RJ 214 Financial fixed assets: participating interests, net asset value and joint ventures
A holding company with an operating company, a minority stake in a supplier or a joint venture with a partner: RJ 214 and RJ 215 determine how those interests appear in your own annual accounts.
The short answer
If you have significant influence in a participating interest, presumed from one fifth of the votes, you value it at net asset value: your share in its equity, measured with your own accounting policies. You recognise its result; dividend reduces the carrying amount. Without that influence you value at acquisition price or current value. For micro and small: RJk B3.1.
Updated 30 October 2026
Key facts
| Guideline | RJ 214 (amended 2026, financial years from 2027); for 2025 and 2026 the same set-up, with small clarifications per year. Joint ventures: RJ 215 (amended 2019) |
| Micro and small | RJk B3.1 (amended 2026, financial years from 2027); the micro-entity applies the same valuation rules (RJk M1.301) |
| Law | art. 2:24a to 2:24d DCC, art. 2:367 DCC, art. 2:379 DCC, art. 2:389 DCC; art. 10(3) Dutch Current Value Decree |
| Presumptions | Participating interest at one fifth or more of the issued capital (art. 2:24c(1) DCC); significant influence at one fifth or more of the votes (art. 2:389(1) DCC). Both rebuttable |
Participating interest, investment or subsidiary
Financial fixed assets include participating interests, loans to group companies and participating interests, other securities and other long-term receivables (art. 2:367 DCC). RJ 214 is mainly about participating interests; for loans and securities it refers to RJ 222, RJ 226 and RJ 290 (RJ 214.101).
You have a participating interest if you provide capital for your own account in order to be durably connected with the company in the service of your own activity. From one fifth of the capital this is presumed, but it remains rebuttable in both directions (RJ 214.201–204). A partner with unlimited liability in a vof or cv always has a participating interest in it. A stake you hold purely as an investment, as with a venture capital company, is another security.
For valuation something else counts: do you exercise significant influence over the business and financial policy? This is presumed at one fifth or more of the votes. Indications are a seat on the board, taking part in policy decisions, important transactions between the companies, exchange of managers and the supply of essential technical knowledge. Options you can exercise immediately also count for that question, but not for the size of your share (RJ 214.306–309 and 214.410).
Net asset value step by step
Participating interests in companies over whose business and financial policy the legal entity exercises significant influence are accounted for in accordance with paragraphs 2 and 3. If the legal entity or one or more of its subsidiaries can cast or have cast, alone or together, one fifth or more of the votes of the members, partners or shareholders at their own discretion, it is presumed that the legal entity exercises significant influence.
The legal entity determines the net asset value of the participating interest by valuing the assets, provisions and debts of the company in which it participates and calculating its result on the same principles as its own assets, provisions, debts and result. This method of valuation must be disclosed.
- On acquisition you value the identifiable assets and liabilities of the participating interest at fair value; those values apply to you from then on as cost, even if the participating interest does not recognise them itself (RJ 214.404).
- The difference between what you paid and your share in those fair values is goodwill, which you capitalise and amortise; if it is negative, it is negative goodwill under RJ 216 (art. 2:389(7) DCC; RJ 214.414–415).
- Every year you recalculate the result of the participating interest to your own accounting policies and recognise your share as result from participating interests, in the formats after the result before tax (RJ 214.405–406 and 214.702).
- Dividend that the participating interest pays reduces the carrying amount; it is not income.
- If recalculating is not possible, for instance because foreign legislation prevents it, you may start from the participating interest's visible equity; you disclose that (RJ 214.402 and 214.407–408).
Valuing at current value is not permitted where there is significant influence (art. 10(3) Dutch Current Value Decree). You may, however, depart from net asset value for well-founded, explained reasons, for instance if you apply the exemption of art. 2:408 DCC; you then value at acquisition price (RJ 214.304).
Negative value and the legal reserve
If the net asset value falls to zero, the participating interest stays at zero. You recognise further losses only if you are liable for its debts or are in practice obliged to support it; then you form a provision. You first write off long-term loans that are in essence additional investment. You recognise profit in later years only again once the unrecognised loss has been made up (RJ 214.418–420). Medium-sized and large entities disclose the unrecognised loss, for the year and cumulatively (RJ 214.818).
You form the legal reserve for participating interests for your share in profit and direct equity growth since the first valuation at net asset value, to the extent that you cannot have it distributed without restriction. For a 100% subsidiary whose dividends you determine yourself, that reserve is usually zero. A bank covenant that blocks distributions or a minority stake changes that (art. 2:389(6) DCC). Since financial year 2026 it expressly states that this also applies if you switch from cost to net asset value (RJ 214.510).
Case: a 100% subsidiary and a 30% stake
Holding Lindeveld BV has owned all the shares of Werkplaats Lindeveld BV since 2022. On 1 January 2026 it also buys 30% of Koelnet BV for € 360.000, including advisory costs, and gets a seat on the board. The fair value of Koelnet's net assets at that moment is € 1.000.000, equal to its carrying amount. All figures have already been recalculated to the holding company's accounting policies.
| 2026 | Werkplaats (100%) | Koelnet (30%) |
|---|---|---|
| Net asset value 1 January | € 640.000 | € 300.000 (30% × € 1.000.000) |
| Goodwill on acquisition | – | € 60.000, separately under intangible fixed assets |
| Result of the participating interest | + € 150.000 | − € 200.000 |
| Holding company's share | + € 150.000 | − € 60.000 |
| Declared dividend | − € 100.000 | – |
| Net asset value 31 December | € 690.000 | € 240.000 |
The holding company's profit and loss account shows a result from participating interests of € 90.000 (€ 150.000 − € 60.000). It amortises the goodwill on Koelnet over ten years, € 6.000 in 2026. The dividend of € 100.000 is not income: it comes in as cash and reduces the carrying amount of Werkplaats. A legal reserve for participating interests is not needed: at Werkplaats the holding company can enforce any distribution itself, and at Koelnet the result since the first valuation is negative.
If the holding company had no significant influence in Koelnet, the stake would be on the balance sheet at € 360.000 cost, without a share in the loss. The continuing losses would then be a reason to test for impairment (RJ 214.602). At Werkplaats, under cost valuation the dividend of € 100.000 would be the income, as the first item of financial income (RJ 214.601).
Per class. If the holding company is medium-sized or large, a statement of movements per item follows in which result and dividend are separately visible (RJ 214.804), and the list of participating interests with name, place of residence and share (art. 2:379 DCC). A small holding company is exempt from that list (art. 2:396(5) DCC) and may show the financial fixed assets as one item (RJk B3.101). A micro holding company shows only the total of fixed assets; valuation at net asset value still applies to it, unless it chooses tax-based principles.
Interests without significant influence
Without significant influence you value a participating interest at acquisition price or current value (RJ 214.305; RJk B3.109). Under cost, declared dividend is your income. A listed interest without influence is at fair value under RJ 290.
If you choose current value, you may take changes in value directly to the result; for increases on shares without frequent stock-exchange quotation you then form a revaluation reserve. If you do not take the increase to the result, it goes directly to the revaluation reserve and on sale it still passes through the profit and loss account. For financial years from 2027 the RJ has clarified this choice in RJ 214.305 (RJ-Uiting 2026-5A); the RJk already had it in B3.109.
Joint ventures (RJ 215)
A joint venture is a collaboration over which a limited number of participants jointly have control under an agreement; what is decisive is the distribution of control, not of ownership (RJ 215.202). If one partner can exercise predominant control, it is not a joint venture in this sense and you look at consolidation under RJ 217.
- In a legal entity or company. In the separate annual accounts you value the interest under RJ 214, usually at net asset value. In the consolidated annual accounts you may consolidate proportionately if that gives the required insight (art. 2:409 DCC; RJ 215.201).
- Without its own legal entity, with own assets. Each participant accounts for its own assets, debts and costs and its share of the income (RJ 215.205).
- Without its own legal entity, with shared assets. Each participant recognises its share in those shared assets, debts, costs and income, both separately and consolidated (RJ 215.205).
- Contribution or sale to the joint venture. You recognise only the part of the profit that belongs to the other participants (RJ 215.208), as with intercompany transactions.
What changes per financial year
- 2025. RJ 214 got a new layout with more headings; duplicate paragraphs disappeared. Changes in substance were not intended (RJ-Uiting 2024-11; Ten geleide edition 2025).
- 2026. Clarified that on a switch from cost to net asset value, retained profit that you cannot freely have distributed goes to the legal reserve for participating interests (RJ 214.510; RJ-Uiting 2025-3A). Some paragraphs on IFRS moved to the new RJ 105.
- 2027. Clarified that changes in value of participating interests without significant influence may go directly to the result under current value (RJ 214.305; RJ-Uiting 2026-5A). RJk B3.1 received the same clarifications in the 2026 and 2027 editions, among others in B3.109, B3.121 and B3.126.
Common mistakes
- Booking dividend from a participating interest at net asset value as income, so that the result counts twice.
- Taking over the subsidiary's figures without recalculating them to your own accounting policies, for instance a subsidiary with tax depreciation under a holding company that follows commercial principles.
- Showing a negative participating interest as a negative asset when you are not liable for its debts.
- Leaving a loan to a subsidiary with negative equity in full when it is in essence additional capital.
- Not amortising goodwill on a participating interest because the participating interest makes a profit.
How it works at Jaarrekening.io
The app asks which valuation basis you use for participating interests, with net asset value as a choice. In the statement of movements you enter, per participating interest, the share in the result, the dividend and capital contributions. The app does not calculate the net asset value and the legal reserve for participating interests itself: you enter those amounts, and the app uses the reserve in calculating the room for distributions. Medium-sized and large entities complete the list of participating interests of art. 2:379 DCC.
Sources
- Art. 2:389 DCC: participating interests, net asset value and legal reserve (wetten.overheid.nl)
- Art. 2:24c DCC: the concept of participating interest
- Art. 2:367 DCC: classification of financial fixed assets
- Art. 2:379 DCC: details on participating interests in the notes
- RJ-Uiting 2024-11: rewritten RJ 214, no change in substance intended (rjnet.nl)
- RJ-Uiting 2025-3A: RJ 214.510, financial years from 2026 (rjnet.nl)
- RJ-Uiting 2026-5A: RJ 214.305, financial years from 2027 (rjnet.nl)
Frequently asked questions
When do I value a participating interest at net asset value?
When you have significant influence over the policy of the participating interest, both business and financial (art. 2:389(1) DCC). Such influence is presumed from one fifth or more of the votes. Without significant influence you value at acquisition price or current value (RJ 214.305; RJk B3.109).
Is dividend from my operating company income for the holding company?
Not if the holding company values the operating company at net asset value. Then the holding company recognises its share of the result as income, and the dividend only reduces the carrying amount of the participating interest. If the holding company values at cost, for instance because it has no significant influence, the declared dividend is income (RJ 214.601).
What do I do if the net asset value of a participating interest becomes negative?
You value the participating interest at zero and recognise further losses only if you are liable for its debts or are in practice obliged to support it; then you form a provision. Long-term loans that are in essence additional investment are written off first (RJ 214.418–420; RJk B3.119 and B3.119a).
Must my holding company form a legal reserve for participating interests?
Only for the part of the profit since the first valuation at net asset value that the holding company cannot have distributed without restriction (art. 2:389(6) DCC). For a 100% subsidiary without restrictions that is usually zero. A minority stake, a blocking bank covenant or a foreign distribution restriction can make a reserve necessary.
How do I account for a joint venture?
In the separate annual accounts you value the interest in a joint venture company under RJ 214, usually at net asset value. In the consolidated annual accounts you may consolidate it proportionately if that gives the required insight (art. 2:409 DCC; RJ 215.201). A collaboration without its own legal entity is accounted for through your own and shared assets and costs (RJ 215.205).
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