Accounting policies in the annual accounts

The short answer

Accounting policies are the rules with which you determine assets, liabilities and the result. The law knows two bases: acquisition or production cost and current value (art. 2:384(1) DCC). You apply them prudently and consistently and set them out per item in the notes. Micro and small legal entities may also choose the tax-based policies.

Updated 30 October 2026

Key facts

Legal framework and the role of the RJ

The annual accounts must give such a view that a sound judgement is possible about equity and result (art. 2:362(1) DCC). You test every policy against that. Article 2:384 DCC provides the frameworks: you recognise profits only when they have been realised at the balance sheet date, you do process liabilities that arose before the end of the financial year and become known before preparation (paragraph 2), and you assume continuation of the enterprise unless that is incorrect or doubtful (paragraph 3).

What current value is, is set out in the Current Value Decree: current cost, value in use, market value or realisable value, depending on the type of asset. Loans granted and ordinary receivables may not be valued at current value (art. 10(3)).

The Dutch Accounting Standards (Richtlijnen voor de jaarverslaggeving) are not law; they fill in the standards that are considered acceptable in society. Medium-sized and large entities follow the RJ volume, micro and small the RJk volume.

The main rule per balance sheet item

In the notes you set out the policies per item, with the depreciation method and the translation of foreign currencies (art. 2:384(5) and art. 2:386(2) DCC). Describe only what occurs in your figures. A sample text is in the accounting policies template.

Change in policy, change in estimate and correction of errors

• Change in accounting policy. Choosing a different policy is allowed only for well-founded reasons. You explain the reason and show with adjusted figures what the change means for equity and result (art. 2:384(6) DCC). The RJ processes the cumulative effect in equity at the start of the financial year.
• Change in estimate. A new estimate of the useful life or residual value is not a different policy; a different depreciation method also counts as a change in estimate. You process it prospectively.
• Correction of errors. A material error in an earlier annual accounts you correct through equity at the start of the financial year in which you correct it. If adopted annual accounts fall seriously short of the required view, the board in addition informs the shareholders and files a notice with the Business Register (art. 2:362(6) DCC).

Worked example: commercial or tax-based policy

A small BV (private limited company) buys a machine for € 60.000 on 1 January 2025. It expects to use it for four years; the residual value is € 4.000.

The journal entry on the commercial policy: Depreciation costs € 14.000 to Accumulated depreciation machines € 14.000, and Deferred tax asset € 380 to Taxes on result € 380. On the tax-based policy the BV books € 12.000 depreciation and the second entry falls away; the result before tax is € 2.000 higher.

What is allowed and required per size class

For financial years beginning on or after 1 January 2024, the limits below apply. Your class depends on at least two of the three criteria on two consecutive balance sheet dates; in the first and second financial year the first balance sheet date counts (art. 2:398(1) DCC). The class determines which policies you may choose and how much you explain.

Tax-based policies in the annual accounts

Taxable profit follows sound business practice (goed koopmansgebruik) (art. 3.25 Income Tax Act 2001 (Wet IB 2001); for the BV art. 8 Corporate Income Tax Act 1969 (Wet Vpb 1969) refers to it). That resembles Title 9, but differs in, among other things, depreciation (at most 20% per year, goodwill 10%), buildings (not below the WOZ value), tax reserves and work in progress.

If a micro or small legal entity opts for tax-based policies, it applies all tax policies; picking out one favourable rule is not allowed. The Decree on tax valuation principles (Besluit fiscale waarderingsgrondslagen) regulates the rest: you process the difference in equity on the switch directly in equity at the start of the financial year, the reinvestment reserve is shown separately under equity and non-deductible costs remain in the profit and loss account. Deferred taxes fall away. See also tax and commercial annual accounts.

Common mistakes in accounting policies

• Taking over a standard text with policies for items that the legal entity does not have.
• Using tax depreciation rates in annual accounts that otherwise rest on Title 9. You apply tax-based policies in full or not at all.
• Not explaining doubt about continuity while the financing is not yet arranged.

Preparing accounting policies with Jaarrekening.io

Jaarrekening.io uses AI to write a draft of the accounting policies for the items that occur in your figures. You adjust the text and approve it; the choice of the policy itself remains with the board. The XBRL file that the app produces, a validation candidate, states for micro and small whether the policy is commercial or tax-based; the KVK models for medium-sized and large know only the commercial policy.

Sources

• Art. 2:384 DCC: policies, prudence, going concern and consistency (wetten.overheid.nl)
• Art. 2:362 DCC: true and fair view requirement and notice on serious shortcomings
• Art. 2:395a(7) DCC: tax-based policies for micro
• Art. 2:396(6) DCC: tax-based policies for small
• Current Value Decree: the four meanings of current value
• Decree on tax valuation principles
• Art. 3.30 Income Tax Act 2001: tax depreciation
• RJ-Uiting 2025-7: RJk A3 Changes in accounting policies, changes in estimates and correction of errors (rjnet.nl)
• Accountant.nl (NBA Helpdesk): first year of tax valuation principles

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