03 Financial Statements

The Association, with Chamber of Commerce number 01086659, was founded on 29 November 1999 by means of a legal merger between Coöperatie De ZPC Pootgoed Belangen B.A. and Stichting Administratiekantoor Hettema, which were both converted to form part of the Association.

The Association HZPC has the legal ownership of 100% of the shares in Royal HZPC Group B.V. in Joure.

The objective of the Association HZPC is:

• the issuing and management of share certificates in the Company;
• promoting certain material interests of its members/certificate holders;
• promoting certain material interests of its growers;
• promoting certain material interests of its breeders.

The financial statements have been prepared in accordance with Title 9, Book 2 of the Dutch Civil Code.

The applied accounting policies to the valuation of assets and liabilities and result determination are based on the historical cost convention unless stated otherwise.

The continuity of the Association HZPC is minimally influenced by economic circumstances. The costs of the association are primarily caused by facilitating the trade in Royal HZPC Group B.V. share certificates. The costs are fully reimbursed by Royal HZPC Group. Otherwise, the association has practically no costs.

The dividends received from Royal HZPC Group B.V. are paid onto certificate holders after deduction of dividend tax.

Unless stated otherwise, assets and liabilities are shown at nominal value. 

An asset is disclosed in the balance sheet when it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the value of the asset can be measured reliably. A liability is recognised in the balance sheet when it is expected to result in an outflow from the entity of resources embodying economic benefits and the amount of the obligation can be determined with sufficient reliability. Income is recognised in the profit and loss account when an increase in future economic potential related to an increase in an asset or a decrease of a liability has arisen, the size of which can be reliably determined. Expenses are recorded when a decrease in the economic potential related to a decrease in an asset or an increase of a liability has arisen, the size of which can be determined with sufficient reliability. If a transaction results in a transfer of all or virtually all future economic benefits and all or virtually all risks relating to assets or liabilities to a third party, the asset or liability is no longer included in the balance sheet. In addition, assets and liabilities are no longer included in the balance sheet starting from the time at which the conditions of probability of the future economic benefits and reliability in determining the value are no longer satisfied.

The annual accounts are presented in euros; the Association’s functional currency. All financial information in euros is expressed in thousands and rounded to the nearest thousand unless otherwise indicated.

Revenues and expenses are allocated to the period to which they relate. Revenues are accounted for if all important risks with regard to the commodities are transferred to the purchaser. The operational expenses are borne by Royal HZPC Group.

The preparation of the annual accounts requires the Board to form opinions and to make estimates and assumptions that influence the application of principles and the reported values of assets and liabilities and of income and expenditure. Actual results may differ from these estimates.

The estImates and the underlying assumptions are constantly assessed. Revisions of estimates are included in the period in which the estimate is revised and in future periods for which the revision has consequences. There are no significant estimates in the annual accounts.

Financial instruments include primary financial instruments such as receivables and payables, as well as derivative financial instruments. Reference is made to notes as per the balance sheet item for the accounting principles of the primary financial instruments.

Equity interests and certificates where no significant influence is exercised are stated at cost or lower realisable value.

The loans are initially recorded at fair value, including discount or premium and directly attributable transaction costs. After initial inclusion, loans are shown at amortised cost using the effective interest method, less impairment losses.

The other financial fixed assets are valued at fair value on initial processing, plus transaction costs (if material). After initial processing, the assets are measured at amortised cost using the effective interest method, less any impairment losses. Income from receivables and other securities allocated to financial fixed assets are accounted for in the year to which they relate.

Dividends are accounted for in the period to which they relate. Interest income is recorded in the profit and loss account on an accrual basis, using the effective interest rate method. Any profit or loss is recorded under financial income or expenses.

Receivables are measured at fair value on initial processing, plus transaction costs (if material). After initial processing, the assets are measured at amortised cost using the effective interest method, less a provision for non-collectable debts. These provisions are determined by individual assessment of the receivables.

Cash is valued on the basis of nominal value. If cash is not freely available, this is taken into account during the valuation.

Financial instruments that are designated as equity instruments by virtue of the economic reality are presented under shareholders’ equity.

Payments to holders of these instruments are deducted from the shareholders’ equity after deduction of any related benefit due to tax on profit.

Financial instruments that are designated as a financial liability by virtue of the economic reality are presented under liabilities. Interest, dividends, income and expenditure with respect to these financial instruments are recorded in the profit and loss as financial income or expense. 

Long and short-term debts and other financial obligations are initially recorded at fair value, including discount or premium and directly attributable transaction costs. After initial inclusion, the long and short-term debts and other financial obligations at valued at amortised cost on the basis of the effective interest method.

The Association includes the revenues under net sales when all significant rights to economic benefits as well as all significant risks with regard to the transactions are transferred to the purchaser, when delivery has taken place, the price has been or can be determined and there is reasonable certainty that the sales price can be collected. Generally these criteria are satisfied at the moment the product or service is delivered and acceptance, if required, is obtained.

Expenses are allocated to the period to which they relate. The operational expenses are borne by Royal HZPC Group B.V.

Association HZPC is not independently liable to taxation.

Transactions with related parties will be explained if they are not entered into under normal market conditions. The nature and scope of the transaction and other information will be provided for these transactions in order to provide further insights.

Events which provide further information about the actual situation as of the balance date and which occur up to the date upon which the annual accounts are drafted will be encompassed within the annual accounts. Events which provide no further information about the actual situation as of the balance date will not be encompassed within the annual accounts. If such events are significant in order for the users of the annual accounts to form an opinion, the nature and estimated financial consequences will be described in the annual accounts.

The Association HZPC receives a dividend from Royal HZPC Group B.V., after deduction of the dividend tax, and pays this to the certificate holders in full.

The current account of Royal HZPC Group B.V. has a maturity of less than one year and is not interest-bearing.

Cash is freely available to the Association

No significant financial events have occurred following the balance sheet date.

Joure, 19 October 2023  

The Board of Association HZPC

E.P. de Vries
M. Verhage
S.G Andringa
R.P. Smith
M. Wijtten