Article 2:384 DCC: the accounting policies for valuation and determination of the result
Article 2:384 DCC is the basic article on valuation: which policies are allowed, when profit counts, what the going concern assumption requires and when you may switch policy.
The short answer
Article 2:384 DCC provides that you value at acquisition or production cost or at current value, with prudence: profit only counts once it is realised, and known obligations are included. You assume continuity, explain the accounting policies per line item, and change them only for sound reasons. Micro and small entities may choose tax-based policies.
Updated 30 October 2026
Key facts
| Place in the law | Section 6 of Title 9: accounting policies for valuation and determination of the result |
| Applies to | Every size class. Micro: the valuation rules yes, the disclosure obligations no (art. 2:395a(6) DCC). Micro and small: tax-based policies possible (art. 2:395a(7) and 2:396(6) DCC) |
| Paragraph 4 | Current Value Decree: which current value for which asset; a micro entity may not value at market value (art. 5a) |
| Elaboration | RJ 110 to 135, RJ 140 (changes in accounting policies), RJ 170 (continuity), RJ 122 (foreign currency), RJ 290 (financial instruments); RJk A2 and A3 |
Paragraphs 1 and 4: which policies are allowed
1. When choosing a policy for the valuation 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 policies.
4. Rules may be laid down by order in council on the content, the limits and the manner of application of valuation at current values.
What this means. There are two kinds of policies: what the asset cost you (acquisition cost or production cost, see article 2:388) and what it is worth now (current value). Which one fits depends on the true and fair view the annual accounts must give (article 2:362). The Current Value Decree, based on paragraph 4, determines per type of asset which current value you use: for a business property the current cost (or the lower realisable value), for investments and financial instruments the market value. A micro entity may not value at market value (art. 5a Current Value Decree; RJk M1.303). For purchased goodwill only cost is permitted (art. 2:385(4) DCC).
Paragraph 2: prudence and realisation
2. Prudence is exercised in applying the policies. 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 became known before the annual accounts were prepared. Foreseeable obligations and possible losses that originate before the end of the financial year may be taken into account if they became known before the annual accounts were prepared.
What this means. Paragraph 2 contains three rules. First, the prudence principle: when in doubt, you do not state assets and income too high or liabilities and costs too low, but you also do not make the figures deliberately gloomy. Second, the realisation principle: an order signed in December but delivered in January does not yet yield profit in December. Third, the treatment of obligations: what arose before the balance sheet date and becomes known before preparation, you include; that is a duty. For obligations that are merely foreseeable and for possible losses the law says "may"; when that leads to a provision is determined by RJ 252 and RJk B10.
Paragraph 3: the going concern assumption
3. In valuing assets and liabilities, it is assumed that the entire set of activities of the legal entity to which those assets and liabilities are dedicated will be continued, unless that assumption is incorrect or its correctness is subject to reasonable doubt; in that case this is set out in the notes, stating the effect on equity and result.
What this means. Normally you value as if the business carries on: a machine stands at its carrying amount, not at the price in a forced sale. If it is certain that the activities will stop, you value on a liquidation basis and explain the difference. If there is reasonable doubt but continuation is still realistic, you keep the ordinary policies and describe the uncertainty. RJk A2.211 makes clear that "reasonable doubt" here means the same as a material uncertainty about continuity in the auditor's report. The 2027 edition of the RJk, unlike the 2025 edition, contains a list of signals, such as negative equity or failing to meet bank covenants (RJk A2.214a). See RJ 170 continuity and continuity.
Paragraphs 5 and 6: explain and do not switch lightly
5. The policies for the valuation of the assets and liabilities and for the determination of the result are set out in respect of each of the items. The policies for the translation of amounts denominated in foreign currencies are set out; it is also stated how exchange differences have been recognised.
6. Only for sound reasons may the valuation of assets and liabilities and the determination of the result be carried out on policies other than those applied in the previous financial year. The reason for the change is set out in the notes. The significance for equity and result is also shown, on the basis of adjusted figures for the financial year or for the previous financial year.
What this means. For each balance sheet item you explain in the notes how you value and when you recognise income and costs. If you have amounts in foreign currency, you state at which rate you translate and where the exchange differences end up; see RJ 122. Paragraph 6 is the consistency principle: choosing a different policy is allowed only with a good reason, such as a legal requirement, a new guideline or a clearly better view. You say why, and show with adjusted figures what the difference is. RJk A3.115 recommends showing at least the effect on the current financial year. Elaboration: RJ 140 changes in accounting policies.
Paragraphs 7 and 8: value changes directly in the result or via the reserve
7. Value changes of:
a. financial instruments;
b. other investments; and
c. agricultural inventories for which frequent market quotations exist
that are valued at current value pursuant to paragraph 1 may, in derogation from the second sentence of paragraph 2, be recognised immediately in the result, unless provided otherwise in this section. Value changes of derivative financial instruments, insofar as not referred to in paragraph 8, are, where necessary in derogation from paragraph 2, immediately credited or charged to the result.
8. Value changes of financial instruments that serve and are effective to hedge risks concerning assets, assets on order and other obligations not yet recognised on the balance sheet, or concerning intended transactions, are credited or charged directly to the revaluation reserve, to the extent necessary to ensure that these value changes are recognised in the result in the same period as the value changes they are intended to hedge.
What this means. Paragraph 7 makes an exception to the realisation principle: a share portfolio, a property investment or grain with a stock exchange quotation that you value at current value may be allowed to move through the profit and loss account, even if you have sold nothing. For assets without a frequent market quotation you do form a revaluation reserve at the expense of the free reserves. A derivative that you value at current value and that is not a hedge always goes straight through the result. Paragraph 8 governs hedge accounting: if an interest rate swap hedges the interest rate risk of a future loan, you park the value changes in the revaluation reserve until the hedged interest falls in the result. See RJ 290.
What each class applies and what differs per year
| Class | What applies |
|---|---|
| Micro (balance sheet total ≤ € 450.000, net turnover ≤ € 900.000, < 10 employees) | Paragraphs 1 to 4, 7 and 8 as valuation rules; no notes under paragraphs 3, 5 and 6 (art. 2:395a(6) DCC), unless the view falls seriously short, as with a material uncertainty about continuity (RJk M1.202). No market value. Tax-based policies are allowed, with a statement below the balance sheet (art. 2:395a(7) DCC) |
| Small (balance sheet total ≤ € 7,5 mln, net turnover ≤ € 15 mln, < 50 employees) | Everything, including the notes; the RJk bundle names no exemptions in section 6. Tax-based policies are allowed, with a statement and a list of items that differ materially as a result (art. 2:396(6) DCC; art. 3 Tax Valuation Policies Decree) |
| Medium-sized (balance sheet total ≤ € 25 mln, net turnover ≤ € 50 mln, < 250 employees) | Everything; no tax-based policies |
| Large (balance sheet total > € 25 mln, net turnover > € 50 mln, ≥ 250 employees) | Everything; no tax-based policies |
The article reads the same for financial years 2025, 2026 and 2027. What shifts are the guidelines: RJk A2 was amended for financial years from 2026 and again from 2027; the 2027 edition, unlike the 2025 edition, contains the signals of continuity uncertainty and a paragraph on when items must be shown separately (RJk A2.113a). RJ 115 received a similar paragraph for 2027 (RJ 115.213a). First application of the micro regime counts as a change in accounting policy that the micro entity need not explain (RJk M1.304).
Case: a printing firm with a claim and a departing customer
Drukkerij Westkant BV (fictional, small) closes 2026 with equity of € 40.000 according to the draft. In February 2027 a customer claims € 18.000 for a misprint delivered in December 2026; the printing firm admits the error. In January 2027 the largest customer, accounting for 40% of turnover, terminates the contract and the bank wants extra security. At preparation on 20 May 2027 the talks with the bank are still ongoing. The board thinks continuation is realistic, but it is not certain. An order of € 25.000 signed in December and printed in January is in the draft as 2026 turnover; the paper for it (€ 16.000) was bought in December and booked as costs.
| Step | Article 2:384 | Effect on equity |
|---|---|---|
| Equity according to draft | € 40.000 | |
| Misprint claim: originated in 2026, known before preparation | Paragraph 2, third sentence: must be included | − € 18.000 (provision) |
| December order, printed in January: profit not yet realised. The turnover of € 25.000 falls away, the paper of € 16.000 becomes inventory | Paragraph 2, second sentence | − € 9.000 |
| Equity 31 December 2026 | € 13.000 | |
| Largest customer terminates, financing uncertain | Paragraph 3: ordinary policies, explain the uncertainty | None; but an explanation in the notes |
Check: 40.000 − 18.000 − 9.000 = 13.000 (without tax effect, because the printing firm has losses that it does not capitalise as a deferred tax asset). If the shareholder decides before preparation to stop, continuation is no longer the assumption. The printing press with a carrying amount of € 120.000 is expected to fetch € 45.000 on sale, and winding up the staff costs € 30.000: equity then becomes 13.000 − 75.000 − 30.000 = − € 92.000, and the notes set out that difference with the valuation on a going concern basis.
Mistakes with accounting policies and continuity
- Ignoring a claim that arrives in February about a December delivery because "it happened after the balance sheet date".
- Staying silent in the notes about continuity doubt, or jumping straight to liquidation values while continuation is still realistic.
- Changing policy unnoticed, for example from straight-line to declining-balance depreciation, without reason and without adjusted figures.
- Describing policies in general sentences ("at nominal value unless stated otherwise") without saying per item what you do.
- Mixing tax and commercial policies; whoever chooses tax-based policies applies them all.
How it works at Jaarrekening.io
If a micro or small entity chooses tax-based policies, the app applies them to all items, includes the mandatory statement and, for small entities, asks about items that differ materially as a result. The policies per item and the assessment of continuity remain judgements of the board. The first annual accounts in your account are free, for every size class.
Sources
- Art. 2:384 BW: accounting policies for valuation and determination of the result (wetten.overheid.nl)
- Art. 2:362 BW: true and fair view requirement (wetten.overheid.nl)
- Art. 2:395a BW: micro: notes and tax-based policies (wetten.overheid.nl)
- Art. 2:396 BW: small: tax-based policies (wetten.overheid.nl)
- Besluit actuele waarde (wetten.overheid.nl)
- Besluit fiscale waarderingsgrondslagen (wetten.overheid.nl)
- RJ bundle for medium-sized and large entities (rjnet.nl)
- RJk bundle for micro and small entities (rjnet.nl)
Frequently asked questions
Which valuation policies does article 2:384 DCC allow?
Acquisition or production cost and current value (art. 2:384(1) DCC). Which current value you use is determined by the Current Value Decree. Micro and small entities may also apply tax-based policies, provided they do so for all items and disclose it (art. 2:395a(7) and 2:396(6) DCC).
Must I include a claim that arrived after the balance sheet date?
Yes, if its cause lies before the end of the financial year and you know of the claim before preparing the annual accounts (art. 2:384(2), third sentence, DCC). Whether it becomes a provision or only a disclosure depends on the likelihood of payment and whether the amount can be reliably estimated.
What must the notes say if continuity is uncertain?
That there is reasonable doubt about the continuation of the activities, with the circumstances and the effect on equity and result (art. 2:384(3) DCC). As long as continuation is realistic, the ordinary policies continue to apply. A micro entity also gives that information (RJk M1.202).
May I choose a different valuation policy every year?
No. You may depart from the prior-year policies only for sound reasons. You state the reason in the notes and show with adjusted figures for the financial year or the prior year what the effect on equity and result is (art. 2:384(6) DCC).
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