Dutch Accounting Standards Board

Foundation of the Dutch Accounting Standards Board

The Foundation for Annual Reporting coordinates the activities of the Dutch Accounting Standards Board (DASB) and ensures adequate funding. The Foundation for Annual Reporting was established in September 1981 by the following organisations:

• Federation of Netherlands Industry (VNO; Verbond van Nederlandse Ondernemingen);
• Netherlands Christian Employers' Federation (NCW; Nederlands Christelijk Werkgeversverbond);
• Federation of Netherlands Trade Unions (FNV; Federatie Nederlandse Vakbeweging);
• Christian National Federation of Trade Unions in the Netherlands (CNV; Christelijk Nationaal Vakverbond in Nederland);
• Netherlands Institute of Registeraccountants (NIVRA; Nederlands Instituut van Registeraccountants).

In 2001, the Association of Investment analysts (VBA; Vereniging van Beleggingsanalisten), joined the Foundation's Board. In 2002, the Order of the Accountants-Administrator's consultants NOvAA (Nederlandse Orde van Accountants-Administratieconsulenten) and the Royal Association of Small and Medium-sized Enterprises in the Netherlands (Koninklijke Vereniging MKB-Nederland) also joined. In 2007, Eumedion became a member. 

The Social and Economic Council (SER; Sociaal-Economische Raad), the NBA (formed from the merger of NIVRA and NOvAA) , and Eumedion contribute to the Foundation's budget. The Foundation also receives income from copyrights on the Dutch Accounting Standards.

Tasks of the Dutch Accounting Standards Board

The Foundation's objectives, as set out in its Constitution, are to promote the quality and practicality of external reporting in the Netherlands, particularly with regard to financial statements prepared by corporations and legal entities.

High-quality external reporting is essential for users of financial information, including current and prospective investors, employees, lenders, suppliers, trade creditors, clients, regulators, authorities, and the general public. 

The DASB seeks to achieve these objectives by:

• publishing (draft) standards and other communications on annual reporting, including authoritative statements and recommendations 
• providing advice to authorities and regulatory organisations , either upon request or on its own initiative, regarding external reporting;
• participating in interational organisations that aim to improve or develop standards for external reporting.

Each September, the DASB publishes two sets of Guidelines in Dutch (Dutch Accounting Standards):

(i)  for medium size and large legal entities

(ii) for micro and small legal entities.

The DASB also prepares comment letters on Exposure Drafts and Discussion Papers issued by EFRAG and IASB, attends EFRAG-CFSS meetings and provides members for certain EFRAG working groups.

The Dutch Accounting Standards are based on Dutch company law and statutory regulations governing individual and consolidated financial statements and management board reports, as ruled by (Part 9, Book 2 of) the Dutch Civil Code. The Dutch Accounting Standards also incorporate relevant rulings from the Enterprise Chamber of the Court of Appeal at Amsterdam and the Supreme Court. In developing the Standards, the DASB considers applicable International Financial Reporting Standards as endorsed by the EU (IFRS-EU).

Dutch Accounting Standards

The accounting standards applicable in the Netherlands depend on the size of the legal entity.

Small and micro entities may choose between:

• Book 2 of the Dutch Civil Code combined with fiscal valuations principles;
• Dutch Accounting Standards for micro and small legal entities;
• Dutch Accounting Standards for medium sized and large legal entities; or
• IFRS-EU (including certain provisions of the Dutch Civil Code as elaborated in the Dutch Accounting Standards for medium-sized and large entities).

Medium sized and large entities may choose between:

• Dutch Accounting Standards for medium sized and large legal entities; and
• IFRS-EU (including certain provisions of the Dutch Civil Code as elaborated in the Dutch Accounting Standards for medium-sized and large legal entities).

Listed entities (regardless of size) must apply IFRS-EU (including certain provisions of the Dutch Civil Code elaborated in the Dutch Accounting Standards for medium-sized and large legal entities).

Criteria

Category	revenue	total assets	number of employees
Micro entities	≤ € 0,9 mln	≤ € 0,45 mln	< 10
Small entities	≤ € 15 mln	≤ € 7,5 mln	< 50
Medium Entities	≤ € 50 mln	≤ € 25 mln	< 250
Large entities	> € 50 mln	> € 25 mln	≥ 250

To qualify for a category, an entity must meet at least two of the three criteria for two consecutive financial years.

Meetings of the Dutch Accounting Standards Board

The DASB consists of members appointed by organisations representing: 

1. preparers of financial statements
2. users of financial statements
3. auditors of financial statements

The Board meets at least once a month. Representatives (observers) from the Ministry of Justice and Security, the Ministry of Finance and the Authority for the Financial Markets (AFM) also attend, but they do not have voting rights. DASB meetings are not open to the public, and minutes are not published.

Due process of the Dutch Accounting Standards Board

The DASB follows a due process in developing Dutch Accounting Standards:

1. DASB staff or a DASB working group prepares a Draft  Standard.
2. The DASB discusses and, if necessary, revises the draft before issuing it for public comment.
3. Comments received are reviewed, and the draft is revised if needed before finalisation.

Where Dutch company law or statutory provisions are relevant, references are included. The Standards distinguish between authoritative statements (printed in bold) and recommendations, reflecting their relative practical significance.

Authoritative statements carry extra weight but are not legally binding in the same way as legal requirements are. Ultimately, the court decides which standards are generally acceptable for a specific set of financial statements. Each company remains individually responsible for its own financial reporting.

The Dutch Accounting Standards, particularly the authoritative statements, are intended to provide insight and enable a fair assessment of a company's financial position and performance. Departures from authoritative statements are not expected without valid justification.