23. Equity
See the consolidated statement of changes in equity for the movements in equity.
The authorised capital as at both 31 December 2021 and 31 December 2020 consisted of 4 million ordinary shares with a nominal value of €453.78 (originally NLG 1,000). There are 2,230,738 issued and fully paid up shares. All issued shares are held by the State of the Netherlands. The shareholders are entitled to a dividend, which is declared annually based on the resolution of the Annual General Meeting of Shareholders regarding the profit appropriation. The shareholders have the right to cast one vote per share at meetings of the company.
The financial statements for 2020 and the appropriation of the profits were adopted at the shareholders’ meeting on 2 March 2021. In accordance with the proposal, the negative result of €2,378 million attributable to the company’s shareholders was withdrawn from the general reserve.
The movements in the other reserves were as follows:
(in millions of euros) | Reserve for translation differences | Hedging reserve | Fair value reserve | Actuarial reserve | Revaluation reserve for associates | Total other reserves |
Balance as at 1 January 2020 | -12 | -5 | 52 | - | 13 | 48 |
Other comprehensive income | -9 | -18 | 1 | -1 | - | -27 |
Other movements | - | - | - | - | - | - |
Balance as at 31 December 2020 | -21 | -23 | 53 | -1 | 13 | 21 |
Other comprehensive income | -14 | 29 | - | - | - | 15 |
Other movements | - | - | - | - | - | - |
Balance as at 31 December 2021 | -35 | 6 | 53 | -1 | 13 | 36 |
Profit appropriation as stipulated by the Articles of Association
In accordance with Article 21(2) of the Articles of Association of NV Nederlandse Spoorwegen, the Annual General Meeting of Shareholders decides on the appropriation of any positive balance in the income statement.
Proposal for profit appropriation
It will be proposed to the Meeting to add the positive result of €339 million to the general reserve.
Minority interests
The minority interest in Abellio West Midlands Ltd decreased from 30% in 2020 to 14.95% in 2021 as a result of the transfer of 15% of JR East Midlands’ equity interest to the Group. The change in value of this decrease has been recognised as other movement.
Measurement basis
Translation reserve
The translation reserve consists of all exchange rate differences arising as a result of the translation of the financial statements of foreign operations and the translation of liabilities hedging the company's net investment in a foreign group company.
Hedging reserve
The hedging reserve consists of the cumulative change in the fair value of hedging instruments (derivatives) where the hedged transaction has not yet taken place or the hedged position has not yet been settled.
Fair value reserve
The fair value reserve comprises the cumulative change in the fair value of investments measured at fair value - total comprehensive income and the cumulative change in the fair value of investments measured at fair value - debt investment, until the investment is derecognised.
Actuarial reserve
The actuarial reserve relates to the actuarial gains and losses, which comprise the difference between the actual and projected changes in the pension liabilities and investment returns on pension assets (see note 28).
Revaluation reserve for associates
The revaluation reserve for associates comprises the cumulative unrealised results, recognised directly in the equity of associates accounted for using the equity method.
General reserve
The recognition in equity is after deduction of taxes. Dividends are recognised in the period in which the profit appropriation is decided upon and the dividends are declared.