Dutch GAAP
The Dutch reporting standard: Title 9 Book 2 DCC, supplemented by the Guidelines for Annual Reporting (RJ). The alternative to IFRS for non-listed companies.
What is Dutch GAAP?
The Dutch reporting standard: Title 9 Book 2 DCC, supplemented by the Guidelines for Annual Reporting (RJ). The alternative to IFRS for non-listed companies.
Dutch GAAP is the collective name for Dutch reporting rules, with Title 9 Book 2 DCC as the statutory framework and the RJ guidelines as further detail. The regime is not identical to IFRS. The right set depends on the legal entity and its size.
How does it work?
Dutch GAAP has two layers. The law is binding: Title 9 Book 2 DCC with the decrees under it, such as the Decree on annual accounts formats and the Decree on current value. The core standard is open: the annual accounts give insight according to standards regarded as acceptable in society (art. 2:362(1) DCC). The Guidelines for Annual Reporting of the Dutch Accounting Standards Board give substance to that standard. They are not law, but in practice they serve as the benchmark.
There are two volumes: the RJ volume for medium-sized and large entities and the RJk volume for small entities; both are published every year in September. The regime scales with size: micro and small entities have exemptions and may apply tax-based accounting policies (art. 2:395a(7) DCC and art. 2:396(6) DCC). An entity may instead choose the IFRS endorsed by the European Commission (art. 2:362(8) DCC).
Example
A small BV (balance sheet total € 600.000) leases a delivery van under an operating lease for € 550 per month, 48 months. Under Dutch GAAP it books the instalments as costs: € 6.600 per year. The van and the lease obligation are not on the balance sheet; the remaining 36 instalments, € 19.800, appear after the first year in the notes as an off-balance-sheet commitment. Under IFRS 16 it would put a right-of-use asset and a lease liability on the balance sheet, resulting in a higher balance sheet total and lower solvency. The framework changes the figures, not the business.
In the annual accounts
All components of the annual accounts; presentation differences by size class.
Difference from IFRS
IFRS is a single international framework of the IASB, detailed and with many disclosure requirements. Dutch GAAP is national, shorter and leaves more choices: cost or current value, amortising goodwill instead of testing it annually, operating leases off the balance sheet. Mixing is not free: whoever prepares the consolidated accounts under Title 9 cannot prepare the company accounts under IFRS (art. 2:362(8) DCC).
Common mistakes
- Adopting an IFRS rule without testing it
- Equating tax annual accounts with Dutch GAAP
What to watch for
- State in the notes under which standards the annual accounts have been prepared (art. 2:362(10) DCC).
- Use the volume that belongs to the class: RJk for micro and small, RJ for medium-sized and large. Where the RJk expressly refers to the RJ volume, follow that. If it does not cover a subject at all, choose a treatment yourself that gives relevant and reliable information, within the general accounting policies; the RJ volume can help here (RJk A1.202). State in the notes which volume you follow (art. 2:362(10) DCC).
- Annual accounts in English remain Dutch GAAP; the language does not change the framework. See Preparing annual accounts in English.
Legal basis and source
Title 9 Book 2 DCC; RJ
Frequently asked questions
Are the Guidelines for Annual Reporting legally binding?
No. They do not have the force of law. They describe what is regarded as acceptable in society, and that is the standard that article 2:362(1) DCC refers to. You can depart from them, but you need a good reason.
May a BV choose between Dutch GAAP and IFRS?
Yes. Article 2:362(8) DCC allows the annual accounts to be prepared under the IFRS endorsed by the European Commission, provided the entity then applies all standards that apply to it.
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Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
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