ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80)778
Vol.1980/0243

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)778 final
Brussels -27th November 1980
SECOND COMMISSION REPORT TOTHE COUNCIL
ONTHE TRANSPOSED ANNUAL ACCOUNTS OF
THE RAILWAY UNDERTAKINGS
1978
COM (80)778 final

CONTENTS
Pages
INTRODUCTION I-III
PARTOWE
INFORMATION COMMUNICATED BYTHERAILWAY UNDERTAKINGS 1
Transposed BalanceSheetsand.ProfitandLossAccounts ,
withExplanatory Notes l.
-SociétéNationale descheminsdeferbelges/ 3-12
-Nationale Maatschappij derBelgische Spoorwegen
-DanskeStatsbaner 13-18
-Deutsche Bundesbahn 19-30
-SociétéNationale descheminsdeferfrançais -31-41
~CorasIompairEireann 43-50
-Azienda autonomadelleferrovie delloStato 51-57
-Soci£t€Nationale descheminsdeferluxembourgeois 59-65
-Naamloze Vennootschap Nederlandse Spoorwegen 167-77
-BritishRailways Board 79-86
-NorthernIrelandRailways CompanyLtd 87-90
-EECRailways asawhole ~ 91-93
PARTTW0
STRUCTURE OFTHETRANSPOSED ANNUALACCOUNTS FOR1978 95-118
PARTTHREE
CONCLUSIONS ANDFURTHER WORK '' 119-123

ABBREVIATIONS ANDSIGNSUSED
Nil
0 Verysmallfigure (genexally lessthanhalfthelastunitor
decimalplaceoftherelevantquantity )
0 Figurenotavailable
000 Thousand
mio Million
mrd Milliard (thousandmillion)
SNCE/SociétéNationale descheminsdeferbelges/
NXBS Nationale Maatschappij derBelgische Spoorwegen
DSB DanskeStatsbaner
DB Deutsche Bundesbahn
SNCF SociétéNationale descheminsdeferfrançais
CIE CorasIompairEireann
FS Azienda autonoma delleferrovie delloStato
CFL SociétéNationale deschemins deferluxembourgeois
NS Naamloze Vennootschap Nederlandse Spoorwegen
BRB BritishRailways Board
NIR Northern IrelandRailways Company Ltd
BFR Belgianfrancs
DKR Danishkroner
DM Germanmarks
FF Frenchfrancs
LIT Italianlire
LFR Luxembourg francs
HFL Dutchguilders
UKL Poundssterling
IRL Irishpounds

SECOND REPORT
ontheTransposed AnnualAccounts of
theRailwayUndertakings
CouncilRegulation (EEC)No2830/77
of12December 1977(l)
1978
– s
SUOiRÏ
1.TheSecondReportpresents theBalanceSheetsandProfitandLoss
Accounts for1978forthetenCommunity railways coveredbyRegulation
(EEC)No2830/77»
2.PartOnecontainsthefigures-accompanied ("byexplanatory notes-
transposed byeachundertaking onthebasisoftheirnational accounts.
3oPartTwocomprises summaiytablesindicating inpercentages the
structure oftherailways' BalanceSheetsandProfitandLossAccounts
andcertainaccounting ratios.Notesaccompany thesetablesoFurthertables
areincluded whichhelptoeliminate theeffects onthetransposed accounts
ofthedifferent methodsusedbytherailwaysfordealingwithaccumulated
lossesandwithcompensation grantedforretirement ,pensionandsocial
charges. -
4.TheReportendswithacritical reviewofworkdoneandimprovements
compared withtheprevious Report,andsomeideasareexpressed astothe
workwhichremains tobedoneinthisdirection .
(l)OJNoL334«24December 1977»

I
INTRODUCTION
Général
1.ThisSecond .AnnualReport,whichcoverstheresultsfor1978,has
beendrawnupinaccordance withCouncilRegulation (EEC)No283O/77of
12December 1977(l)onthemeasuresnecessary toachievecomparability
betweentheaccounting systemsandannualaccounts ofrailwayundertakings .
2.Thedelayinpresenting theReportismainlyduetotheneedto
consulttheAdvisory Committee onRailwayAccounts setupunderArticle 6
oftheRegulation .
TheReport
3.Tables 1to10inFartOneoftheReportgivethetransposed Balance
SheetsandProfitandLossAccounts forthetenrailways coveredbythe
Regulation .TheTablesareaccompanied byexplanatory notes.Tables11and
12showtheBalance SheetandtheProfitandLossAccount fortheten
railways asawhole.
4»InPartTwotherearesummarytablesshowingthestructure ,in
percentages ,oftheBalanceSheetsandProfitandLossAccounts ,accompanied
bynotes.Theanalysisismoredetailed thanintheFirstReportbecause
itbringsoutfurtherobstacles toachieving thecomparability ofaccounting
results.TheTablesallowacomparison tobemadewith1977#Therearealso
twovariations ontheBalance Sheetandonevariation ontheProfitand
LossAccount,drawnupinagreement withtheAdvisory Committee withaview
tomakingthefiguresmorecomparable .Tables21and22respectively give
ananalysis ofsomeaccounting ratiosandtheextenttowhichexpenses
arecoveredbyrevenue.
5.PartThreesetsouttheconclusions tobedrawnfromthisSecond
Reportandsomeideasonwhatcanbedonetoimprovethepresentation and
contentoffurtherReports. ,
(l)OJNoL334.24December 1977<>

II
Transposition andComments ,
/
6.Therehas"beenamarkedimprovement inthecontentoftheexplanatory -
notes.Thesehave,however,beenabridged wheretheyrepeataccounting
principles alreadyexplained intheReportfor1977*Inaddition,reference
ismadetotherailways *AnnualReportsinordertoclarify someofthe
transposition methods.Thisworkwasmadeagreatdealeasierfollowing an.
examination "bytheAdvisory Committee oftheproblems which'arosewhenthe
1977Reportwasdrawnup.
7oThereservations expressed intheFirstReport,aboutthecomparability ■
oftheaccounting results,stillapplytotheanalysis ofthestructure of
theaccounts.Afterobtaining theopinionoftheAdvisory Committee ,further
Tableswereincluded toeliminate theeffectofthedifferences between the
methodsusedbythevariousrailways todealwithaccumulated lossesand
compensation forretirement ,pensionandsocialcharges.Finally,incalcu­
latingtheaccounting ratios,anassumption hasbeenaddedwherebystocks
couldbetreated asfixedassets.
Further Work
8.Theconclusions oftheReportmainlyconcernanexamination ofwork
completed andimprovements inthecomparability ofthetransposed accounts
ascompared with1977»Theconclusions goontodealwithotherproblems
whichmustbesolvedifgreatercomparability istobeachieved ,bothwithin
theframeworkofRegulation (EEC)No2830/77andwithinthebroaderquestion
ofthefinancial relations betweentheStatesandtherailways.
Exchange Rates
\
9oThefollowing parities wereusedtoconvertthefiguresgiveninTables
11and12intoEuropean UnitsofAccount *

III
National Currency
BFR
HCR
DM
FF
LIT
LFR
HFL
IRL
UKL
I1EUA
40.0611
7.01946
2.55608
5.73983
1080.22
40.0611
2.75409
O0663888
0.663911

PARTOÏÏE
INFORMATION COMMUNICATED BY
THERAILWAY UNDERTAKINGS
Transposed BalanceSheetsandProfitandLossAccounts
with
Explanatory Notes

SociétéNationale descheminsdefer"beiges(SNCB)
Nationale Maatschappij derBelgische Spoorwegen (NMBS)

Table 1a
BALANCE SHEET
At31.12.1978
Undertaking :SNCB/NM0S Millions ofBFR
ASSETS 1978 1977 ^! LIABILITIES' 19 78 1977
LONG-TERM ASSETS
Fixed assets (Net ) 62714 ';Capital ahd reserves ■· .
10Land and fixed installations 36551 34103 j00Capital 11000 11000
11Transport stock and equipment 14790 12701 j 01Reserves '■< 1787 12787 1673
12Other stock and equipment 2195 2187 j 02Contribution toinvestment costs 28731 24646
13Fixed assets under construction 9178 6775 I 03Provisions r051 766
Other fixed assets 14227{ 04Funds forstaff 778 717
14Shareholdings inother undertakings 322Î 05Long-term financial debts3¿4 j39704
15Long-term loans 65: -debentures
64 ι31237 29010
16Cost offloating loans and loan redemption; -State loans 3775 3782
premiums 429 430 1 -other financial debts 4692 4592
17Miscellaneous fixed assets 1341113411 ■ «í-fr-t-t™· 83051 76186
Sub-total 76941 69_995 j :-
CURRENT ASSETS
Stocks ! ''
20-21(Instore orbeing manufactured ) 6967 6541 i
Realizable assets 10499 !
30Debtors 9786 8732 :
41Loans repayable within one year-:
42Bills .receivable - I
45Securities 713 740 ïCurrent Liabilities
Bank balances and cash; 31Creditors 12215 11872
43-46-47-48Cheques inhand,postal cheque accounts ,! 40Financial debts ofless than one-year term 2715 3169
bank accounts ,cash inhand 1071 587 · 44Bills payable 2312 1158
Sub-total 18537 16600 ; . Sub-total17*242 16199
Results 5790 !Results 975
06.1 Losses forprevious financial years 5790 4666 ; 06.0 Profits forprevious financial years- -
C7.1 Loss forthefinancial year-1124 ! 07.0 Profit for thefinancial year 975-
Assets :Total
·*_1_01__268 __ 92385 : Liabilities :Total 101 268 __92_385

PftOMT AND LOSS ACCOUNTTable 1b
I.GENERAL OPERATION
Undertakings :SNCB /NMBS Millions ofBFR Year •1978
EXPENSES 1978 1977 REVE-N UE 19 78 1977
60.Staff costs
61.Material supplied and services performed
bythird parties
62.Taxes and dues
63.Allocations fordepreciation
64,Allocations toprovision accounts
65.Financial charges47 131
19039
20
8526
387643879
18811
30
8320
338270.Traffic revenue
0.Passenger and luggag;e traffic
a)byrail
b)byroad
c)byother means o'ftransport
1.Goods traffic
a)byrail
i)full trains and wagon loads
-national traffic
-international traffic 1
•1i)part loads and parcels
-national traffic
-international traffic
b-)byroad
g)other means oftransport
8.Postal traffic3161
6240
2180
451
Sub-total
■:71.Pi:nancial revenuei
72-.Other revenue
i
I73.Contra ofcosts booked toother accounts
|74.Compensations andaids received under
\ 0.Regulation (EEC)N°1191/69
| 1.Regulation (EEC)N°1192/69
I 2.Regulation (EEC)N°1107/70,Article 3
: 3.Other compensations and aids
Sub-total9401
26317875
2
120327877
12032
17547
12735
10013
402957243
459
2797
6530
2103
539
5
446 416
20355 20092
301 328
6275 4690
11262 9765
17636
12198
8491
-
38325
Total expenses ' 78592 74425 Total revenue 78488
91.0 Operating profit forthefinancial year73200
91.1 Operating loss for thefinancial year 104 1225
IX.PROFIT AND LOSS SUMMARY
91.1 Operating loss forthefinancial year 104 1225 91.0 Operating profit forthefinancial year_ _
91.3 Exceptional losses 45 - 91.2 Exceptional profits 1124 101
91.4 Corporation tax - -91.5 Balancing subsidy-
-Regulation (EEC)N°1107/70,Article 4- -
-Other
91.6 Profit forthefinancial year 975 -91.7 Loss forthefinancial year- 1124

-6-
SNCB/NMS:FINANCIAL YEAR1978
Explanatory notes
Figuresaregiveninmillions ofBFR0
BALANCE SHEET
Assets
Accounts 10-13-FixedAssets
ThefixedassetsshownintheBalance Sheetarethoseacquired since
1September 1926;theyarerecorded attheirpurchase value.Replacement is
ensuredthroughtheReplacement Fund.
Account 14-Shareholdings inOtherCompanies
Shareholdings inaffiliated companies 65
Shareholdings inothercompanies 255
Otherstocksandshares 2
322
Account 15-Lorifr-errnLoans
Theseareallclaimsvis-^-viscompanies inwhichSNCBhasashare­
holdings
Account 17-Miscellaneous FixedAssets
(a)Railwayoperating concession 11000
(b)Wardamage 2411
13411

-7-
Accounts 20and 21-Stocks
The amounts entered intheaccounts areaverage .weighted prices .
/
Rawmaterials ,consumables ,supplies -6452
Work inprogress 475
Goods 40
6967
Account 30-Debtors r
Claims whose term ismore than oneyear arising from goods ;31
delivered and services rendered
Claims whose term isnomore than oneyear
(a)Arising from goods delivered orservices rendered , 6180 .
("b)Other claims 554
Adjustments' * 3021
9786
Liabilities
Account 01-Reserves
This isthe amount credited totheLoan Redemption Fund asat31st
December 1978 .Asumisentered intheaccounts each year toreplenish this
Fund .
Account 03-Provisions ■ -
I.
(a)Pixed Assets Replacement Fund 328
(b)Provision forexchange losses relating to
foreign currency loans (Eurofima ) 487
(c)Other provisions 236
1051

Account 04-FundsforStaff
ThisisaFundtopayallowances duetostaffinconnection with
accidents atwork.
Account 05-Long-Term Financial Debts
Theotherfinancial debtsbreakdownasfollows :
(a)Non-convertible subsidiary loans 35
(b)Non-convertible debenture loans 3
(c)Creditestablishments 429
4692
Thedebtsvis-a-viscompanies inwhichtheSNCBhasashareholding
(Eurofima )amounttoBFR3013mio„
m
Account 31-Creditors
Debtswhosetermismorethanoneyeararisingfrom
thepurchase ofgoodsandservices
Debtswhoseterraisnomorethanoneyear
(a)Creditestablishments
(b)Variousdebtsarisingfromthepurchaseofgoodsand
services
(c)Deotsandprovisions fortax,socialchargesandwage
payments
(d)Advancesreceived
(e)Otherloansanddepositsreceived
(f)Otherdebts
AdjnSfcm«jiti358
36
4298
6
1097
2790
3668
'1245
34
14
3^61

Profit and Loss Account
EXPENSES
Account 61-Material Supplied and Services Performed byThird Parties
Goods ,rawmaterials ,consumables and supplies * 10274
Miscellaneous goods and services 8765
19039
♦
Account 62-Taxes and Dues
See the 1977 Report .
Account 64-Allocations toProvision Accounts'
Replacement allocation
Insurance Fund allocation
Provision for exchange losses onlong-term debts
Account 65-Financial Charges
Charges ondebts whose term ismore than one year
Charges ondebts whose term isnomore than one year
Miscellaneous financial charges
REVENUE
Account 70-Traffic Revenue
These figures areextracted from the accounts .Inthe case ofreceipts
from passenger traffic ,some breakdowns based onstatistics have been made
between rail traffic and road traffic .8000
290
236
8526
3284
240
352
3876

-10-
Account 71-Financial Revenue
Revenue from financial assets 92
Revenue from other claims and bank balances and cash 14
Miscellaneous 195
301
Account 72-Other Revenue
Services and supplies 4552
Miscellaneous revenue 1393
Revenue relating tostaff '' 330
6275
Account 73-Contra ofCosts Booked toOther Accounts
Internal work relating tothe improvement offixed assets
(a)New fixed assets 909
(b)Renewals tobewritten down 2168
Net amount charged tothe Replacement Fund 7961
Net amount charged tothe Insurance Fund 224
11262
Account 74-Compensation and Aid Received
The compensation and aidactually received break down asfollows :
74.0 Regulation (EEC)N°1191/69
Season tickets (schoolchildren ) 899
Season tickets (social ) 5340
Season tickets (ordinary ). 2237
Individual reductions 2073
Full-price tickets andequivalent 5368899
5340
2237
2073
5368

-11-
Goods Traffic
BL 1tariffs (Belgium ,Grand Duchy ofLuxembourg ) ' ■ 29
Zeeland Flanders 1
*
Compensation for the economic disadvantages resulting from
keeping lines inoperation 1600
17547
74.1 Regulation (EEC)N°1192/69
Retirement payments and pensions
Social charges ,whereof :
(a)Accidents atwork
/
(b)Family allowances
Measures benefiting staff inrecognition ofservices
rendered totheir country
Crossing facilities
Compensation forfinancial charges inrespect of:
(a)War damage
(b)Lack ofnormalization inthe past–
(c)Loans raised tomeet delays inrenewals
74.2 Regulation (EEC)N°1107/70(Artide 3)
Compensation for :
(a)Infrastructure charges t ' 6665
(b)Financial charges relating to:
(i)Financing theextension ofthe network 1907
(ii)Financing accumulated deficits and overdue renewals 1461'
10033
Tax from which the company isexempted
tobededucted - 20
10013\
λ ■ -. · · , ·11822
84
22
34
'261
16
213
283
12735

-12-
The sumofBFR 1926 miototheHealth Insurance Office isoptional
compensation not included intheaccounts .Foraccounting purposes ,theOffice
isregarded asbeing independent ofSNCB .
Account 92-2 -Exceptional Profits
Sumallocated bythe State tocover part ofthedeficit for 1977 .
Account 91-3 -Exceptional Losses
ofThe loss ofBFR 44mio mainly represents payment deferred until 1978,
transport taxtotalling BFR 43mio inrespect ofearlier financial years .

Danske Statsbaner (DSB)

BALANCE SHEETTable2a
At31.12.1978 -
Undertaking :OSB . . Millions ofDKR
ASSETS 1978 1977 LIABILITIES 1978 1977
LONG-TERM ASSETS•v·
Fixedassets (Net) 7178 Capital andreserves
10Landandfixedinstallations 3969 3777 00Capital , 7421 6913
11Transport stockandequipment 2969 2786 01Reserves - 7421 -
12Otherstockandequipment 240 222 02Contribution toinvestment costs•- - .
13Fixedassetsunderconstruction o o 03Provisions - -
Otherfixedassets 1004Fundsforstaff - -
14Shareholdings inotherundertakings 10 805Long-term financial debts- -
15Long-term loans-debentures - -
16Costoffloating loansandloanredemption-Stateloans - -
premiums'- - -otherfinancial debts - -
17Miscellaneous fixedassets _Sub-total 7421 6913
Sub-total '. 7188 6_793
CURRENT ASSETS -/
1
Stocks
20-21(Instoreorbeingmanufactured ) 342 316
Realizable assets 408,
30Debtors 408 362
41Loansrepayable withinoneyear - -
42Bilisreceivable '.- -
45Securities 0 0 Currentliabilities
Bankbalances andcash31Creditors 447 462
43-46-47-48Chequesinhand,postalchequeaccounts,40Financial debtsoflessthanone-year term 100 128
bankaccounts,cashinhand 30 31 44BiIIspayable- -
Sub-total 780 710, Sub-total 547 590
Results _ Results _
06.1Lossesforpreviousfinancial years-■- .06.0Profitsforprevious financial years- -
07.1Lossforthefinancial year - - 07.0Profitforthefinancial year---
Assets ísTotal 7968 7503 Liabilities :Total 7968 7503

fto'OMT AMDLOSSACCOUNT Table 2b
I.GENERAL OPERATION
, 1.4.1978 to
Undertakings :DSB Millions ofDKR Year :31.12.1978
I EXPENSES 1978 !1977 [ REVΕ·ΝUE 19 78 1977 ;
:60.Staff costs
:61.Material supplied an<Jservices performed
: bythird parties
:62.Taxes and dues
:63.Allocations fordepreciation
:64^Allocations toprovision accounts
:65.Financial charges•
1552
606 λ
-
128
-
239
•
y
■1918
ν
ν
759
-
r
r 154
F
-
284
r
r
'-
'70.Traffic revenue
0.Passenger and lug£ag& traffic
a)byrail
b)byroad
а)byother meao *o*ftransport
i-mQoT>de traffie
»)byrail
i)full train's andwagon loads
.-national traffic
-international traffic
$i>part loads andparcels
-national traffic
-international traffic
b*)byroad
б)other means oftransport
8.Postal traffic
Sub-total
71.Financial revenue
72.Other revenue
73.Contra ofcosts booked toother accounts
74.Compensations and aids received under
0.Regulation (EEC )N°1191 /69
1.Regulation (EEC)N°1192 /69
2.Regulation (EEC)N°1107 /70,Article 3
3.Other compensations and aids
,Sub-total299
156
143
172
155 "
17948
699
105
144
620
471
5
144
49
1617
6
280
437
31
154
622714 !
123 :
168 ;
157 :
199 :
197 :
24 :
5 :
228 :
61 !
1876 :
8
305 :
706 :
40 :
180 :
926 ;
j Total expenses 2525 3115 } Total revenue 2525 3115 !
*91.0 Operating profit forthefinancial year
j!
591.1 Operating loss forthefinancial year
•-;
XI.PROFIT AND LOSS SUMMARY
:91.1 Operating loss forthefinancial year
I91.3 Exceptional· losses
:91.4 Corporation tax -S
591.0Operating profit forthefinancial year
s
I91.2 Exceptional profits
î
j91.5 Balancing subsidy
ν.; -Regulation (EEC)N°1107 /70,Article 4
; -Other-
I91.6 Profit forthefinancial year-t
¡91.7 Loss forthefinancial year-- \

-16-
DSB-Financial yegr 1April 1978 "/31Decernber 1978
Explanatory Notes
I v
Asfrom 1January 1979,thefinancial year,which used tocover the
period 1April -31March ,isthe same asthe calendar year .Forthis
reason ,thefinancial year under consideration covers only theperiod
1April -31December 1978 .
Figures are given inmillions ofDKR.
I. Balance Sheet .
Accounts 10~13-Assets
Accounts 10-12include the cost offixed assets under con­
struction . '
Accounts .20and 21-Stocks
Stock valuation isbased oncurrent prices .
II.Profit and Loss Account
Account 60-Staff Costs •
This account includes DSB'scontributions topension costs forall
staff inemployment .
Thepensions paid toretired DSBstaff are covered bytheState
budget .
Staff expenditure relating tofixed assets isentered under the
(-
relevant assets accounts .

-17-
Account 63-Allocations forDepreciation
Depreciation isonastraight-line basis,withvariousratesof
depreciation .
Account 65-Financial Charges
Tangibleassets,whicharepartofthecapitalinvested inDSBby
theState,bearinterestat4.5%.
DSB'scurrentaccount WiththeFinanceMinistry (Account 40)bears
interest at3.5%.
Account 70-Traffic Revenue
MuchofDSB'strafficrevenuecannotbeapportioned betweenthe
various modesoftransport .Thereisnoseparatepricingforferrycrossings
whicharepartofapassenger orfreighttransport,forroadhaulageorfor
somebusservices .
I • .
,Thecarriage ofprivatecarsandgoodsvehicles,andferrycrossings
wherepassengers arenottravelling bytrainareshowninaccounts 70.0c)
and70.1c).Therevenue showninaccounts 70.0b)and70.1b)isfromthe
carriage ofpassengers andsmallparcels byDSBbuses.
Account 74-Compensation andAid
Compensation andaidcanbebrokendownasfollows :
74.0Regulation (EEC)N°1191/69
(a)Passenger transport , 349
(b)Freightandmail 88
437
Compensation forcostsrelating toCopenhagen suburban transport was
discontinued on1April1978.

-18-
Since then,the Copenhagen Council has metthecost ofcertain railway
lines ,andcollect the revenue from passenger traffic onthese lines .The
cost ofrunning these lines isentered inthe accounts along with DSB's
other costs .The Council reimburses DSBfor these costs (the repayment is
entered inAccount 70.0 )and pays compensation for the revenue which it
collects onthe urban section ofthe lines operated bythe DSB.
74.1 Regulation (EEC)N°1192/69'
(a)Class IX:Staff surplus tothe company 'srequirements 20
(b)Class XI:Allowances payable tostaff 11
31
Class Xnolonger applies since the State pays awage tonational
servicemen ,and DSBtherefore nolonger contributes totheir travelling
expenses .
74.2 Regulation (EEC)N°1107/70
The DKR 154 mio paid toDSBiscompensation forinterest charges on
 
loans and the amortization offixed installations (infrastructure )which the
other modes oftransport donot bear .

DEUTSCHE BUNDESBAHN (DB)

Table 3aBALANCE SHEET
. (
At31.12.1978 -
Undertaking :DB Millions of DM
ASSETS 19 78 1977 LIABILITIES 1978 1977
LONG-TERM ASSETS
Fixed assets (Net) 47318 Capital and reserves
10Land and fixed installations
11Transport stock and equipment28
13735
47126561
1327500Capital
01Reserves19
2791
717 2250819423
2061
12Other stock and equipment
13Fixed assets under construction1
3904
2081722
390602Contribution toinvestment coäts
03Provisions5079
6244302
94
Other fixed assets
14Shareholdings inother undertakings
15Long-term loans
16Cost offloating loans and loan redemption
premiums2458
169
1372764
449
1961
115504 Funds for staff
05Long-term financial debts
-debentures
-State loans
-other financial debts13
18861
23932100
ι"12402
19559
17Miscellaneous fixed assets - -
v Sub-total 60311 57841
Sub-total _jo082__ 48029
.. ..
CURRENT ASSETS
Stocks
20-21(Instore orbeing manufactured ) 1000 937. " I
Realizable assets
30Debtors
41Loans repayable within one year
42Bills receivable
45Securities1896
211
02107
à1731
219
0 Current liabilities
Bank balances and cash
43-46-47-48Cheques inhand,postal cheque accounts ,
bank accounts ,cash inhand 1444 192431Creditors .
40Financial debts ofless than one-year term
44Bills payable3140
3173087
310
Sub-total 4551 4811 Sub-total 3457 3397
Results
06.1 Losses forprevious financial years
07.1 Loss forthefinancial year ■4
4524
6119135
3874
4524Results
06.0 Profits for previous financial years
07.0 Profit for thefinancial year--
-
Assets :Total __63768 __ _61238 Liabilities :,,Total
I63_768 _ 61238

PftOf-IT AMD LOSS ACCOUNTTable 3b
I.OENERAL OPERATION
Undertakings :DB Millions ofDM Year^:107R
EXPENSES 1978 : 1977 j REVΕ·ΝtíE
- --19 78 1977
60· Sta-ff costs
61·Material supplied and services performed
bythird parties
62.Taxes and dues
63.Allocations fordepreciation
64·Allocations toprovision accounts
65.Financial charges18177
λ
8416
88
á
1769 ι
i
-
•
2464
•17877 <
•
l·
8120
•
99
r
1761
-
2407
r
■
··
•70.Traffic revenue
0.Passenger and lugg'age traffic
a)byrail
b)byroad '
β)byother means offransport
1.Goods traffic
»)byrail
~ i)full trains and wagon loads
-national traffic
-international traffic
•1i)part loads andparcels
-national traffic
-international traffic
b·)byroad
e)other means oftransport
8.Postal traffic
Sub-total
71.Financial revenue
72-.Other revenue
73.Contra ofcosts booked toother accounts
74.Compensations and aids received under
0.Regulation (EEC)N°1191/69
1.Regulation (EEC)N°1192 /69
2.Regulation (EEC)N°1107/70,Article 3
3.Other compensations and aids
Sub-total6141
4052
2089
1195
1091
1044111
3526
546
39
8322
7336
977
9
367
12800
125
1366
4676
2978
3565
105
1087
77353396
529
38
3887
2049
1043
102
922
9
369
12344
164
1386
4587
2721
3365
25
1164
7275
Total expenses 30914 30264 Total revenue 26702 25756
91.0 Operating profit forthefinancial year- - 91.1 Operating loss for thefinancial year-4212 4508
II.PROFIT AND LOSS SUMMARY
91.1 Operating loss forthefinancial year
91.3 Exceptional losses
91.4 Corporation ta*4212
423
34508 v
48
1491.0 Operating profit for thefinancial year
91.2 Exceptional profits
91.5 Balancing subsidy
-Regulation (EEC)N°1107/70,Article 4
-Other- 27 46
91.6 Profit forthefinancial year-:
I91.7 Loss forthefinancial year 4611 4524

-22-
DB-Financial Year 1978
Explanatory Notes
I.Genera I
Where abreakdown orreclassification ofvarious items inthe
national accounts wasrequired fortransposition purposes ,therelevant
sums are mentioned inthe comments concerning these items .
Figures are given inmillions of DM.
II.Balance Sheet
Account 00-Capital
Own capital 19220
Contributions from the State tocover losses
carried over v2284
These loans are included asacontra entry onthe assets side ofthe
Balance Sheet .
Account 05-Long-Term Financial Debts
The other financial debts include :21504
Less State loans toincrease the capital
not written off1713
19791
(a)Long-term debts
(b)Debts of 1to4years
(c)Part ofother liabilities15500
2736
3
18239

Account 05includes some DM2340 mio bywayoffinancial debts in
respect ofcompanies inwhich DBhas ashareholding .-
Accounts 10to12-Fixed Assets
/
The items break down asfollows :
Description Gross ValueAccumulated
DepreciationNet Value
10.Land and 51654 .22919 28735
Installations
11.Transport Stock 22035 8564 13471
and Equipment
12.Other Stock and 3877 1973 1904
Equipments
' 77566 33456 44110
Account 15-Long-Term Loans
/
Long-term loans
Loans arising from other assets
Less valuation adjustment onfixed assets
Account 15includes DM782 mio inloans tocompanies inwhich DB
has ashareholding . ,
I .■
Account 16-Cost ofFloating Loans and Loan Redemption Premiums .
The sum of DM137 mio isthe bond issue premium .1951
220
2
2169

-24-
Account 30-Debtors
This account includes :
Advances h 24
Claims arising from transport services , 1117
supplies and other services
Adjustments (assets ),less bond issue premiums 757
Less valuation adjustments toother current assets - 2
1896
Account 31-Creditors
This account includes : ,
ν .
Advances 101
Transport services ,supplies andother services 2995
Adjustments (liabilities ) 44
3140
Account 40-Financial Debts ofLess than One Year Term
The sum of DM317 mio isthe remainder oftheliabilities .
Account 41-Loans Repayable Within One Year
The sum of DM211 mio isthe remainder ofthe assets .

-25-
Accounts 43,46to48-Bank Balances and Cash
43 Cheques
46 Postal cheque account
47 Bank accounts
48 Cash inhand1214
39168
23
1444
Account 06-1 -Losses for Previous Financial Years
The loss of DM3874 mio in1976 was setoff against Government
contribution tocover losses carried over Account 00and against the
reserves Account 01.
III.Profit and Loss Account
/ Account 60-Staff Costs
This account includes :
Total staff expenditure \ 17735
Social charges external tothe company 432
Pension charges external tothe company 10
18177
The total can bebroken down asfollows
Remuneration ofstaff inemployment
Retirement and pensions
Social charges10900
4810
2467
18177

-26-
Account 61-Materials Supplied and Services Performed byThird Parties
This account includes :
Current operating expenditure 3005
Less tax (see Account 62) -88
Expenditure ohmaterials supplied and services provided
bythird parties for the renewal and maintenance offixed 5499
assets T7i7
Ofthis DM5499 mio,only DM2009 miofor the expenditure onmain
taining installations and equipment remains intheProfit and Loss Account
The other DM3490 mio-expenditure onmaterials for the construction of
fixed assets -isentered in DB'sBalance Sheet inAccount 73.
Account 62-Taxes and Dues
Taxes and dues include :
(a)Turnover tax 38
(b)Motor vehicle tax 4
(c)Property tax 6
(d)Contribution for dikes 0
(e)Other taxes 1
(f)Contribution under the Handicapped Persons Law 3
(g)Contribution for theequalization ofburdens 0
.(h)Various taxes 36
Account 63-Allocations for Depreciation3005
-88
5499
8416
38
4
6
0
1
3
0
36
88
Reference should also bemade toAccounts 10and 12.

-27-
Thisaccount includes :,
Ordinary depreciation offixedassets
Depreciation ofobsolete fixedassets
Less:
(a)contributions toinvestment costsandsimilar
contributions fromthirdparties
Cb)othercredititemsrelating tomaintenance andrenewal
Account 65-Financial Charges
Interest,premiums gndsubsidies onbonds '
Interest onloansandotheroutside resources
forincreasing capital
Account 71-Financial Revenue
1 11 1 /
Thisaccount includes :
Revenue fromshares ,
Interest onloansandotherrevenue
Account 72-OtherRevenue
Thisaccountismadeupof:
Thebalanceofrevenue fromothertransport services
(vehiclehire,services performed forotherrailways,etc.)
Otheroperational revenue2090
295
2385V
192
424
1769
2326
138
2464
33
92
125
281
1085
1366

-28-
This total may bebroken down asfollows :
Revenue from work done for,and supplied to 468
thirdparties
Revenue from other activities ,including rents , 754
Miscellaneous 144
1366
Account 73-Contra ofCosts Booked toOther Accounts
This account may bebroken down asfollows :
Services for own account ,fixed assets andmaterials in 1186
stocks ,entered asoffsets toexpenditure inthe
Profit and Loss Accounts
Expenditure onmaterials inrespect offixed assets 3490
(see Account 61)4676
Account 74-Compensation and Aid
The compensation andaid may bebroken down asfollows :
74.0 Regulation (EEC)N°1191/69
Local rail passenger services 2869
Mainline rail passenger services 80
(social tariffs )
Maintenance ofservices oncertain lines 2
Support tariffs for the Saar 27
' 2978
' I
74.1 Regulation (EEC)N°1192/69
Operation and maintenance oflevel crossings 401
Medical aid for tuberculosis sufferers 4
Excess social charges duetostructural factors2369

-29-
Additional staffsuperannuation 328
Additional training posts 21
External superannuation charges '432
External pensions 10-
3565
74.2Regulation (EEC)N°1107/70(Artide 3)
Roadtransport forapprentices 105
74.3OtherCompensation andAid
Interest onloansandotheroutsidecapitaltakenup 138
toincrease owncapital -
Interest inrespectofimprovement ofthe 949
capitalstructure ^087
TheFederal Government allocations tocoverlossescarried over
(DM2284mio)fortherepayment ofloansandotheroutsideresources
forincreasing capital (DM407mio)donotaffecttheresultsandare
entereddirectlyintheBalanceSheet.Thetaxonmineraloils(DM274mio)
refunded bytheStatehasbeendeducted fromtheexpenditure onfuelcontained
inAccount 61.
Account91.2-Exceptional Profits
Thisaccountcontains therevenuearising fromtheadjustment of
provisions andotherprofits (DM27mio). ~-
Account91.3-Exceptional Losses 7138
949
1087
ThesumofDM423miomaybebrokendownasfollows

-30-
Depreciation offixedassets 4
Depreciation ofothercurrentassets 2
Exchange Lossesontherevaluation or 43
repayment offoreign-currency bonds
Issuecosts 1
DB'sadditional socialinsurance obligations 341
Additional payment ofturnover tax 32
423

ν
Société Nationale des Chemins deferfrançais (SNCF )

BALANCE SHEETTable 4a
At31.12.1978
Undertaking :SNCF v Millions ofFF
ASSETS 19 78 1977 LIABILITIES 19 78 1977
LONG-TERM ASSETS
Fixed assets (Net) 60671 . Capital and reserves -
10Land and fixed installations 44150 11784 00Capital 14 14
11Transport stock and equipment 13886 4916 01Reserves 44705 44719 3745
12Other stock and equipment 553 308 02Contribution toinvestment costs-
13Fixed assets under construction 2082 589 03Provisions 3 10
"
286604 Funds for staff_ _Other fixed assets –
14Shareholdings inother undertakings ~ . 1752 114205Long-terjm financial debts 19457
15Long-term loans 311 298-debentures L 15548 . 13626
16Cost offloating loans and loan redemption-State loans 1427 1440
premiums - 789 1000 jother financial debts2482 2063
17Miscellaneous fixed assets 14 1564179 20898'*
Sub-totaL 63_537 20052
CURRENT ASSETS
\
Stocks
20-21(Instore orbeing manufactured ) 2191 2143
Realizable assets ' 9506y
30Debtors Ν 8699 6996
41Loans repayable within one year 92 87
42Bills receivable 126 270
45Securities 589 1136 Current liabilities
Bank balances and cash31Creditors 89326754
43-46-47-48Cheques inhand,postal cheque accounts .40Financial debts ofless than one-year term 6534 5403
bank accounts ,cash inhand 436 246 44BiIIspayable 1755 1586
Sub-total 12133 10878 ,_ Sub-total 16321 13743
Results 4830 Results _
06.1 Losses forprevious financial years 3711 2758 06.0 Profits forprevious firiancial years-
07,1 Loss forthefinancial year 1119 953 07.0 Profit for thefinancial year- -
ι Assets :Total80500 34641 "Liabilities :Total 80500 34641

AtiWIT AMD LOSS ACCOUNT Ta b
I. (jENERAL OPERATION
Undertakings :SNCF Millions ofFF Year :1978
EXPENSES
60.Staff costs
*
61.Material supplied and services performed
bythird parties
62.Taxes and dues
63.Allocations fordepreciation
64.Allocations toprovision accounts
65.Financial charges1978 1977 REVENUE
20887 ■ 19226
4
t
9517 » 8567
I
485 1 408
f
3410 » 1074
t
16 ' 15
1893 1684
>
I
rj70.Traffic revenue
0.Passenger and lugg'agp traffic
a)byrail
b)byroad
r.^ku fithar maana nrf ^'rancnnra)byrail
b)byroad
G)byother means otftransport
f 4.Qcrod-s traffiet a)byrail
i)full train 'sand wagon loads
-national traffic
-international traffic
4i)part loads and parcels
-national traffic
-international traffic
b*)byroad
6)other means oftransport
Postal traffic
Sub-total
71.
72-,
73.
74.Financial revenue
O'ther revenue
Contra ofcosts booked toother accounts
Compensations and aids received under
0.Regulation (EEC)N°1191/69
1.*Regulation (EEC)N°1192/69
2.Regulation (EEC)N°1107/70.Artide 3
3.Other compensations and aids
Sub-total19 78
6901
2218
1846
1999119
20458013
132
111648145
11407
82971778
154
141 124
102 97
364 310
19916 17437
309 328
1826 1753
1207 1004
3567 3139
429 421
3021 4053
1280 1258
Total expenses 36208 31974 Total revenue 31555
91.0 Operating profit for thefinancial year 91.1 Operating loss for thefinancial year 4653
II.PROFIT AND LOSS SUMMARY
91.1 Operating loss forthefinancial year
91.3 Exceptional losses
91.4 Corporation ta*
Special allocation toreserves4653
207
0
1882581
16
091.0 Operating profit for thefinancial year
91.2 Exceptional profits
91.5 Balancing subsidy
-Regulation (EEC)N°1107/70,Article 4
-Other1457
2472
24722264 (*)
1587
91.6 Profit forthefinancial year-- . 91.7 Loss for thefinancial year 1119 953
(*)Ofwhich FF207million allocated toreserves .

SNCF -Financial Year 1978
Figures are given inmillions of FF.
i
Balance Sheet
Assets
Revaluation ofAccounts 10to14 .
Atthe endof1978,the SNCF revalued its Balance Sheet inaccordance
with the Finance Acts for 1977 and 1978 . ■
Land was revalued onthe basis ofcurrent market prices .
Depreciable assets were revalued inaccordance with theordinary
rules ondepreciation .The maximum revaluation coefficients were applied
tothe book value .
Revaluation resulted inanincrease inthe value ofthe assets and
ofthe undertaking 'sown funds .
The new values for fixed assets break down asfollows :
Account DescriptionHistoric
ValueDifference in
Value after
RevaluationNet Balance )
Sheet Value ]
;10 Land and Fixed
Installations12521 31629 44150 ;
:11 Transport Stock and
Equipment10715 3171 13886 :
;12 Other Stock and
Equipment507 46 553 ;
:13 Fixed Assets under
Construction2079 3 2082 :
! 14 Shareholdings in
Other Companies1272 480 1752 ;
TOTAL 27094 35329 62423 :

Accounts 10to12-FixedAssets
Thegrossvalueofthefixeid'assetsanddepreciation breakdownas
follows :
DescriptionGross
ValueAccumulated
DepreciationNetValue
10.LandandFixed 71055 26905 44150
Installations
11.Transport Stockand 34214 *20328 13886
Equipment
v-
12.OtherStockand 553-■ 553
Equipment
105822 47233 58589
Account 14-Shareholdings inOtherCompanies
Financial holdings havebeenrevalued (seeTableabove)onthebasisof
eitherthecompanies' netpositionafterrevaluation towhich -theSNCF
shareholding percentage wasapplied (subsidiaries wheretheshareholding was
- ■ \
largerthan50%),oronthebasisoftheirprofitability forSNCFinthe
caseoftheremaining shareholdings . ' x•
Account 15-Long-Term Loans ,
Seeattached Table.
Accounts 20and21-Stocks
Supplies ' 2005
Workinprogress 186
2191
Account 30-Debtors
Suppliers -down-payments andadvances madeonorders 218
Customers 1737
Otherdebtors x 2524
Deposits andguarantees 9
Adjustments 551
Suspense accounts anditemstobeadjusted 48
Assetsaccounts forrelated services 3612
8699

-36-
Accounts 43to48-Bank Balances and Cash
Various items inland
Bank balances ,postal cheques and Treasury
Cash inhand
Liabi lities
Account 01-Reserves '
Statutory and contractual reserves
Difference invalue after revaluation
(a)special reserve (non-depreciable assets )
(b)special provision (depreciable assets )
44705
The increase instatutory and contractual reserves ascompared with
1977 isdue mainly tothesetting-up ofareserve comprising :
(a)thedifference between the amount ofdepreciation ascalculated in-
earlier years andthat calculated bythestraight-line method onthe
*
basis ofhistoric value ;
Cb)thedifference which would have resulted from the 1959 revaluation ,
>i.e. atotal of 5443 mio FF.
Account 05-Long-Term Financial Debts '
Debts tocompanies inwhich SNCF has ashareholding are inthe form
ofbonds issued bySNCF and bought bythe Soci ete Immobi liere des chemins
deferfrangais for atotal of FF3790 mio on31December 1978 .
Account 31-Credi tors
Suppliers 1827
Advances received from customers 118
Other creditors 3747
Adjustments 1424
Suspense accounts and items tobeadjusted 24
Liabilities accounts for related services 892228
26
182
436
9376
26238
9091
1827
118
3747
1424
24
892
8032

-37-
II.Profit and Loss Account
Account 60-Staff Costs
Wages andoperational bonuses 14118
Social charges 6769
20887
Account 61-Materials Supplied and Services
Performed byThird Parties
Purchase ofmaterials 3430
Work done and supplies and services provided externally 5442
Various administration costs 693
9565
Less change inthe stocks account - 48
9517
Account 62-Taxes and Dues f
This account breaks down asfollows :
Direct Taxes and Dues
(a)business tax 216
(b)property and dwellings tax 103
(c)tax oninterest and repayment premiums ,28
(d)regular and special contributions relating to 41
apprenticeships andtraining
Ce)payments relating topublic transport 63
(f)other direct taxes and dues % 11
Registration and Stamp Duty -Vehicle Tax onCars 23
Miscellaneous Taxes 0
485

-38-
Account 63-Allocations for Depreciation
Allocation for depreciation (historic values ) 2216
Further depreciation arising from revaluation 1194
3410
Where theoperational side isconcerned the revaluation has had noeffect :
allocations are calculated onthe basis ofthe value ofassets after
revaluation ,whilst thedifference after revaluation istaken upinAccount
91.2 -Exceptional Profits .
Account 70-Traffic Revenue
The sums entered asrevenue from domestic and international freight
traffic carried inwhole trains and wagon loads are estimated .
Account 73-Contra ofCosts Booked toOther Accounts
Work done bySNCF onits own behalf (tocreate fixed assets ) 1224
Less non-operational work and expenditure - 17
1207
Account 74-Compensation and Aid Received
This account breaks down asfollows :
74.0 Regulation (EEC)N°1191/69
Compensation fortariff reductions
(a)Mainline network
(b)Paris suburban network
Compensatory allowances
Other compensation fortariff reductions
(a)Newspapers 45
(b)Regional adjustments - 51
Compensation forpublic service obligations and
maintaining services inexcess ofcommercial needs
(a)Local stopping services 1483
(b)Other passenger services 251450
42
471
3567

39-
74.1 Regulation (EEC)N°1192/69
Cost ofLevel crossing -facilities
Reductions inthe cost ofloans •409
20
429
74.2 Regulation (EEC)N°1107/70
Infrastructure costs
Obligation tooperate
Tariff compensation-military unes2314
4
703
3021
74.3 Other Compensation and Aid
Compensation fortariff reductions
Mainline network
(a)Transport payment byprovincial towns andcities
Parisian suburban network ,
(a)Payments bylocal authorities
(b)Transport payment for theIle-de-France region
Compensatory allowances paid bylocal authorities
Reduction ofemployer 'scosts
Reduction ofdepreciation costs (Paris suburbs )22
16
765
202
181
94
1280
Profits and Losses Summary
Account 91.3 Exceptional Losses
\
This account covers inparticular
(a)FF51mio inrespect ofthe adjustment ofthe accounts for thefinancial
years 1970 to1976 bythe responsible for railway auditors before final
approval ofSNCF 'saccounts ,
(b)FF130 miofor covering thedeficit ofthe Economat atthe end of1978 ..

-40-
(c)FF188 mio asaSpecial Allocation toReserves which was added asa
debit item inthe Summary inorder toprovide acomplete picture of
SNCF operations and atthe same time tomake the Summary more balanced .
Account 91.2 -Exceptional Profits
This account covers inparticular :
(a)the difference invalue after revaluation 1194
(asmentioned inAccount 63above )
(b)surpluses realized from the sale of
depreciable assets 42
non-depreciable assets 1881194
42
188
ν

ANNEX TO BALANCE SHEET ACCOUNT 15
Details ofloans granted tocompanies inwhich SNCF has ashareholding
■and which are included inLong-Term Loans (Account 15)
inmio FF
Company Name Loans GrantedAllocation fo
DépréciationNet Balance
Sheet Amount
Stéfrançaise deTransports etEntrepots Frigorifiques (STEF )...... ,
Sté deContrôle etd'Exploitation detransports Auxiliaires (SCETA ),
Stéd'Exploitation duTerminal aux Aciers deDunkerque (SOTERAC )...,
Sté des Voies Ferrées des Landes (VFL)
Sté des Chemins defer des Pyrénées Orientales
Sté des Voies Ferrées Départementales duMidi (VFDM )
Sté Concessionnaire duChemin defer sous-marin entre laFrance et
l'Angleterre
Stéd'Etudes etdeDéveloppement des Aéroglisseurs Marins ,terres­
tres etamphibies (SEDAM )
Compagnie Air Transport (CAT)
Sté Immobilière des Chemins défer Français (SICF )
Sté deCrédit Immobilier des Chemins defer (SOCRIF )
TOTAL3.5
3.0
0.1
1.0
1.6
0
1-°
1.3
3.9
.6.5
82.8
104,71.0
1.6
1.0
1.3
3.93.5
3.0
0.1
8.86.5
82.8
95.9

CORAS IOMPAIR EIREANN (CIE)

BALANCE SHEETTable 5a
At31.12.1978
Undertaking :CIE Millions ofIRL
ASSETS 19 78 1977 LIABILITIES 19 78 1977 ;
LONG-TERM ASSETS
Fixed assets (Net ) ' 43.8\
Capital and reserves
10Land and fixed installations 11.2 -9.5 00Capital -:
11Transport stock and equipment 29.0 33.8 /01Reserves 4.0 4.0 5.J
12Other stock and equipment 3.6 •3.0 02Contribution toinvestment costs . 2.0 2-2
13Fixed assets under construction - - 03Provisions - 0.3
Other fixed assets
14Shareholdings inother undertakings
15,Long-term loans
16Cost offloating loans and loan redemption
premiums00
-04 Funds for staff
05Long-term financial debts *
-debentures
-State loans
-other financial debts.9.9
26.0
10.846.7
9.9 ;
24.0
11.9 ;
17Miscellaneous fixed -assets - -Sub-total 52.7 53.4 :
Sub-total%43.8 46.3•V
CURRENT ASSETS
Stocks
20-21(Instore orbeing manufactured ) 12.8 10.6
Realizable assets 17.4
30Debtors 15.1 10.3
41Loans repayable within one year- -
42Bills receivable - -
45Securities 2.3 1.9 Current liabilities
Bank balances and cash31Creditors 23.7*
19.3
43-46-47-48Cheques inhand,postal cheque accounts ,
bank accounts ,cash inhand 1.9 1.940Financial debts ofless than one-year term
44Bilispayable4.9 3.4 ;
Sub-total 32.1 24.7 Sub-total 28.6 22.7 i
Results
ρ5.4 Results _
06.1 Losses forprevious financial years 5.2 4.6 06.0 Profits forprevious financial years- -
07.1 Loss forthefinancial year 0.2 0.5 07.0 Profit for thefinancial year- -
Assets :Total 81.3 76.1 Liabilities :Total 81_._3 ___ 76.ι :

PftCKIT AMD LOSS ACCOUNTTable 5b
I. GENERAL OPERATION .
Undertakings :CIE Millions ofIRL Year :1978
EXPENSES 1978 1977 REVE'N-UE 19 78
60.Staff costs 88.2 ^I '78.6
61.Material supplied and services performed
•bythird parties 42.9l·
1 36.3
62.Taxes and dues 4.4 i 4.6
63.Allocations fordepreciation 9.3 » 8.8
64.Allocations toprovision accounts- : -
65.Financial charges 4.6 I
I
r4.570.Traffic revenue
0.Passenger and luggage traffic
a)byrail
b)byroad
c)byother means oftransport
Goods traffic
e)byrail
i)full train 'sand wagon loads
-national traffic
-international traffic
•1i)part loads andparcels
-national traffic
-»international traffic
b')byroad
g)other means oftransport6.0
0.2
6.7
0.16.2
6.8
S.Postal traffic
Sub-total
71.Financial revenue
72.Other revenue
73.Contra ofcosts booked toother accounts
74.Compensations and aids received under
0.Regulation (EEC)N°1191/69
.1.Regulation (EEC)N°1192/69
2.Regulation (EEC)N°1107/70,Artide 3
3.Other compensations and aids
Sub-total15.1
51.9
0.1
13.1
12.1
0
14.8
3.0
8.6
0.267.1
13.0
45.4
0.1
25.1
4.9
0.4
6.2
0.1
11.3
0.2
1.1 0.7
93.3 82.3
9.6 7.5
9.0 9.7
13.1
2.3
7.3
0.1
26.6
Total expenses 149.4 132.8 Total revenue 138.5
91.0 Operating profit forthefinancial year 91.1 Operating loss for thefinancial year 10.9
II.PROFIT AND LOSS SUMMARY
91.1 Operating loss forthefinancial year
91.3 Exceptional losses
91.4 Corporation tax10.9
0.4t ''
10.5 !91.0 Operating profit for thefinancial year
0.4 {91.2 Exceptional profits
1
I91.5 Balancing subsidy
; -Regulation (EEC)N°1107/70,Article 4
; -Other11.1
..11.1 10.4
>
91.6 Profit forthefinancial year-t
ï91.7 Loss for thefinancial year 0.2 0.5

-46-
CIE-FINANCIAL YEAR1978
Explanatory Notes
Figuresaregiveninmillions ofIRL.
I.Balance Sheet
.– »
Assets
'Accounts 10to12-FixedAssets
%
Theamounts shownrepresent thenetvalueoffixedassetsacquired
since1950,excluding railwaylinesandworks.Theyinclude workinprogress .
: Description GrossValueAccumulated
DepreciationNetValue :
:10.LandandFixed
:Installations11.6 0.4 11.2 :
'11.Transport Stockand
\Equipment75.8 46.8 29.0
:12.OtherStockand
:Equipment5.3 1.7 3.6 :
92.7 48.9 43.8 ï
Accounts 20and21-Stocks
Stocksarevaluedatcost,generally determined onthebasisofthe
averagecost,whichiscomputedaft^rmakingprovisionfordefective and
obsolete stocks.
Accounts 43to48-BankBalances andCash
Bankdeposits 1.7
Cashandcashinhand 0.2
1.9

-47-
Liabi lities
Account 01-Reserves
Fund for thedepreciation oftransport stock and equipment
Bank loans redemption fund
Redemption fund -unsecured Loans
Capital reserves
Account 31-Creditors
Creditors and expenses outstanding
Tax charges
Account 40-Financial Debts ofLess than One Year Term
Amount due tobanks 3.8
Unsecured bank loans 1.1
4.9
Profit and Loss Account
Expenses
/ '
Account 60-Staff Costs
/
Staff costs include :
' ■ .'" ( ' .
(a)total payroll costs including contributions tosocial welfare funds ;
(b)contributions tosuperannuation and pension funds inrespect ofemployees
inemployment .2.2
0.2
0.2
1.4
4.0
23.6
0.1
23.7

48-
Account 61-Material Supplied and Services Performed byThird Parties
Material ■' 30.7
OIE subsidiary ,supplies ,etc. 2.7
Services forthird parties 9.5
42.9
Account 62-Taxes and Dues
Non-deductible VAT 1.9
Import and excise duty payments 1.8
Road tax and licences inrespect ofroad ' . 0.7
vehicle operations ' ..
Account 63-Allocations for Depreciation
Depreciation iscalculated onthe basis ofthefollowing expected
useful lives : ,
years
Railway Rolling Stock •
Locomotives -Body ~ 40
Engine 20
Passenger coaches 35
Wagons '• 50
Wagons (cement inbulk ) 40
Road Vehicles
Coaches 16
Tractor (freight ) 7
Trailers 10
. N
Ships 40
.Land and Buildings ~

-49-
Years
Plant and machinery 10 •
(a)modernized signalling equipment 25
(b)electronic components 8
Hotels and Buffets 50
furnishings - 4-10
Account 65-Financial Charges .2– inmio IRL
(a)Netfinancial charges (interest ontransport 4.4
stocks and onrepayable State advances for
capital expenditure )
(b)Transfer ofrents received 0.1
(c)Redemption fund -unsecured loan for stock and 0.1
equipment ,,
REVENUE
Account 72-Other Revenue
This includes revenue from :
(a)other rail and road services 0.5
(b)hotels andcatering services 6.7 -
(c)Rosslare harbour operations 1.1
(d)canal operations 0.1
(e)work forthird parties 1.1
(f)rents receivable ^ 0.1 ,
9.6
Account 73-Contra ofCosts Booked toOther Accounts
/
This heading covers capital expenditure .»
50
4-10

-50-
Account 74-Compensation and Aid
This account breaks down asfollows :
74.0 Regulation (EEC)N°1191 /69
Operation ofpassenger services 14.8
74.1 Requlation (EEC)N°1192 /69
Retirement and pensions 2.65
Level crossings 0.35
3.00
74.2 Requlation (EEC)N°1107 /70
Contribution toinfrastructure expenses 2.2
Deficit ontheoperation ofroad passenger 5.2
transport services inDublin
Deficit ontheoperation ofprovincial road 1.2
passenger transport services 0,o.o
74.3 Other Compensation and Aid
Compensation for losses onthe Galway -Aran 0.2
Islands ferry service
Profit and Loss Summary
Account 91.3-Exceptional Losses
This account includes :
Provisions forinterest losses insubsidiaries 0.16
Provisions foradditional losses ofsubsidiaries 0.28
0.4

Γ
AZIENDA AUTONOMA DELLE FERROVIE
DELLO STATO (FS)

BALANCE SHEET
At31.12.1978Table 6a
Undertaking :FS 000 Millions ofLIT
ASSETS 19 78 1977 LIABILITIES 1978 1977
LONG-TERM ASSETS ' " ■ ■ ' "
Fixed assets (Net) 5233 Capital and reserves
10Land and fixed installations 2895 2572 00Capital 45 45
11Transport stock and equipment 2201 1872 01Reserves 1414 1459 1162
12Other stock and equipment 137 125 02Contribution toinvestment costs 1830 1633
13Fixed assets under construction -'03Provisions 824 644
Other fixed assets 283¿04Funds forstaff- -
14Shareholdings inother undertakings 15 , 1505Long-term financial debts 9100
15Long-term .loans _T~-debentures 2139 2090
16Cost offloating loans and loan redemption-State loans 15.703 4572
premiums 268 231 -other financial debts 1258 1275
17Miscellaneous fixed assets _
Sub-total 13213 11421
' Sub-total_5_516 4_81_5
CURRENT ASSETS. ν
Stocks
20-21(Instore orbeing manufactured' ) 564 509
Realizable assets 759
30Debtors 759 401
41Loans repayable within one year - -
'42Bills receivable * -
45Securities - ■ ^ - - Current liabilities >
Bank balances and cash31Creditors . 1614 1383
43-46-47-48Cheques inhand,postal cheque accounts .40Financial debts ofless than one-year term-■ -
bank accounts ,cash inhand 467 666 .44Bills payable- ' -
Sub-total 1790 1576 Sub-total . 1614 1383
Results 7521:
Results
06.1 Losses forprevious financial years 6226 5427 06.0 Profits forprevious financial years .-
07.1 Loss forthefinancial year 1295 986 07:0 Profit for thefinancial year- -
Assets :Total.14827 12804 Liabilities :Total 14827 12804

PftOfIT AND L0S"5 ACCOUWTable 6b
-I. GENERAL OPERATION,
Undertakings :FS 000 miIlions ofLIT Year :1978
* EXPENSES 1978 1977 { REVΕ·Ν'UE
.. L1978 1977
:60.Staff costs 1944 1695•
70.Traffic revenue
:61.Material supplied and services performed4
t0.Passenger and Uiggags traffic 650 577
: bythird parties 1157 # 1037b)byroad
:62.Taxes and dues 76 ï 70G)byother means oftransport
1».Goods traffie
:63.Allocations fordepreciation « a)byrail 422 362
f i)full train's and wagon loads
;64.Allocations toprovision accounts 520 r 323 -national traffic
1 -international traffic
:65.Financial charges 409 ι 390 •1i)part loads and parcels
I -national traffic
r ι -international traffic
r b·)byroad
e)other means oftransport
3.Postal traffic<2 2
-Sub-total 1074 941
71.Financial revenue 20 18
72.Other revenue 108 120 ,
73.Contra ofcosts booked toother accounts 480 325
74.Compensations and aids received under
,0.Regulation (EEC)N°1191/69 593 482
1.Regulation (EEC)N°1192/69 366 381
' .2.Regulation (EEC)N°1107/70,Article 3- -
3.Other compensations and aids- -
VSub-total 959 863
* Total expenses 4106 3513 Total revenue 2641 2267
"91.0 Operating profit forthefinancial year- ï91.1 Operating loss for thefinancial year 1465 2346
II PROFIT AND LOSS SUMMARY
:91.1 Operating loss forthefinancial year 1465 1246 91.0 Operating profit for thefinancial year- _
\91.3 Exceptional losses 1 1 91.2 Exceptional profits 50 38
:91.4 Corporation tax - _ 91.5 Balancing subsidy 121
-Regulation (EEC)N°1107/70,Article 4 121 223
-Other-- ~
I91.6 Profit forthefinancial year - - - 91.7 Loss for thefinancial year 1295 986

-54-
FS-FINANCIAL YEAR 1978
Explanatory Notes
Figures are given inmilliards (thousands ofmillions )ofLIT.
I.Balance Sheet
Assets
Accounts 10-12-Fixed Assets
Thefigures inaccounts 10to12are the costs ofacquisition or
construction asthe FSdoes not employ the system ofdepreciating fixed
assets .The last revaluation took place in1927 .
Account 13-Fixed Assets under Construction
Investment expenditure isbooked directly tothe accounts concerned
without passing through this account .
Account 16-Cost ofFloating Loans and Loan Redemption Premiums
Issue costs are never depreciated .
Accounts 20and 21-Stocks
Thefigure ofLIT 564 mrd includes work inprogress in FSworkshops ;
notall ofthis isconcerned with stocks .
Account 06.1 -Losses for Previous Financial Years
The amount entered inthis account includes LIT 6152 mrd covered
byloans .
Account 07.1 -Loss for the Financial Year
LIT 821 mrdofthe loss forthefinancial year iscovered byadvance
loans from the Treasury Ministry .

Liabi Lities
Account 00-Capital
The amount entered inthis account represents theinitial State
allocation for lines and equipment and successive changes .Infact,charges
take place only asaresult ofthe closure oflines byPresidential Decree .
Account 02-Contribution toInvestment Costs
The amount entered under this account includes LIT 1087 mrd byway
ofreimbursement bythe State for the redemption ofloans (excluding interest
contracted tofinance investments .
/
Account 05-Long-Term Financial Debts
These debts include LIT 6973 mrd inrespect oflong-term debt to
cover losses .This ismade upasfollows :
Debenture loans 1275
State loans ' , 5698
6973
These amounts can besetoff against those entered under 06.1 and
07.1 .The amounts inquestion are indicated inthe Notes tothose Accounts .
Debts tocompanies inwhich FShas ashareholding amount toLIT
257 mrd (Eurofima ).
Profit and Loss Account '
Expenses . '*
Account 62-Taxes and Dues
The amount entered inthis account ismade upasfollows :The
allocation
take place

Taxes onland andbuildings
Non-deductible VAT
VAT not recoverable from users0.3
11.5
64.2
76.0
Account 65-Financial Charges
The amount ofLIT 409 mrd includes repayments andinterest for loans
contracted tocover deficits reimbursed bythe State under theprovisions
ofRegulation (EEC)N°1192/69(see Notes toAccount 74.1).
Revenue
Account 70-Traffic Revenue
Itisimpossible toprovide accounting data broken down asrequired
byAnnex IVtoRegulation (EEC)N°2830/77.
Account 74-Compensatory and Aid
These are made upasfollows :
74.0 Regulation (EEC)N°1191 /69
Operat ionof :
(a)low-traffic lines 198
(b)unprofitable installations 10
(c)ferry services toSardinia 11
(d)substitute road services 1
Tariff obligations 96
Expenses arising from tariff obligations-of 244
asocial nature
Mail transport 33198
10
11
1
96
244
33
593

-57-
74.1 Regulation N°1192/69
Expenditure ofasocial nature (Class II) 8
Superannuation and pensions (Class III) 51
Level crossings (Class IV) 27
Recognition ofservices tothe country (Class X) 17
Conditions inrespect oftheplacing ofpublic tenders 15
(Class XIV )
Lack ofnormalization inthe past (Class XV)
(a)interest onloans for the renewal ofinstallations 45
(b)financial charges (capital andinterest )onloans 203
contracted tocover deficits
Account 91.7 -Loss for the Financial Year
Asmentioned inthe Note toBalance Sheet Account 07.1,the loss
for thefinancial year includes the sumofLIT 821 mrd already covered by
State loans .This amount could betransferred toAccount 91.5 -Balancing
Subsidy .

-59-
SOCIETE NATIONALE DES CHEMINS DE FER
,LUXEMBOURGEOIS (CFL)
ν

BALANCE SHEETTable7a
At31.12.1978 .
Undertaking :CFL MillionsofLFR
VASSETS 1978 1977 LIABILITIES 1978 1977'
LONG-TERM ASSETS•
Fixedassets (Net)<2811 Capital andreserves
10Landandfixedinstallations 692 697 00Capital 1600 1600
11Transport stockandequipment 1489 1558 01Reserves' 904 2504 783.
12Otherstockandequipment 43 43 02Contribution toinvestment costs - -
13Fixedassetsunderconstruction 587 329 03Provisions 351 356
Otherfixedassets 5204Fundsforstaff - -
14Shareholdings inotherundertakings 52 5205Long-term financial debts 1193
15Long-term loans- _'-debentures ! 320 343
16Costoffloating loansandloanredemption-Stateloans 505 533
premiums -- - -otherfinancial debts 368 520
17Miscellaneous fixedassets _Sub-total 4048 < 4^135
Sub-total 2_863 2_679
CURRENT ASSETS■
Stocks
20-21(Instoreorbeingmanufactured ) 437 351
Realizable assets1402
30Debtors 711 834""
41Loansrepayable withinoneyear 600 600
42Billsreceivable - -
45Securities 91- 96 Currentliabilities
Bankbalances andcash"31Creditors 714 617
43-46-47-48Chequesinhand,postalchequeaccounts,40Financial debtsofleásthanone-year term 103 -
bankaccounts,cashinhand 22 44 44Billspayable - -
Sub-total 1861 1925 Sub-total 817 617
Results 141 Results _
06.1Lossesforpreviousfinancial years 141 148 06.0Profitsforprevious financial years- -
07.1Lossforthefinancial year- -"07.0Profitforthefinancial year- -
Assets :Total 4865 4752 Liabilities :Total 4865 4752a»o
i.

_ ' - Table 7b4ft0tIT AND LOSS ACCOUNT
I-.GENERAL OPERATION
Undertakings :CFL Millions ofLFR Year :1978
EXPENSES 1978 1977
60.Staff costs 4258 4079
61.Material supplied and services performed
bythird parties 408t
404
62«Taxes and dues 53
*
t52
63.Allocations fordepreciation 371 360
64.Allocations toprovision accounts 161 154
65.Financial charges 165 164REVENUE 19 78 1977
211
184 172
27 26
1431' V
411
168
1055
1
24
20 21
1642 1467
51 28
88 83
597 930
719 1653
251 976
- -70-Traffic revenue
0.Passenger and luggage traffic
a)byrail
b)byroad
g)byother meaci9 oftransport
1-.Goods traffic
»)byrail
i)full trains and wagon loads
-national traffic
-international traffic
4i)part loads and parcels
-national traffic
-international traffic
ba)byroad
G)other means oftransport •
&.Postal traffic214
1161
1
351375
36
Sub-total
71.Ptnancial revenue
|72.Other revenue
:{73.Contra ofcosts booked toother accounts
!
|74.Compensations and aids received under
■ 0.Regulation (EEC)N°1191/69
| 1.Regulation (EEC)N°1192/69
\ 2.Regulation (EEC)N°1107/70,Article 3
: 3.Other compensations and aids
Sub-total 3567
Total expenses 5416 5213 Total revenue 5348
91.1 Operating loss for thefinancial year 91.0 Operating profit forthefinancial year 68
II.PROFIT AND LOSS SUMMARY
91.1 Operating loss forthefinancial year 68t
76 J91.0 Operating profit forthefinancial year_
91.3 Exceptional losses 2 -ν j91.2 Exceptional profits 12 -
91.4 Corporation tax-j91.5 Balancing subsidy_
; -Regulation (EEC)N°1107/70,Article 4- -
; -Other- -
91.6 Profit forthefinancial year-j91.7 Loss forthefinancial year 58(1 : 76(1)
(1)Absorbed inthe reserves and not transfered toitem 07.1 inthe balance sheet .

-62-
CFL-FINANCIAL YEAR1978
––––––––––––––––––––––––– i
Explanatory Notes
Figuresaregiveninmillions ofLFR.
Balance Sheet
Assets
Accounts 10to12-FixedAssets
Theamountsrepresent thenetvalueoftheassetsbuiltandacquired :
\Description GrossValueAccumulated
DepreciationNetValue I
\10.LandandFixed
IInstaIlations1173 481 692 ;
:11.Transport Stock
:andEquipment2614 1125 1489 :
112.OtherStock
IandEquipment147 104 43 ;
3934 1710 2224 ;
Thereisnodepreciation inthecaseofland.
Thedepreciation applied byCFLinrespectofotherfixedassets
isbasedontheirexpected usefullife,asshownbelow:
Trackinstallations
Safetyinstallations
Fixedinstallations
Transport stockandequipment
Furniture andtools30years
between 25and30years
50years
between 25and30years
10years.
Thevalueofthelandandfixedinstallations placedatCFL'sdisposal
bytheStatewhenthecompanywasformedappearsintheBalanceSheetasnil.
Therenewalcostsforthesefixedassetsareregarded asadepreciation
allocation chargedtotheoperating account.

-63-
Account 13-Fixed Assets under Construction
/
The actual cost ofthis work isshown inthe Balance Sheet .
Account 30-Debtors
> ι
Miscellaneous debtors 231
Expenses prepaid 186
Costs for 1979 paid in1978 294
711
Account 07.1 -Loss for the Financial Year
The loss iscovered bythe reserves and does not appear under this
item .Theprofit balance ofLFR 10miorelating toearlier years has been
used toreduce the current year 'sloss from LFR 68miotoLFR 58mio.
LIABILITIES
Account 01-Reserves
Reserve funds andparts oflong and medium-term debts 962
paid off
Less amount withdrawn tocover thedeficit for 1978 -58
.904
Account 03-Provisions
\
Renewal offixed assets dating tobefore 1June 1945 11
Insurance Fund * ■' 179
Fund for the recovery ofinitial expenses 161
351
Account 05-Long-Term Financial Debts
Other financial debts .
The amount entered under this account breaks down asfollows

-64-
Cash advances which can beconsolidated 250
Debts tocompany inwhich CFL has ashareholding 118
(Eurof ima) _._
368
Account 51-Creditors
Shareholders 42
Other creditors •442
Customer creditors 2
Income received inadvance 70
Costs tobepaid v 158
714
II.Profit and Loss Account
Expenses
Account 60-Staff Costs
χ
The remuneration ofstaff inemployment excluses that relating to
investment which ischarged tothe relevant account items .
Account 61-Material Supplied and Services Performed byThird Parties
Materials • 269
Other 139
408
Account 62-Taxes and Dues
Municipal payroll tax 20
Municipal trade tax 32
Property tax , 1
53
Account 64-Allocations toprovision accounts
Allocation toInsurance Fund 27
Allocation toReserve Fund 134
161

-65-
Revenue
Account 74-Compensation andAidReceived
Thebreakdown ofamounts underthisaccountisasfollows :
74.0Regulation (EEC)N°1191/69
Passenger traffic 1597
74.1Regulation (EEC)N°1192/69 '
Familyallowances 34.
•Superannuation andpensions 1445
Levelcrossings 21
Recognition ofservices tothecountry 0
Lackofnormalization inthepast ■ ' 5
Amounts notcollected in1975 , 214
1719
74.2Regulation (EEC)N°1107/70(Artide 3)
TheaidofLFR251mioiscompensation forpartoftheinfrastructure
costsbornebythecompanywhich,in1978,totalled LFR826mio,ofwhich
LFR550mioincurrent costsandLFR276mioinoverheads .
tProfitandLossSummary
91.7LossfortheFinancial Year
SeetheNotestoBalance SheetAccount 07.1.

NAAMLOZE VENNOOTSCHAP
NEDERLANDSE SPOORWEGEN (NS)

Table 8a
8ALAΝCE SHEET
At31.12.1978
Undertaking :NS MiIlions ofHFL
ASSETS 19 78 1977 LIABILITIES 19 78 1977
LONG-TERM ASSETS
Fixed assets (Net) 2859 Capital and reserves
10Land and fixed installations 1581 1276 00Capital 484 484
11Transport stock and equipment 682 700 01Reserves 1992 2476 1852
12Other stock and equipment- - 02Contribution toinvestment costs ■105 0
13Fixed assets under construction 596 600 03Provisions 84 81
Other fixed assets 151604Funds for staff 24 24
14Shareholdings inother undertakings 401 37605Long-term financial debts1796
15Long-term loans 1115 1"144-debentures 248 250
16Cost offloating loans and loan redemption-State loans 49 55
premiums- - -other financial debts 1499 1559
17Miscellaneous fixed assets- - ι ·Sub-total 4485 4305
Sub-total 4_375 4_096
/ CURRENT ASSETS
Stocks
20-21(Instore orbeing manufactured ) 168 147
.
Realizable assets 382
30Debtors 138 142
41Loans repayable within one year 244 357
m
42Bills receivable - -
45Securities - - Current liabilities
Sank balances and cash31Creditors 364 379
43-46-47-48Cheques inhand,postal cheque accounts .40Financial debts ofless than one-year term 129 119
bank accounts ,cash inhand 51 61 44Bilis payable- -
Sub-total 601 707 Sub-total 493 498
Results-2 Results-
06.1 Losses forprevious financial years- -06.0 Profits forprevious financial years-1
-
07.1 Loss forthefinancial year 2 -07.0 Profit for thefinancial year- -
Assets :Total 4_978 4803 _ Liabilities :Total 4_978 4_803

PftOT-IT AMD LOSS ACCOUNTTable 8b
I.GÉNÉRAL OPERATION•
Undertakings :NS Millions ofHFL Year :1978
; EXPENSES1978 1977 ï REVENUE
L .19781977 ;
:60.Staff costs 1342'
1268 70.Traffic revenue
:61.Material supplied andservices performed*
f0.Passenger and lugg'agjp traffic
a)byrail709
709 676 :
: bythird parties 459 » 442b)byroad
:62.Taxes andduesf
7 1 7G)byother mean*o*ftransport– ·
f i··Øoode traffic 271
:63.Allocations fordepreciation ..273 * 269 »)byrai I271
* i)full train's andwagon loads 246
88 !:64.Allocations toprovision accounts 126 f 131 -national traffic 91
» -international traffic 155 14Ί :
:65..Financial charges 28 ' 31 4i)part loads andparcels7
Ï :» -national traffic 1
-international traffic 6 1«IO :
ι b·)byroad ΊΊ°ot>,er revenu «18- 17 :
e)other means oftransport- – .
f,.Postal traffic 34 35 :
.Sub-total 1014 968 I
'\ ;71.Financial revenue 2220 ;
• 72.Other revenue 64 61 j
: - ■73.Contra ofcosts booked toother accounts 205 193 ;
74.Compensations and aids received under
! 0.Regulation (EEC )N°1191 /69 767 706 :
1.Regulation (EEC )N°1192 /69 41 38 :
2.Regulation (EEC )N°1107 /70,Article 3-:
3.Other compensations and aids-;
Sub-total 808 744 ;
* Total expenses 2235 2148 Total revenue 2113 1986 ;
*91.0 Operating profit forthefinancial year- -91.1 Operating loss forthefinancial year 122 162 ;
-
II PROFIT AND LOSS SUMMARY
:91.1 Operating loss forthefinancial year 122 162 ' 91.0 Operating profit forthefinancial year. :
"91.3 Exceptional losses- -91.2 Exceptional profits-:
:91.4 Corporation tax-91.5 Balancing subsidy 120 162 :
-Regulation (EEC)N°1107 /70,Article 4 120
-Other–
"91.6 Profit forthefinancial year- -.
91.7 Loss forthe financial year 2 :

-70-
NS-FINANCIAL YEAR 1978
Explanatory Notes
Figures are given inmillions ofHFL.
BALANCE SHEET .
Account 00-Capital
The company 'sshare capital consists ofHFL 1mrddivided into
onemillion shares ofHFL 1000 each ,ofwhich HFL 484.4 mio were issued
and paid upasat31December 1978 .
Account 01-Reserves
This account contains inparticular thefollowing :
General reserve 181
Revaluation reserve 1573
Reserve for shareholdings 255
Account 02-Contributions toInvestment Costs
This account contains the investment grants from the State andthe
premiums paid inaccordance with the "Wet Investeringsrekening (WIR)"»
/
Account 03-Provisions
This account consists ofthe following :
Maintenance offixed assets 38.4
Reorganization offreight traffic 21.5
Other provisions 24.1
84.0

Thelatter account includes thefollowing :
Provision forthe removal oflevel crossings
Accident cover
Fire cover (own risk )
Assumption ofliability ofthird parties inthe event ofanaccident .
Theprovision forthe maintenance offixed assets can bebroken down into :
(a)aprovision forthe maintenance ofsuperstructures (HFL 111 mio in1978 )
(b)modification and improvement ofrolling stock .
Account 04-Funds for Staff
16
8
24
Re 1.Apercentage ofthetotal amount ofpension contributions ispaid into
this reserve each year .In1978 this percentage was 3%,corresponding
toHFL 30mio. , .
Re2.This Fund istocover commitments not covered bythe Pensions Fund .
Itwas allocated HFL 3mio in1978 .
Thetotal ofHFL 31mio mentioned above isincluded inthe pension costs of
HFL 120 mio inAccount 60.The latter sum also contains the difference
ι
between the amount paid by NSinto the Pension Fund and the contributions
deducted from staff wages .The State also pays HFL 200 miointo the
railways' Pension Fund .This account consists ofthe following :
1,.Areserve forearly old-age pensions
2.Pension-related debts , . .

-72-
Account 05-Long-Term Financial Debts
These are debts which still have more than ayear torun.The annual
repayments which have tobemade onthe long-term loans inthe next year are
included under Account 40-Financial Debts ofLess than One Year Term .
Foreign currency loans are converted atthe latest exchange rate in
1978 .The exchange difference isentered inthe Reserve for Revaluation
(Account 01).
This account does not include debts tocompanies inwhich NShas a
shareholding .
Account 10-Land and Fixed Installations
Acquisition value 2973
Depreciation offixed installations 1392
Net value 1581
Expenditure onthe maintenance ofpermanent way (except on
strengthening )ischarged totheoperational account under Account 64-
Allocations toProvision Accounts .
Account 11-Transport Stock and Equipment
Acquisition value 1561
Depreciation 879
682
This Account includes stock and equipment obtained from Eurofima
onhire purchase .Theobligations towards Eurofima areentered under
Account 05-Long-Term Financial Debts -andthe redemption ofthese
obligations inthe coming year under the Account 40-Financial Debts of*
Less than One Year Term .
Account 12-Other Stock and Equipment
Purchases ofmachinery ,tools andservice vehicles (HFL 18mio)are
written off inthe course ofthe year .

-73-
Accounts 10-12 -Summary
: Description Gross ValueAccumulated
DepreciationNet Value :
;10 2973 1392 1581 ;
:11 1561 879 682 :
;12- -;
4534 2271 2263 ;
Account 13-Fixed Assets under Construction
Expenditure which should not appear onthe assets sieisdeducted
from theexpenditure incurred .Depreciation commences onentry into service .
Land and fixed installations 463
Transport stock and equipment 128
Other stock and equipment 5
596
Account 14-Shareholdings inOther Companies
,Thevalue ofthe shareholdings isthat shown inthe most recently
published Balance Sheets ofthe companies inquestion .Itrelates toown
capital ,with due allowance forprofit orloss .
Account 15-Long-Term Loans
These loans mainly include :
(a)claim onthe State for losses prior to1976 1050
(b)financing ofnew lines * 55
(c)loans granted 7
(including HFL 3miotoacompany inwhich NShas
ashareholding )1050
55
7

-74-
Account 20-Stocks ,
Stocks arevalued atthe 1January 1979 price level ,less aprovision
for obsolesence .Anyprice differences are charged tothe ,Reserve for
Revaluation Account 01.
\
Account 40-Financial Debts ofLess than One Year Term
This account covers the redemption inthe coming year ofloans with
aremaining term ofmore than one year .
Repayments offoreign-rcurrency loans are converted into HFL.The
exchange difference ischarged tothe Reserve for Revaluation (Account 01).
Account 41-Loans repayable within aYear
This account lists thepart ofthe claim onthe State resulting
from accumulated losses prior to1976 andfalling due inthe coming year
(HFL 48.4 mio)and short-term investments .
II.Profit and Loss Account
Account 60-Staff Costs
The sum entered inthis account can bebroken down asfollows :
> ■ , ■ : ' -
Remuneration '856
Social charges 467
Other staff costs '19
1342
The costs ofthe systems forretention pay andearly reti
are nolonger contained intheprovision (Account 04)forearly
pensions -see Notes toAccount 04.rement
old-age

I
-75-
Account 61-Materials Supplied and Services Performed byThird Parties
This account includes :
(a)supplies from and maintenance bythird parties 230
ofwhich for fixed installations
forrolling stock116
86
Cb)the costs ofelectricity ,fuel and
communications144
(c)the costs ofautomatic data-processing 38
Account 62-Taxes and Dues
This account concerns :
non-deductible VAT i
property tax
environmental taxes -
other deductible taxes .
Itdoes not include deductible VAT.NSpays VAT ongoods which it
purchases and charges VATin.respect ofits passenger andfreight services
When the accounts are cleared ,excess VAT paid orcharged isclaimed or
reimbursed ,asappropriate .
Account 63-Allocat ions for Depreciati on
(a)depreciation allocation 124
(b)additional depreciation . 114
(c)expenditure which should not beshown onthe 32 .
assets side / > '
(d)book value Icsses 3
273
Account 64-Allocations toProvision Accounts
This account covers :

-76-
(a)allocations totheprovision accountforthe 112
maintenance ofthepermanent way
(b)allocations forthemodification andimprovement 6
ofrollingstock
Account 65-Financial Charges
Thissummaybebrokendownasfollows :
(a)interest paidonloansraised ,19
(b)interest paidonloansgranted bytheState 2
(c)interest paidonlong-term privateloans 132
(d)interest paidonpensiondebts,etc. 3
Ce)otherinterest 3
159
Less:
(a)costoffinancing newlines 21
(b)interest received :
*(i)aidfromthepublicauthorities tofinancelosses 58
incurred uptoandincluding 1972
(ii)dittofortheyears1973-75 32
(iii)otherinterest received s 20
131
28
*TheProfitandkossAccounttherefore includes interest amounting to
HFL90miobywayoffinancial lossesupto1975.Theaccumulated loss
itselfis^converted intoaclaimontheState.

-77-
Account 70-Traffic Revenue
Revenue fromrailtrafficonly.
Account 71-Financial Revenue
Thisaccountalsoincludes thecorporation taxfor1977transferred
toNSin1978byitsconsolidated subsidiaries ;nocorporation taxwas
duefromNSin1977becauseofitsdeficit.
Account 72-OtherRevenue
Thisaccountincludes generalexpenses,directwagesandtheindirect
costofmaterials chargedtothirdparties (HFL17mio)".
Account 74-Compensation andAid
Theamountentered inthisaccount canbebroken downasfollows :
74.0Regulation (EEC)N°1191/69
Maintenance ofpassenger traffic 767
74.1Regulation (EEC)N°1192/69
Crossingfacilities 41
Account 91.1-Operating LossfortheFinancial Year
l
Thisaccount maybebrokendownasfollows :
Deficit onfreighttraffic 120
Allocation forthedepreciation ofsections ofnewline 2
financedbytheplacingofshareswiththeState ^2
Account 91.5-Balancing Subsidy
(a)Statesubsidyforfreighttrafficin1978equaltolosses 138
calculated onthebasisoffullcosts
(b)Adjustment oftheCompensation forPublicService less18
Obligations accounts for1977andStatesubsidy
forfreighttrafficin1977 120ror
41
120
2
122
138

BRITISH RAILWAYS BOARD (BRB )

BALANCE SHEETTable 9a
At31.12.1978
Undertaking :BRB - Millions ofUKL
ASSETS 19 78 1977 LIABILITIES 19 78 1977
LONG-TERM ASSETS
Fixed assets (Net) 1002.0 Capital and reserves
10Land and fixed installations 465.8 328.6 00Capital-
11Transport stock and equipment 469.4 384.7 01Reserves 389.7 389.7 194.7
12Other stock and equipment 66.8 52.2 02Contribution toinvestment costs-
13Fixed assets under construction 03Provisions 40.8 41.3
Other fixed assets 811.2 -04Funds for staff 786.1 531.1
14Shareholdings inother undertakings 2.1 (0.6)05.Long-term financial debts 493.2
15Long-term loans 808.6 527.0-debentures . v- -
16Cost offloating loans and loan redemption-State loans , 341.8 330.9
premiums - .'- ■ ■ -other financial debts 151.4 101.7
17Miscellaneous fixed assets 0.5 1.7Sub-total 1709.8
^ Sub-total_1__81_3._2 __ J__293.6 __
CURRENT ASSETS
Stocks
20-21(Instore orbeing manufactured ) 159.0 135.7
Realizable assets ' N 187.7
30Debtors 186.3 V 154.2
41Loans repayable within one year 1.4 1.3
42Bills receivable - -
45Securities - V Current liabilities
Bank balances and cash31Creditors 344.5 300.9
43-46-47-48Cheques inhand,postal cheque accounts .40Financial debts ofless than one-year term 74.4 54.7
bank accounts ,cash inhand 10.8 8.2 44BiUs payable- " -
Sub-total 357.5 . 299.4 Sub-total 418.9 355.6
Results - Results 42.0
06.1 Losses forprevious financial years- -06.0 Profits forprevious financial years 35.6 10.7
07.1 Loss forthefinancial year- -07.0 Profit for thefinancial year 6.4 27.0
Assets :Total 2170.7 1593.0 Liabilities :Total 2170.7 1593.0
-
-

WWIT AND LOSS ACCOUNTTable 9b
I.GENERAL OPERATION
Undertakings :BRB Millions ofUKL Year :1978
\ EXPENSES1978 1977 I REVΕ·ΝUE
s_ I1978'1977 ;
:60.Staff costs
:61.Material supplied and services performed
: bythird parties
:62.Taxes and dues
:63.Allocations fordepreciation
:64.Allocations toprovision accounts
:65.Financial charges
î \1131.0
718.9 i
0,2
i
93,5 Ί
ι
ι
50.0990-9
I
605.5
0.2
36.8
0.4
44.4
'
'
':
;
•
ì
1
•
•
■70.Traffic revenue
0.Passenger and luggage traffic
a)byrail
b)byroad
G)byother means Οΐtransport
1·.Goods traffic
»)byrail
. i)full trains and wagon loads
-national traffic
-international traffic
4i)part loads and parcels ..
-national traffic
-international traffic
b·)byroad
e)other means oftransport
8.Postal traffic
Sub-total
71.Financial revenue
72·.Other revenue
'
73.Contra ofcosts booked toother accounts
'
74.Compensations and aids received under
0.Regulation (EEC)N°1191/69
1.Regulation (EEC)N°1192/69
2.Regulation (EEC)N°1107/70,Article 3
3.Other compensations and aids
Sub-total.395.9
o
o
82.0
o
o843.5
751.2
92.3
527.8
477.9
49.9
37.0
1408.3
(0.3)
144.8
434.1
10.8
2.4
447.3636.1 :
70.4 ;
341.7 i
4.9 ;
73.3 i
49.7 ¡
36.0 ;
1212.1 :
8.6 ;
111.3 . :
363.5 :
10.5 :
1.9 :
375.9 ;
I Total expenses 1993.6 1678.2 Total revenue 2000.1 ι707.9 ;
"91.0 Operating profit for thefinancial year 6.5 29.7 91.1 Operating loss for thefinancial year
-;
II.PROFIT AND LOSS SUMMARY 1
91.1 Operating loss forthefinancial year
91.3 Exceptional losses
91.4 Corporation tax0.1 '2.791.0 Operating profit forthefinancial year
91.2 Exceptional profits
91.5 Balancing subsidy
-Regulation (EEC)N°1107/70,Article 4
-Other6.5 29.7
91.6 Profit forthefinancial year 6.4 27.0 91.7 Loss for thefinancial year- -

-82-
BRB-FINANCIAL YEAR1978
Explanatory Notes
Figuresaregiveninmillions ofUKL.
I.General
1.Property letorheldforsaleisnotamortized ,inviewofthe
continuing appreciation ofproperty values.Theseproperties havebeen
revalued onanopenmarketbasisasat31December 1978andtherevised
valueincluded inthecapitalaccount.Thesurplus (UKL97mio)on
revaluation andonsalesofnon-operational property aretransferred to
theCapitalReserveaccount .
2.LeasedAssets
Payments relating torollingstock,shipsandplantandequipment
underleasingarrangements aresufficient toamortize thecapitaloutlay.
Thecapitalelementisincluded undertheheading LoansandLeasing
Liabilities andreduced bythevalueoftheannualleasepayment.The
remainder oftheleasepaymentischargedtotheProfitandLossAccount
asinterest .
3.SpecialReplacement Allowance
AsumofUKL50miofortheSpecialReplacement Fund,received as
PublicServiceObligation support,hasbeenenteredunder"Provision for
Replacement ofRailPassenger Assets".Ithasthenbeentransferred to
theCapitalReserve (Account 01).

-83-
II.BALANCE SHEET
Assets
Accounts 10to13-FixedAssets
Theamountsincluded aremadeupasfollows :
: Description GrossValueAccumulated
DepreciationNet\'alue :
:10.LandandFixed 531.1 65.3 465.8 :
:Installations
■
\11.Transport Stockand 1084.9 615.5 469.4 :
*Equipment.·
:12.OtherStockand v 128.7 61.9 66.8.:
:Equipment
1744.7 . 742.7 1^002.0 ;
Account 13
Theseamounts havebeenincluded inAccounts 11and12.
Account 14-Shareholdings inOtherCompanies '
ThesumofUKL2.1mioisthetotalbookvalueofthesumsincluded
intheProfitandLossAccount .
Account 15-Long-Term Loans
Commitments toStaffPension Funds 764.5
LoanstoRailwayFinanceLtd. 40.6
Others , 3.5
808.6
>
Accounts 20and21-Stocks
Stocksinstore 178.9
Lessprovisions accounted for 26.8

-84-
Liabilities
Account 01-Reserves
Capitalreserves 349.1
Generalreserve 40.6
389.7
Account 03-Provisions
General Obsolescence Provision 31.6
Internal Insurance Provision 9.2
40.8
Account 04-FundsforStaff
DebtstoStaffPension Funds 764.5
Savings bank 21.6
786.1
ThesumofUKL764.5mioisthecontraoftheequivalent amount
included inaccount 15,sinceBRBhastherighttoreimbursement ofthis
debtbytheState.
Account 31-Creditors
Interest dueoncapitalexpenditure 9.9
Creditors anddebtsoutstanding 334.6
344.5
III.ProfitandLossAccount
\
Expenses ,
Account 60-StaffCosts
Themainiteminthisaccountisgrossstaffcostswhichinclude

-85-
Salaries andwages I 969
Employer'sliability for:
-National Insurance , 88
-Pension fundcontributions etc. 68
Clothing 6
1,131
Account 61-Material Supplied andServices Performed byThirdParties
Fuelandpower 111.3
Materials,supplies andservices , 589.7
Otheritems ' 17.9
Revenue
/718.9
Account 65-Financial Charges
Interest payabletoGovernment 32.9
Otherinterest charges 14.9
Leasingcharges 1.6
Othercharges 0.9
50.0
Account70.0-Passenger andLuggageTraffic
(a)Rail
Passenger fares 701.4
Stationcatering 33.2
Traincatering - 16.6
751.2
(b)Road -
(c)Other .MeansofTransport
Ships 86.7,
Hovercraft 5.6
92.3

-86-
Account 70.1-GoodsTraffic
International trafficincludes onlywagontrafficusingferries,
i.e.trafficcarried byrailoutsidetheBRBsystem.
Account 72-OtherRevenue
Revenue from:
Railwayworkshops 29.2
Ports 17.6
«
Hotels 33.7
Non-operational property 11.7
Operational property-letting 21.6
Transmark 4.5
Miscellaneous 26.5
144.6
Account 74-Compensation andAid
74.0Compensation forpublicserviceobligations 434.1
74.1Compensations forcrossingfacilities 10.8
74.2Researchgrants 2.4

NORTHERN IRELAND RAILWAYS
COMPANY LTD.(NIR )

BALANCE SHEET Table 10a
At2.A.1979
' ■ ■\
Undertaking :NIR 000 ofUKL
ASSETS 1978 1977 LIABILITIES
•1978 .1977
LONG-TERM ASSETS-
Fixed assets (Net ) 20758 Capital and reserves
10Land and fixed installations 11756 8242 00Capital 100 100
11Transport stock and equipment 8099 6896 01Reserves 3336 3436 288S
12Other stock and equipment 903 737 v 02Contribution toinvestment costs / 17368 12881
13Fixed assets under construction - . 65 03Provisions - 32
Other fixed assets04Funds for staff - -
14Shareholdings inother undertakings_ _ 05Long-term financial debts 100
15Long-term loans- --debentures - -
16Cost offloating loans and loan redemption-State loans -
premiums- -other financial debts 100 100
17Miscellaneous fixed assets20904 15998 Sub-total
Sub-total -20_75_8 15940
CURRENT ASSETS
.
Stocks;
20-21 (Instore orbeing manufactured ) 298 299
Realizable assets 1780.. *
30Debtors 1780 1793
41Loans repayable within one year-
42Bills receivable - - ',-
45Securities - '- Current liabilities
Bank balances and cash-31Creditors 1739 1405
43-46-47-48Cheques inhand,postal cheque accounts .40Financial debts ofless than one-year term- -
bank accounts ,cash inhand (189) (427 ) 44Bills payable- 172
Sub-total.1
1_889 * 1_665 Sub-total 1739 1_577
Results 26 Results ' 30
06.1 Losses forprevious financial years - - -06.0 Profits forprevious financial years 30 -
07.1 Loss forthefinancial year 26 -07.0 Profit for thefinancial year- 30
Assets :Total 22673 17605 Liabilities :Total 22673 17605
'

4
room AND LOSS ACCOUNTTable 10b
I-(ftNERAL OPERATION 2A19?g
Undertakings :NIR 000 ofUKL Year :1.4.1979
I EXPENSES2.4.ί«ΤΚ :
1.4.1979 rι1.4.19 77to
2.4.1978RΕVE-N UE
f* ·*2.4.1978 to1.4.19791.4.1977 to:
2.4.1978 :
:60.Staff costsI
3546 ι 3857•
70.Traffic revenue
:61.Material supplied andservices performed
: bythird parties
:62.Taxes and dues
:63.Allocations fordepreciation
:64.Allocations toprovision accounts
:65.Financial charges*
<-
2138 *
f
22 «
f
596 ι
»
2 4
t
f
15884
22
499
140.Passenger and Uiggagjp traffic
a)byrail
' b)byroad
G)byother meaos oífransport
1·.Goods traffic
β)byrail
i)full' train's and wagon loads
-national traffic
-international traffic
4i)part loads andparcels
-national traffic
-international traffic
b·)byroad
e)other means oftransport
3.Postal traffic515
515
653
627
262240
11682
1240
168
152074 ;
550 !
631 !
20 :
15 :
Sub-total 3423 3290 :
7*1.Financial revenue 27 - ■ ;
72.Other revenue 579 ,216 :
73.Contra ofcosts booked toother accounts - 4748 I
: '74.Compensations and aids received under
0.Regulation (EEC)N°1191/69
1.Regulation (EEC)N°1192/69
2.Regulation (EEC)N°1107/70,Article 3
3.Other compensations and aids1895
32
3481678 :
30 :
314 :
Sub-total 2275 2022 ;
* Total expenses 6304 ; 10276 Total revenue 6304 10276 !
"91.0 Operating profit forthefinancial year ; 91.1 Operating loss for thefinancial year -;
II.PROFIT AND LOSS SUMMARY
:91.1 Operating loss forthefinancial year_ _ 91.0 Operating profit for thefinancial year_ » :
*91.3 Exceptional losses 91.2 Exceptional profits - soti>:
:91.4 Corporation tax 26 91.5 Balancing subsidy
-Regulation (EEC)N°1107/70,Article 4
-Other- :
'91.6 Profit forthe_iinancial year 30 91.7 Loss for thefinancial year 26 :
(1)Repayment ofcooperation tax.

-90-
NIR-ANNUAL ACCOUNTS CLOSED ON2APRIL1979
Explanatory Notes
1.BasisofAccounting
Accounts areprepared onthehistorical costbasisofaccounting ,
wherebyitemsarerecordedattheirvaluesonthedateswhentheywere
acquired orrevalued,theliabilities wereincurred orthecapitalobtained .
2.FixedAssets
.Fixedassetsareincluded asvaluedon29March1979andother
assetsatcost.
3.Depreciation
/
Depreciation isnotcharged onexpenditure onassetsnotyetin
use.Withtheexception ofsignalling ,bridges andpermanent way,
depreciation offixedassetsischarged soastowritethemoffovertheir
expected usefullivesatcost.Inthecaseofsignalling andbridges,
expenditure iswrittenoffintheperiodinwhichitisincurred .
4.Stocks
Thebasisofvaluation isthelowerofaveragecostorestimated
realizable value.
5.Corporation Tax
AnamountofUKL26000ispayabletoGroupCompanies inrespect
ofanover-provision forGroupTaxation Reliefintheprevious year.

EEC RAILWAYS AS AWHOLE

BALANCE SHEETTable11
at31.1?.1978
InmilLionsofEUA
ALLEECraiLwayundertakings
Assets LiabiLities
ItemsItems
10-17 Long-term assets43200 CapitaL andreserves
00-04 CapitaL,reserves andprovi-27695
sions
05 Long-term financial debts 26858
54553Current assets
.20-?1 Stocks 1848 31-40-44 Current LiabiLities7075
30-41-42-45 ReaLizabLe assets 3990
43-46-47-48BankbaLances andcash 1143
6981
ResuLtsResuLts
06.1 Lossesforprevious financiaL 8281 06.0 Profitsforprevious financiaL-
yearsyears
07.1 LossforthefinanciaL year 3166 07.0 ProfitforthefinanciaL year
11447–
Assets :TotaL 616?8 LiabiLities :TotaL61628

PROFIT ANDLOSS ACCOUNT * \Tab6
I.General operation
AllEECrailway undertakings ' Inmillions ofEUA
"Items Expenses Items Revenue "
:60. Staff costs 16384 70. Traffic revenue
Material supplied andservices performed0. Passenger and luggage traffic 5598
: 61.
79111. Goods traffic 6990
bythird parties2. Postal traffic .298
;62. Taxes and dues 200 12886 ;
:63. ,Allocations fordepreciation .1567 71. Financial revenue 139 :
;64. Allocations toprovision accounts 748 72. Other revenue 1407 ;
: 65. Financial charges . - 1900 73. Contra ofcosts booked toother
accounts -2853 :
74 Compensations and aids received
*
- under
ν0. Regulation (EEC )N°1191 /69 3833 ,'
1. Regulation (EEC )N°1192 /69 2211
/ 2. Regulation (EEC)N°1107 /70 862*
'3. Other 648
■ x 7554 ;
; -Total expenses 28710 Total revenue 24839 ;
;91.0 Operating profit forthefinancial year- 91.1 Operating loss forthefinancial year 3871 ;
ÍII.Profit and Loss summary
;91.1 Operating loss for thefinancial year -3871 91.0 Operating profit forthefinancial
:91.3 Exceptional losses - 204 . 91.2year
:91.4 191.2 Exceptional profits 339 :
Corporation tax
:604 :
Special allocation toreserves 3391.5 Balancing subsidy (Regulation (EEC )
: N°1107 /70,Article 4)
;91.6 Profit for thefinancial year- 91.7 Loss for the financial year 3166 ;

PARTTWO
Structure ofthetransposed annualaccounts
for1978

-96-
Structure ofthetransposed ,annualaccounts for1978
1.Thisreportcontains ananalysis similartothetransposed accountsfor
1977and.thedegreeofcomparability betweentheaccounting figuresshould
betreatedwiththesameamountofcaution.Inordertoimprovecomparability
theCommission ,withtheassistance oftheAdvisory Committee ,hasmade
additions tothepresentation adoptedforthefirstreport.
2.FirstofallTables13#16,18and20,which showthestructure ofthe
BalanceSheetsandProfitandLossaccounts inpercentages ,alsoshowthe
changeswhichtookplacebetween 1977and1978intheformofpositive or
negative differences .
3oAnotheraddition isthepresentation foralltenrailways ofasimplified
balancesheetandprofitandlossaccountexpressed inEuropean unitsof
account (Tables11and12).Fromtheseitispossibletoderivethepercentage
structures oftheaccounts oftheundertakings takenasawhole,withoutgoing
sofarastoanalyse anydifferences theremaybebetween themandwhichare
mainlyduetothespecific characteristics ofeachnetwork.
4.Inordertoeliminate theeffects onthebalancesheetofeachunder­
takingtreating accumulated lossesdifferently ,itwasagreedwiththe
Advisory Committee todrawuptwoversions ofthebalancesheetsonthe
following bases.InTable14thelossesincurred duringprevious financial
yearswerededucted fromtheliabilities ;inTable15totallosseswere
deducted .Wheretherewasappropriate information ,losseswerededucted
fromcapitalandreserves orfromlong-term financial debts.Intheother
cases,losseswerededucted fromthetotalofItems00to05.Profitswere
addedtocapital andreserves inaccordance withthesameprinciple .

-97-
5. Intheprofit and .loss account noteworthy differences appeared in -
accounting forcompensation granted "byvirtue ofRegulation No1192/69
inrespect ofretirement andother pensions (Class III)andofexpenditure
ofasocial nature (Classes IIandXII).Given themagnitude ofthesums
involved these differences affect the comparability oftheprofit andloss
accounts ,which should beimproved byasuitable presentation .Inorder to
achieve this Tables 17and 19present "anormalized situation inwhich the
I
above compensations were deducted from Items 60and74-1 forthose under­
takings which book tothese items the gross retirement ,pension andsocial
costs ,andthecompensations received . -
6. 'Finally ,theaccounting ratios for1978 were calculated inaccordance
with the same principles asthose for 1977 »butmaking anadditional
assumption toallow stocks ,inview oftheir specific nature inthecase of
railways ,tobetreated asfixed assets .Anadditional ratio isgiven to
show indebtedness ,i.e. theratio ofcapital ,reserves andprovisions to
long-term financial debts .
Structure ofthe balance sheets
7. Tables 13,14and15andGraph Ashow thefixed assets oftherailways
indecreasing order ofimportance .The span covering theproportion offixed
tototal assets ofeach network hasvaried little compared with 1977 ;itruns
from 37$ (FS)to$1% (KIR).However ,thefixed assets oftheSNCF increased
from 58to79f°following the1978 revaluation ofthebalance sheet .Thefall
inCIE'spercentage from 61to54$isexplained inpart byasevere outback
inexpenditure onrolling stocks .
8. After deducting thelosses from theliabilities itcanbeseen that
therange within which theproportions ofeach network 'sfixed assets vary
hascontracted significantly .Themaximum isstill 91%buttheminimum is

-98-
58^0(CIEJ.Moreover sevenundertakings insteadoffourexceed80%"byvarying
degreesandtheCommunity averagechangesfromJOto86%.
9.Thesefiguresstillneedto"beinterpreted cautiously becauseofthe
differences "betweentheprocedures followed for"bookingfixedassetsand
calculating depreciation .Thesearegenerally entered ontheassetsside
attheiracquisition value,exceptfortheSNCFwheretheyfigureattheir
1978revaluation value.Moreover eightundertakings shownetfiguresintheir
balancesheet,afterdeduction ofdepreciation .Ontheotherhand,theSNCB
andtheFSingeneralfinancethereplacement oftheirfixedassetsbymeans
ofarenewalfund(item03inthebalancesheet).
10.Ingeneraldepreciation iscalculated onalinearbasis,butservice
livesvarysignificantly fromonenetworktotheother.Forexampleforthe
trackthefigurescanrangebetween 10and60years,forelectric locomotives
between 25and35yearsandforgoodswagonsbetween 20and50years.There
arealsodifferences between theresidual values.
11oThereareotherdivergences inthatcertainfixedassetsarenotentered
ontheassetssideofthebalancesheet,formonlyatokenentry,orhave
beenwrittenoff.Thisconcerns inparticular thefollowing casest
-fixedassetsacquiredbeforeacertaindate(SNCB,CIE,CFL);
-trackandsignalling equipment apartfromnewlinesandextensive elec-
tricification (BRBandNIR);
-CIEtrackandstructures .From1979»withretroactive effectto1April
1974,newlineswillbetreatedlikeothercapitalexpenditure ;
-machinery ,toolsandservicevehicles (NS)j
-fixedassetsbelowacertainthreshold value.Thisprinciple isnodoubt
appliedbythemajority ofthenetworks .

-99-
12oAnexhaustive inventory ofthesepractices withthehelpofthe
Advisory Committee isinprogress inordertoassesstheeffectsofthese
differences onthepercentages represented byfixedassetsontheassetside
ofthebalance sheet.
<■
13.Anumberofdifferent conceptions oftheideaofstockswerealsonotedi
Somenetworks takeaccountoftheirultimate useandonly "bookmaintenance
materials ,officesupplies orfuelstoItems20and21ofthebalancesheet,
whereasstocksforuseoninfrastructures androllingstockareincluded .
underfixedassets.Theotherrailways howeverbookallstockstothetwo
itemsmentioned above.Asaresulttheproportion ofstockstototalassets
variesfromslightlymorethanVfofortheNIRtocloseon16$fortheCIE.
Thisdifference inconceptaffectsbothfixedandcurrentassetsandsigni­
ficantlyaltersthelevelofworkingcapital.Examination oftheprocedures
followedisnecessary sothatthebookingprinciples canbeunified,while
retaining thelayoutofthebalancesheetcontained intheAnnextoRegulatior
(EEC)Ho2830/77*Thislayoutismoreoverinlinewiththatlaiddownbythe
fourthCouncilDirective of23July1978ontheannualaccounts ofcertain
typesofcompany,whichclassesstocksamongcurrentassets.
14*Finally,someundertakings enterthatpartoflong-term loansand
long-term financial debtsmaturing inlessthanayearinItems41-loans
repayable withinoneyearand40-financial debtsoflessthanone-year
term.Forotherrailways entryinthebalancesheetdepends onthetotal
duration o£theloanorborrowing.Theeffectsofthesedivergences onthe
structure ofthebalancesheetsshouldtherefore beanalysed withthehelp
oftheAdvisory Committee .
'
15.Allthesedifferences inbookingmethodsaffecttheproportion of
totalassetsrepresented byrealisable currentassets.Theproportion varies
between &fo(DB)and40%(CIE)andsuchdifferences areconsiderable compared
withtheCommunity averageofabout12$. \
f
16.Theproportion represented bybankbalances andcashisdistinctly
lower,sinceaccording toTable15itvariesbetweenanegative 1%(NIR)and
&fo(FS),theCommunity averagebeing2.3

-100-
17«Theaccumulated lossesobviously varywithindividual companies'
results ,"butalsowiththeaccounting practices followed inconnection with
theabsorption oflosses.Theselossesaccountformorethan50%ofthe
assetsoftheFSandslightly morethan14%ofthoseoftheEB.TheSNCF
reducedthemfrom11to6%ofitsassets,mainly "byrevaluingits"balance
sheet.
18.Ontheliabilities side,therearestillsubstantial differences between
theproportions ofowncapitalandlong-term borrowings .OnlytheDB,CIE
andFShaveborrowings inexcessoftheirowncapital.Theproportion ofown
capitalhasingeneralincreased inrelation to1977»especially asregards
theSNCF,owingtorevaluation ofthebalancesheet.ForFS,asshowninTable
13,theobligation tocoveritsdeficitbymeansoflong-term borrowings
explains theimportant partplayedbyItem05ontheliabilities side.
Ontheotherhand,forEBthededuction oflossesfromcapitalandreserves
accentuates theproportion accounted forbyborrowing .Beforeabsorption
oflossesowncapital andlong-term borrowings areaboutequalforthe
averageoftheCommunity .
19'.Short-term borrowings diminished inrelative valuecompared with1977,
exceptfortheCFL,whereinrelation tototalassetstheymovedfrom13to
almost17%andfortheCIE,from30to35%.ThefigurefortheBK3andthe
SHCFisverycloseto20%,
Structure oftheprofitandlossaccounts
20.Thecomplexnatureoftheseaccounts hasmadeitnecessary topresent
expenses andrevenues separately inordertofacilitate theiranalysis .The
resultsareshowninTables16-17and18-20andinGraphB.Therailways
havebeenclassified indecreasing orderoftherelative importance ofstaff
costs.Inordertotakeaccountofexceptional profits andlosses,company
taxesandbalancing subsidies ,thegeneraloperating accountandthesummary
havebeenincluded inasinglepresentations

-101 -
Charges
21.The proportion oftotal expenses represented bystaff costs has changed
relatively little since 1977 *Itshould ,however ,henoted that theNIR
percentage increased from 37$to$6%.There arethus eight railways nowwhose
proportion ofstaff costs isclose to60$.TheCFLcosts arehigh at79$
andthose oftheFSwell "below theCommunity average ofalmost 57$.
22.This narrow range ofproportions ,however ,covers different ways of
hooking retirement andpension charges ;.this problem has already "been
mentioned inpoint 5above .Analternative presentation inTable 16would
have consisted ofadding ,forSNCF and ITS,thecompensations granted under
Regulation No1192/69tostaff costs andtocompensations andaids received
from theState .However ,this solution hasthedrawback ofcomparing two
different situations :that ofundertakings receiving compensation directly
orindirectly ,andthose receiving none ,forthereason that theState pays
pensions directly orbecause theresponsible organisations donot receive
anycompensation .Thepreferred solution isdescribed inpoint 5above ,and
this shows normalized results inall cases .The figures asgiven inTable
17show alower maximum percentage ofstaff costs andgreater scatter about
theCommunity average of54$•
23.Tables 16and17show that expenditure onmaterials supplied and services
performed bythird parties isslightly more than half the staff costs .It
covers therange from 8$(CFL)to36$ (BRB)oftotal expenditure .
24»Allocations fordepreciation andtoprovision accounts have been grouped
asoneitem ,asprovisions areused bysome railways (SNCB andFS)forthe
renewal offixed assets .This items represents slightly more than 8$(Community
average )oftotal expenses butvaries according toTable 16between 5$(BRB)
and18$(NS).Inprinciple ,theSNCB andFScalculate theallocation onthe

-102-
basisofreplacement valuewhiledepreciation isgenerally calculated on
theacquisition value;thisexplains whytheirpercentages areaboveaverage.
25.Indecreasing orderwethenhavefinancial charges,whichrepresent
nearly1%oftotalexpenses.However,thepercentage variesbetween 1%for
theNSand10%fortheFS.Inthelattercase,thechargesincludethose
relating toborrowings contracted before1972tocoverlossesandwhich
arecompensated bytheStatebyvirtueofClassXVinRegulation II92/69.
26.Taxesandduesincluding companytaxrepresent lessthan1%>oftotal
costs.Itwouldseemthatitistheratesfortherecovery ofVATonthe
carriageofpassengers whichexplaintherelatively highCIErateof3%.
Asthissituation variesfromoneStatetoanother,theprocedures followed
willbeanalysed withtheassistance oftheAdvisory Committee .
Revenues (Tables18,19and.20)
27.Inordertostudyrevenuestructure Item73(contraofcostsbooked
tootheraccounts )whichisanequalization accountandwhichcannotbe
treated likeotherrevenues hasbeendeducted fromtotalrevenue .
The1977reportshowsthatthreerailways havenotusedthisitem,
whichrecords,interalia,certainstaffandmaterial coststobebooked
underfixedassetsandstocksinthebalancesheet.TheDSBandCPL,in
particular ,enteredstaffcostsdirectly inthebalancesheet.Thisaccounting
practice affectsthecomparability oftheprofitandlossaccountstructures
andthequestion willtherefore beexamined inmoredetailbytheAdvisory
Committee .
28.Trafficrevenues represent slightly morethanhalfoftotalrevenue.
Thispercentage varieswidelyfrom2>0%>forthePStomorethan70%for
theBRB.Forsevenrailways thepercentage isveryclosetoorinexcessof

-103-
50$.InadditiontothePS,CFLandSNCBfallwell "belowthisaverage.For
fournetworks (CFL,SNCB,DBandSNCF)goodstrafficprovideshigherrevenue
thanpassenger traffic salmostseventimesasmuchfortheCFLand1.5times
asmuchforthethreeothernetworks.Intheothercases,passenger traffic
providesrevenues "between1.5(DSB,FS)and2.5times(NS,CIE)asmuchas
thoseyielded "bygoodstraffic.Postaltrafficprovidesabout1$oftraffic
revenue .
1 , : \
29*Compensations andaidsfromtheState,including the"balancing subsidy,.
accountfor31$oftotalrevenueand27$afterdeduction ofcompensations '
forretirement ,pensionandsocialcharges.Thepercentages vary "between
.20$(DB)andmorethan45$fortheBeneluxnetworks.Insomecases,the
percentages relating togrossfiguresareslightly lowerthanin1977*
30.Thesizeofthelossesclearlyaffectstheproportion ofcombined
revenue ,fromtrafficandtheStatetototalrevenue.Thefigureforeight
railwaysexceeds85$»"buttheDBachievesonly74$andtheFSonly60$.
31.Finally,financial andotherrevenueaccountsforlessthan10$oftotal
revenue,withtwoexceptions ,theDSBandSNCB..,' ,
Analysis of"balancesheetcomponents '
32.Table21setsout,insimplified form,thefinancial situation ofthe .
railwaysattheendofthefinancial year1978.Anumberofratioswere
calculated fromthedatacontained inthetransposed balancesheetstoallow
thestructure ofthesebalancesheetsandtheworkingcapitalavailable to
therailwaysattheendof1978tobeanalysed. ,
33*Eightundertakings covertheirnetfixedassetswithowncapital,
provisions andlong-term debtsafterdeducting lossesoraddingprofits,
whereappropriate .Inotherwordstheratioisnotlessthanone,anda
£>artofthecurrentassetsisfinanced bypermanent capital.TheBRBand
theSNCFhaveratiosof0.97and0.93respectively .,

-104-
34«asnotedinpoint13above,stocksarebooked ,underfixedassets,
onlytworailways (CPLandDB)havearatioofatleastone.Thismeansthat
allothernetworks havenetnegative workingcapitalandhighlights their
cashproblems .
35.Theseproblems canalsobestudiedintheformoftheratio
Currentassets/Short-term debts
whichyieldsfindings comparable tothoseshowninpoints33and34above.
However ,toomuchimportance shouldnotbeattachedtothisratio,
whichreflects thesituation at31December andtakesnoaccountofthe
operations takingplaceinthemonthsfollowing closureofthebalancesheet
whichmayaffectworkingcapital,favourably orotherwise .
36.Itisgenerally acceptedthatthelongandmedium-term indebtedness
ofacommercial undertaking shouldnotexceeditsowncapital.Arepresentative
ratioofthisindebtedness i.e.owncapitalandprovisions/long-term
financial debts,hasbeenaddedtoTable21.Lossesorprofitshavebeendeducted
from oraddedtocapital,asappropriate ,exceptforPS,wherethelosses
havebeendeducted fromthedebts.Theratioishigherthan1.0forallthe
railwaysexcepttheDB(0.59)andtheSNCB(0.97)«Inassessing theseresults,
however,accountshouldbetakenofthefactthatforthemajority ofrailways
themarketvalueoftheirfixedassetsisoftengreaterthanthenetaccounting
value.
Coverage ofexpenses byrevenues
37.Table22revealstheextenttowhichstaffcostsandthecostofmaterials
andservices provided bythirdpartiesarecoveredbytrafficrevenueand
compensations grantedbyvirtueofRegulations 1191and1192/69*Theresults
are.presented indescending orderoftheextenttowhichstaffcostsare
coveredbytrafficrevenues .Theseresultsarebasedon,first,thefigures

-105 -
emerging from thetransposed profit andloss accounts (Tables 16and18)
andsecond onthese figures after deducting compensations forretirement ,
pension andsocial charges asexplained inpoint 22(Tables 17'and19).
38.Thefour following coverage ratios were calculated :
A. (Traffic revenue s./staff costs )
Onthebasis ofthetransposed accounts ,three railways (ERB ,CIE,DSB)
have aratio inexcess of100 ,andtwoothers (NIRandSNCP )arealmost
inbalance .Thelowratios ofthefour remaining railways canpartly
beexplained bythe fact that their staff costs include gross retirement ,
pension and social charges .Ifcompensation isdeducted their coverage
ratios improve considerably .
^ χ
B. (Traffic revenue plus compensations /staff costs )
\ •
Inallcases staff costs arecovered bytraffic revenues and compensations .
Three railways (DB,FSandSNCP )have arate ofcoverage close to100$ .
Theothers *surplus isnoticeably greater ,even reaching 64$inthecase
oftheBRB .Deduction ofcompensations further .improves the situation
described under A.
C. (Traffic revenue /staff costs plus materials andservices bythird parties )
These costs were bynomeans covered bytraffic revenues ,thedegree of
coverage varying between 31and16%*Deduction ofcompensations only
improved thesituation markedly forCFL .
D.(Traffic revenue plus compensations /staff costs plus materials and
services bythird parties )
Five railways (BRB ,NS,CFL ,DSBandNIR)areinbalance oralmost so.
Theothers vary from aslowas65$ (FS)to84$ (CIE).

-106-
39*In"thecomparison whichincludes
"therehasbeenaslightimprovement as
butinparticular fortheNIRandCFL.
andSNCBslippedslightly .themaximumofcharges andrevenues
compared with1977formostrailways
Onlytheratiosrelating totheDSB

Table13
Struct\xreofthetransposed BalanceSheetsofRailwayUndertakings
atU.12.1978
Percent
NIR(1)DSB NS BRB SNCF DB SNCB CFL CIE FS"·EEC(2:
197819771978197719781977197819771978197719781977197819771978197719781977197819771978
Assets
Fixedassets 91,5
90,590,2
90,687,9
85,383,5
81,278,9
57,978,5
78,476,0
75,858,8
56,453,9
60,837,2
37,670,1
Currentassets s
Realizable assets 9,2
11,99,4
9,011,2
13,416,0
18,314,5
30,74,9
4,717,2
17,337,8
39,637,2
30,08,9
■7,19,5
Bankbalance andcash(0,8)
(2,A)0,4
0,41,0
1/30,5
0,50,6
0,72'3
3,21,1
0,60,5
0,92y3
2,53,2
5,21,8
Cumulative resulte
(losses)0,1
-"
- -6,0
10,714,3
13,75,7
6,32,9
3,16,6
6,750,7
50,118,6
Liabilites
CapitalandReserves 91,8
90,393,1
92,154,0
50,856,1
48,155,5
10,944,2
42,342,8
42,058,7
57,67,4
10,027,7
27,244,9
Longtermloans 0,4
0,6- 36,1
38,822,7
27,224,2
49,450,4
52,239,2
40,524,5
29,457,4
60,261,4
62,043,6
Currentliabilities '7,7
9,06,9
7,99,9
10,419,3
22,320,3
39,75,4
5,517,0
17,516,8
13,035,2
29,810,9
10,811,5
Cumulative results
(profits)0,1
0,2
·-- -1,9
2,4-1,0
- - -
(1)aaat2.4.1979
(2)allundertakings

Figure A
RAILWAY UNDERTAKINGS
Structure ofthetransposed BalanceSheetsasat31*1?*1978 (infc)
100%NIR(1)DSBNS BRB
1SNCF
MDB
V7WASNCB
7//CFL
M.
«CIE
WAFS
L.EEC(?)
Wv'.
L.Legend
A
S
3
E
Τpp
SlÉf
i
w-i
L
I
A
TJD
I
L
I
Τ
I
E
b'a
b)
d)
e)
f)
g)o
ce
(1)Asat2.4.1979
a)Fixedassets
b)Currentassets
c)Losses(2)Allundertakings
d)Profits
e)Currentliabilities
f)Longtermloans
g)Capitalandreserves

Table14
Structure ofthetransposed BalanceSheetsofRailwayUndertakings at31*12.1978
Balancesheetsadjusted bysubtracting lossesfromoraddingprofitsofprevious financial yearstotheliabilities side
Percent
NIR(1) DSB NS BRB SNCF 0B SNCB CFL CIE FS EEC(2]
%+ % % %+ %+ X+ %.+ %+ %+ %+%+
Assets
Fixedassets 91,5 90,2 87,983,5 82,7 84,5 80,6 60,6 57,5 64,1 31,0
•+3,8 +6,0 +4,6 +1,8 +3,6 +26,9 +10,9
Current assets t.·
Realizable assets 9,2 9,4 11,116,0 15,2 5,3 18,3 38,9 39,7 15,4 11,0
–+0,7 +0,4 +1,1 +1,1 +2,5 +6,5+1,5
Bankbalance andcash (0,8) 0,4 1,00,5 0,6 2,4 1,1 0,5 2,5 5,4 2,1
" • –+0,1- -+0,2 +2,2+0,3
Currentyear'sloss 0,1- - - 1,5 7,8- - 0,3 15,1 5,9-4,5-6,5-5,7 .-2,9-6,3-35,6-12,7
Liabilities
CapitalandReserves 91,9 93,1 54,057,7 1(3)40,0 1(3)57,4 1(3)47,8 ì(3)
+0,1 +1,6/78,7-4,2)80,9-1,3#62,4-,+20,186,7
Longtermloans 0,4- 36,122,7/-1,054,2'-1,125,3/-2,433,4-1,8
–+3,8 +0,8 -28,0
Currentliabilities 7,7 6,9 9,919,3 21,3 5,8 18,1 17,3 37,6 18,8 I3,3
■~"+1,0 +0,4 +1,1 +0,5 +2,4 +7,9 +1,8
-. -0,3 1,0 _Currentyear'sprofit -0,1\-1,6 - - - - -
Foreachundertaking ,figuresintherighthandcolumnshowthedifference withrespecttothe1978datain
table13*NochangesforDSBandNS*
(1)at2.4.1979 -
(2)allundertakings
(3)Therearenoindications astothebalancesheetitemsfromwhichlossesshouldbededucted.

Table 15
Structure ofthetransposed Balance Sheets ofRailway Undertakings at31®12.1978
Balance sheets adjusted bysubtracting accumulated losses from oradding accumulated profits tothe liabilities side
Percent
NIR (1) DSB NS BRB SNCF DB SNCB CFL CIE FS EEC .(2)
% ± % % % ± % + % + % ± % + % í % + % +
Assets
Fixed assets 91,6 90,2 87,9 83,5 84,0 91,7 80,6 60,6 57,7 75,5 86,1
+0,1-+5,1 +13,2 +4,6 +1,8 +3,8 +38,3 +16,0
Current assets :
Realizable Eissets 9,2 9,4 11,1 16,0 15,4 5,7 18,3 38,9 39,8 18,1 11,6
– -+0,9 +0,8 +1,1 +1,1 +2,6 +9,2 +2,1
Bank balance and cash (0,8 ) 0,4 1,0 0,5 0,6 2,6 1,1 0,5 2,5 6,4 2,3
–– -+0,3-+0,2 +3,2 +0,5
Accumulated results- - - - - - _ _ _
(losses ) -0,1–-6,0 -14,3 "5,7 -2,9 -6,6 -50,7 -18,6
Liabilities
Capital andReserves 91,9 93,1 54,0 58,0ì<3) 34,9 Ì(3) 57,4 1(3 ) 56,3 (3)
+0,1 +1,9Γ''-,„-9,3 81,9 "1,3 >62,3 +28,6 S¿5,9
Long term loans 0,4-36,1 22,7J-1'358,8-0,125,3-2,521,6"2,6
–-+8,4/+0,8J-39,8)
Current liabilities 7,7 6,9 9,9 19,3 21,6 6,3 18,1 17,3 37,7 22,1 14,1
-+1,3 +0,9 +1,1 +0,5 +2,5 +11,2 +2,6
Accumulated results- - - _ _ _
(profits ) -0,1 -1,9– --1,0- - - -
Foreach undertaking ,figures intheright hand column show thedifference with respect tothe1978 data in
table 13«Nochanges forDSB andNS0
(1)at2.4.1979
(2)allundertakings
(3)There arenoindications astothebalance sheet items from which losses should toededucted .

Table16
Structure ofthetransposed "ProfitandLossAccount"
ofRailwayUndertakings fortheyear1978
STRUCTURE OPEXPENSES ^ '–––––– - Percent
CFL DSB(1)ιNS SNCB CIE DB SNCF BRB NIR(2).FSEEC(3)
Staffoosts 78,6 61,5 i60,0 59,2 58,9 58,0 57,1 56,6 56,0 «7,3 56,6
Materials/3rdparty
service7,5 24,0 20,5 23,9 28,6 26,9 26,0 35,9 «33,8 28,2 27,3
Depreciation and
provision9,9 5,0 17,9 10,7 6,2 5,6 9,3 >4,7 9,8 12,7 8,0
Taxesanddues 1'°- 0,3 2,9 0,3 '1,3■- 0,4 1,8 0,7
Financial charges « 3,0 9,5 1'34,9 3,1 7,9 5,2 2,5-10,0 6,6
Exceptional losses-· - - -0,3-1.,3 1,1(4)- - -0,8
Profitofthefinancial
vear- - 1,3 .-·- 0,3- - -
Changes (percentage differentials )ascompared with
Staffcosts +0,4-0,1 +1,0 +0,2-0,1-1,0-3,0-1,4-+18,6-0,9
Materials/3rdparty
service-0,2-0,4-0,1-1,4 +1,3 +0,1-°'7+0,4-23,3-1,3
Depreciation and
provision- +0,1-0,7.-0,5-0,4-0,2 +2,8 +2,5 +4,7 +3,5
Taxesanddues- - --0,5 - - - +0,4-0,2
Financial charges -0,2 +0,4-0,2 <+0,4-0,3 --0,1-0,1-0,1-1,1
Exceptional losses- -'-■+1,1 +1,0-0,2- -J
Profitofthefinancial
year-.- -+1,3- -1,2-0,3--
(1)1«4»1978to31«12.1978 _(3)allundertakings
(2)2.4*1978to1.4.1979 (4)Specialallocation toreservesincluded.

^irure B
RAILWAY UNDERTAKINGS
Structure ofthetransposed ProfitandLossAccountfor1^78(inr)
100
80
60
40
20
0
0
20
40
60
80
100CFL DSB (1) NS SNCB CIE DB SNCF BRB NIR (?) FS EEC(3) Legend
tassa
(l)1.4.1978-31.12.1978SIv.;-••cv«Ui£-l
(2)2.4.1978-1.4.1979 (3)Allundertaken gs
a)Staff
b)MaterialsArd partyservices
c)Depreciation
d)Financial chargesand.sundry
e)Profitsf)Losses
g)Staterevenues
h)Financial revenues andsundry
i)Trafficrevenue,goods
j)Trafficrevenue,passengersc
H
A
fi
V
-y-y//G
E
S
t-v:vv
R
E
V
E
S
u
E
3'2^2,
V.va)
b)
c)
H.)
e)
q)
h)
i)
M

Structure ofthetransposed "Profit and Loss Account "
ofRailway Undertakings fortheyear 1978Table 17
STRUCTURE OFEXPENSES
Retirement andpension charges normalized (5)Percent
CFL DSB (1) NS SNCB CIE DB SNCF BR8 NIR (2) FS EEC (3)
Staff costs 70,5 61,5 60,0 52,0 58,1 53,3 57,1 56,6 56,0 46,6 ,54,2
4aterials /3rdparty -
service10,4 24,0 20,5 28,1 29,2 29,9 26,0 35,9 33,8 28,6 28,9
Depreciation and
provision13,5 5,0 17,9 12,6 6,3 6,3 9,3 4,7 9,8 12,8 8,4
Faxes and dues 1,3- ·. 0,3- · 3,0 0,3 1,3-•0,4 1,9 0,7
financial charges 4,2 9,5 1,3 5,7 3,1 8,7 5,2 2,5-10,1 6,9
Exceptional losses 0,1- -0,1 0,3 1,5 1,1 (4)- - -0,9
Profit ofthe financial
year- ' - -1,5 - . - - '0,3 ■- ,- -
■ -Changes (percentage differentials )ascompared with Table 16
Staff costs -8,*! -7,2 -0,8 -A,7 -0,7 -2,4
Materials /3rdparty +2,9 +4,2 +0,6 +3,0 +0,4 +1,6
Depreciation and
provision+3,6 +1,9 +0,1 +0,7 +0,1 +0,4
Taxes and dues +0,3-+0,1-+0,1■ -
Financial charges +1,2 +0,8■ -+0,8 +0,1 +0,3
Exceptional losses +0,11+0,1 .- +0,2 -+0,1
Profit ofthe financial
year-+0,2- -- -■
(l)1»4#1978 to31#12.1978 (4)Special allocation toreserves included »
(2)2«4»1978 to1«4*1979 (5)Compensations forretirement ,pension andsocial charges under Regulation
(3)aLlundertakings 1192/69havebeendeducted fromItem 60.

Structure ofthetransposed "ProfitandLOBSAccount"
ofRailwayUndertakings fortheyear1978Table18
STRUCTURE OPREVENUES
~~~ ~ " Percent
* Revenues CFL DSB(1)NS SNCB CIE DB SNCF BRB NIR(2)FS EEC(3)
sPassenger traffic 3,9 37,5 34,9 11,5 47,7 15,4 23,0 •42,2 35,4 17,9 21,5
S
sGoodstraffic 2ó,4 24,6 13,3 17,6 17,8 31,2 32,2 26,4 18,5 11,6 26,8
1Postaltraffic- 1,9 1,7 0,7 0,8 1,4 1,0 1,8 0,2 0,1 1,1
1Totaltraffic
:30,3 64,0 49,9 29,8 66,3 48,0 56,2 70,4 54,1 29,6 49,4
sFinancial revenue 1,0 0,3 1,1 0,4- 0,5 0,9-0,4 0,5 0,5
:Otherrevenue
t1,6 11,1 3,2 9,2 6,8 5,1 5,2 7,2 9,2 3,0 5,4
Staterevenues t
1-1191/69 29,5 17,3 37,8 25,7 10,5 11,1 10,1 21,7 29,9 16,4 .14,7
1-II92/69 31,7 1,2 2,0 18,6 2,2 13,4 1'20,6 0,5 10,1 8'5 :
!-1107/70 4,6 6,1-14,7 6,1 0,4 8,5 0,1- - 3,3 «
•-others
t- - - - 0,1 4,1 3,6- 5,5-2,5«
t-Balancing
:subsidy
1- - 5,9- 7,9- 7,0- - 3,32,3i
sTotalStaterevenues 65,8 24,6 45,7 59,0 26,8 29,0 30,4 22,4 35,9 29,831,3 ;
*Exceptional profits
'Lossforthefinancial
'year0,2
1,1- 0,11,6
0,10,1
17,34.1
3.2•
0,41,4
35,71,3;
12,1 :
(1)1.4.1978to31.12=1978
(2)2.4.1978to1.4.1979
(3)allundertakings

Structure ofthetransposed "Profit andLoss Account "
ofRailway Undertakings fortheyear 1978Table 19
STRUCTURE OPREVENUES
Retirement andpension charges normalized (4)
Percent
* Revenues CFL DSB (1) NS SNCB CIE DB SNCF BRB NIR (2) FS jEEC (3)
1Passenger traffic
tGoods traffic
1Postal traffic5,4
36,337.5
24.6
1,934,9
13,3
.1,714,0
21,3
0,848,6
.18,2
0,817,5
35,4
1,523,0
32,2
.1,042,2
26,4
1,835.4
18.5
0,218,2 I22,8
11,8 I28,4
'0,1 I 1,2
*Total traffic
t41,7 64,0 49,9 36,1 67,6 54,4 56,2 70,4 54,1· 30,1 52,4
*Financial revenue
1Other revenue1,3
2,20,3
11,1 -,1'1
3'20,5
11,1 7,00,5
5,8 .0,9
.5,2,7'2,0,4 ,
9,20,6
3,00,6
5,7
1State revenue t
,-1191/69
1-1192/69
\-IIO7/7O
1-others
ι-Balancing subsidy40,5
6,1
6,4.17,3
1,2
6,137,8
2,0
5,931,1
1,4
17,810,7
0,2
6,2
0,1
8,112,7
1,8
0,5
4,610,1
■1,2
8,5-
3,6 .
7,021,7
•0,6
0,129,9
0,5 ,
5,516,6
8,6
3,415,6
2,8
3,5
.2,6
2,5
*Total State revenues
»53,0 24,6 45,7 50,3 , 25,3 19,6 30,4 22,4 35,9 28,6 27,0
*Exceptional profits
1Loss forthefinancial
1year0,3
1,5 0,12,0
0,10,1
19,6.4,1
3,2- 0,4Ί'4
36,31,4
12,9
(1)1.4.1978 to31.12.1978 (3)allundertak ings
(2)2.4.1978 to1«4«1979 (4)Compensations forretirement ,pension andsocial charges under Regulation
II92/69have been deducted from Item 60* '

Structure ofthe transposed "Profit and Loss Account "
ofRailway Undertakings fortheyear 1978Table 20
STRUCTURE OFREVENUES :CHANGES INPERCENTAGE DIFFERENTIALS
* Revenues CFL . DSB NS SNCB CIE DB ;SNCF IBRB NIR:FS i EEC
t a)Original data (Tabi e18)compared with 1977
Traffic revenue +2,2 +3,8 +0,4 -1,8 -0,3 +0,1 -0,1 -0,6 -5,1 +0,1 i
Financial and .other
revenue
t+0,5 +1,3 +0,2 +1,7 +0,7 -0,4 -0,7 +0,2 +5,7-0,8 I
sState revenue -2,5 -5,1 -0,7 -1,3 -0,1 +0,7 -3,3 +0,4 :-0,5-4/3 I
sExceptional profita +0,2- - +1,4--0,1 +3,9--0,5 +0,2 !
1Loss for "the
1financial year-0,4-+0,1--0,3 -0,3 +0,2-+0,4 +4,8 I
:
:b)Normalized data (table 19)compared with original data (tabi e18)
*Traffic revenue
<+11,4 +6,3 +1,3 +6,4 +0,5 I+3,0
*Financial and other
*revenue+0,9 +2,0 +0,2 +0,7 +0,1 i +0,4
,State revenue -12,8 1) 1) -8,7 -1,5 -9,4 1) 1) 1) -1.2 !-4,3
X
,Exceptional profits +0,1 +0,4 ,- - _ « +0,1
*Lose for the
1financial year
:+0,4- -+2,3 +0,6 j +0,8
(l)Original data *normalized data#
ι
ON

RailwayUndertakings'
AnalysisofBalanceSheetcomponents at31.12.1978Table21
a Β ._■Ratios Α/Β "
CFL CIE FS'DSB NS DB SNCB NIR ΒRB SNCF EEC<1)
ï1;Capitaland
"reserves >a)Longtermloans
b)2,27_782,60-1,500,590,97208y2,552,05-
12)Capital,reserves
andlongtermloans
;3>id.Fixedassets
c)
Fixedassetsand
stocks1,361,081,031,031,021,021,021,010,970,931,00
1,180,840,940,990,991,000,930,990,890,900,96
"4)Current .assets
;including stocks e)
15)Currentassets
Iexcluding stocks g)Currentliabilities
f)
Currentliabilities2,281,12 1,111,431,221,321,081,090,850,740,99
1,740,670,760,80 .0,881,030,670,910,470,610,73
*6)Workingcapital
'7)Workingcapital
; , h)(inmillions of
national currency
orEUA)
id..10443,5 176*233 108 1094 1295 150**-61,4 .-4188-94
607-9,3-388*-109-60 94-5672-148**-220,4-6379-1942
(l)Allundertakingsa)Items00to04afterdeductionofitems06.1and07.1oradditionofitems06.1and07.1,exceptPS.
b)Item05.ForFS,item05afterdeduction ofitems06.1and07.1.
c)Items10to17-
d)Items10to17and20to21»
e)Items20-21.30,41,42,43,45to48.
f)Items30,40and44.
g)Items30,41,42,43»45"to48:
h)Adjustment :stocksincludedinfixedassetvalues.
*In000million LIT.
**Inthousands ofUKL. ~~ * ,

Table22
RailwayUndertakings
Coverage ofexpenses byrevenue
Percent
• Degreeofcoverage
BRB CIE
]ofexpenses "byrevenueDSB NIR SNCF NS DB FS SNCB CFLEEC(8):
A.forstaff (1)fromtraffic (2) 106 70 55 43 3979:
125 104 97 95 76
!id. (3) id. (2) 109 85 57 58 59 87;
B.forstaff (1)fromtraffic and(4) 126 106 105 107 116116:
compensations 164 134 151 114 136
!id. (á) id. (5) 127 108 105 110 125117;
C.forstafff fromtraffic (2)
1materials and 71 48 35 31 35 53*
services (6) 76 75 60 66 56
" id. (7) id. (2) 73 55 35 38 52"57;
"0.forstaff, fromtraffic and
materials and compensations 85 73 66 77 106 78*
services (6) (4)100 97 94 79 101
id. (7) id. (5) 84 69 65 71 109 76;
(1)Item60.
(2)Item70.
(3)Item60afterdeducting compensations forretirement ,pensionandsocialcosts
(Regulation 1192/69)»
(4)Items70+74*0+74*1»
(5)Items70+74.0+74.Iafterdeducting compensations referredtoin(3)*
(6)Items60and61.
(7)Items60and61afterdeducting compensations referredtoin(3)#
(8)Allundertakings .O0

PAKT THREE
\
Conclusions and further work

-120-
Conclusions and.further work
1.Theconclusions tobedrawnfrom "thissecondreportconcernessentially
thefollowing :
-acritical examination oftheworkaccomplished withthehelpofthe
Advisory Committee ;
-theimproved comparability notedascompared with1977;
-theremaining comparability problems toberesolved andthesolutions
envisaged ;
-theeffectofthetransposition ofaccounts onthefinancial relationships
betweentheStatesandrailwayundertakings .
2oItshouldbestatedatoncethattheAdvisory Committee 'sexamination
oftheproblems facedbytheCommission indrawing upthe1977reportyielded
verypositiveresults.Thecontentoftheexplanatory notesonthetransposed
accounts greatly improved ,butitwasfoundusefultoaddsomecomments onthe
methods oftransposition fromtheannualreports.
THEBALANCE SHEET
3.Inaddition tothisimprovement anattempt wasmadetoeliminate the
consequences ofdifferences inthetreatment oflossesorprofits (point4)
bypresenting additional Tables14and15.Thisenableseachelementofthe
balancesheet,expressed asapercentage ,tobeassigneditstruerelative
importance .
4.Furtheranalysisisrequired ofthequestion whethercertainstocks
whicharedifficult tosellofforwhichhavethenatureoffixedassets
needtobeclassified asfixedassets.ItwasagreedwiththeAdvisory
Committee thatpendingtheresultsofthi3analysis ,abalancesheet
structure shouldbepresented inwhichstocksareaddedtofixedassets.
Thispresentation (seepoints13and34andTable21)showsthateight
undertakings wouldhavenegative networkingcapital ,whichunderlines the
railways' acutecashdifficulties .

-121-
PROFIT AFDLOSSACCOUNT
5.Thediversity oftheretirement andpensionsystemshighlighted inthe
1977reportledtoanormalized presentation oftheprofitandlossaccount
inTables17and19»asdiscussed inpoints5and22.Itenablesthepercentages
ofstaffcostsintotalexpenses tobemademorecomparable andtonarrow
considerably therangeofsuchpercentages .
6.Thebreakdown oftraffic revenueintoitsvarious subsections isstill
incomplete .ItwasagreedwiththeAdvisory Committee thatsuchbreak­
downscouldbeobtained fromsources outside theaccounts .
PROBLEMS TOBESOLVED .
7.Themajordifferences inbookingfixedassetsandtheirdepreciation
alreadypointedoutinthe1977reportpersist.Itwastherefore decided
duringanAdvisory Committee meetingtoanalyseindepththesystemsoperated
inordertofindoutifitwerefeasibletoalignthemandifsubsequent
harmonization werepossible .Itisimportant toavoidthatchangesofthe
typeintroduced byoneundertaking in1979°rplannedbyothers,further
increase existingdisparities ..
8.Bookingoflong-term borrowings andloanswhichmaturewithinone.year
alsodiffers.Itshouldbeeasytoadoptauniformpractice forthetransposed
accounts ,sincetheamountsinquestion canbeascertained bymeansofthe
amortization scheduleso
9„'Althoughtheproblemsinvolvedintreatinglosseshavebeenpartly
solvedatbalancesheetleveltheprofitandlossaccountsstillshowup
manyandcomplexdifferences .Thusinonecasethebalancing subsidy
relating toapreviousfinancial yearistreatedasexceptional profits,
whereasanotherisbookedtocompensations duetoalack(?fnormalization
inthepast.Balancing subsidies forthecarriage ofgoodsarealsotreated

-122-
differently andsomepayments bytheStatesgodirectly intothe'balance
sheet.Ithastherefore beenagreedwiththeAdvisory Committee thatharmonized
rulesfortransposition aretobesoughtwithoutinterfering withthefinancial
relationships existing betweenStatesandrailways .
10.Differences werenotedwithregardtotherecovery ofVATinthe
passenger transport sector.Itismainlyaquestion ofanalysing theeffects
oftheprinciples practiced ontherelative importance oftaxesanddues
intotalexpenses .
11.Theeffects ofthenon-use ofItem73–contraofcostsbookedtoother
accounts-onstaffcostsandonthecostofmaterials andservices supplied
bythirdpartiesistobeexamined .
THEEFFECTS OFTRANSPOSITION ONTHEFINANCIAL RELATIONSHIPS BETWEEN STATES
ANDRAILWAY UNDERTAKINGS
12.Certainviewshavebeenexpressed thatthe1977reportaspresented had
onlylimitedvalue.Thisisbecausethetransposed accounts donotalways
covercomparable situations andbecausetheimprovements incomparability as
discussed abovewouldstillbeincomplete .
Inaddition totheseproblems thereareotherquestions ,possibly
beyondthedirectscopeofRegulation 2830/77butwhichdoubtless areinthe
mindofbothgovernment bodiesandrailways inregardtotheirfinancial
relationships .
13.Forexamplethisconcerns information ontheoriginanduseofcompany
funds,oronthecovering ofcommonexpenditures orofoverheads forvarious
sectorsofactivity .Itwouldalsobeusefultoascertain thefinancial
implications ofthefactthatownership ofinfrastructures doesnotalways
liewiththerailways .
Thesevariouspointswillbeplacedontheagendaofthenextmeeting
oftheAdvisory Committee »
14°Itisclearthatthiswillbeacomplex,long-term taskforthe
Commission andtheAdvisory Committee .Inundertaking it,everything will
bedonefirsttoexploittothefullthepossibilities oftransposition
provided bytheRegulation initscurrent foruioMoreover andinorderto
allaycertainfearsexpressed ,theCommission doesnotintendtosetupa
parallel accounting systemtothatmaintained bytherailways.Onthecontrary
theaimistoseekgreateraccounting harmonization ,whichonthelongrun
couldcallforcertainadjustments totheregulations inlinewiththe
development ofamoregeneralaccounting system.