163 / 222
159
NOTE 17. OTHER FINANCIAL CHARGES
(x €1,000)
2014
2013
Bank fees and other commissions
320
357
Other
1,989
572
Interests on advance payments
682
272
Other
1,307
300
TOTAL
2,309
929
The item “Other” mainly comprises an amount of K€790 related to the update of the maintenance provison for the courthouse and the fire sta-
tion in Antwerp. The discount rate of the provisions was indeed brought down from 6.50% to 5.80%.
NOTE 18. CHANGES IN THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
(x €1,000)
2014
2013
Authorised hedging instruments qualifying for hedge accounting
-54,796
-19,858
Change in the fair value of authorised hedging instruments qualifying for hedge accounting
1,719
1
643
Impact of the recycling under the income statement of hedging instruments which relationship with the
hedged risk was terminated
-56,515
-20,501
Authorised hedging instruments not qualifying for hedge accounting
-79,927
8,127
Change in the fair value of authorised hedging instruments not qualifying for hedge accounting
-71,670
2
13,153
Convertible bonds
-8,257
-5,026
Other
-1,420
-1,955
TOTAL
-136,143
-13,686
Only the changes in the ineffective part of the fair value of cash flow hedging instruments, as well as changes in the fair value of trading instru-
ments, are taken into account here. The changes in the effective part of the fair value of cash flow hedging instruments are booked directly
under “Other elements of the global result”.
When the relationship between a cash flow hedging instrument and the hedged risk is terminated (even partially), the cumulated gain or loss
at that date, until then deferred under equity, is recycled under the income statement.
The change in the fair value of the authorised hedging instruments not qualifying for hedge accounting results from the impact of the interest
rates decrease on their valuation.
The impact of the recycling under the income statement of hedging instruments which relationship with the hedged risk was terminated results
from the restructuting of FLOOR options which were cancelled in 2014, for a notional amount of €600million and extending until the end of 2017.
This operation will lead to lower interest charges in the coming years. The total cost of the restructuring amounts to €56million. For more details
on the hedging policy, see the chapters “Risk factors” and “Management of financial resources” of this Annual Financial Report.
NOTE 19. CORPORATE TAX AND EXIT TAX
(x €1,000)
2014
2013
CORPORATE TAX
2,493
2,179
Parent company
1,425
378
Pre-tax result
-52,775
56,601
Result exempted from income tax due to the RREC regime
52,775
-56,601
Taxable result from non-deductible costs
3,813
3,721
Tax at rate of 33.99%
1,296
1,265
Other
129
-887
Subsidiaries
1,068
1,801
EXIT TAX - SUBSIDIARIES
-926
-618
The non-deductible costs mainly comprise the office tax in the Brussels Capital Region. The item “Other” mainly comprises taxes related to
merged companies. With the exception of the institutional RREC, the Belgian subsidiaries do not benefit from the RREC regime. The Dutch
subsidiary Pubstone Properties BV does not benefit from the FBI regime.
1
The gross amounts are respectively an income of K€3,715 (2013: K€2,051) and a charge of K€1,996 (2013: K€1,408).
2
The gross amounts are respectively an income of K€3,130 (2013: K€15,715) and a charge of K€74,800 (2013: K€2,562).