income between each of the activities referred to in Article 7bis, § 2 of this decree is carried out by charging each of them the technical expenses and income specific to them and by allocating the common technical expenses and income as adequately as possible. § 5. The methods used to allocate expenses and income in accordance with the provisions of §§ 1, 2, 3, and 4 of this article must be justified and communicated to [1 the [2 National Bank of Belgium]2]1. Articles 15, 16, and 17 are applicable to these allocation methods. ---------- (1)<AR 2011-03-03/01, art. 331, 006; In force: 01-04-2011> (2)<AR 2014-10-09/04, art. 5, 008; In force: 20-10-2014>

Art. 13.Provisions for risks and charges are intended to cover losses or charges clearly defined in nature, but which, at the closing date of the financial year, are or probable or certain, but indeterminate in amount.
[1 Without prejudice to Article 19, paragraph 3, a provision represents, at the balance sheet closing date, the best estimate of probable charges or, in the case of a loss or debt, the amount necessary to settle it at the balance sheet closing date.]1 Provisions for risks and charges may not have as their object to correct the value of elements recorded on the asset side. ---------- (1)<AR 2016-12-05/08, art. 16, 010; In force: 17-02-2017>

Art. 14. Rights and commitments that do not appear on the balance sheet and which are likely to have a significant influence on the assets, financial position, or results of the undertaking are mentioned by category in the notes (statement No. 17).
Statutory guarantees and regulated guarantees will be mentioned therein, regardless of their influence on the assets.
Important rights and commitments that are not likely to be quantified are the subject of appropriate mentions in the notes (statement No. 17).

CHAPTER III. - Valuation rules.

Section 1. - General principles.

Art. 15. Each undertaking determines the rules which, while respecting the provisions of this decree, govern the valuations in the inventory and, in particular, the establishment and adjustments of amortizations, impairment losses, provisions for risks and charges, and technical provisions, as well as revaluations. These rules are adopted by the undertaking's management body. They are recorded in the inventory book and summarized in the notes (statement No. 20). This summary must, in accordance with Article 3, be sufficiently precise to allow an assessment of the valuation methods adopted. Without prejudice to the application of Article 41, these rules are established and the valuations are carried out from a perspective of the undertaking's going concern.

Art. 16. In the exceptional case where the application of the valuation rules provided for in this chapter would not lead to compliance with the requirement of Article 3, it is necessary to derogate from them by application of said Article 3.
Such a derogation must be mentioned and justified in the notes (statement No. 21).
The estimate of the influence of this derogation on the assets, financial position, and results of the undertaking is indicated in the notes (statement No. 21) relating to the accounts of the financial year during which this derogation is introduced for the first time.

[Art. 16] [17]. The valuation rules referred to in Article 15, paragraph 1, and their application must be identical from one financial year to the next.

However, they are adapted in the event that, notably following a significant modification of the company's activities, its asset structure, or economic or technological circumstances, the previously followed valuation rules no longer meet the requirements of Article 3.

Paragraphs 2 and 3 of Article 16 apply to these adaptations.

[Art. 17] [18]. Each asset item is subject to a distinct evaluation.

Amortizations, value reductions, and revaluations are specific to the asset items for which they were established or recorded. However, asset items whose technical or legal characteristics are entirely identical may be subject globally to amortizations, value reductions, or revaluations.

Provisions for risks and charges are individualized according to the risks and charges of the same nature that they are called upon to cover. By risks and charges of the same nature, one must understand the categories of risks and charges mentioned exemplarily in Article 19, paragraph 5.

[Art. 18] [19]. The valuations, amortizations, value reductions, technical provisions, and other provisions for risks and charges must meet the criteria of prudence, sincerity, and good faith.

Amortizations, value reductions, technical provisions, and other provisions for risks and charges must be established systematically based on the methods determined by the company in accordance with Article 15. They cannot depend on the result of the financial year.

All foreseeable risks, potential losses, and depreciation that have arisen during the financial year to which the annual accounts relate or during previous financial years must be taken into account, even if these risks, losses, or depreciation are only known between the date of closing the annual accounts and the date on which they are approved by the company's administrative body. In cases where, in the absence of objective appreciation criteria, the estimation of foreseeable risks, potential losses, and depreciation is inevitably random, this must be mentioned in the notes (form No. 20) if the amounts involved are significant with regard to the objective pursued in Article 3.

Charges and income related to the financial year or previous financial years must be taken into account, regardless of the date of payment or receipt of these charges and income, unless the actual receipt of these income is uncertain. In particular, the estimated impacts on the result of the financial year or on the result of previous financial years, as well as remuneration, allowances, and other social benefits that will be attributed during a subsequent financial year in consideration of services performed during the financial year or previous financial years, must be charged to the financial year. If income or charges are significantly influenced by income and charges attributable to another financial year, this must be mentioned in the notes.

Provisions must be established to cover in particular:
a) obligations incumbent on the company regarding 1 unemployment with company complement 1 and other pensions or similar annuities; b) costs of major repairs and major maintenance; c) risks of losses or charges arising for the company from personal or real securities constituted as guarantee for debts or commitments of third parties, commitments related to the acquisition or disposal of fixed assets, the execution of orders placed or received, positions in foreign currencies, securities, and other financial instruments, and ongoing litigation.

Value reductions recorded in application of Article 28, paragraph 3, Article 29, paragraph 2, and Article 31, as well as provisions for risks and charges, cannot be maintained to the extent that they exceed at the end of the financial year a current assessment, according to the criteria provided for in paragraph 1, of depreciation, charges, and risks in consideration of which they were established. ---------- (1)<AR 2016-12-05/08, art. 17, 010; En vigueur : 17-02-2017>

[Art. 19] [19bis]. The capital gain or capital loss recorded upon the disposal of a depreciable tangible fixed asset accompanied by the conclusion by the seller of a finance lease contract regarding the same asset, is recorded in clearing accounts and is credited each year to the income statement proportionally to the amortization of this fixed asset held in finance lease related to the financial year considered.

[Section 2.] - Acquisition Value.

[Art. 19bis] [20]. Without prejudice to the application of Articles 16, 27, 27bis, and 34, asset items are evaluated at their acquisition value and are recorded in the balance sheet for this same value, less the amortizations and value reductions related thereto.

By acquisition value, one must understand either the purchase price defined in Article 21, or the cost price in Article 22, or the contribution value defined in Article 23.

[Art. 20] [21]. The purchase price includes, in addition to the purchase price, incidental expenses such as non-recoverable taxes.

The purchase price of an asset item obtained by way of exchange is the market value of the asset item(s) ceded in exchange; if this value is not easily determinable, the purchase price is the market value of the asset item obtained by way of exchange. These values are estimated at the date of the exchange.

[Art. 21] [22]. The cost price is obtained by adding to the purchase price of raw materials, consumable materials, and supplies, the manufacturing costs directly attributable to the product or group of products considered, as well as the share of production costs that are only indirectly attributable to the product or group of products considered, provided that these expenses concern the normal manufacturing period. Companies nevertheless have the option not to include in the cost price all or part of these indirect production expenses; in the event of using this option, mention must be made in the notes.

[Art. 22] [22bis]. The acquisition value of intangible and tangible fixed assets may include interest charges related to third-party capital used to finance them, but only insofar as these charges concern the period preceding the effective putting into operation of these fixed assets.

The cost price of inventory and orders in progress may not include interest charges related to borrowed capital used to finance them, except insofar as these charges concern inventory or orders whose manufacturing or execution duration is greater than one year and that they relate to the normal manufacturing period of these inventory or execution of these orders.

The inclusion of these interest charges in the acquisition value of intangible or tangible fixed assets or of inventory or orders in progress is mentioned in the notes (form No. 20), among the valuation rules.

[Art. 22bis] [23]. The contribution value corresponds to the conventional value of the contributions.

The contribution value does not include taxes and expenses related to the contributions; if these are not entirely charged to the income statement of the financial year during which the contribution is made, they are recorded under the item "Organization Expenses".

[Section 3.] - Specific Rules.

[Art. 23] [24]. Organization expenses are recorded in the assets, unless they are charged during the financial year during which they are incurred.

Expenses incurred in the context of a restructuring may be recorded in the assets only insofar as they are clearly circumscribed expenses, related to a substantial modification of the structure or organization of the company, and that these expenses are intended to have a favorable and lasting impact on the profitability of the company. The fulfillment of these conditions must be justified in the notes (form No. 20). To the extent that restructuring expenses constitute charges that fall under operating charges or exceptional charges, their transfer to the assets is effected by explicit global deduction respectively from the total of operating charges and exceptional charges.

[Art. 24] [25]. Intangible fixed assets other than those acquired from third parties are recorded in the assets at their cost price only insofar as the latter does not exceed a prudently established estimate of the use value of these fixed assets or their future yield for the company.

[Art. 25] [26]. § 1. The usage rights that the company has on tangible fixed assets by virtue of finance lease contracts or similar contracts are, without prejudice to the provisions of Articles 12 and 28, paragraph 2, recorded in the assets, up to the portion of the scheduled payments provided for in the contract, representing the capital reconstruction of the value of the asset, object of the contract.

The corresponding commitments recorded in the liabilities are evaluated each year at the fraction of the scheduled payments related to subsequent financial years, representing the capital reconstruction of the value of the asset, object of the contract.
§ 2. Regarding goods acquired against payment of a life annuity:
1° the acquisition value is understood as being the capital necessary, at the time of acquisition, to ensure the service of the annuity, increased, if applicable, by the amount paid in cash and the expenses; 2° a provision is established up to the amount of said necessary capital; this provision is adjusted annually.

[Art. 26] [27]. Investments from item D of the assets are recorded in the balance sheet at their current value.
1° In the case of investments other than land and buildings, current value is understood as the market value.
When investments are admitted to the listing of an official securities exchange, market value is understood as the value determined on the date of closing the balance sheet or, when the date of closing the balance sheet is not a trading day on the stock exchange, the last trading day preceding this date. When there is a market for investments other than those referred to in paragraph 2 of 1°, market value is understood as the average price at which these investments were traded on the date of closing the balance sheet or, when the date of closing the balance sheet is not a market day, the last trading day preceding this date. When, at the date of preparation of the accounts, the investments referred to in paragraphs 2 and 3 of 1° have been sold or the intention exists to sell them in the short term, the market value is reduced by the actual or estimated realization costs. Other investments are evaluated based on a prudent assessment of their probable realization value. In all cases, the choice of the evaluation method, summarized in the notes (form No. 20) in accordance with paragraph 2 of Article 15, must be duly motivated. 2° In the case of land and buildings, current value is understood as the market value determined at the date of the evaluation, if applicable reduced in accordance with paragraph 7 of Article 31 and paragraph 4 of this 2°. By market value, one understands the price at which the land and buildings could be sold, at the date of the evaluation, under a private contract between a willing seller and an unaffiliated buyer, it being understood that the asset has been the subject of a public offer on the market, that the conditions of that market allow for regular sale, and that the time available for negotiating the sale is normal considering the nature of the asset. The market value is determined by a separate evaluation of each land and each building, carried out at least every five years according to a generally recognized method or accepted by 1 the 2 National Bank of Belgium 2 1. When, at the date of preparation of the accounts, the land and buildings have been sold or the intention exists to sell them in the short term, the value determined in accordance with paragraph 2 of this 2° and paragraph 7 of Article 31 is reduced by the actual or estimated realization costs. When it is not possible to determine the market value of a land or a building, the value determined on the basis of the acquisition price or cost price principle is deemed to be the current value. The evaluation methods used to determine the current value of land and buildings, which are summarized in the notes (form No. 20) in accordance with paragraph 2 of Article 15, must be broken down by the
financial year during which they were evaluated. ---------- (1)<AR 2011-03-03/01, art. 331, 006; En vigueur : 01-04-2011> (2)<AR 2014-10-09/04, art. 5, 008; En vigueur : 20-10-2014>

[Art. 27] [27bis].§ 1. Without prejudice to the provisions of paragraphs 2 and 3 of this Article and Article 31, receivables are recorded in the balance sheet at their nominal value.
§ 2. The recording of receivables in the balance sheet at their nominal value is accompanied by the recording in clearing accounts of the liabilities and the taking into results pro rata temporis based on compound interest:
a) interest included conventionally in the nominal value of the receivables; b) the difference between the acquisition value and the nominal value of the receivables; c) the discount of receivables that do not bear interest or that are accompanied by an abnormally low interest, when these receivables:
1° are repayable at a date more than one year away, from the time of their entry into the company's assets, and 2° relate either to amounts recorded as income in the income statement, or to the disposal price of fixed assets or branches of activities.
The discount referred to under c) is calculated at the market rate applicable to such receivables at the time of their entry into the company's assets.
For receivables payable or repayable by scheduled installments, the interest or loading rate of which applies throughout the duration of the contract on the initial amount of the financing or loan, the respective amounts of interest and loading accrued to be taken into results and interest and loading not accrued to be carried forward are determined by applying the real rate to the balance due at the beginning of each period; this real rate is calculated taking into account the installment schedule and the periodicity of the payments. Another method may not be applied unless it gives, for each financial year, equivalent results. Interest and loading cannot be offset with the expenses, charges, and commissions incurred in connection with these operations. § 3. Fixed-income securities are evaluated at their acquisition value. However, when their actuarial yield calculated at purchase taking into account their redemption value at maturity, differs from their nominal yield, the difference between the acquisition value and the redemption value is taken into results pro rata temporis over the remaining duration of the securities, as an element constitutive of the interest produced by these securities and is recorded, as the case may be, as an increase or a reduction of the acquisition value of the securities. The taking into results of this difference is performed on an discounted basis, taking into account the actuarial yield at purchase. Companies nevertheless have the option:
1° to take into results, pro rata temporis, but on a linear basis, the difference between the acquisition value and the redemption value; 2° to keep fixed-income securities in the balance sheet at their acquisition value when the taking into results of the actuarial yield of the securities would have only a negligible effect compared to the taking into results of the nominal yield alone. Paragraphs 1, 2, and 3 apply to securities whose yield is constituted exclusively, according to the issuance conditions, by the difference between the issue price and the redemption value. The difference referred to in this paragraph must be indicated in the notes. § 4. Companies may adopt an evaluation method in which the capital gains and losses resulting from the sale of fixed-income placement securities within the framework of arbitrage operations, are taken into results in a staggered manner with the future income of the securities acquired or the securities sold within the framework of the arbitrage. In this case, the capital gains or losses are subject to a clearing entry in results and are, pending their allocation, added to the accounts where the purchased securities are recorded. The capital gains and losses concerned are, based on a constant annual real yield, allocated to the interest income of fixed-income securities, over the period extending until the maturity of the sold or purchased securities. In the event of a subsequent sale of the purchased securities, the residual amount of the adjustment account will be entirely recorded in the results of the financial year during which this sale took place, unless this sale falls within the framework of a new arbitrage. In this case, the residual amount may, in accordance with this paragraph, be taken into results in a staggered manner with the income of the new arbitrage operation provided that the initial period of recording in results is not extended. For the application of this paragraph, an arbitrage operation is understood as any combined operation of purchase and sale of fixed-income placement securities carried out within a relatively short period and which leads to a 1 real improvement of yield 1 of fixed-income placement securities. If the net amount received upon sale is greater than the amount spent on purchase, including incidental expenses, the capital gain or capital loss will be, as such, in proportion to the difference between amounts purchased and sold, taken into results. In the event of application of this paragraph, mention must be made in the information to be provided in the notes (form No. 20) in accordance with Article 15, paragraph 2 of this Decree. § 5. Paragraphs 1 to 3 apply analogously to debts of corresponding nature and duration. ---------- (1)<AR
2014-10-09/04, art. 7, 008; En vigueur : 20-10-2014; voir aussi AR 2014-10-09/04, art. 16>

Art. 27ter. § 1. For the application of this article, a hedging qualified option is understood as an option whose purpose and effect are to compensate for or reduce the price variation risk of shares.

To be considered a hedging option within the meaning of this paragraph, the option must meet the following conditions:
a) the hedged element must expose the undertaking to a price variation risk; b) the option must be classified as such in the books from the outset; c) the option must have as its underlying instrument securities having characteristics similar to those of the elements being hedged by the option; d) the option is traded on a liquid market as defined below or the underlying securities are traded on such a market.

For there to be a liquid market within the meaning of this paragraph, it is required:

that there be either an organized market or an over-the-counter market operating regularly with the intervention of third-party financial institutions acting as market makers ensuring permanent quotes of buyer and seller prices whose ranges correspond to market practices;
that in volume, the securities or financial instruments concerned can, taking into account the volumes regularly traded on their market, be considered realizable at any time without significant impact on prices.

§ 2. Without prejudice to the provisions of § 3 below and Article 31, paragraph 2, share options are valued at their acquisition cost.

§ 3. Differences resulting from variations in the value of a hedging qualified share option are, upon the most recent daily settlement of debit and credit margins, recorded in a suspense account opened among the regularization accounts. Upon maturity of the hedging option, the balance of this account is charged to the income statement symmetrically to the charging of capital gains and losses on the hedged element. However, when the hedged element is valued at market value, the results arising from the hedging option must be charged to the income statement symmetrically to the charging of value variations of the hedged element.

In the event of disposal of the hedged element, the balance of the suspense account is fully charged to the income statement, and differences resulting from subsequent value variations of undelivered hedging options attached thereto are treated in accordance with the provisions of the last paragraph of Article 19 and paragraphs 2 and 11 of Article 31.

The provisions of this paragraph apply to hedging qualified share options even in the absence of daily settlement of debit and credit margins.

Income and expenses to be charged to the income statement under this paragraph are recorded therein as constituent elements of net income, to be expressed under the corresponding "Financial Instruments" item.

Art. 28. § 1. Establishment costs capitalized are subject to appropriate amortizations, in annual tranches of at least twenty percent of the capitalized amounts. However, the amortization of borrowing issue costs may be spread over the entire duration of the loan.

§ 2. Intangible and tangible fixed assets other than those included under item D. of the asset side, whose use is limited in time, are subject to amortizations calculated according to a plan established in accordance with Article 15. They may notably be subject to an accelerated amortization plan, in accordance with fiscal provisions on this matter. If the application of such an accelerated plan leads to significantly anticipating the recognition of amortizations compared to what is economically justified, mention must be made in the annex (statement no. 20) of the difference between the cumulative amount of these recognized amortizations and that of economically justified amortizations, as well as of the influence on the amount of amortizations burdening the income statement of the current year, of amortizations exceeding economically justified amortizations, recognized during the current year or during previous years.

These fixed assets are subject to additional or exceptional amortizations when, due to their deterioration or modifications in economic or technological circumstances, their book value exceeds their value in use by the enterprise.

Amortizations recognized in application of paragraph 1 on tangible and intangible fixed assets whose use is limited in time may only be reversed if, due to modifications in economic or technological circumstances, the previously practiced amortization plan proves to have been too rapid. Amortizations recognized in application of paragraph 2 which prove no longer to be justified are subject to reversal to the extent of their excess over the planned amortizations in accordance with paragraph 1.

[1 When the useful life of development costs and goodwill cannot be estimated reliably, they are amortized over a period not exceeding ten years. The amortization period of goodwill is justified in the annex (statement no. 20).]1

[1 Amortizations and impairments of goodwill are not subject to reversal. ]1

§ 3. Intangible and tangible fixed assets other than those included under item D. of the asset side, whose use is not limited in time, are subject to impairments only in case of permanent diminution in value or depreciation.

(1)<AR 2016-12-05/08, art. 18, 010; En vigueur : 17-02-2017>

Art. 29. § 1. Uncalled amounts on participations, shares, and stakes are mentioned distinctly in the annex (statement no. 1) and allocated according to the items in which the participations, shares, and stakes remaining to be paid up are carried.

§ 1bis. The acquisition value of participations, shares, or stakes received as remuneration for contributions consisting of non-cash assets or resulting from the conversion of claims corresponds to the conventional value of the contributed goods and values or converted claims. However, if this conventional value is lower than the market value of the contributed goods and values or converted claims, the acquisition value corresponds to this higher market value.

By derogation from paragraph 1, the participations, shares, and stakes of a company that an enterprise receives in the event of a merger or demerger referred to in Articles 36bis, 36ter, or 36quater, in exchange for the shares or stakes it held in the absorbed or split-off company, are, at the time of the merger or demerger, carried in its accounts at the value at which the shares and stakes of the absorbed or split-off company appeared in them at that date. In the event of obtaining, during a merger or demerger, a cash balancing payment, the amount thereof is deducted from the book value, and primarily from the acquisition value, of the shares of the absorbed or split-off company, to the extent that it is drawn from the share capital or share premium; in other cases, its amount is charged to income. In the event of a contribution of a business unit or a universality of assets referred to in Article 36quinquies, the participations, shares, or stakes received in consideration are, at the time of the contribution, carried in the accounts of the contributor at the net value at which the contributed goods and values appeared in them at that date.

§ 2. Participations, shares, and stakes carried under item C.II. "Investments in affiliated companies and participations" are subject to impairments in case of permanent diminution in value or depreciation justified by the situation, profitability, or prospects of the company in which the participation, shares, or stakes are held.

Receivables, including fixed-income securities, carried under item C.II. "Investments in affiliated companies and participations" are subject to impairments if their repayment at maturity is in whole or in part uncertain or compromised.

§ 3. Ancillary costs relating to the acquisition of securities may be charged to the income statement of the year in which they were incurred.

Art. 30. Disused tangible fixed assets or those that have ceased to be permanently affected to the enterprise's activity are, where applicable, subject to exceptional amortization to align their valuation with their probable realization value.

Art. 31. Variable-income securities mentioned under item C.III.1. are subject to impairments in case of permanent diminution in value.

Share options that do not meet or no longer meet the conditions to be qualified as hedging options are subject to impairments when their market or realization value at the closing date of the financial year is lower than their acquisition cost.

[1 Fixed-income securities mentioned [2 under item C.III.2.]2 and receivables mentioned under items C.III.4, 5, and 7, as well as under item E. of the asset side, are systematically subject to impairments to reflect, in accordance with the principles set out in Article 19, paragraph 1, any risk that the counterparties of these securities and receivables do not honor all or part of their commitments related thereto, including but not exclusively the probability that the repayment of these securities and receivables is in whole or in part uncertain or compromised. When the market value of these securities and receivables is permanently lower than their net book value, this circumstance is, unless proven otherwise, presumed to constitute a permanent depreciation to be taken into account for the application of this provision. The criteria taken into account for the application of this provision are specified in statement no. 20 provided for in the Annex to this Royal Decree.]1

In the case of securities representing perpetual loans, the difference between their acquisition value and their lower market value is to be considered as a permanent depreciation.

Securities of item C.III.2.B) of the asset side, "Treasury bills and other fixed-income treasury securities," which constitute a liquidity support are subject to impairments when their market value is lower than the value obtained by applying the other provisions of this Royal Decree.

Receivables mentioned under items C.III.4, 5, and 7, as well as under item E. of the asset side, may also be subject to impairments when their realization value at the closing date of the financial year is lower than their book value determined in accordance with Article 27bis of this Royal Decree.

Land and buildings included under item D. of the asset side are subject to impairments when, since the last evaluation performed in accordance with point 2°, paragraph 3 of Article 27, the value of a piece of land or a building has decreased. The lower value thus determined is not increased in subsequent balance sheets, unless this increase results from a new determination of the market value, performed in accordance with point 2°, paragraphs 2 and 3 of the aforementioned Article 27.

Transfers made during the financial year from item C. to item D. of the asset side are, at the date of their transfer, subject to additional amortizations or additional impairments to bring their book value down to their current value when their current value is lower than their book value.

The reinsurers' share in the technical provisions mentioned under item Dbis. is subject to impairments in case of established or probable default of the reinsurer.

Stocks, available funds (item F.II.), own shares (item F.III.), and other asset items (item F.IV.) are subject to impairments when their realization value at the closing date of the financial year is lower than their acquisition cost.

Additional impairments are recognized on the assets referred to in paragraphs 2, 5, and 10 of this article to take into account either the evolution of their realization or market value, or the risks justified by the nature of the assets involved or the activity exercised. ---------- (1)<AR 2014-10-09/04, art. 8, 008; En vigueur : 20-10-2014> (2)<AR 2016-12-05/08, art. 19, 010; En vigueur : 17-02-2017>

Art. 32. By derogation from Articles 18 and 20, small tools and supplies, which are constantly renewed and whose acquisition value is negligible compared to the overall balance sheet, may be carried on the asset side at a fixed value if their quantity, value, and composition do not vary significantly from one year to the next. In this case, the price of renewal of these elements is carried under operating expenses.

Art. 33. The acquisition price of assets whose technical or legal characteristics are identical is established by individualizing the price of each element or by applying either the weighted average price method, or the "FIFO" method (first-in, first-out), or the "LIFO" method (last-in, first-out).

When the valuation performed in the balance sheet, following the application of the calculation methods indicated in the preceding paragraph, differs by a significant amount, at the closing date of the balance sheet, from an evaluation based on the last known market price before the closing date of the balance sheet, the amount of this difference must be indicated globally by category in the annex.

In the event of a change of method, the acquisition price of goods deemed to have entered first cannot be lower than the value at which these goods were carried, before related impairments, in the inventory prepared at the end of the previous financial year.

Art. 34. Undertakings may proceed to the revaluation of their tangible fixed assets, as well as participations, shares, and stakes appearing under item C. of the asset side, when the value of these, determined based on their utility for the enterprise, presents a certain and durable surplus compared to their book value. If the assets in question are necessary for the continuation of the enterprise's activity or a part of its activities, they may only be revalued to the extent that the expressed gain is justified by the profitability of the enterprise's activity or the part concerned of its activities.

The revalued value retained for these assets is justified in the annex (statement no. 20) to the annual accounts in which the revaluation is recognized for the first time.

If the revaluation concerns tangible fixed assets whose use is limited in time, the revalued value is subject to amortizations calculated according to a plan established in accordance with Article 15, in order to spread the recognition over the probable residual useful life of the fixed asset.

Recognized gains are charged directly to item A.III.1. of the liability side and are maintained there as long as the goods to which they relate are not realized. These gains may however:
1° be transferred to reserves to the extent of the amount of amortizations recognized on the gain; 2° [1 be incorporated into capital; a revaluation gain incorporated into capital may never be affected, directly or indirectly, to the total or partial offset of carried-forward losses to the extent of the part of the revaluation gain that has not yet been subject to amortization. Gains charged to item III of the liability side "Revaluation gains" may only be incorporated into capital to the extent of the part of the revaluation gain after deduction of estimated taxes on this gain.]1 3° in case of subsequent diminution in value, be cancelled to the extent of the amount not yet amortized on the gain.

[1 Recognized gains cannot be distributed, neither directly nor indirectly, as long as they do not correspond to a realized gain or to an amortization transferred or not transferred to a reserve in accordance with the preceding paragraph, 1°.]1 ---------- (1)<AR 2016-12-05/08, art. 20, 010; En vigueur : 17-02-2017>

Art. 34bis. Transfers made during the financial year from item C. to item D. of the asset side are, at the date of their transfer, subject, for the difference between their book value and their current value, to reversals of impairments to the extent of previously recognized impairments and revaluation gains, when, at the date of the transfer, their current value is higher than their book value.

These revaluation gains are carried to item A.III.2. of the liability side and are maintained there as long as the investments to which they relate are not realized.

Art. 34ter. The provision for unearned premiums is in principle calculated separately for each insurance contract. The use of statistical methods, and in particular proportional or flat-rate methods, is authorized when there is reason to suppose that they will give approximately the same results as individual calculations.

For insurance branches in which the risk cycle does not allow the application of the pro-rata temporis method, it is necessary to apply calculation methods that take into account the different evolution of risk over time.

Art. 34quater. The provision for incurred but not reported losses is calculated based on the estimated total cost of claims and administrative expenses, linked to contracts in force and remaining to be assumed by the enterprise, to the extent that this estimated amount exceeds the provision for unearned premiums and premiums due relative to said contracts.

Art. 34quinquies.[1 § 1st.]1 The life insurance provision is in principle calculated separately for each insurance contract. The use of statistical or mathematical methods is authorized when it is reasonable to assume they will yield results approximately equivalent to individual calculations. A summary of the main assumptions adopted is provided in the annex (statement no. 20). The calculation is performed annually by an actuary or any other person expert in the matter, based on generally recognized actuarial methods. Acquisition costs cannot be deducted from the life insurance provision. [1 § 2. The life insurance provision is calculated according to a sufficiently prudent prospective actuarial method, taking into account all future obligations in accordance with the conditions established for each contract in force, and notably:
1° all guaranteed benefits;
2° profit participations attributed;
3° all options to which the policyholder or beneficiary is entitled according to the general or special conditions of the contract; 4° operating and administrative expenses as well as commissions provided for.
Future premiums to be received are also taken into account.
§ 3. In the calculation referred to in § 2, adverse developments in the various factors underlying this life insurance provision are taken into account.
In particular, for contracts where the guaranteed interest rate is determined pursuant to applicable contractual and regulatory provisions, the insurance company shall set up a supplementary provision as soon as the guaranteed interest rate exceeds 80% of the average interest rate over the last five years of ten-year OLOs by more than 0.1%. This supplementary provision to be set up forms part of the life insurance provision. It is equal to the sum, for all contracts, of the positive difference between the inventory reserve of the contract, as defined by or pursuant to control laws, where the technical interest rate is replaced by the interest rate corresponding to 80% of the average interest rate referred to in the preceding paragraph, and the inventory reserve of the contract calculated using its technical bases possibly adapted pursuant to Article 86, § 3 of the Royal Decree of 14 November 2003 on the activity of life insurance. This supplementary provision is calculated on December 31 of each year. The annual allocation is equal to at least 10% of the supplementary provision to be set up referred to in the preceding paragraph. This allocation may however be limited to the difference between the supplementary provision to be set up and the supplementary provision already set up. When the supplementary provision to be set up is lower than the supplementary provision already set up, the insurance company may withdraw from this latter supplementary provision 10% of the surplus as well as 90% of the supplementary provision set up relating to contracts liquidated or permanently ceded. § 4. By way of derogation from paragraph 3, the National Bank of Belgium exempts an insurance company, upon its request, from the obligation to allocate the supplementary provision, calculated according to the method described above, provided that it satisfies the solvency capital requirements provided for by or pursuant to the Law of 13 March 2016 on the status and supervision of insurance or reinsurance undertakings, without resorting to the transitional measures provided for in Articles 668 and 669 of said law. The National Bank of Belgium imposes additional conditions for granting or maintaining this exemption when these are rendered necessary by the situation of the company and market conditions. § 5. The exemption from allocation to the supplementary provision does not allow the insurance company to make withdrawals from the supplementary provision already set up at the time it makes use of this exemption. By way of derogation from the first paragraph, the National Bank of Belgium authorizes the company, upon its request, to recover all or part of the supplementary provision set up pursuant to this article in the event of a portfolio transfer of insurance contracts carried out within the framework of a corporate restructuring operation within the meaning of Book XI of the Companies Code, under the following conditions:
a) the recovery of provisions must aim to strengthen accounting equity which, as a result of this operation, would have been reduced, while the regulatory equity such as calculated pursuant to the Law of 13 March 2016 on the status and supervision of insurance or reinsurance undertakings remains unchanged pursuant to condition (d) below; b) the amount of provisions to be recovered cannot exceed the amount of supplementary provisions set up for the transferred portfolio; c) the amount of provisions recovered is transferred directly into an unavailable reserve and must be maintained in this reserve for a period of at least 10 years from the operation giving rise thereto; upon expiration of this 10-year period, the unavailable reserve may become available according to the pace prescribed by § 3, last paragraph of this article; d) the regulatory equity of the company such as calculated pursuant to the Law of 13 March 2016 on the status and supervision of insurance or reinsurance undertakings must, before and after said operation, be sufficient to cover all equity requirements of the company, as defined by said law, without resorting to the transitional measures provided for in Articles 668 and 669 of the same law; e) the recovery of provisions must in no case prejudice the rights of policyholders, insured persons, or beneficiaries as defined by Article 15, 18° to 20° of the aforementioned Law of 13 March 2016. The National Bank of Belgium further refuses to grant the authorization referred to in the second paragraph if it considers that this jeopardizes the financial situation, solvency, or results of the company. The company benefiting from the authorization referred to in the preceding paragraphs must, after the transfer to the unavailable reserve, again allocate annually the supplementary provision, pursuant to this article. The annual allocation will, in this case, be calculated taking into account the amounts transferred to the unavailable reserve, as if these were still accounted for in the supplementary provision. § 6. The company to which one or more exemptions and/or authorizations have been granted pursuant to §§ 4 and 5 of this article shall mention this in statement no. 23 provided for in the Annex to this decree, in which it also specifies the following elements:

the justification for the exemption or authorization;
in case of exemption pursuant to § 4: the cumulative amount of allocation to the supplementary provision from which the company is exempt, as of the closing date;
in case of authorization pursuant to § 5: the amount transferred to the unavailable reserve, the date of transfer, and the amount remaining in the unavailable reserve as of the closing date.
§ 7. In the calculation referred to in § 2, the insurance or reinsurance company cannot take into account the probability that the conditions imposed for the attribution of profit participation will be realized.
§ 8. Insurance or reinsurance companies may use a retrospective actuarial method if they demonstrate that the life insurance provision, calculated by this method, is not lower than that obtained using the methods referred to in the preceding paragraphs.
§ 9. Without prejudice to the provisions of §§ 1 to 6, the amount of the life insurance provision cannot be lower than the sum, for all contracts, of the inventory reserves as defined by or pursuant to the Law of 13 March 2016 on the status and supervision of insurance or reinsurance undertakings, negative amounts of the latter being excluded.]1 ---------- (1)<AR 2016-06-01/05, art. 1, 009; En vigueur : 01-01-2016>

Art. 34sexies.§ 1. Regarding the claim provision for the "non-life" activity group:
1° A provision is in principle set up separately for each claim up to the amount of foreseeable future charges. Statistical methods may be used provided that the provision set up is sufficient given the nature of the risks.
2° This provision must also take into account claims occurred but not reported as of the balance sheet closing date; for the calculation of this provision, past experience regarding the number and amount of claims reported after the balance sheet closing is taken into account. 3° In the calculation of the provision, management costs of claims are taken into account, regardless of their origin. 4° Recoverable sums arising from subrogation, deductibles that the company had to pay to injured parties, acquisition of the rights of insured persons vis-à-vis third parties (subrogation), or obtaining legal ownership of insured assets (salvage) cannot be deducted from the amount of the claim provision; they may be recorded as assets by estimating them prudently. When these amounts are significant, they are mentioned in the annex. 5° When indemnities for a claim must be paid in the form of periodic payments, the amounts to be provided for this purpose must be calculated based on recognized actuarial methods. 6° Any implicit deduction or discount, resulting from the valuation of the provision for a claim to be settled at a present value lower than the foreseeable amount of the settlement to be made subsequently or otherwise, is prohibited. Without prejudice to specific legal or regulatory provisions, companies have the option to make an explicit deduction or discount to take into account investment income. This deduction or discount may only occur under the following conditions:
a) The expected average date for settling claims is at least four years subsequent to the date of preparation of the accounts. b) The deduction or discount is performed on a recognized prudential basis. c) The company takes into account, in the calculation of the total cost of settling claims, all factors likely to increase this cost. d) The company has sufficient data to establish a reliable model of claim payment pacing. e) The interest rate used for discounting is not higher than a prudent estimate of the yield on assets placed in representation of claim provisions during the period necessary for the payment of these claims. Furthermore, it is not higher than the lowest of the following two rates:

that of the yield of said assets over the last five years;
that of the yield of said assets in the year preceding the preparation of the balance sheet.
When the company performs a deduction or discount, it must indicate in the annex (statement no. 20) the global amount of provisions before deduction or discount, the claim families for which a deduction or discount is applied, as well as, for each claim family, the methods used, and notably the rates retained for the estimates referred to in the preceding paragraph points c) and e) and the criteria retained for estimating the period to run before the settlement of claims. § 2. Regarding the claim provision for the "life" activity group:
The amount of the claim provision is equal to the sum due to beneficiaries, increased by claim management costs. It includes the provision for claims occurred but not reported.
[1 § 3. Without prejudice to the provisions of § 1st, the following provisions are set up for work accident insurance:
1° a provision relating to permanent work disabilities and fatal accidents; 2° a provision for additional indemnities representing the probable cost of renewal and maintenance of prosthetic and orthopedic appliances; 3° a provision for indexation when the insured benefits are indexed. § 4. The provision relating to permanent work disabilities and fatal accidents is calculated to:
1° guarantee the payment of annual allowances, annuities, and capitals, including capitals to be transferred [2 to Fedris]2, as well as the payment, after the expiration of the revision period, of temporary aggravation indemnities, medical, surgical, pharmaceutical, and hospital expenses; 2° guarantee the indexation of annual allowances and annuities and the payment of allowances. The following general principles must be taken into account for the calculation of the provision relating to permanent work disabilities and fatal accidents:
1° this provision is calculated according to a sufficiently prudent prospective actuarial method, taking into account all future obligations in accordance with the conditions established for each contract in force; 2° in this calculation, the insurance company takes into account adverse developments in the various factors underlying this provision. § 5. Without prejudice to §§ 3 and 4, a supplementary provision is set up:
1° when the technical interest rate used for the calculation of the provisions referred to in § 3 exceeds 80% of the average interest rate over the last five years of ten-year OLOs by more than 0.1%; 2° when the mortality tables used for the calculation of provisions differ from those mentioned in § 7, second paragraph, 2° of this provision. This provision is calculated on December 31 of each year separately for each claim subject to the setting up of a provision referred to in the first paragraph. This supplementary provision is equal to the sum, for all claims, of the positive difference between the provision calculated with an interest rate corresponding to 80% of the average interest rate cited in the first paragraph and the entire technical bases, other than the interest rate, used for the calculation of provisions for new claims, the revaluation rate being fixed at 80% of the average interest rate cited in the first paragraph decreased by 0.75%, and the provision calculated with the technical interest rate used for the calculation of provisions at the time the claim occurred and the entire technical bases, other than the interest rate, used for the calculation of provisions at the time the claim occurred. The annual allocation is equal to at least 10% of the supplementary provision to be set up. This allocation may however be limited to the difference between the supplementary provision to be set up and the supplementary provision already set up. When the supplementary provision to be set up is lower than the supplementary provision already set up, the insurance company may withdraw from this latter supplementary provision 10% of the surplus as well as 90% of the supplementary provision set up relating to contracts liquidated or permanently ceded. § 6. The provisions of Article 34quinquies, §§ 4 to 6 apply by analogy to the provisions set up pursuant to this article. § 7. The provision relating to permanent work disabilities and fatal accidents cannot be lower than that calculated according to the technical bases in force at the time the claim occurred, taking into account the number of payments per year, the timing of payments, and possible arrears in case of death. Furthermore, for claims occurred after December 11, 2001, this provision cannot be lower than that calculated according to the following technical bases:
1° the technical interest rate: the maximum reference rate for long-term life insurance operations, determined by the National Bank of Belgium at the time the claim occurred; by way of derogation from the preceding paragraph, the technical interest rate amounts to a maximum of 4.75% until December 31, 2002. However, this derogation is not applicable to claims relating to contracts subscribed from March 17, 2002. 2° mortality tables:
a. ED1(M) for men and ED1(F) for women: for victims whose permanent work disability is at least 16% as well as for surviving spouses and ascendants; b. ED2(M) for men and ED2(F) for women, in all other cases.
The mortality tables ED1(M), ED1(F), ED2(M) and ED2(F) are determined hereinafter in paragraph 3.
3° a revaluation rate, for indexed annuities, at least equal to the technical interest rate referred to in point 1) decreased by 0.75%; 4° a loading of at least 2.76% intended to cover, after the expiration of the revision period, medical, surgical, pharmaceutical, and hospital expenses as well as temporary aggravation indemnities and allowances when the annuity relates to a victim whose work disability amounts to at least 10%. The mortality tables ED1(M), ED2(M), ED1(F) and ED2(F) are determined by the following relation, applied to the number of survivors at age x, for 1,000,000 births:

(Image not reproduced for technical reasons, see M.B. of 17-06-2016, p. 36694)

where the constant k is determined by the formula:

(Image not reproduced for technical reasons, see M.B. of 17-06-2016, p. 36694)

and where the constants s, g, and c have the values listed below, according to the table:

	s	g	c
ED1(M)	0,999 441 703 848	0,999 733 441 115	1,102 891 252 975
ED1(F)	0,999 669 730 966	0,999 951 440 172	1,118 472 736 561
ED2(M)	0,999 441 703 848	0,999 733 441 115	1,103 798 111 448
ED2(F)	0,999 669 730 966	0,999 951 440 172	1,119 312 877 926

§ 8. The provision for additional indemnities representing the probable cost of renewal and maintenance of prosthetic and orthopedic appliances is equal to the sum of constitutive capitals:
1° an indexed life annuity corresponding to the cost of renewal of prosthetic and orthopedic appliances; 2° an indexed life annuity corresponding to the cost of maintenance of prosthetic and orthopedic appliances.
The provisions relating to the provision for permanent work disabilities and fatal accidents apply to this provision, with the exception of the loading referred to in § 7, second paragraph, 4° ) and the mortality tables, for which tables ED2(M) and ED2(F) are applied in all cases. This provision may be calculated according to another equivalent method admitted by the National Bank of Belgium. § 9. The provision for indexation is funded annually by an amount equal to at least a percentage of the average amount of the claim provision until it reaches an amount equal to at least 12.5% of the amount of the claim provision. This percentage is calculated annually; it is equal to the difference between the reference interest rate and the inflation rate, decreased by 0.75%. The percentage is limited to 1.25%. The reference interest rate is equal to the average over the last five years of the average annual interest rates of five-year OLOs. The inflation rate is equal to the ratio between the average of the twelve monthly consumer price indices, published in the Belgian Monitor during the current fiscal year, and the average of these indices during the previous fiscal year, decreased by 1. When the percentage referred to above is negative, the insurer withdraws from the provision for indexation an amount equal to this percentage multiplied by the amount of the claim provision. For the application of this paragraph, "claim provision" means the claim provision relating to benefits whose indexation is borne by the company.]1 ---------- (1)<AR 2016-06-01/05, art. 2, 009; En vigueur : 01-01-2016> (2)<AR 2018-09-06/13, art. 83, 011; En vigueur : 01-01-2017>

Art. 34septies. § 1. (The application of the following methods is authorized when, due to the nature of the branch or type of insurance in question, information regarding premiums to be collected, claims to be paid, or both for the underwriting year, is insufficient at the time the annual accounts are drawn up to allow for a precise estimate.) (Err. 17-11-1994; M.B. 07-03-1995, p. 5083)

First method (so-called combined method).
The excess of premiums issued compared to claims and expenses paid in respect of contracts starting during the underwriting year as defined in § 3 of this article, constitutes a technical provision which is included in the technical provision for claims appearing in item C.III. of the liabilities of the balance sheet. This provision may also be calculated on the basis of a given percentage of issued premiums, when the application of such a method is appropriate due to the particular nature of the insured risk. As soon as the need arises, the amount of this technical provision is increased so that it is sufficient to meet current and future obligations. The technical provision constituted in accordance with this method is replaced by a claims settlement provision estimated in the usual manner as soon as sufficient information is collected and, at the latest, at the end of the third year following the underwriting year.

Second method.
The figures indicated in the entire technical account or at certain items thereof relate to a year which precedes, in whole or in part, the financial year. This year must not precede the financial year by more than twelve months. If necessary, the amount of the technical provisions appearing in the annual accounts is increased so that it is sufficient to meet current and future obligations.

§ 2. When one of the methods referred to in paragraph 1 is adopted, it is applied systematically during the following years, unless circumstances justify a modification. The adoption of one of these methods is reported and duly motivated in the notes (statement no. 20); in the event of a change in the method applied, its influence on the assets, financial situation and result is indicated in the notes (statement no. 20). When the first method is used, the time elapsed before a claims settlement provision is constituted on the usual basis is specified in the notes (statement no. 20). When the second method is used, the time separating the financial year and the preceding year to which the figures relate, as well as the scale of the operations concerned, are indicated in the notes (statement no. 20).

§ 3. For the purposes of this article, the underwriting year means the financial year during which the insurance contracts of the branch or type of insurance in question take effect.

Art. 35. § 1. Deferred taxes on realized capital gains are initially evaluated at the normal amount of taxation that would have applied if these capital gains had been taxed in the year in which they were recorded. However, they are calculated after deducting the effect of reductions and immunities which it is probable, at the time these capital gains are recorded, will result, in the foreseeable future, in a reduction of the tax charge related to these capital gains.

§ 2. Deferred taxes related to realized capital gains are subject to a staggered reduction by allocation to the income statement at item 15bis, b) "Adjustment of deferred taxes and reversals of provisions for deferred taxes" at the rate of inclusion in the taxable result of the capital gains in question.

§ 3. Except for the application of § 2, the amount of deferred taxes recorded in the liabilities is subject to correction only to the extent that, following a change in the fiscal situation of the company, it is probable that the actual amount of the estimated tax charge related to these capital gains in the foreseeable future will differ significantly from the amount recorded in the liabilities.

Art. 36. § 1. Without prejudice to the obligation to keep summary accounts in Belgian francs (or in euros), companies may keep their accounts in such a way that monetary elements are recorded with the mention of their amount in the currency in which they are denominated. These elements are evaluated on the basis of their amount in the relevant currency. <AR 1998-12-07/37, art. 4, 003; En vigueur : 01-01-1999>

For the application of this article, the following terms are understood:
a) monetary elements: assets, liabilities, including deferrals, rights and obligations involving a determined number of monetary units to be collected or paid, as well as other assets allocated to the coverage of technical provisions in foreign currencies; b) forward points (report/déport): the positive (report) or negative (déport) difference separating the rate of a forward foreign exchange transaction - or a forward transaction on exchange rates concluded in accordance with the modalities of futures markets - from the spot rate at the time of concluding such a transaction; c) hedging operation allocated with regard to the risk of exchange rate variation: the operation which has as its purpose and effect to compensate or reduce the risk of exchange rate variation relating to a monetary element or a homogeneous set of monetary elements with regard to the risk of exchange rate fluctuation.

In order to be considered as a hedging operation allocated within the meaning of this paragraph, the operation must meet the following conditions:
a) the hedged element or the homogeneous set of hedged elements must expose the company to a risk of exchange rate variation; b) the hedging operation must be qualified as such in the books from the outset; c) the hedged element or the homogeneous set of hedged elements and the hedging operation must be denominated in the same currency or in currencies between which there is a close correlation; in the case of options concluded as hedging operations, the underlying instrument of the option and the hedged element or the homogeneous set of hedged elements must be denominated in the same currency or in currencies between which there is a close correlation.

§ 2. a) Monetary elements in foreign currencies are converted into Belgian francs (or in euros), by applying the spot rate at the date of closing of the accounts. Elements which, either due to their nature, such as banknotes, or by virtue of exchange regulations, are liquidated at specific rates, are converted at the specific average rate. <AR 1998-12-07/37, art. 4, 003; En vigueur : 01-01-1999> b) The balances of positive and negative differences resulting from the conversion of technical provisions denominated in foreign currencies are included in the income statement, in the corresponding "Variation of technical provisions" items. However, when "non-life" technical provisions denominated in foreign currencies are significant, the exchange differences on these technical provisions are charged directly to the corresponding sub-items of the item "Other technical charges, net of reinsurance", in the "non-life" technical account. c) The balance of negative differences resulting from the conversion of monetary elements, other than technical provisions, denominated in foreign currencies is charged to the income statement as an expense. d) The balance of positive differences resulting from the conversion of monetary elements, other than technical provisions, denominated in foreign currencies is credited to deferrals as income to be carried forward. However, when the company is exposed to a significant negative difference resulting from the conversion of technical provisions denominated in foreign currencies, it is permitted to charge the income statement as income the positive difference resulting from the conversion of elements allocated to the coverage of technical provisions in foreign currencies. e) Forward points related to forward transactions are prorata temporis over the duration of the transactions and charged as income and expenses of financial instruments.

§ 3. Forward foreign exchange transactions are evaluated at the forward exchange rate corresponding to the remaining term of these transactions. The balances of negative differences resulting therefrom are charged to the income statement as an expense to be taken into account to determine the result of the foreign exchange activity. Positive differences relating thereto are not recognized as income charged to the income statement.

§ 4. Forward transactions on exchange rates are evaluated at their acquisition value.
At the closing date of the year, forward transactions on exchange rates which do not or no longer meet the conditions to be qualified as hedging operations are evaluated at their market value if this evaluation shows a negative difference compared to the initial value. This must be taken into account to determine the result of the foreign exchange activity. When forward transactions on exchange rates are concluded as hedging operations, the valuation differences generated, including those resulting from the variation in value of premiums related to foreign exchange option contracts, are charged to the income statement as income and expenses to be taken into account to determine the result of the foreign exchange activity in a manner symmetrical to the recognition of exchange gains or losses on the hedged elements.

§ 5. Intermediate payments in execution of forward foreign exchange contracts involving a mechanism of reciprocal payments at intermediate interest maturity dates calculated on the capitals to be exchanged at the ultimate maturity, are charged to the income statement as income and expenses to be taken into account to determine the profit or loss result of the foreign exchange activity.

§ 6. Expenses and income expressed in foreign currencies are recorded in results for their equivalent in Belgian francs (or in euros) calculated on the basis of the spot exchange rate or a rate close to the latter at the time they are recognized as expenses and income. <AR 1998-12-07/37, art. 4, 003; En vigueur : 01-01-1999> Unmatured income and expenses, covered in advance and specifically, may however be converted into Belgian francs (or in euros) on the basis of the exchange rate of the hedging transaction. <AR 1998-12-07/37, art. 4, 003; En vigueur : 01-01-1999>

§ 7. In the case of non-monetary elements whose acquisition price is denominated in foreign currencies, the acquisition value in Belgian francs (or in euros) for which these elements are recorded in the accounts is determined on the basis of the exchange rate on the day of acquisition or a rate close to the latter or, if applicable, the exchange rate at which the foreign currency necessary to pay the price was purchased. The result of the sale of non-monetary elements whose selling price is denominated in foreign currencies is determined on the basis of the exchange rate on the day of the transaction or a rate close to the latter or, if applicable, the exchange rate at which the currency concerned was sold. <AR 1998-12-07/37, art. 4, 003; En vigueur : 01-01-1999> When non-monetary assets expose a company to exchange risk and the company has deliberately, in order to reduce this risk, opted for their sustainable financing by loans in the corresponding currency, it is permitted to adopt an evaluation method by which, systematically, the exchange differences related to the aforementioned loans are not taken into account to determine the balance of exchange differences under § 2. These differences are then credited to deferrals.

§ 8. By derogation from the principles listed in the preceding paragraphs of this article, the company may also use the spot rate at the date of closing of the accounts for the purpose of converting the accounts of foreign branches.

Art. 36bis. § 1. Merger by absorption 1 , as defined in article 671 of the Companies Code, 1 and operations assimilated to merger by absorption 1 by article 676 of said Code 1, are treated in the accounts according to the provisions of §§ 2 to 7.

§ 2. The various elements of the assets and liabilities of the absorbed company, including the various elements of its equity, the amortizations, impairments and provisions constituted by it, its rights and obligations as well as its income and expenses for the year are, without prejudice to §§ 3 to 7, transferred to the accounts of the absorbing company at the value at which they appeared in the accounts of the absorbed company, at the date referred to 1 in article 693, 5°, of the Companies Code 1.

§ 3. The following are cancelled, upon merger:
1° treasury shares held by the absorbed company which, 1 pursuant to article 703, § 2, 2°, of the Companies Code 1, cannot give rise to the attribution of shares of the absorbing company; 2° to the extent of the book value of these treasury shares, the unavailable reserve for treasury shares constituted for this purpose by the absorbed company. 1 Article 623, paragraph 2, of the Companies Code 1 applies in the event that a reserve for treasury shares has not been constituted.

§ 4. If, taking into account the exchange ratio and the nominal value or book par value of the shares attributed in consideration, the amount by which the capital of the absorbing company is increased is higher than the capital of the absorbed company, the difference is charged, according to the modalities decided by the merger general meeting, from the other elements of the equity of the absorbed company; in the opposite case, the difference is credited to share premium.

§ 5. If the shareholders of the absorbed company obtain a cash merger consideration, this is deemed to be charged from the equity of the absorbed company.
This charge is made from the equity, according to the modalities decided by the merger general meeting, in compliance with legal and statutory provisions.
In the absence of a decision by the merger general meeting concerning 1 the equity category 1 on which this charge is effective, it is deemed to operate, in order, on retained earnings, on available reserves and on other reserves that the law and statutes allow to be distributed.

§ 6. If the absorbing company or another company absorbed simultaneously held shares of the absorbed company, these shares are cancelled upon merger, and the various elements of the equity of the absorbed company are only included in the accounts of the absorbing company to the extent of the fraction of those corresponding to the shares of the absorbed company that gave rise to the attribution of shares of the absorbing company. However, account is taken, if applicable, of the modification, following the merger, of the fiscal qualification of the reserves of the absorbed company.

§ 7. If the value at which the shares of the absorbed company that did not give rise to the attribution of shares of the absorbing company pursuant to 1 article 703, § 2, 2°, of the Companies Code 1 appeared in the accounts of the company holding them, differs from the share that these shares represented in the equity of the absorbed company, the difference is treated according to its nature or origin:
a) In the event of an excess of the book value of the shares in question compared to the share they represented in the equity of the absorbed company, the difference is charged, as far as possible, to the elements of the assets, including intangible assets, which have a value higher than the amount at which they appeared in the accounts of the absorbed company. To the extent that the difference is attributable to an overvaluation of debts or to amortizations, impairments or provisions recorded in the income statement of the absorbed company, which have become unnecessary or excessive, these are subject, at the time of the merger, to reversals or adjustments to the extent of this excess, by the income statement. The difference remaining after these charges is, depending on the case, credited to the "Goodwill" category or taken to the income statement. d) In the opposite case, the difference is treated as follows: to the extent that it is attributable to overvaluations of assets or undervaluations of liabilities in the absorbed company, amortizations, impairments, provisions and adjustments are, at the time of the merger, recorded to the extent necessary in the income statement. The difference remaining after these adjustments is credited to the income statement. ---------- (1) AR 2014-10-09/04, art. 9, 008; En vigueur : 20-10-2014>

Art. 36ter. Merger by constitution of a new company, 1 as defined in article 672 of the Companies Code, 1 is treated in the accounts of the merging companies in accordance with article 36bis. For the application of paragraph 1, each of the companies merging is considered as being an absorbed company and the new company is considered as being the absorbing company. ---------- (1) AR 2014-10-09/04, art. 10, 008; En vigueur : 20-10-2014>

Art. 36quater. Division by absorption, by constitution of new companies or by absorption and by constitution of new companies, 1 as defined respectively in articles 673, 674 and 675 of the Companies Code, 1 is treated in the accounts of the divided company and in the accounts of the companies benefiting from the contributions resulting from the division, in accordance, depending on the case, with article 36bis or with article 36ter. However, article 36bis applies to each benefiting company for the sole assets and liabilities, rights and obligations contributed to it as well as for the part of the equity of the divided company contributed to it. ---------- (1) AR 2014-10-09/04, art. 11, 008; En vigueur : 20-10-2014>

Art. 36quinquies. In the event of the contribution of a business unit or a universality of assets 1 , as defined respectively in articles 678 and 679 of the Companies Code, 1 the assets, liabilities, rights and obligations contributed are, upon contribution, recorded in the accounts of the company benefiting from the contribution, at the value at which they were recorded, at the date of contribution, in the accounts of the contributing company. ---------- (1) AR 2014-10-09/04, art. 12, 008; En vigueur : 20-10-2014>

[Art. 36quinquies] [36sexies]. § 1. For the application of this article, a qualified hedging interest rate forward transaction is defined as a forward transaction whose purpose and effect is to compensate for or reduce the risk relating to an asset, a liability, a right, an off-balance sheet commitment, or a set of elements with homogeneous characteristics regarding their sensitivity to interest rate variations.

To be considered a hedging transaction within the meaning of this paragraph, the transaction must meet the following conditions:
a) the hedged element or homogeneous set must expose the company to a risk of interest rate variation; b) the hedging transaction must be qualified as such in the books from the outset; c) a close correlation must be observed between the value variations of the hedged element and those of the hedging transaction; in the case of options concluded as hedging transactions, the correlation must be established between the variations of the hedged element and those of the underlying financial instrument.

§ 2. Interest rate forward transactions are valued at their acquisition value at the balance sheet date.

At the end of the financial year, interest rate forward transactions that no longer meet the conditions to be qualified as hedging transactions within the meaning of the first paragraph of this article are valued at their market value if this valuation shows a negative difference compared to the initial value. This difference is charged to the income statement.

§ 3. Differences resulting from value variations of interest rate forward transactions qualified as hedging transactions are, during the most recent daily settlement of debit or credit margins, recorded in a suspense account opened among the regularization accounts. Upon settlement of the hedging transaction, the balance of this account is charged to the income statement symmetrically to the charging of income or expenses of the hedged element, over the remaining useful life of that element. However, when the hedged element is valued at market price, the hedging results from interest rate forward transactions must be charged to the income statement before the settlement date of the hedging transaction, as the value of the hedged element varies, in order to respect the symmetry rule.

In the event of disposal or upon maturity of the hedged element, the balance of the suspense account is charged entirely to the income statement, and differences resulting from subsequent value variations of unsettled hedging transactions previously allocated to it are treated in accordance with the provisions of paragraph 2 of this article. The provisions of this paragraph apply to interest rate option contracts qualified as hedging transactions even in the absence of daily settlement of debit and credit margins.

The income and expenses referred to in this paragraph are included in the income statement for their balance after offsetting between income and expenses of the same nature.

[CHAPTER IV.] - Miscellaneous and transitional provisions.

[Art. 37] [38]. Companies must indicate in the notes (statement no. 10) the amount of commissions related to direct insurance accounted for during the financial year. This obligation concerns commissions of any nature, and in particular acquisition, renewal, collection, and after-sales service commissions.

[Art. 38] [39]. The current value of investments in item C must be indicated in the notes in the form imposed by statement no. 3.

This current value is determined in accordance with Article 27, 1° and 2°, and Article 31, paragraph 7.

The indication of the current value of investments in item C.I. "Land and buildings" is not mandatory before January 1, 1999, unless it is known to the company.

[Art. 39] [40]. In the event of a significant difference between:

the amount of the provision at the beginning of the financial year for claims arising in previous financial years and still to be settled, and
the amounts paid during the financial year for claims arising in previous financial years as well as the amount of the provision at the end of the financial year for such claims still to be settled,
the nature and extent of this difference are specified in the notes.

[Art. 40] [41]. The funds of a collective retirement fund that the insurance company manages for its own account for the benefit of third parties must appear on the balance sheet.

The total amount of assets and liabilities relating to these funds must also be indicated and broken down in the notes in the form imposed by statement no. 9.

[Art. 41] [42]. The provisions of this decree are applicable to companies in liquidation.

In cases where, in execution or not of a liquidation decision, the company renounces to continue its activities or when the perspective of continuity of its activities, referred to in Article 15, paragraph 3, cannot be maintained, the valuation rules are adapted accordingly and, in particular:
a) establishment costs must be fully amortized; b) other fixed assets, if applicable, are subject to additional amortizations or value reductions to bring their book value to the probable realization value; c) provisions are formed to cover costs inherent to the cessation of activities, including the cost of severance pay to be paid to staff.

Paragraph 2 is also applicable in the event of the closure of an activity branch or a company establishment, regarding the assets, liabilities, and commitments relating to that activity branch or establishment.

[Art. 42] [43]. The following may be posted directly to item A.III.1. of the liabilities and maintained there until the realization date of the assets to which they relate:
1° the reversals of value reductions recorded on participations, securities, and other portfolio assets, before January 1, 1976 or, for companies whose financial year does not coincide with the calendar year, before the beginning of the financial year closed in 1977; 2° the reversals of value reductions recorded on intangible fixed assets and on tangible fixed assets other than those included under item D. of the assets, the use of which is not limited in time.

[Art. 43] [44]. § 1. Companies that, on January 1, 1986, had, within the framework of a pension scheme, entered into commitments regarding their staff members in terms of retirement or survivor pensions, and whose part of the commitments in question relating to benefits related to years prior to January 1, 1986 is taken over by an autonomous pension fund, are, in the event of insufficiency of the provisions formed by the autonomous pension fund, exempt from forming provisions to cover this part of these commitments, to the extent that the pension fund is exempted under Article 63, §§ 1 and 2 of the Law of July 9, 1975 on the control of insurance companies, as it has been made applicable to private providence institutions by Article 20 of the Royal Decree of May 14, 1985 on the application to private providence institutions of the aforementioned Law of July 9, 1975 on the control of insurance companies.

§ 2. Companies that, on January 1, 1986, had, within the framework of a pension scheme not providing for participant contributions, entered into commitments regarding their staff members in terms of retirement or survivor pensions and which had not formed provisions to meet these commitments, are exempt from forming provisions for the part of the commitments relating to the benefits of participants who entered service before this date.

§ 3. For companies referred to in Article 63, § 5 of the Law of July 9, 1975, as it has been made applicable to private providence institutions by Article 20 of the Royal Decree of May 14, 1985, the date of January 1, 1986, referred to in §§ 1 and 2, is replaced by the date of January 1, 1993.

[Art. 44] [45]. If at the beginning of the first financial year to which the provisions of this decree apply to a company, the acquisition value of certain asset elements cannot be reconstructed, the acquisition value of each of these elements is equal to the value for which they were carried, before amortizations and related value reductions, in the inventory established at the end of the previous financial year.

The acquisition value established by applying the preceding paragraph:
1° is subject, if applicable, to amortizations and value reductions in accordance with Articles 28 to 31; 2° is considered, as the acquisition value of assets entered for the first time, for the application of Article 33.

Revaluation gains recorded prior to the first financial year to which the provisions of this decree apply to a company as well as share premiums received must only be mentioned in the annual accounts to the extent that they still appeared as such in the company's accounting at the end of the previous financial year.

Companies have the option to maintain at item A.III.1. of the liabilities, the gains recorded prior to the beginning of the financial year starting after December 31, 1994.

[Art. 45] [46]. Articles 10 and 11 paragraphs 2 and 3, and 17 are not applicable to the annual accounts of the first financial year to which the provisions of this decree apply to an insurance company.

The notes relating to the first balance sheet and income statement drawn up in accordance with the forms provided for in Chapter I of the annex to this decree must not indicate the corresponding amounts of the previous financial year for the items that must be included for the first time in the annual accounts relating to the financial year starting after December 31, 1994.

[Art. 46] [47]. Regarding constitutive conventions of rights referred to in Article 26, relating to real estate, concluded before January 1, 1980:
1° the installments of royalties and rents related to the financial year are posted under the item "Goods and services other" of statement no. 12 of the notes to the annual accounts; 2° the usage rights are each year posted to the assets of the lessee to the extent of the fraction of the installments related to subsequent financial years representing the capital reconstruction of the value of the asset, object of the contract; 3° in statement no. 1 of the notes to the annual accounts, the fraction of the royalties and rents related to closed financial years, representing the capital reconstruction of the value of the asset, object of the contract, is mentioned under the item "Amortizations and value reductions"; 4° in the hands of the owner who grants the lease-financing, these buildings are posted to the assets of the balance sheet under item C.II.2.a) "Buildings intended for leasing" and the royalties and rents related to the financial year are posted under the item "Income from investments income from land and buildings".

[Art. 47] [48]. The provisions of this decree providing for the accounting of restructuring costs posted to the assets under the item "Establishment costs" are applicable to costs incurred within the framework of a restructuring translated for the first time in the annual accounts relating to a financial year starting after December 31, 1994.

[Art. 48] [49]. § 1. Article 19bis is only applicable to gains and losses recorded on disposal operations carried out after December 31, 1994.

§ 2. Insurance companies may apply a recording method by which positive differences generated in application of § 3 of Article 27bis and relating to the period prior to the entry into force of this decree are posted to regularization accounts until the maturity or realization of the concerned securities, without prejudice to the possibility of taking them into profit pro rata temporis over the remaining period.

For the securities referred to in Article 513 of the Income Tax Code 1992, the positive differences generated in application of § 3 of Article 27bis and relating to the period subsequent to the entry into force of this decree may also be posted to regularization accounts until the maturity or realization of these securities.

§ 3. Redemption premiums related to loans contracted before January 1, 1995 which appeared at that date under the item "Establishment costs" are maintained under this item until their full amortization.

§ 4. Point c) of § 2 of Article 27bis is not applicable to the receivables and debts referred to which entered the company's patrimony before January 1, 1995.

§ 5. Acquisition costs of insurance contracts cannot be posted to the assets.

However, the acquisition costs of insurance contracts, appearing on January 1, 1995 under item G.II. of the assets "Deferred acquisition costs" may be maintained under this item until their full amortization. This amortization must be carried out in annual installments of at least ten percent of the capitalized amounts.

§ 6. Article 35 is applicable to gains benefiting from the deferred tax regime, realized after the entry into force of this decree. Companies may however apply it to gains benefiting from the deferred tax regime, realized before the entry into force of said decree; in this case, the deferred taxes related to the amounts posted under shareholders' equity may be levied from this item of shareholders' equity to be posted directly to the item "Deferred taxes".

§ 7. Forward exchange transactions referred to in Article 36, § 3 and which were concluded before the date of entry into force of this decree may be valued in accordance with the method applied until then.

[Art. 49] [50]. The Royal Decree of November 12, 1979 on the annual accounts of approved insurance companies in application of the legislation on the control of insurance companies, modified by the Royal Decree of July 6, 1994, is repealed.

However, it remains applicable to accounts closed before January 1, 1995.

[Art. 50] [50bis]. This decree applies for the first time to accounts closed at the end of the financial year starting after December 31, 1994.

[Art. 50bis] [50ter]. <Inserted by RD 1998-12-07/37, art. 5; In force: 01-01-1999> Annual accounts, closed from January 1, 1999 to December 31, 2001 may, at the choice of the company, be expressed either in Belgian francs or in euros. The choice of the euro for the preparation of the accounts of a financial year obliges to express in euros the annual accounts of subsequent financial years.

Annual accounts closed after December 31, 2001 must be expressed in euros.

[Art. 50ter] [51]. <Inserted by RD 1998-12-07/37, art. 6; In force: 01-01-1999> From January 1, 2002, the following are deleted:
1° in Articles 2 and 36 as well as in the annex of this decree, in Chapter III, Section II, under items cc) Currency translation differences, the words "in Belgian francs or "; 2° in Article 7 as well as in the annex of this decree, in the introductory phrase of Chapter I, Section III, the words "in thousands of francs or "; 3° in the annex of this decree, in Chapter I, Sections I and II and in Chapter II, Sections I and II, the mentions "(x 1,000 F) or ".

[Art. 51] [51]. Our Minister of Economic Affairs is charged with the execution of this decree.

[Annexes.]

[Art. N1] [N2]. Annex 1. CHAPTER I. - Schema of annual accounts.
(Schema not reproduced for technical reasons. See MB 21/12/1994, p. 31451 to 31487)

Modified by:

[Art. N2] [N3]. Annex 2. CHAPTER II. - Balance sheet and income statement, detailed.
(Schema not reproduced for technical reasons. See MB 21/12/1994, p. 31488 to 31511) <RD 1998-12-07/37, art. 7, In force: 01-01-1999; see M.B. 25-12-1998, p. 41207>

[Art. N3] [1N3]. Annex 3. CHAPTER III. - Definitions and explanatory notes concerning the items of the balance sheet and detailed income statement as well as statements 12 and 17 of the notes.

Art. 1N3.Section 1. - Detailed Balance Sheet.

Assets.

B.I. Establishment costs.

The following costs, which relate to the formation, development, or restructuring of the company, and which have not been charged to another title during the financial year in which they were incurred, are recorded under this item, in the corresponding sub-items: formation or capital increase costs, bond issuance costs, and restructuring costs.

B.II. Intangible fixed assets.

The following are recorded under this item, in the corresponding sub-items:
1° goodwill;
2° other intangible fixed assets;
3° advances paid on intangible fixed assets.

By goodwill is meant the acquisition cost of an insurance portfolio, a business line, or a company, to the extent that it exceeds the net value of the asset and liability elements comprising it.

C.I.1. Buildings used by the company in the context of its own activity.

The following are recorded under this item: built and unbuilt land, buildings erected as well as their fittings, which the company owns and permanently allocates to its operations and the provision of its social, medical, and cultural services.

Also recorded under this item are other real rights that the company holds on buildings permanently allocated to its operations, where the canon or royalties were paid in advance at the beginning of the contract.

C.I.2.a) Buildings intended for letting.

Buildings intended for letting and allocated by the company to the provision of medical services are notably recorded under this item.

C.I.2.c) Finance leases and similar rights.

Long-term usage rights on built buildings, which the company holds by virtue of emphyteutic leases, superficies, finance leases, or similar agreements, are recorded under this item, where the scheduled royalties due under the contract cover, in addition to the interest and costs of the operation, the full reconstruction of the capital invested by the grantor in the construction.

The following is assimilated to a royalty referred to in the preceding paragraph, provided that it is determined:
a) the amount due by the lessee for the acquisition of the real rights that the grantor holds on the immovable property in question, where, at the time of concluding the operation, he has undertaken, optionally at the grantor's option, to acquire these rights; b) in the hands of the grantor, the amount to be received by him from a third party for the transfer of the real rights that he holds on the immovable property in question, where, at the time of concluding the operation, this third party has undertaken, optionally at the grantor's option, to acquire these rights.

C.II. first dash. Related companies.

§ 1. For the application of this Decree, the following are considered related companies to a company:
a) companies that it controls; b) companies that control it; c) companies with which the company forms a consortium; d) other companies that, to the knowledge of its management body, are controlled by the companies referred to in a), b), and c).

§ 2. For the application of this Decree, the following terms are understood as:
control of a company, the legal or factual power to exercise decisive influence on the appointment of the majority of directors or managers of that company or on the direction of its management; subsidiary, the company with respect to which this power of control exists; joint control, the control exercised together by a limited number of partners, where these partners have agreed that decisions regarding the direction of the management of the company in question can only be taken by their common agreement; joint venture, the company with respect to which this joint control exists.

§ 3. Control is legal and presumed irrebuttably:
1° when it results from the holding of the majority of voting rights attached to all shares, partnership interests, or partners' rights of the company in question; 2° when a partner has the right to appoint or remove the majority of directors or managers; 3° when a partner holds the power of control by virtue of the articles of association of the company in question or agreements concluded with that company; 4° when, by virtue of agreements concluded with other partners of the company in question, a partner holds the majority of voting rights attached to all shares, partnership interests, or partners' rights of that company; 5° in the case of joint control.

§ 4. Control is factual when it results from elements other than those referred to in § 3.
A partner of a company is, unless proven otherwise, presumed to have factual control over that company if, at the second-to-last and last general meetings of that company, he exercised voting rights representing the majority of votes attached to the securities represented at these meetings.

§ 5. For the determination of the power of control:
1° the power held indirectly through a subsidiary is added to the power held directly; 2° the power held by a person acting, by virtue of a mandate, commission, nominee, trust, or agreement of equivalent effect, on behalf of another person, is deemed to be held exclusively by that latter person.

For the determination of the power of control, suspensions of voting rights nor limitations to the exercise of voting power provided for by the coordinated laws on commercial companies or by legal or statutory provisions of similar effect are not taken into account.

For the application of § 3, 1° and 4°, the voting rights attached to all shares, partnership interests, and partners' rights of a subsidiary are understood as net of the voting rights attached to the shares, partnership interests, and partners' rights of that subsidiary held by itself or by its subsidiaries. The same rule applies in the case referred to in § 4, paragraph 2, with regard to the securities represented at the two last general meetings.

§ 6. A consortium exists when a Belgian law company referred to in Article 1, paragraph 1, 2° or 3° of the Law of 17 July 1975 on accounting and annual accounts of companies and one or more other Belgian law companies referred to in said Article 1, paragraph 1, 2° or 3°, or foreign law companies constituted in a similar form, which are not subsidiaries of each other, nor subsidiaries of the same Belgian law commercial company or foreign law commercial company, are placed under a single direction.

Companies are presumed irrebuttably to be placed under a single direction:
1° when the single direction of these companies results from contracts concluded between these companies or from statutory clauses, or 2° when their management bodies are composed of the majority of the same persons.

Companies are presumed, unless proven otherwise, to be placed under a single direction when their shares, partnership interests, or partners' rights are held by the majority by the same natural or legal persons; the provisions of § 5 are applicable.

The third paragraph of this section does not apply to shares, partnership interests, and partners' rights held by public authorities.

C.II. second dash. Other companies with which there is a participation link.

For the application of this Decree, the following are considered as such, other than related companies:
1° companies in which the company holds directly or whose subsidiaries hold a participation; 2° companies that, to the knowledge of the management body of the company, hold directly or whose subsidiaries hold a participation in the capital of the company; 3° companies that, to the knowledge of the management body of the company, are subsidiaries of the companies referred to in 2°.

C.II.1. Participations (in related companies).
C.II.3. Participations (in companies with which there is a participation link).

For the application of this Decree, social rights held in other companies are considered as constituting a participation when this holding aims, by establishing a durable and specific link with these companies, to allow the company to exercise influence on the direction of the management of these companies.

The following is presumed to constitute a participation, unless proven otherwise to be mentioned in the notes:
1° the holding of social rights representing one-tenth of the capital, social fund, or a category of shares of the company; 2° the holding of social rights representing a fraction less than ten percent:
a) when by adding the social rights held in the same company by the company and by its subsidiaries, these represent one-tenth of the capital, social fund, or a category of shares of the company in question; b) when the acts of disposition relating to these shares or partnership interests or the exercise of the rights attached thereto are subject to contractual stipulations or unilateral undertakings to which the company has subscribed.

C.II.2. Bonds, debentures, and claims (on related companies).
C.II.4. Bonds, debentures, and claims (on companies with which there is a participation link).

The following are recorded under these items: claims, whatever their contractual term, origin, or form, on related companies or on companies with which there is a participation link, when these claims aim to sustain the activity of these companies on a durable basis.

C.III.1. Shares, partnership interests, and other variable income securities.
C.III.2. Debentures and other fixed income securities.

Securities received as collateral, notably from reinsurers, which cannot appear in the body of the balance sheet but must be mentioned in the notes (statement no. 17), are excluded from these items.

C.III.1. Shares, partnership interests, and other variable income securities.

This item includes shares, partnership interests, and other variable income securities that do not constitute participations. To this extent, it also includes shares of investment companies.

Other variable income securities notably include securities whose income does not have the character of interest income, such as units in investment funds not comprising exclusively productive reinvestments of interest.

C.III.2. Debentures and other fixed income securities.

This item includes:
1° negotiable debentures and similar securities; 2° claims whose initial term does not exceed one year, which are represented by negotiable securities and are effectively negotiable on a market operating regularly with the intervention of recognized financial institutions; those whose initial term exceeds one year are recorded under items C.III.5. or D.III.5. of the assets.

For the purposes of the definition of this item, "fixed income" is understood as income having the character of "interest income", even when it is determined by applying a variable rate based on a determined parameter or when it is entirely or partially constituted by the difference between the redemption value and the acquisition value of the security concerned;

Similar securities notably include real estate certificates, cash certificates, and deposits, as well as commercial paper and units in investment funds comprising only productive reinvestments of interest.

Securities representing subordinated claims on related companies and on other companies with which there is a participation link are, however, not included under this item, but respectively under items C.II.2. or D.II.2. and C.II.4. or D.II.4. of the assets.

The aforementioned securities that constitute a liquidity buffer are recorded under item C.III.2.b) or D.III.2.b) of the assets.

C.III.3. Units in investment pools.

Units held by the company in common investments constituted by several companies or pension funds, the management of which has been entrusted to one of these companies or to one of these pension funds, are recorded under this item.

C.III.4. Loans and mortgage credits.

Regarding mortgage loans, these are loans granted by the company, net of any repayments made by the borrower as amortization, the recovery of which is guaranteed notably by a mortgage registration in favor of the company.

Regarding mortgage credits, these are variable capital loans; only the amount actually drawn down is to be indicated.

C.III.5. Other loans.

Loans to policyholders of insurance for which the policy is the main guarantee, as well as loans and advances to intermediaries, are notably recorded under this item.

C.III.6. Deposits with credit institutions.

Sums that can only be withdrawn after a certain period of time are recorded under this item. Sums deposited without restriction on withdrawal must appear under item F.II. even if they bear interest.

C.III.7.a) Finance leases and similar rights.

Claims resulting for the owner or lessor from contracts referred to under item C.I.2.c) of the assets and concluded from 1 January 1980 onwards are recorded under this item.

C.III.7.b) Financial instruments.

The amounts of premiums of acquired option contracts and the amounts of interest rate forward operations purchased are notably recorded under this item.

C.III.7.c) Others.

Investments not covered by items C.III.1. to 7.b) are recorded under this item. When they are of significant importance, they must be explained in the notes.

C.IV. Deposits with ceding companies.

In the balance sheet of a company that accepts reinsurance, claims on ceding companies corresponding to guarantee deposits made with them or with third parties or amounts withheld by these companies are recorded under this item.

These claims cannot be grouped with other claims of the reinsurer on the ceding insurer nor offset with debts of the reinsurer towards the ceding insurer.

Securities deposited with a ceding company or third parties and remaining the property of the company accepting the reinsurance are accounted for by the latter among investments, under the appropriate item.

D. Investments related to operations linked to an "Life" activity group investment fund and where the investment risk is not borne by the company.

For the "Life" activity group, the following are recorded under this item: on the one hand, investments on the basis of which the value or yield of contracts linked to an investment fund is determined, and on the other hand, investments allocated to cover commitments determined by reference to an index. It also includes investments held on behalf of members of a tontine association and intended to be distributed among them.

The definitions and explanatory notes relating to items C.I., C.II. and C.III. of the assets apply respectively to items D.I., D.II. and D.III.

Dbis. Reinsurers' share in technical provisions.

The amounts, real or estimated, determined according to the terms of the reinsurance treaty, are recorded under this item, in the corresponding sub-items.

E. Claims.

The following are recorded under this item, in the corresponding sub-items: in addition to claims whose legal title has arisen, receivables accrued during the financial year, or during a previous financial year, which have not yet given rise to a legal title of claim, but whose amount is determined or capable of being estimated with precision. Pro-rata revenues are, however, recorded in regularization accounts.

Claims resulting for the owner or lessor from contracts referred to under item C.I.2.c) of the assets are recorded under item C.III.7.a).

E.I.1. Claims arising from direct insurance operations, on insurance policyholders.

For direct insurance, the following are recorded under this item, in the corresponding sub-items: on the one hand, the portion still to be directly recovered from premiums or contributions due and issued by the company, and on the other hand, the portion remaining to be issued from premiums and contributions due as well as the portion to be issued from premiums and contributions payable at maturity as soon as the risk coverage has begun.

E.I.2. Claims arising from direct insurance operations, on insurance intermediaries.

The company's claims on agents, brokers, and other insurance intermediaries are recorded under this item. Loans and advances to intermediaries are recorded under item C.III.5. of the assets.

E.I.3.a) Technical charges to be recovered.

The following are recorded under this item: sums recoverable from subrogation, deductibles, the acquisition of the insured's rights against third parties (subrogation), or the obtaining of legal ownership of insured property (salvage), without prejudice to specific legal or regulatory provisions.

E.II.1. Secured claims.

Claims on reinsurers that have been the subject of a written acknowledgment of debt by the reinsurers and which are secured by a pledge are exclusively recorded under this item.

E.III.1. Current account of foreign head office.

The debit balance at the end of the financial year of current operations with the head office is recorded under this item.

E.III.2. Cash deposits.

Cash deposits paid as permanent guarantees, notably with administrations or public service companies, are recorded under this item.

E.III.3. Other claims - Others.

Recoverable taxes chargeable to tax administrations are notably recorded under this item; however, advance payments and imputable withholding taxes are not recorded under this item but under item 15 of the income statement, except to the extent that these payments and withholding taxes exceed the estimated amount of taxes due.

F.I.3. Stocks and other tangible assets.

The following are notably recorded under this item if they have not been charged to the income statement of the financial year in which they were incurred: fitting costs of buildings taken on lease by the company.

Also recorded under this item are usage rights on movable property which the company holds by virtue of finance leases or similar agreements, where the scheduled royalties due under the contract, increased, if the lessee has a purchase option, by the amount to be paid in case of exercise of the option, cover, in addition to the interest and costs of the operation, the full reconstruction of the capital invested by the grantor in the property. The amount to be paid in case of exercise of the purchase option is, however, taken into consideration only if it represents fifteen percent at most of the capital invested by the grantor in the property.

The capital portion of the royalties provided for in the contract in case of use of a facility to extend the operation is assimilated to a purchase option exercise price referred to in paragraph 2, within the aforementioned limit of fifteen percent.

The following is assimilated to a royalty referred to in paragraph 2, provided that it is determined:
a) the amount due by the lessee for the acquisition of the real rights that the grantor holds on the movable property in question, where, at the time of concluding the operation, he has undertaken, optionally at the grantor's option, to acquire these rights; b) in the hands of the grantor, the amount to be received by him from a third party for the transfer of the real rights that he holds on the movable property in question, where, at the time of concluding the operation, this third party has undertaken, optionally at the grantor's option, to acquire these rights.

F.II. Available funds.

Available funds include, in addition to cash and funds due for collection, only demand deposits with credit institutions.

F.IV. Other asset items not covered by items F.I., F.II. and F.III. When these items are of significant importance, they must be explained in the notes.

G.I. Accrued but not yet due interest and rents.

Sums representing interest and rents accrued at the balance sheet date but not yet due are recorded under this item.

G.III. Other regularization accounts.

In addition to the amounts referred to in Article 27bis, § 5, this item includes:
a) deferred charges, i.e., pro-rata charges incurred during the financial year or a previous financial year but which are to be attached to one or more subsequent financial years; b) accrued revenues, i.e., pro-rata revenues that will only fall due during a subsequent financial year but which are to be attached to a completed financial year.

Liabilities.

A.I.1. Subscribed capital.

By subscribed capital is meant:
a) with regard to public limited companies, the subscribed social capital; b) with regard to mutual insurance associations and cooperative societies, the amount of the social fund; c) with regard to branches and operating offices in Belgium of foreign law companies, the own funds permanently allocated by the foreign company to the activity of its branches and operating offices in Belgium, to the extent that these own funds do not result from profits set aside or carried forward and registered under items A.IV. and A.V. of the liabilities.

In the cases referred to under b) and c), the title of the item "Subscribed capital" is adapted accordingly.

A.III. Revaluation surpluses.

By revaluation surpluses is meant unrealized surpluses, expressed in the accounts on asset elements, in accordance with Articles 34 and 34bis. Also recorded under this item are reversals of value reductions referred to in Article 42 as well as surpluses referred to in Article 44, paragraph 4.

A.IV.2. Unavailable reserves. a) for own shares:
The unavailable reserves referred to in Article 52bis, § 2 of the coordinated laws on commercial companies are mentioned under this item:
b) others:
The reserves that are withdrawn from the free disposal of the assembly voting by ordinary majorities or on which partners have no right in the event of resignation or exclusion are classified under this item.

A.IV.3. Immunized reserves.

Under this heading, after deducting related deferred taxes, are recorded the capital gains realized and profits whose tax exemption or deferred taxation is subject to their retention in the company's assets, with the exception of capital gains recorded, in application of Article 19bis, in regularization accounts.

Also classified under this heading are the amortizations recorded on tangible or intangible fixed assets to the extent that they are calculated on a basis exceeding the acquisition price of those assets, where amortization on this increased basis constitutes a deductible expense from a fiscal perspective.

B. Subordinated liabilities.

When, by contract, the rights attached to debts, represented or not by a security, are to be exercised only after those of other creditors in the event of liquidation or bankruptcy, these debts are to be recorded under this heading.

Bbis. Funds for future allocations.

Funds whose distribution, either to policyholders or to shareholders, has not yet been determined at the time of the closing of the financial year, with regard to life insurance, are recorded under this heading.

C. Technical provisions.

This refers to the valuation, at the balance sheet closing, of the company's commitments towards policyholders, beneficiaries, and insured parties, including currency conversion differences related to technical provisions.

C.I. Provision for unearned premiums and risks in course.

The following are recorded under this heading:

a) the provision for unearned premiums, namely the amount corresponding to the fraction of gross reinsurance premiums that must be allocated to the following financial year or subsequent years, in order to cover the cost of claims, administrative expenses, and investment management expenses. In the case of "life" insurance, this provision appears under heading C.II;

b) the provision for risks in course, constituted complementarily to the provision for unearned premiums when it appears that the estimated total cost of claims and administrative expenses, linked to contracts in force and remaining to be assumed by the company after the end of the financial year, will be greater than the total of unearned premiums and premiums due related to said contracts. When the amount of risks in course is significant, it must be mentioned in the notes.

C.II. Life insurance provision.

Without prejudice to specific legal or regulatory provisions, the life insurance provision includes, for operations of the activity group "Life" referred to in Article 7bis, § 2 of this Royal Decree, the estimated actuarial value of the insurance company's commitments, including benefits already attributed and deducting the actuarial value of future premiums.

Also recorded under this heading are provisions for unearned premiums and risks in course for insurance related to an ancillary risk to an insured risk in operations of the activity group "Life".

Also recorded under this heading are aging provisions for health insurance covered by point B.1.a. of § 2 of Article 7bis of this Royal Decree.

Also recorded under this heading are provisions related to retirement and survival annuities.

C.III. Claims provision.

§ 1. Activity group "non-life".

Recorded under this heading is the total estimated cost that the settlement of all claims occurring up to the end of the financial year, declared or not, will ultimately represent for the company, deducting sums already paid for these claims.

It includes indemnities and allowances to be paid as a result of events occurring before the balance sheet closing date, as well as external and internal management costs for the aforementioned claims.

The company's participation in the valuation of the provision made by the Common Automobile Guarantee Fund is also recorded under this heading.

Amounts obtained in application of the so-called combined method referred to in Article 34septies, § 1 of this Royal Decree are also recorded under this heading.

Provisions related to annuities, temporary or not, in the form in which "Non-life" insurance indemnities must be paid, are also recorded under this heading. In particular, this covers annuities, provisional and definitive, related to work accident operations.

(Provision for additional indemnities related to the cost of renewal and maintenance of prosthetic and orthopedic devices is notably recorded under this heading.) <AR 2002-01-16/36, art. 6, 004; In force: 01-02-2002>

§ 2. Activity group "life".

Recorded under this heading are benefits due but not settled at the closing date of the financial year and the external and internal management costs related thereto.

C.IV. Provision for profit sharing and rebates.

Recorded under this heading is the provision related to profit shares distributed but not yet allocated at the closing date of the financial year, including the allocations for the current year to this provision.

These profit shares include profit shares to be paid in the form of premium rebates.

When they are of a certain importance, the amounts charged for profit sharing and those charged for rebates are mentioned separately in the notes.

Also recorded under this heading is the distribution fund related to operations concerning the granting of extra-legal benefits, covered by point B.1.b. of Article 7bis, § 2 of this Royal Decree.

C.V. Equalization and catastrophe provision.

All amounts provisioned with the aim, either to compensate for non-recurring technical losses, or to equalize fluctuations in the claim rate, or to cover special risks, in future years, are recorded under this heading.

C.VI. Other technical provisions - Others.

Aging provisions for health insurance not covered by point B.1.a. of § 2 of Article 7bis of this Royal Decree are notably recorded under this heading. In the case of a law with increasing incidence rates with age, this aging provision corresponds to the estimated present value of the company's future commitments, deducting the estimated present value of future premiums.

(Indexation provision related to work accident operations is notably recorded under this heading.) <AR 2002-01-16/36, art. 6, 004; In force: 01-02-2002>

Also notably recorded under this heading is the reserve fund related to operations concerning the granting of extra-legal benefits, covered by point B.1.b. of Article 7bis, § 2 of this Royal Decree.

D. Technical provisions related to operations linked to an investment fund of the activity group "Life" when the investment risk is not borne by the company.

Recorded under this heading are technical provisions constituted to cover commitments related to investments within the framework of contracts relating to the activity group "Life", whose value or yield is determined based on investments for which the company does not bear the risk or based on an index.

Additional technical provisions, if any, constituted to cover mortality risks, administrative expenses, or other risks (such as guaranteed benefits at maturity or guaranteed surrender values) appear under heading C.II of the liabilities.

Without prejudice to specific legal or regulatory provisions, this heading also includes technical provisions that represent the obligations of the organizer of the tontine association towards its members.

E.I. Provisions for pensions and similar obligations.

Recorded under this heading are provisions constituted by the company to cover [1 unemployment with company top-up ]1 and other pensions and annuities whose payment falls to it by virtue of commitments stipulated in favor of members or former members of its staff or in favor of its directors or former directors.

E.II.1. Deferred tax provisions.

Recorded exclusively under this heading:

a) deferred taxes for subsequent financial years related to capital gains realized on intangible and tangible fixed assets and on securities issued by the Belgian public sector, in cases where the taxation of these capital gains is deferred;

b) deferred foreign taxes of the same nature as those referred to in sub a).

E.II.2. Provisions for other fiscal charges.

Recorded under this heading are provisions constituted to cover fiscal charges that may result from the correction of the tax base or the calculation of tax.

F. Deposits received from reinsurers.

In the balance sheet of a company that reinsures, amounts deposited by, or retained from, other insurance companies pursuant to reinsurance contracts are recorded under this heading. These amounts cannot be offset against debts or claims vis-à-vis the other companies in question.

When the company that reinsures has received securities deposited with it which have been transferred in ownership, this heading includes the amount due by the ceding company pursuant to the deposit.

When the company that reinsures has received a written acknowledgment of debt from the reinsurers for the claims referred to in heading E.II.1 of the assets, the consideration for this acknowledgment of debt is recorded under this heading. As for the pledge accompanying it, it is mentioned in the notes (statement no. 17).

G. Debts.

Recorded notably under this heading, in the corresponding sub-headings, are charges to be paid arising during the financial year or during a previous financial year that have not yet given rise to a legal instrument of indebtedness, but whose amount is determined or capable of being estimated with precision. Prorata of charges are, however, recorded in regularization accounts.

Commitments resulting from subordinated loans, mandatory loans, finance lease agreements, or similar agreements are recorded under the headings provided for this purpose, even if they were contracted with respect to credit institutions.

G.I.1.a) 1° Premiums paid before maturity.

Recorded under this heading are premiums due in the following financial year but collected during the current financial year.

G.I.1.a) 2° Suspended risks.

Recorded under this heading are the premiums due corresponding to suspended risks.

G.I.1.a) 3° Deposited deductibles.

Recorded under this heading are the provisional guarantees paid by the insured.

G.IV. Debts to credit institutions.

Notably classified among debts to credit institutions are bills of exchange (promissory notes) subscribed by the company on behalf of or to the order of a credit institution, as well as debts to credit institutions arising from bank acceptances put into circulation by the company, even if they originate from purchases of goods or services.

G.V.2.a) Current account of foreign head office.

Recorded under this heading is the credit balance at the end of the financial year of current operations with the head office.

G.V.2.e) Reconstruction fund for loans reconstructible by annuities.

Recorded under this heading is the acquired value at the balance sheet closing date by the reconstructive payments of mortgage or chirographic loans, other than the premiums of attached life insurance or capitalization contracts, calculated at the reconstruction rate.

G.V.2.g) Other debts - Others.

Notably recorded under this heading are suppliers, remuneration of capital, directors, or managers, to be paid, coupons of bonds due to be paid, bonds due and not presented for repayment, contributions to public bodies, as well as participations to be liquidated to personnel resulting from a decision of the general meeting.

Debts incorporated in bills of exchange or promissory notes are recorded under this heading only if they originate from purchases of goods or services.

H. Regularization accounts.

In addition to the amounts referred to in Article 27bis, § 2, this heading includes:

a) charges to be allocated, i.e., prorata of charges that will not be due until during a subsequent financial year but which must be attached to a past financial year;

b) income to be carried forward, i.e., prorata of income received during the financial year or a previous financial year, which must be attached to a subsequent financial year.

H.I.1. Financial instruments.

Notably recorded under this heading are the amounts of premiums for issued option contracts and the amounts of interest rate forward operations sold.

(1)<AR 2016-12-05/08, art. 22, 010; In force: 17-02-2017>

Art. 2N3. Section 2. - Detailed income statement.

Technical accounts for non-life and life insurance: item 1.a) aa).
Gross premiums issued.

The issued portion of gross premiums due, or, in cases where premiums are not due, the premiums paid during the financial year for insurance contracts, are recorded under this item, regardless of whether these premiums relate in part to one or more subsequent financial years; policy fees and endorsements and sums received on behalf of third parties, such as insurance contract taxes, contributions to the INAMI (National Institute for Health and Disability Insurance), the Belgian Red Cross, and the Fire and Explosion Security Fund, are excluded from this item.

Premiums include in particular:

single premiums, including payments intended to acquire an annual annuity, upon the issuance of an annuity contract but excluding "life" capitals converted into annuities within the same company when the "annuity" option provided for in the contract is exercised;
payments relating to collective retirement fund management operations for own account;
premium supplements in the case of semi-annual, quarterly, or monthly payments;
in the case of co-insurance, the share belonging to the company in the total premiums;
premiums in reinsurance from ceding and retroceding insurance companies, including portfolio entries,
after deduction:
portfolio exits in favor of ceding and retroceding insurance companies,
cancellations, and
rebates that do not have the character of profit-sharing.

Technical accounts for non-life and life insurance: item 1.a) bb).
Variation in premiums remaining to be issued.

The variation in the unissued portion of the due premium is recorded under this item.
The variation in the to-be-issued portion of the premium payable at maturity is also recorded under this item from the moment the risk coverage has begun.

Technical accounts for non-life and life insurance: item 1.a) c).
Policy, endorsement, and receipt fees.

Ancillary services provided by insured parties intended to cover the company's expenses are recorded under this item.

Technical accounts for non-life and life insurance: item 1.b).
Premiums ceded to reinsurers.

Premiums ceded to reinsurers include all premiums paid or payable under reinsurance contracts concluded by the insurance company. Portfolio entries payable upon the conclusion or modification of ceded reinsurance contracts are to be added; portfolio exits to be reclaimed must be deducted.

Life technical account: items:

c) Variation in the provision for unearned premiums and risks in force, net of reinsurance.
d) Variation in the provision for unearned premiums and risks in force, reinsurers' share.

In "life" insurance, the variation in the provision for unearned premiums is included in the variation in the "life" insurance provision.

Non-life technical account: item 2.
Investment income allocated transferred from the non-technical account (item 6).

Only the amount resulting from the use of an investment income allocation method (item C), other than that consisting of imputing revenues based on the allocation of the assets generating them, is recorded under this item.

Non-life technical account: item 2bis.
Life technical account: item 2.
Non-technical account: item 3.
Investment income.

Income (interest, dividends, etc.) relating to the asset items listed under item C is recorded under this item, in the corresponding sub-items.

Income relating to asset items listed under item D is also recorded under item 2 of the life technical account.

By income, it is understood to mean due income, whether collected or not, as well as the movement of accrued but not yet due income prorata.

They are recorded without deduction of any imputable tax, in particular real or fictitious withholding tax and fixed-rate foreign tax quota.

In the event of application of the investment income allocation method (item C), consisting of imputing revenues based on the allocation of the assets generating them:
1° are recorded:
a) under item 2bis, of the non-life technical account, in the corresponding sub-items, the investment income (item C) which are representative values of the technical provisions and technical debts of the "Non-life" activity group; b) under item 2 of the life technical account, in the corresponding sub-items, the investment income (item C) which are representative values of the technical provisions and technical debts of the "Life" activity group; c) under item 3 of the non-technical account, in the corresponding sub-items, the investment income (item C) other than the representative values of the technical provisions and technical debts of the "Non-life" and "Life" activity groups. 2° items 2 of the non-life technical account, 12 of the life technical account, 4 and 6 of the non-technical account cannot be used.

In the event of application of an investment income allocation method (item C), other than that consisting of imputing revenues based on the allocation of the assets generating them:
1° are recorded:
a) under item 2 of the life technical account, in the corresponding sub-items:

the investment income (item C) which are representative values of the technical provisions and technical debts of the "Life" activity group if the company conducts both operations relating to the "Life" and "Non-life" activity groups;
all investment income (item C) if the company conducts only operations relating to the "Life" activity group;
b) under item 3 of the non-technical account, in the corresponding sub-items:
all investment income (item C) other than the representative values of the technical provisions and technical debts of the "Life" activity group if the company conducts both operations relating to the "Life" and "Non-life" activity groups;
all investment income (item C) if the company conducts only operations relating to the "Non-life" activity group.
2° a) item 2bis of the non-life technical account cannot be used; b) item 3 of the non-technical account cannot be used if the company conducts only operations relating to the "Life" activity group.

Non-life technical account: item 2bis b) aa) 2°.
Life technical account: item 2.b) aa) 2°.
Non-technical account: item 3.b) aa) 2°.
Theoretical rent.

The rent that would have been collected under normal market conditions if the building or part of it had been leased to a third party instead of being occupied entirely or partially by the company itself is recorded under this item.

Reference is made in the annex (statement no. 20) to the bases used to determine the normal market value.

Non-life technical account: item 2bis b) bb) 8°.
Life technical account: item 2.b bb) 8°.
Non-technical account: item 3.b bb) 8°, and item 7.f).
Financial instruments.

Positive balances after compensation of income and charges from futures, options, and forward exchange rate contracts are recorded under this item.
Negative balances are recorded as charges under the corresponding item.

Amounts of interest received and receivable (accrued part) from currency swaps and interest; amounts of interest paid and payable (accrued part) are recorded as charges under the corresponding item.

Non-life technical account: item 2bis c).
Life technical account: item 2.c).
Non-technical account: item 3.c). cc) Foreign currency conversion differences.

Profitable differences resulting from the conversion into Belgian francs (or euros) on December 31 of the monetary assets of item C, which were originally expressed in foreign currency, may be recorded under this item, provided that the provisions of this decree authorize the recognition of these differences as income. This item does not concern the foreign exchange activity of financial instruments. <AR 1998-12-07/37, art. 7, 003; In force: 01-01-1999>

dd) Financial instruments.

Positive differences and positive balances of positive and negative differences resulting from the valuation or revaluation of futures, options, swaps, forward interest rate contracts, and forward exchange rate contracts are recorded under this item, provided that the provisions of this decree authorize the recognition of these differences as income. Negative differences and negative balances are recorded as charges under the corresponding item.

Non-life technical account: item 2bis d) cc).
Life technical account: item 2.d) cc).
Non-technical account: item 3.d) cc).
Exchange differences.

Profitable differences observed at the time of realizing the monetary assets of items C and D, in foreign currency, and due to exchange rate differences, may be recorded under this item. This item does not concern the foreign exchange activity of financial instruments.

Life technical account: item 3.
Value adjustments on investments of item D of the assets.

Only the increase in unrealized capital gains relating to investments listed under item D of the assets and the decrease in unrealized capital losses relating to said investments are recorded under this item.

Non-life technical account: item 3.a) aa).
Capital constituting annuities.

Single premiums constituting annuities, coming from annuity capitals constituted by a third-party company and relating to "work accident" operations, are recorded under this item.

Non-life technical account: item 3.a) cc).
Other gross technical income - reinsurance - Other.

In the case of RDR (Work Accident Compensation Fund) operations, the following are recorded under this item:
a) the positive difference between the actual amount of claims and the amounts paid to the compensation fund; b) the positive difference between the amounts received from the compensation fund and the payments made on behalf of third-party responsible companies.

Prevention contributions for aggravated risks and commissions on annuity capitals constituted in work accidents are also recorded under this item.

Life technical account: item 4.a).
Other gross income.

This item does not concern "life" capitals converted into annuities referred to in item 1.a) aa).

Non-life technical account: item 4.a) aa).
Life technical account: item 5.a) aa).
1° Benefits.

These benefits include the amount of claims settled for the financial year. They are indicated without deduction of the effective impact of recourse, deductibles, subrogations, and salvage, and without deduction of reinsurers' interventions.

In work accidents, this item includes: medical expenses, prosthetic devices, funeral expenses, daily allowances, travel expenses, the value of the annuity paid in capital to the disabled and beneficiaries at the time and after the constitution of the annuity. This item also includes allowances and annuity arrears.

In active reinsurance, this item includes in particular the exits of the claims provision in favor of ceding and retroceding companies; entries of the claims provision from ceding and retroceding companies must be deducted.

2° External claims management expenses.

Charges relating to services provided by claims settlement offices, intermediaries, and general agents in matters of claims settlement, as well as lawyers', experts', and court fees relating to claims settlement, are recorded under this item.

However, for "legal protection" operations, lawyers' and court fees are to be considered as "Benefits." The same applies to "assistance" operations regarding charges relating to services provided by an assistant.

3° Internal claims management expenses.

Personnel expenses, rent, heating and lighting expenses for premises, telephone, forms, etc., relating to claims settlement, are recorded under this item.

Non-life technical account: item 4.a) bb) 1°.
Life technical account: item 5.a) bb) 1°.
Benefits - reinsurers' share.

Exits of the claims provision to be reclaimed upon the conclusion or modification of ceded reinsurance contracts are recorded under this item; entries of the claims provision to be paid must be deducted.

Non-life technical account: item 7.a).
Life technical account: item 8.a). a) Acquisition commissions.

This refers to each of the components of this item: acquisition commissions attributed during the financial year, taking into account end-of-year adjustments regarding acquisition commissions to be settled.

Renewal commissions are also recorded under this item.

bb) Management expenses related to acquisition.

Opening files or admitting insurance contracts into the portfolio, advertising expenses, and administrative expenses related to processing applications and issuing policies are recorded under this item.

Non-life technical account: item 7.c).
Life technical account: item 8.c).
Administrative expenses.

Premium collection expenses, portfolio administration, profit-sharing and rebate management, and accepted and ceded reinsurance management expenses are recorded under this item. They include in particular personnel expenses and amortization of furniture and equipment, insofar as these administrative expenses should not be accounted for in management expenses related to acquisition, internal claims management expenses, or investment management expenses.

Non-life technical account: item 7.d).
Life technical account: item 8.d).
Commissions received from reinsurers and profit-sharing (-).

The amount of commissions granted by reinsurers, taking into account end-of-year adjustments, is recorded under this item.

Non-life technical account: item 7bis.
Life technical account: item 9.
Non-technical account: item 5.
Investment charges (-).

Charges relating to asset items listed under item C are recorded under this item, in the corresponding sub-items.

The provisions relating to the allocation of investment income of item C of the assets between technical and non-technical accounts apply mutatis mutandis to the investment charges of item C of the assets.

Charges relating to asset items listed under item D are also recorded under item 9 of the life technical account.

Non-life technical account: item 7bis a) aa).
Life technical account: item 9.a aa).
Non-technical account: item 5.a) aa).
Debt charges.

Interest, commission, and fee charges relating to debts are recorded under this item, in the corresponding sub-items:
1°
2° amortization of loan issuance expenses and redemption premiums.

Interest credited to the asset is deducted from the amount of charges recorded under this item.

Charges relating to debts contracted to acquire investments as representative values of technical provisions are imputed to the income statement symmetrically to the imputation of income from these investments.

Non-life technical account: item 7bis a) dd).
Life technical account: item 9.a) dd).
Non-technical account; item 5.a) dd).
Investment management expenses.

Personnel expenses, rent, heating and lighting expenses for premises, telephone, forms, etc., relating to investment management, are recorded under this item.

Non-life technical account: item 7bis b) cc).
Life technical account: item 9.b) cc).
Non-technical account: item 5.b) cc).
Foreign currency conversion differences.

Deficit differences resulting from the conversion into Belgian francs on December 31 of the monetary assets of item C, which were originally expressed in foreign currency, may be recorded under this item. This item does not concern the foreign exchange activity of financial instruments.

Non-life technical account: item 7bis c) cc).
Life technical account: item 9.c) cc).
Non-technical account: item 5.c) cc).
Exchange difference.

Deficit differences observed at the time of realizing the monetary assets of items C and D, in foreign currency, and due to exchange rate differences, may be recorded under this item. This item does not concern the foreign exchange activity of financial instruments.

Life technical account: item 10.
Value adjustments on investments of item D of the assets.

Only the increase in unrealized capital losses relating to investments listed under item D of the assets and the decrease in unrealized capital gains relating to said investments are recorded under this item.

Non-life technical account: item 8.a). a) Constituted annuity capitals. bb) Capital constituting annuities (-). cc) Constituted allocation capitals. d) Capital constituting allocations (-).

Allowances and indemnities constituted in the form of annuities or allocations by the company itself during the financial year, and relating to "work accident" operations, are recorded under the corresponding sub-items.

Non-life technical account: item 8.a) gg).
Other gross technical charges - reinsurance - Other.

In the case of RDR operations, the following are recorded under this item:
a) the negative difference between the actual amount of claims and the amounts paid to the compensation fund; b) the negative difference between the amounts received from the compensation fund and the payments made on behalf of third-party responsible companies.

In the case of "work accidents - law 10.07.1971" operations, capitals transferred to the FAT (Work Accident Fund), interest on work accident indemnities, and prevention charges for aggravated risks are recorded under this item.

Life technical account: item 11.a).
Other gross charges.

Taxes on profit-sharing are recorded under this item.

Non-life technical account: item 8.b) cc).
Life technical account: item 11.b).
Other reinsurance income (-).

Commissions and profit-sharing granted by reinsurers are not recorded under this item but are recorded as a deduction from the "operating expenses" item in the sub-item provided for this purpose.

Life technical account: item 12.
Investment income allocated, transferred to the non-technical account (item 4) (-).

Non-technical account: item 7.
Other income.

All financial income not falling under other items of the income statement is recorded under this item, in the corresponding sub-items.

Non-technical account: item 7.g).
Other income - Other.

Default interest, guarantee commissions, firm take commissions, and surety commissions are recorded under this item. However, default interest in credit insurance is recorded under item 3.a) bb) of the non-life technical account.

Non-technical account: item 8.
Other charges (-).

All financial charges not falling under other items of the income statement are recorded under this item, in the corresponding sub-items.

Non-technical account: item 8.f).
Other charges - Other.

The following are recorded under this item:
1° the discount charged by the company on the negotiation of receivables (bills of exchange, warrants, invoices, etc.); 2° charges relating to equity (contribution expenses or capital increase expenses, not recorded in establishment expenses, tax on listed securities, etc.); 3° commissions and financial fees.

Non-technical account: items:
11. Exceptional income.
12. Exceptional charges.

Income and charges not arising from the usual management of the company are recorded under these items, in the corresponding sub-items.

Non-technical account: item 11. a) Reversal of amortization and value reductions on intangible and tangible assets other than investments.

The following are recorded under this item:

reversals of amortizations charged in previous financial years, carried out under the conditions referred to in Article 28, § 2, paragraph 3;
reversals of value reductions on intangible and tangible immobilizations other than investments charged in previous financial years, which have become excessive.
b) Reversal of provisions for exceptional risks and charges.

Reversals of provisions for risks and charges constituted in previous financial years, which have become excessive, are recorded under this item, unless they are provisions to meet risks and charges inherent to the company's usual activity.

Non-technical account: item 12. a) Exceptional amortization and value reductions on intangible and tangible assets.

Amortization and value reductions referred to in Article 28, § 2, paragraph 2 and § 3 and Article 41, provided they have an exceptional character, are recorded under this item. b) Provisions for exceptional risks and charges (allocations).

Provisions constituted to meet risks and charges that do not fall under the company's usual activity are recorded under this item.

Non-technical account: item 15.
Income taxes.

The following are classified under this item:
a) in respect of taxes:
1° on the financial year's result:

advance payments, refundable withholding taxes, and other imputable elements, in particular fictitious withholding tax, QFIE (fixed-rate foreign income tax quota), and the real estate withholding tax quota, except insofar as the amount of advance payments and refundable withholding taxes exceeds the estimated amount of taxes due; this excess is recorded on the asset and includes advance payments of taxes carried forward to the following financial year or those for which restitution has been requested,
the supplement of the estimated amount of taxes that will be due compared to the amount of advance payments, refundable withholding taxes, and other chargeable items,
taxes paid, due or that will be due abroad,
2° on the profit of previous years:
the supplements of taxes paid, due or estimated, as well as the supplements of taxes provided for. b) under the heading of tax adjustments and reversals of fiscal provisions:
tax adjustments obtained, recorded or estimated, compared to the amounts of taxes charged during previous years.
Non-technical account: item 17.b).
Transfer to immunized reserves.
This item is used for the transfer to immunized reserves of certain income or a fraction of the profit when their tax immunity is subject to their retention in the company's assets.

Art. 3N3.Section 3.- Annex to the annual accounts.
Statement No. 12. Breakdown by nature of all administrative and management expenses.
I) Personnel costs.
Remuneration, pensions and other personnel costs are notably included under this item. The pensions referred to are those paid by the company outside the framework of an insurance policy.
II) Miscellaneous goods and services.
Charges relating to services rendered or goods delivered by third parties and related to operations are included under this item, in the corresponding sub-items, net of commercial discounts obtained and the value added tax (VAT) attributable thereto, to the extent that it is deductible. The following expenses should also be included:

improvement of workplace facilities, medical examinations, purchase of work clothing;
current expenses for sports and leisure facilities intended for staff;
expenses incurred for staff transport organized by the employer (group transport);
deferred and deferrable costs.
III) Depreciation and impairment losses on intangible and tangible assets other than investments.
Depreciation charges and recorded impairment losses relating to start-up costs - other than borrowing costs and redemption premiums - and to intangible and tangible fixed assets other than investments are included under this item, except for those which, due to their exceptional nature, must be charged to exceptional expenses (item 12.a) of the non-technical account). Reversals of depreciation or impairment losses are not included under this item but under exceptional income (item 11.a) of the non-technical account). IV) Provisions for other risks and charges (allocations +, usage and reversals -). The following are included under this item:
provisions established to meet operational risks and charges;
usage of provisions for risks and charges established previously, to the extent that these risks resulted in operational costs;
reversals of provisions for risks and charges established in previous years to meet risks and charges inherent to the normal operation of the company, which proved to be excessive.
V) Other current charges.
The following charges paid or due to third parties relating to operations are included under this item, in the corresponding sub-items:
which do not result from service deliveries or goods deliveries by third parties, falling within the usual activity of the company and
which do not fall under the category of exceptional charges.

Operational tax charges.
Real estate withholding tax, taxes on vehicles, on motive power or on employed personnel, and excise duties are notably included under this item.
The tax on shares of the company listed on the stock exchange is included under item 8.f "Other charges - Others" of the non-technical account.
Contributions to public bodies.
Contributions to [1 the FSMA]1 (OCA) and the Work Accident Fund (article 59 and 59bis of the law of 10 April 1971) are notably included under this item.
Theoretical charges.
The rent that would have been paid, under normal market conditions, if the company did not use a building for its own activity is included under this item.
VI.1.b) Recovered administrative expenses.
Credits for training hours, recoveries of service benefits from third parties, recoveries by the co-insurer of management costs in co-insurance matters, etc., are notably included under this item.
Statement No. 17. Off-balance sheet rights and commitments.
A. Guarantees constituted or irrevocably promised by third parties on behalf of the company.
This account records real or personal securities constituted by third parties in favor of the company's creditors to guarantee the proper fulfillment of debts or commitments, actual or potential, that the company has contracted with them.
B. Personal guarantees constituted or irrevocably promised by the company on behalf of third parties.
This account records personal securities constituted or irrevocably promised by the company in favor of third parties, with a view to guaranteeing the proper fulfillment of debts or commitments, actual or potential, that they have contracted with their creditors, other than the company considered. Commitments on bills are those resulting for the company from bills in circulation drawn, endorsed or guaranteed by it, with the exception of bank acceptances drawn by the company.
C. Real guarantees constituted or irrevocably promised by the company on its own assets.
This account records real securities constituted on the company's assets or irrevocably promised by it, with a view to guaranteeing the proper fulfillment of debts and commitments, actual or potential, either of the company itself or of third parties.
D. Guarantees received (other than cash).
This account records real or personal securities received by the company as security for debts and commitments, actual or potential, contracted towards it by third parties, with the exception of cash guarantees and sureties.
E. Forward markets.
This account records forward markets concluded for purchase on one hand, and for sale on the other, under the accounts provided for this purpose.
Only amounts resulting from operations in which the company itself is the counterparty are registered here.
F. Goods and values of third parties held by the company.
This account records, in separate accounts:
1° the rights relating to the long-term use of goods belonging to third parties and the correlative commitments, to the extent that these rights and commitments are not mentioned in the balance sheet; 2° goods and values of third parties entrusted to the company for deposit, consignment or processing, as well as the correlative commitments towards depositors and principals; 3° goods and values held by the company under another title for the account or at the risk and profit of third parties, as well as the correlative commitments. ---------- (1)<AR 2011-03-03/01, art. 331, 006; En vigueur : 01-04-2011>

Signatures

Given in Brussels, on 17 November 1994.
ALBERT
By the King:
The Minister of Economic Affairs,
M. WATHELET

Preamble

ALBERT II, King of the Belgians,
To all, present and future, Greetings.
Having regard to the law of 9 July 1975 concerning the control of insurance undertakings, in particular article 96, § 1, 1° and 3°, modified by the law of 24 March 1978 and the Royal Decree of 12 August 1994; Having regard to the Directive of the Council of the European Communities of 19 December 1991 concerning the annual accounts and consolidated accounts of insurance undertakings (91/674/EEC); Having regard to the opinion of the Insurance Control Office; Having regard to the consultation of the Insurance Commission; Having regard to the opinion of the Council of State; On the proposal of Our Minister of Economic Affairs, We have decided and decide: