Concept of profit and taxation
Under the General Terms and Conditions of Deloitte, the Rules on Financial Relationships and the Associate Agreements, the fees paid to shareholders for services rendered are equal to the net profit of Deloitte Holding B.V., before deduction of Associate Fees. The company is obliged to pay out these Associate Fees.

The Associate Fees due to shareholders are treated as operating costs in the profit-and-loss account. In order to provide the information on group profit required under Article 362, paragraph 4, Title 9 of the Netherlands Civil Code 2, the provisions of the financial statements Formats Decree have not been followed in the financial statements and these fees are carried separately as the last item in the profit-and-loss account.

The Associate Fees to be paid to shareholders through Stichting Financiering Deloitte are treated as operating expenses for tax purposes. As a consequence the amount of corporation tax paid is limited, reference is made to note 15.

Net turnover
Net turnover is the income from services rendered to third parties during the year and includes the cost of work that Deloitte subcontracts to others.

Operating expenses
Operating expenses are calculated on a historical basis and allocated to the year to which they relate.

Share in result of non- consolidated associated companies
For participating interests over which a significant influence is being exercised on business and financial policy, the result amounts to the share in the result of these participating interests that is attributable to the company. This result is determined on the basis of the current accounting principles of Deloitte Holding B.V.

For participating interests over which no significant influence on business and financial policy is being exercised, any dividend received is treated as financial income.