Company annual accounts (enkelvoudige jaarrekening)
The annual accounts of the entity itself, separate from the group. Alongside consolidated accounts, the parent also prepares company accounts.
What do company annual accounts mean?
The annual accounts of the entity itself, separate from the group. Alongside consolidated accounts, the parent also prepares company accounts.
The company annual accounts show only the entity. A participating interest appears in them as a separate asset; in a consolidation the subsidiary's items are included. The difference matters for available reserves and distributions.
How does it work?
Every entity under Title 9 has company annual accounts: the entity's own balance sheet, profit and loss account and notes (art. 2:361(1) DCC). A group head also prepares consolidated annual accounts, but those do not replace the company accounts. The company figures determine what counts legally: equity for the balance test, the statutory reserves and the profit at the disposal of the general meeting.
Subsidiaries appear in the company balance sheet as financial fixed assets, usually at net asset value (art. 2:389 DCC). As a result, equity and result are as a rule equal in the company and consolidated accounts; differences are explained (paragraph 10). If the entity's own figures are included in the consolidated annual accounts, the company profit and loss account may be limited to the result from participating interests after tax as a separate item (art. 2:402(1) DCC).
Example
Holding BV owns all shares in Werk BV. Company balance sheet of the holding at the end of 2025: participating interest € 300.000 (the equity of Werk BV), receivable from Werk BV € 40.000 and bank € 10.000; total € 350.000. Liabilities and equity: equity € 330.000 and debts € 20.000. Of that equity, € 90.000 is a statutory reserve for participating interests, because Werk BV itself holds that amount as a statutory reserve and cannot distribute it. The consolidated balance sheet shows € 900.000 of assets, but the holding's distribution room is 330.000 − 90.000 = € 240.000 and its own bank balance is € 10.000.
In the annual accounts
The entity's own balance sheet, P&L and notes, also with group reporting.
Difference from consolidated annual accounts
The company annual accounts show one entity, with subsidiaries as a single line of participating interests. The consolidated annual accounts show the group as if it were one company: all assets, debts, turnover and costs of the subsidiaries, without intra-group items. A creditor has a claim on an entity, not on the group. He therefore looks at the company figures of his contract party, unless there is a 403 declaration.
Common mistakes
- Presenting subsidiary turnover as own turnover
- Treating group cash as the parent's free cash
What to watch for
- Compare result and equity in the company and consolidated accounts. A difference must be explainable and belongs in the notes (art. 2:389(10) DCC).
- Also book the holding's own costs, the interest on group loans and the management fee. The company profit and loss account is more than the subsidiary's result.
- A small group may omit consolidation (art. 2:407(2) DCC); the company annual accounts are then the only ones. See Preparing the annual accounts of a holding.
Legal basis and source
art. 2:361 and 2:389 DCC
Frequently asked questions
Must a holding always prepare company annual accounts?
Yes. A holding that consolidates also prepares company annual accounts. Only the profit and loss account in them may be greatly abridged (article 2:402 DCC).
Which annual accounts count for dividend?
The company annual accounts of the company that makes the distribution. The balance test of article 2:216 DCC concerns its own equity and its own statutory and articles-based reserves, not the group figures.
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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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