RJ 120 and 135: measurement bases and determining the result
Every item in the annual accounts has a price and a moment. RJ 120 says which prices there are, RJ 135 when an income or expense enters the result.
The short answer
Title 9 recognises two bases: acquisition or production cost and current value (art. 2:384(1) DCC). RJ 120 describes those prices, with current cost, value in use, fair value and net realisable value. RJ 135 governs the timing: income and expenses in the period to which they relate, with prudence and matching. For micro and small entities the same is in RJk A2.
Updated 30 October 2026
Key facts
| Law | art. 2:362(5), 2:384 and 2:388 DCC; Decree on current value |
| Guidelines | RJ 120 Measurement bases and RJ 135 General bases for determining the result (both amended 2024, in force from financial year 2025) |
| Micro and small | RJk A2.2 (measurement bases) and A2.5 (determining the result) |
| Micro | No measurement at market value (art. 5a Decree on current value) |
| Notes | Bases per item (art. 2:384(5) DCC), not for micro |
The two bases in the law
1. In choosing a basis for the measurement of an asset and of a liability and for the determination of the result, the legal entity is guided by the provisions of article 362 paragraphs 1-4. Acquisition or production cost and current value qualify as a basis.
2. In applying the bases, prudence is exercised. Profits are recognised only to the extent that they have been realised at the balance sheet date. Obligations that originate before the end of the financial year are taken into account if they have become known before the annual accounts are prepared. Foreseeable obligations and possible losses that originate before the end of the financial year may be taken into account if they have become known before the annual accounts are prepared.
The board chooses per type of item the basis that gives the best view and keeps to it; changing is only allowed for sound reasons (art. 2:384(6) DCC; RJ 140). Goodwill has only the acquisition cost.
The prices of RJ 120 side by side
| Price | What it is | Where you meet it |
|---|---|---|
| Acquisition cost | Purchase price plus incidental costs, such as transport and installation (art. 2:388(1) DCC) | Purchased machinery and inventory |
| Production cost | Material and direct costs; a reasonable share of indirect costs and construction interest may be added (art. 2:388(2) DCC) | Self-constructed assets and own production |
| Current cost | What the asset would cost today, after depreciation | Tangible fixed assets at current value |
| Value in use | Present value of the cash flows the asset still yields in the business, including the sale at the end | The test for impairment |
| Fair value | Price between well-informed, independent parties; the Decree on current value calls this market value | Securities, derivatives, investment property |
| Net realisable value | Highest achievable selling price minus the costs still needed to sell | Slow-moving inventory, assets being disposed of |
| Nominal value | The amount from the agreement | Receivables and debts |
| Present value | Future receipts or payments discounted at an interest rate | Long-term provisions and receivables |
For tangible and intangible fixed assets that are not investments, the Decree on current value in principle prescribes current cost, the lower value in use if that is below it and net realisable value if that is in between (art. 7). Financial instruments are then at market value (art. 10). A rise in value of such a fixed asset goes to a revaluation reserve (art. 2:390(1) DCC).
Explaining current value
Whoever recognises an asset at current value explains in the notes how that value was arrived at (art. 9 Decree on current value). RJ 120.403 makes this concrete: say whether a valuer determined the value and whether that was internal or external, which indices you used and whether they were adjusted for technical development, and how old the estimate is for current cost or value in use. That paragraph is a firm statement.
For the micro entity the room is smaller. It may not apply measurement at market value (art. 5a Decree on current value; RJk M1.303). Securities and investment property therefore stay at cost, possibly written down to a lower market value. Current cost for a business property is allowed.
Determining the result under RJ 135
5. The income and expenses of the financial year are included in the annual accounts, irrespective of whether they led to receipts or payments in that financial year.
RJ 135 builds on this rule the accrual principle: a transaction counts when it takes place, not when the money comes. In addition three principles:
- Prudence. Under uncertainty you estimate such that assets and income do not turn out too high and liabilities and costs not too low. Deliberately estimating too low or too high is not prudence but distortion; RJ 135.203 rules that out. See also the prudence principle.
- Matching. Costs follow the revenue with which they are directly connected, such as the cost of goods sold (matching principle). If the connection is indirect, you spread the costs systematically, as with depreciation. Matching may never put an asset on the balance sheet that does not meet the recognition criteria.
- Corrections. Income and expenses that actually belonged to previous years you process under RJ 150 Correction of errors (RJ 135.207, a firm statement).
Two special cases. A profit share that rewards work or services delivered is an expense in the year to which it relates. A profit share that compensates for providing equity is appropriation of result (RJ 135.208). And some items go first directly to equity and later through the profit and loss account after all, such as the translation reserve on the sale of a foreign participating interest (RJ 135.201).
Case: Persbouw Noord BV builds a press for own use
Persbouw Noord BV (fictitious, medium-sized) builds a hydraulic press for its own workshop from January to June 2026. The construction costs € 180.000 in material and € 60.000 in direct labour. The BV allocates € 24.000 of indirect production costs and pays six months of 6% interest on a construction loan of € 200.000, € 6.000. The press goes into use on 1 July 2026 and lasts ten years, with no residual value.
| Direct costs only | With indirect costs and construction interest | |
|---|---|---|
| Production cost | € 240.000 | € 270.000 |
| Depreciation 2026 (six months) | € 12.000 | € 13.500 |
| Indirect costs and interest as expense in 2026 | € 30.000 | € 0 |
| Total expense 2026 | € 42.000 | € 13.500 |
Both routes are permitted; the difference of € 28.500 in the 2026 result flows back over the next ten years via higher depreciation. If the BV opts for capitalising interest, the notes say so (art. 2:388(2) DCC), and it must then capitalise interest for all assets whose construction takes a long time; interest on equity never counts.
In December the same BV delivers a press to a customer for € 95.000, at a cost of € 61.000. The invoice goes out on 8 January 2027 and the agent receives his commission of € 4.000 in February. Revenue, cost of sales and commission all belong in 2026: the performance was delivered and the costs are directly connected with it. The result on the order, € 30.000, therefore counts in 2026.
Finally the profit share. The employees receive 8% of the result before profit share of € 400.000, so € 32.000: that is personnel costs in 2026. The holders of preference shares with € 150.000 nominal receive 6%, € 9.000: that goes through the appropriation of result, not through the costs.
By size class
| Class | Which rules | What is special |
|---|---|---|
| Micro | art. 2:395a DCC and RJk A2 and M1 | No market value; tax-based policies allowed (art. 2:395a(7) DCC); no notes on bases, only the statement of tax-based policies if you choose them |
| Small | RJk A2.2 and A2.5, or by choice the full RJ | Tax-based policies allowed (art. 2:396(6) DCC), then all tax-based policies; bases per item in the notes |
| Medium-sized | RJ 120 and RJ 135 | Notes on current value under RJ 120.403 |
| Large | RJ 120 and RJ 135 | As medium-sized |
Tax-based policies are a complete package: a small BV that depreciates for tax purposes cannot suddenly choose fair value for its investment property. See accounting policies for the tax route.
Versions per financial year
RJ 120 and RJ 135 received their current form for reporting years from 1 January 2025. The occasion was the removal of the Stramien from the volume: the Board moved the provisions it wanted to keep to the chapters of section 1 and intended no substantive change by doing so (RJ-Uiting 2024-12). For financial years 2026 and 2027 both chapters are unchanged. In the 2027 edition of the RJk, two points are added in A2 that touch presentation, not measurement: when items must be disclosed separately (A2.113a) and the advice to follow the Decree on annual accounts models (Besluit modellen jaarrekening) as far as possible where it is not mandatory (A2.114a).
Common mistakes
- Booking a January invoice for a December delivery as January revenue.
- Capitalising interest for one project and not for another.
- A micro BV that puts securities at stock exchange price.
- Setting up a provision 'to be safe' without an obligation at the balance sheet date.
How it works at Jaarrekening.io
The app asks whether you capitalised interest on self-produced assets and for what amount, so that the notes contain the disclosure of art. 2:388(2) DCC. If a micro or small legal entity chooses tax-based policies, the app warns if there is nevertheless a revaluation or deferred tax in the figures. The choice of basis itself and the estimates remain judgements of the board.
Sources
- Art. 2:384 DCC: bases of measurement and result (wetten.overheid.nl, in Dutch)
- Art. 2:388 DCC: acquisition and production cost (in Dutch)
- Art. 2:362 DCC: true and fair view requirement and accrual (in Dutch)
- Decree on current value (Besluit actuele waarde, wetten.overheid.nl, in Dutch)
- RJ-Uiting 2024-12: replacement of the Stramien (rjnet.nl, in Dutch)
Frequently asked questions
What is the difference between acquisition cost and production cost?
Acquisition cost (verkrijgingsprijs) applies to what you buy: purchase price plus incidental costs (art. 2:388(1) DCC). Production cost (vervaardigingsprijs) applies to what you make yourself: material and costs directly attributable to making it, possibly supplemented by a reasonable share of indirect costs and interest during construction (art. 2:388(2) DCC).
May a micro BV measure its investment property at market value?
No. Article 5a of the Decree on current value (Besluit actuele waarde) prohibits measurement at market value for a micro entity (RJk M1.303). The property is at cost less depreciation, and is written down if the value is durably lower.
When do I recognise a loss that only becomes known after the balance sheet date?
If the loss arises from a situation that already existed at the balance sheet date and becomes known before the annual accounts are prepared, you include it (art. 2:384(2) DCC). If the cause lies after the balance sheet date, it is an event for the next year, which you explain in the notes where necessary.
Is a profit share for staff an expense?
Yes, if it is remuneration for work in the financial year. You then process it as an expense in the year to which it relates (RJ 135.208). A profit share that compensates for equity, such as on preference shares, is appropriation of result.
Do RJ 120 and 135 also apply to a small BV?
Not directly. A small BV follows the RJk, where the same is in chapter A2 (A2.2 measurement bases, A2.5 determining the result). If it chooses the full RJ, RJ 120 and 135 apply.
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