Accounting policies of the consolidated annual report
Entity information
Registered address and registration number trade register
The registered and actual address of European Association for Investors in Non Listed Real Estate Vehicles (INREV) is Gustav Mahlerplein 62, ITO Tower 8th floor, 1082 MA Amsterdam. European Association for Investors in Non Listed Real Estate Vehicles (INREV) is registered at the trade register under number 34289262.
General notes
Description of the most important activities of the entity
INREV is the European Association for Investors in Non Listed Real Estate Vehicles. INREV is Europe's leading platform for sharing knowledge on the non-listed real estate industry. INREV's goal is to improve transparency, professionalism and best practices across the sector, making the asset class more accessible and attractive to investors.
General accounting principles
Description of the accounting standards used to prepare the financial statements
The financial statements are drawn up in accordance with Generally Accepted Accounting Principles in the Netherlands. INREV has chosen Generally Accepted Accounting Principles as disclosed in the accounting policies and will apply these consistently.
Assets and liabilities are generally valued at historical cost. The balance sheet and statement of operating income and expenses contains references. These refer to the disclosures in the financial statements.
The accounting principles applied to the valuation of assets and liabilities and the determination of results in these financial statements are based on the assumption of continuity of the company.
Going concern
The accounting principles applied to the valuation of assets and liabilities and the determination of results in these financial statements are based on the assumption of continuity of the company.
Throughout the year the Management continued to monitor the impact of COVID-19 on the organisation, which so far has been relatively limited. The management has not obtained any indication that the Corona crisis will lead to discontinuity of the organisation, partly due to the healthy financial position and the available liquidity. INREVs cash position is strong. We have financial reserves and membership fees are paid at the beginning of the year, which means we see our cash balance slowly decrease towards the end of the year. This allows us to change our planned activities if the situation so requires.
Many of the services offered by INREV were already available online in 2020, and relatively few events or training courses were scheduled to be live. Lessons learned from previous years, all live events or training courses were organised in a flexible manner so we could quickly refer back to an on-line format without any extra costs. The Corona virus has also not resulted in the postponement of payments or cancellation of debts to members.
INREV has made advance payments for approx. €516k to two hotel chains for the Annual Conference 2022 and 2023. No guarantee has been included for these payments for the risk of bankruptcy of the hotels. Management considers the chance unlikely that two large and well-known hotel chains will go bankrupt. We therefore consider the claim to be fully valid.
Consolidation
The consolidation includes the financial information of European Association for Investors in Non Listed Real Estate Vehicles (INREV), its group companies and other entities in which it exercises control or whose central management it conducts. Group companies are entities in which European Association for Investors in Non Listed Real Estate Vehicles (INREV) exercises direct or indirect control based on a shareholding of more than one half of the voting rights, or of which it has the authority to govern otherwise their financial and operating policies. Potential voting rights that can be exercised directly from the balance sheet date are also taken into account.
Group companies and other entities in which European Association for Investors in Non Listed Real Estate Vehicles (INREV) exercises control or whose central management it conducts are consolidated in full.
Intercompany transactions, profits and balances among group companies and other consolidated entities are eliminated, unless these results are realised through transactions with third parties. Unrealised losses on intercompany transactions are also eliminated, unless such a loss qualifies as an impairment. The accounting policies of group companies and other consolidated entities have been changed where necessary, in order to align them to the prevailing group accounting policies.
Next to European Association for Investors in Non Listed Real Estate Vehicles (INREV), the consolidated companies are listed below:
* INREV Services B.V., Amsterdam, the Netherlands (100%), registered at the trade register under number 34289262
Accounting policies for the balance sheet
Property, plant and equipment
Tangible fixed assets are valued at historical cost including directly attributable costs, less straight-line depreciation based on the expected future life and impairments.
Receivables
Receivables are initially valued at the fair value of the consideration to be received, including transaction costs. Trade receivables are subsequently valued at the amortised cost price. Provisions for bad debts are deducted from the carrying amount of the receivable.
Deferred tax asset
No deferred tax asset has been recognized by the management because there is currently no future taxable profit forecast for INREV Services B.V. This is mainly caused by the special circumstances in the past two Covid years. Management will analyse the future profit from 2022 on and reassess the recognition of the deferred tax asset in the year 2022.
Cash and cash equivalents
Cash at banks and in hand represent cash in hand, bank balances and deposits with terms of less than twelve months. Overdrafts at banks are recognised as part of debts to lending institutions under current liabilities. Cash at banks and in hand is valued at nominal value.
Equity
The group equity consists of the retained earnings which resulted from any positive operating results and consists of the association reservers. The association reserves are at the companies free disposal.
Current liabilities
On initial recognition current liabilities are recognised at fair value. After initial recognition current liabilities are recognised at the amortised cost price, being the amount received taking into account premiums or discounts and minus transaction costs. This is usually the nominal value.
Accounting policies for the income statement
Accounting principles for determining the result
The result is the difference between the realisable value of the goods/services provided and the costs and other charges during the year. The results on transactions are recognised in the year in which they are realised.
Revenue recognition
Net turnover compromises the income from the supply of goods and services after deduction of discounts and such like and of taxes levied on the turnover.
Pension costs
European Association for Investors in Non Listed Real Estate Vehicles (INREV) applies the liability approach to account for all pension schemes. The premium payable during the reporting year is recorded as an expense. The contributions are recorded as personnel costs from the date that they become payable. Prepaid contributions are reported as accrual if this results in a repayment or a reduction in future payments. Contributions that are not yet paid are included as a liability in the balance sheet.
Income tax expense
Tax on the result is calculated based on the result before tax in the statement of INREV Services B.V., taking into account of the losses available for set-off from previous financial years and exempt profit components and after the addition of non-deductible costs. Due account is also taken of changes which occur in the deferred tax assets and deferred tax liabilities in respect of changes in the applicable tax rate. INREV, the association, has no corporate income tax obligations.
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