IAS 16 (EU-endorsed) / RJ 212 (Dutch GAAP)

Depreciation Calculator
Netherlands

IAS 16 depreciation calculator with Netherlands-specific regulatory context, Autoriteit Financiële Markten (AFM) / NBA expectations, and local tax vs accounting depreciation guidance.

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IAS 16 Depreciation Audit Working Paper Template — free PDF

Practical audit guide covering all four depreciation methods with worked examples, component depreciation checklist, change-in-estimate documentation template, and useful life benchmarks by asset class.

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IAS 16 Depreciation in Netherlands — IAS 16 (EU-endorsed) / RJ 212 (Dutch GAAP)

The Netherlands applies IAS 16 through EU endorsement for listed companies. Non-listed Dutch entities follow Dutch GAAP, specifically Richtlijn 212 (RJ 212) Materiële vaste activa, which is broadly consistent with IAS 16 but with certain Dutch-specific provisions. Dutch tax depreciation follows the Wet inkomstenbelasting 2001 with specific limitations introduced in recent years, including restrictions on commercial property depreciation (afschrijvingsbeperking gebouwen).

Regulatory Context — Autoriteit Financiële Markten (AFM) / NBA

The AFM has included PP&E accounting in its thematic reviews, focusing on: adequacy of useful life disclosures, consistency of depreciation policies across reporting periods, application of component depreciation for material assets, and the distinction between investment property (RJ 213 / IAS 40) and operational property (RJ 212 / IAS 16). The NBA (Nederlandse Beroepsorganisatie van Accountants) provides practice guidance through NBA-handreiking documents that supplement ISA requirements.

Practical Guidance for Netherlands

The most significant Dutch-specific consideration is the tax limitation on commercial property depreciation (afschrijvingsbeperking gebouwen in eigen gebruik). Since 2007, owner-occupied buildings can only be depreciated for tax purposes down to 50% of the WOZ-waarde (government-assessed property value). Investment property cannot be depreciated below 100% of WOZ-waarde. These tax restrictions do NOT affect IAS 16 accounting depreciation, which is based on useful life and residual value. However, many Dutch entities incorrectly align their IAS 16 residual values with WOZ-waarde limits, which is non-compliant unless the WOZ-waarde genuinely approximates the expected residual value.

Audit Expectations

Dutch audit firms follow ISA as adopted in the Netherlands plus NBA guidance. The AFM's regular inspections (regulier onderzoek) have identified PP&E as an area where audit quality can be improved. Common findings include: insufficient challenge of useful life estimates, residual values set equal to WOZ-waarde without independent justification, lack of component depreciation for significant buildings, and inadequate documentation of the auditor's assessment of impairment indicators. Auditors should verify that IAS 16 estimates are independent of tax considerations.

Netherlands-Specific Considerations

Dutch-specific considerations include: the WOZ-waarde system (Wet waardering onroerende zaken) — annual government property valuations that determine local property taxes and create a tax depreciation floor. The 'beperking afschrijving gebouwen' means many Dutch entities effectively stop depreciating buildings for tax purposes once the carrying amount reaches the WOZ floor. For stichtingen (foundations) and verenigingen (associations), RJ 640 and RJ 645 provide additional guidance on PP&E accounting specific to the nonprofit sector. The Dutch civil code (Burgerlijk Wetboek Boek 2) requires depreciation of all fixed assets with a limited useful life.

Common Inspection Findings

Residual values for buildings set equal to WOZ-waarde without independent assessment

Component depreciation not applied to significant commercial property assets

Annual review of useful lives and residual values not evidenced in audit documentation

Tax depreciation rates used for IAS 16 without entity-specific justification

Insufficient impairment indicator assessment for PP&E at year-end

Frequently Asked Questions — Netherlands

What is the WOZ-waarde and does it affect IAS 16 depreciation?
The WOZ-waarde is the annual government property valuation used for Dutch property taxes (onroerendezaakbelasting). It creates a tax depreciation floor (50% of WOZ for owner-occupied, 100% for investment property). This tax limitation does NOT affect IAS 16 — your IFRS residual value should be based on the expected disposal value, not the WOZ-waarde, unless they coincidentally align.
How does RJ 212 differ from IAS 16 for depreciation?
RJ 212 is broadly consistent with IAS 16. Key differences: RJ 212 permits (but does not require) the revaluation model, and has less prescriptive guidance on component depreciation. The annual review of residual values and useful lives is required by both standards. Dutch entities applying RJ 212 should follow the same depreciation principles as IAS 16.
What has the AFM found regarding depreciation compliance?
The AFM has identified: residual values set equal to WOZ-waarde without independent justification, insufficient component depreciation for commercial buildings, generic useful life disclosures not specific to the entity, and inadequate annual review documentation for depreciation estimates.
Should I use the same useful lives for IAS 16 and Dutch tax purposes?
Not necessarily. Tax depreciation follows the Wet IB 2001 with its own rules (including the WOZ floor for buildings). IAS 16 requires entity-specific estimates. While they may align for some asset types, blind adoption of tax rates is non-compliant with IAS 16.51.
How do I handle property depreciation for Dutch tax if IAS 16 is different?
Maintain parallel schedules: IAS 16 depreciation for financial reporting (based on entity-specific useful life and residual value) and fiscal depreciation for tax returns (subject to WOZ floor and fiscal rules). The difference creates temporary differences for deferred tax under IAS 12.

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