ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79)660
Vol.1979/0224

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)660 final
Brussels,26thNovember1979
FIRST
COMMISSION REPORTTOTHECOUNCIL
ONTHETRANSPOSED ANNUALACCOUNTS OF
RAILWAYUNDERTAKINGS
1977
'/
COM(79)660final

•_ CONTENTS
'Pages
INTRODUCTION .® 1-3
ν
PARTONE
COMMUNICATIONS BYTHE.RAILWAY UNDERTAKINGS A
1 /
Transposed balancesheetsandprofitandlossaccounts ,
withexplanatory notes
-Sociéténationale descheminsdefer"beiges/ 5-18
Nationale Maatschappij derBelgische Spoorwegen
-DanskeStatsbaner 19-24
-Deutsche Bundesbahn 25-33
-Sooiéténationale descheminsdeferfrançais 34-41-
-CorasIompairEireann 42-47
-AziendaautonomadelleferroviedelloStato 48-51
-Sociéténationale descheminsdeferluxembourgeois 52-58
-NaamlozeVennootschap Nederlandse Spoorwegen ',59-75
--BritishRailways Board , 7^-.91
-Northern IrelandRailways CompanyLtd 92-100
PARTTWO , ■
STRUCTURE OPTHETRANSPOSED ANNUAL ACCOUNTS \ 101-114
PARTTHREE '
CONCLUSIONS ANDPURTHER WORK
ADDEtïDUM115-118
119-120

KEYTOABBREVIATIONS AND-SIGNSUSED
-Zero
0Verysmallfigure(generally less-thanhalfthelastunitordecimal
placeinthefigurefortheitem)
0Figurenotavailable
000Thousands
mioMillions
mrdMilliards (thousandmillion)
SNCB/Sociéténationale descheminsdeferbelges/
NKBSNationale Maatschappij derBelgische Spoorwegen
DSBDanskeStatsbaner
DBDeutsche Bundesbahn
SNCFSociéténationale descheminsdeferfrançais
CIECorasIompairEireann
FSAzienda autonoma delleferrovie delloStato
CFLSociéténationale descheminsdeferluxembourgeois
NSNaamloze Vennootschap Nederlandse Spoorwegen
BRBBritishRailways Board
NIRNorthern IrelandRailways CompanyLtd
BFRBelgianfrancs
DKRDanishkroner
DMGermanmarks
FFFrenchfrancs
LITItalianlire
LFRLuxembourg francs
KFLDutchguilders
UKLPoundssterling
IRLIrishpounds

INTRODUCTION
Background and aims
1. Theconcept ofcomparability "between theaccounts oftheCommunity 's
railway undertakings originates intheCouncil Decision of20May1975 (l)on '
theimprovement ofthesituation oftherailway undertakings andtheharmoni­
zation ofrules governing financial relations between such undertakings and
theStates ;pursuant toArticle 8(2)ofthis decision :theaimshould be
"toachieve comparability between theaccounting systems andannual accounts
ofallrailway undertakings ".
2. These general provisions were given specific form inCouncil Regulation
(EEC)N°2836/77of12December 1977 onthemeasures necessary toachieve com­
parability between theaccounting systems andannual accounts ofrailway under­
takings bymeans oftransposing thebalance sheets andprofit andloss accounts
inaccordance with standard layouts prescribed "bytheRegulation .
3. Within this framework comparability isnotregarded asanendinitself ,-
but asacontribution towards thepolicy ofimprovement andharmonization
referred toabove which aims particularly at : •
-improving transparency with regard tofinancial assistance provided
bythe State
--encouraging management inaccordance with economic principles ,and
-clarifying thetrue financial situation oftherailways .
Summary report
4
4* Sinfce ,pursuant toRegulation n®2830/77»"theCommission must submit a
synopsis totheCouncil ,this first report hasbeen drawn upontheresults
for1977 *This report has ,however ,been subject tosome delay because :
-some communications were received late ;.
-thetask isnewandrelatively complex ;
-theCommittee setupunder Article 6hastobeconsulted toclarify
anumber ofgeneral "andspecific questions .
(1)OJN®L152of12June 1975
(2)OJN°L334of24Deoember 1977

5. Tables 1to10inPart oneofthereport show thetransposed ,balance
sheets andprofit andloss accounts ,accompanied ineach case byexplanatory
notes *InPart twothere are some summary tables with comments which permit
afirst comparison .Conclusions and suggestions forfurther work are given
inthethird and final part .
6. Thetransposed balance sheets andprofit and loss accounts oftheten
railways areshown inaccordance with the layout required bytheRegulation .
Tomake thereport easier toread ,figures -with fewexceptions -are given
inmillions ofunits ofnational currency .
Problems arising inthe process oftranspos itio n
7. TheRegulation provides that thetransposed accounts shall beaccom­
panied byexplanatoiy notes indicating inparticular :
-deviations from thenomenclature arising indrawing upthetransposed
accounts ,aswell asthereasons for such ,deviations andtheir possible
repercussions onthecomparability ofthetransposed accounts ;
-themethods ofevaluation used foritems thevalue ofwhich isestimated ,
such asdepreciation ,work inprogress and fixed assets ,
8. Asinsome cases thedetail provided intheexplanatory notes was in­
sufficient ,itwasthought useful tocompare thetransposed accounts with the
annual accounts published bytherailways .Inthis way itwaspossible at
l<east partially toreconstruct thetransposed balance sheets from the annual
accounts® Itproved mire difficult tomake this type ofcomparison forthe
profit and loss accounts since the structure ofthepublished annual accounts
ofthevarious railways are quite different from the model provided inthe
Regulation .Inorder toprovide anidea oftheproblems invloved this first
report gives full information onallmatters relevant totheprocess oftrans­
position from the annual accounts .
9. Moreover ,toenable thereader toappreciate the extent towhich such
figures asthose forfixed assets canbecompared ,extensive notes areprovided
onthemethods used toobtain thefigures .Obviously some ofthese fairly long

commentaries will bereduced infuture :_itwould bepointless ,forinstance ,
torepeat theexplanation ondepreciation methods .
10. Thefinancial assistance given bytheGovernments occupies animportant
part inthis report .Astheinformation inthis paper may'differ from information
inother sources ,theexplanatory notes include abreakdown pftherelevant
items intheprofit andloss account andmention certain subsidies taken up
directly inthebalance sheets ,which donottherefore appear intheprofit
and loss account . .' * ■
%
Afirst comparison . (
11. Three summary tables were prepared toallow apreliminary analysis of
comparability between ,thetransposed accounts .InTables 11and 12,per­
centages and .diagrams areused tobring outthe structures oftheaccounts .
Thecomments ontheTables Btate how farvalid comparisons between the rail­
ways canbemade atthis stage .
12. Table 13gives twocomparisons forthese undertakings ,onebetween long -
term .capital andnet fixed assets ,theother between current assets and short -
term liabilities .These comparisons show how farthemanagement ofrailways
differs from that ofindustrial andcommercial undertakings .
The future ' ' *
t
13. Theconclusions ofthis first report mainly coneern thefarther work
oftheAdvisory Committee ,inwhich theaimwill betomake thetransposed
accounts more comparable andtoprogress towards greater harmonization between
theaccounting systems oftherailway undertakings .
/

PARTONE
COMMUNICATIONS MADEBYTHERAILWAY UNDERTAKINGS
Transposed balancesheetsandprofitandlossaccounts
with
explanatory notes

SociétéNationale descheminsdefer"belges(SNCB;
•t " •
Nationale Maatschappij derBelgische Spoorwegen (NMBS)

BALANCE SHEET Table 1a
At31.12.1977
Undertakin^•SNCB/NHBS •Millions ofBrft
ASSETS LIABILITIES
101IC-TERM ASSETS
Piledassets(Vet) "
10Landandfiiedinstallations
11Transpart stock'andequipment
12Otherstockandequipment
13Fisedassetsunderconstruction
Otherfixedassets
14Shareholdings inotherundertakings
15Long-term loans
16Costoffloating loansandloanredemption
premiums
17Miscellaneous fixedassets
Sub-total
CURRENT ASSETS
Stocks
20-21(instoreorbeingmanufactured )
Realizable assets
30Debtors
41Leansrepayable withinoneyear
42Billereceivablô
45Seourities
Sankbalances andcash
43-40-47-49Chequesinhand,postalcheque
accounts ,bankaccounts ,cash,
inhand
Sub-total
Reaults
06.1Lossesforprevious financial years
07-1Lossforthefinancial year
Assets :Total34103
12701
2187
6775
M.
430
13411
8732
740
587
4666
112455766
14229
iî.m
6541
9472
587
16600
•i790Capital andreaervea
00Capital
01Reserves
02Contribution toinvestment costs
03Provisions
04Pundsforetaff
05Long-tern financial debts
-debentures
-Stateloans
-otherfinancial debts
Sub-total
Currentllabllltlea
31Creditors
40Financial debtsoflessthanone-year term
44Billspayable
Sub-total
Results
06.0Profitsforpreviousfinancial years
07.0Profitforthefinancial year
Liabilities :Total11000
1673
29010
3782
4592
11872
3169
115»12673
24646
766
717
37JB4
76186
16199 ■

PROFIT ANDLOSSACCOUNT TabLe1b
I.GENERAL OPERATION
Undertakings sSNCB/NMB3Millions ofBFHTsar:1977
EXPENSES REVENUE
60.StaffCosta
61*Material suppll-ed andservices performed by
thirdparties
62*Taxesandduea
63*Allocations fordepreciation
64*'Allocations toprovision accounts
65•Financial charges' v43879
18811
33
83?0
3r38270*.Traffic revenue
0.Passenger andluggagetraffic
•)byrail
blbyroad
c)byothermeansoftransport
1«Goodstraffic
a)byrail s
i)fulltrainsandwagonloads
-national traffic
-international traffic
ii)partloadsandparcels
-national traffic
-international traffic
b]byroad
c)byothermeansoftransport
2.Postaltraffic
„.' Sub-total
71*Finanolal revenue
72.Otherrevenue
73.Contraofcostsbookedtootheraccounts
74*CoDpenaations andaidsreceived under
0.Regulation (EEC)H*1191/69
1.Regulation (EEC)N*1192/69
2.Regulation (EEC)M*1107/70,Article3
3*Othercompensations andaids
Sub-total:7243
459
11969
9327
2797
6530-
2642
2103
539
5
17636
12198
84917702
Il974
416
20092
328
4690
9765
38325
Totalexpenses 74425 Totalrevenue 73200
91*0Operating profitforthefinancial year 91*1Operating lossforthefinancial year 1225
II.PROFIT ANDLOSSSUMMARY
91.1Operating loseforthefinancial year
91*3Exceptional losses
91-4Corporation tax
91.6Profitforthefinancial year1225 !91*0Operatingprofitforthefinancial year
j91*2Exceptional profits
1|91*5Balancing subsidy
1-Article4ofRegulation (EEC)Nf1107/70
j-Other ,
j91*7Lossforthefinancial year101
1124

SNCB:FINANCIAL YEAR1977
EXPLANATORY NOTES
BALANCE SHEET
1.FixedAssets(items10-13
Thefixedassetsinthebalancesheetarethoseacquired since1stSep­
tember1926,thedatewhentheSNCBwasfounded ;thefixedassetscontributed
bytheStateatthattimearenotshowninthebalancesheet.
Thefixedassetsarerecorded inthebalancesheetattheirpurchase
value.Theirreplacement isensured bymeansofthe"replacement fund"as
described inpoint10.1,pages10and11.
2.Long-term loans(item15)
Thewholeofitem15represents long-term loansgiventoothervoider-
takingsinwhichtheSNCBhasashareholding .Thedetailsofhowthe
BFR64millionsisdistributed betweenthetwosubsidiaries involvedisgiven
inAnnex5"to"theAnnualReport(item2).
3.Miscellaneous fixedassets(item17)
Thisitemconcerns :
-therailwayoperating concession datingfrom1926(BFR11000mio);
-"wardamage"expenditure currently undernegotiation withtheBelgianState
inordertodeletethemfromtheSNCBbalancesheet(BFR2410Mio).
4.Stocks(items20and2l)
Thestocksareenteredatweighted averageprices.

5.Reserves (itemOl) °
SiJCB isobliged bylawtoredeem in75years loans raised tofinance
initial expenses andadditions tosupply stocks .Each year anallocation
isincluded infinancial charges inorder tomake upthe "loan redemption
fund ". -. "
-^ •
At31December 1977 "this fund hadaoredit balance ofEFR1672mio). •
6.Provisions (item 03)
This item includes inparticular :
-the "replacement fund "mentioned initem 1andintended tocater forfuture
renewal expenditures forthewhole oftherailway 'sfixed assets ,both those
contributed bytheState in1926 andthose acquired since \y
-aprovision forexchange losses relating toforeign loans (basically inSwiss
Francs andDM)entered into with Eurofima . '^
7.Funds for .staff (item 04) -
SNCB ,being itsowninsurer foraccidents atwork ,hasestablished a
fund maintained byactuarial reserves charged tothesocial insurance con­
tributions' account andintended topay forstaff annuities . .
8.Long-term financial debts (item 05)
Theli&ilities vis-a-visundertakings inwhich the STTCB hasacapital
holding amount toBFR2073mio.Thecompany concerned isEurofima S.A.

PROFIT ANDIDSSACCOUNT
9.Taxesanddues(item62)
Thefollowing arecharged ,tothisitem:
-valueaddedtaxonthevalueofinvestment goodsacquired underStatesuper-r
visionandnotdeductible undertheVATcode;
-valueaddedtaxonfreedrinksandfoodservedatbuffets ;
-taxonfixedassetsrentedbytheSNCBtothirdpartiesforpurposes
bearing norelation torailwayoperations ;
-roadtaxonvehicles ownedbytheSNCBandusedforroadtransport ;
-varioustaxesrelatingtothesaleofdrinks(buffets)}
-registration fees,stampdutyandcourtregistry dues.
10.Allocations fordepreciation (item63)andtoprovision accounts (item64)
10.1Currentposition
Inaccordance withArticle 42ofitsStatute ,theSNCBtransfers money
fromtheoperating accounttothereplacement fundwhichpaysfortherenewal
ofinstallations andequipment .Inprinciple theamountiscalculated using
formulae agreedbetweenMinister responsible fortherailways andtheRail­
waysBoardtocovernormalindustrial depreciation oftrack,equipment ,tools,
buildings andstructures .

-11-
Howtheallocation iscalculated _
Inpraoticethefollowing formulaisusedtocalculate thesumtobe
transferred eachyearpercategoryofequipment :
Replacement cost-residual valueAnnualallocation =–r––––––:–Estimated usefullife •
Thereplacement oostor-currentcostisthesameAstheprobable estimated
averagevalueforthefinancial year.Toobtainthiscost,thebasistaken
inthemostrecentcontracts afterapplying anindexortheinventory of
property ownedbytheStateat31December 1972,appropriately indexed.
b ■ ' . »
Theresidualvalueisfixedbythetechnical departments .Theuseful
lifeisobtained fromestimates ,basedonexperience andinformation from
othernetworks (seeannexedtable).
Astheallocation providedforrenewals (isbasedonthereplacement
value,itistheoperating accountwhichdirectly bearstheconsequences of
thefallinthevalueofmoneysinceitisthesourceoffinanceforthe
replacement fund. * -
> -
Characteristics ofStTCBfixedassets .
Thesystemknownasthereplacement funddoesnotpermitentryinthe
balancesheetofthedepreciation amountdeducted fromthecorresponding
fixedassets.
Theseassetsalsohavethefollowing characteristics :
-thebalancesheetincludesonlythoseassetsacquiredsince1926,theyear
theSNCBwasfounded ;' '
-hencetheassetscontributed bytheStatein1926donotappearinthe
balancesheet;
-theassetscontributed since1926includeboththoRefinanced bytherail­
waycompanyandthosefinanced bytheState;thelatteraresetoffby
item02ontheliabilities sideofthebalanceshet'■(contribution to
investment costs:
./•

):?.■■
-whenanassetcontributed bytheStateisreplaced ,byanidentical asset,
thereplacement costthereofisbornebythereplacement fund;
-whenanassetcontributed bytheStateisreplaced byanotherasset,partof
whichrepresents e.g.anextension tothenetwork ,thevalueoftheextension
ischargedtofixedassets,whereasthevalueofthereplacement onlyis
chargedtothereplacement fund;
-whenanassetacquiredafter1926isreplaced byanidentical asset,thesum
onthebalancesheetremainsunchanged ;thereplacement costischargedto
thereplacement fund;
-whenanassetconstructed after1926iswithdrawn fromservice,thevalue
ischargedtothereplacement fundiftheassetwasoriginally financed by
theSNCB.
Financing renewals_
Becauseoftheexistence oftheoperating account ,theStatehasdecided
toreducethereplacement allocation .However ,asrenewals havetobemadein
anycase,ifonlyforreasonsofsafety,theStatehasauthorized theSNCBto
raisedebentures andtoborrowfromfinancial bodiessuchasEurofima .
Thecostofrenewalfinanced inthiswayisshownontheassetssideas
item17-miscellaneous assets.Thiscostisamortized bycharging thereplace­
mentfundataratefixedineachcasebythelawsauthorizing thedebentures
orbytherepayment oftheloanstothelendersinvolved.
10.2Application bytheSNCBoftheconventional depreciation method
Withaviewtoconforming totherequirements ofthenewBelgianaccounting
legislation theSNCBproposed totheMinistry ofCommunications thatArticle 42
oftheSNCBArticles ofAssociation shouldberevised soastoreplacethe
systemofreplacement allocations bytheconventional depreciation method.

TheSNCBhopestobeabletoapplytheconventional depreciation method
asfromthe1981financial year.Itwillbebasedohthefollowing rules:
-allfixedassetsoftherailway •undertakings including thosefinanced bythe
Statewillbeshowninthebalancesheet,theassetswillbevaluedat
purchase costlessthetotalamountwrittenoff;
-theallocation fordepreciation willbecalculated onthebasisofthepur­
chase(historic)costandtheestimatedusefullifeproposedintheannex;
-anydifference betweenthedepreciation calculated onhistoric costandthe
currentvalueoffixedassetsrequiring replacement willbecoveredby
borrowing andpossibly bydirectfinancial intervention bytheState.This
pointwillbesettledinanagreement tobenegotiated betweentheState
andtheSNCB;
-itshouldbenotedthat,inaccordance withBelgianaccounting law,any
capitalsubsidies received (aidtocoverinvestment costs)willbegradually
written downinaccordance withafixedscalebycharging themexplicitly
totheincomeaccounteitherasanallocation depreciation orafinancial
charge.
11.Trafficrevenue (item70)
Thesedatarepresent sumsextracted fromtheaccounts ;however ,certain
breakdowns aregivenbasedonstatistics such'asthedistribution ofpassenger
trafficreceipts betweenrailandroadtraffic,astheticketsarevalidfor
bothmodesoftransport .
»
-12.Otherrevenue (item72)
TheBFR351millionincludedinthetotalamountrepresents personnel
department receiptsi.e.:

-14~
mieBfh
-Canteensales 43
-Saleofuniforms ,etc. 13
-Variousservices rendered bytheSNCBtothehealth 280
careinsurance sheme
-Administrative servicerendered bytheSNCBtoONAFTS •15
(Officenational d*allocation familiales pourtra-
vailleurs salaries-nationalofficeforwageearners'
familyallowances )
351
13.Contraofcostsbookedtootheraccounts (item73)
Thesumenteredunderthisheadingincludes :
-workdoneinternally onfixedassets s
-newfixedassets 632
-renewals tobewritten down 933
-net'amountchargedtothereplacement fund 7*980
-netamountchargedtotheinsurance fund 220
9.765
Intheannualreportandaccounts thelasttwoitemsaregiventinder
theoperating expenses item,"Provisions forrisksandcharges"wherethey
arededucted fromtheallocation forthefundsconcerned .
14.Compensations andaids(item74)
Thebreakdown bynormalized itemsoftheBFR38325milliongiveninthe
AnnualReportismerelyprovisional atthisstage,asthedefinitive breakdown
canonlybeestablished whenthefinalbalanceisdrawnfollowing theclosing
oftheaccountsforthefinancial year.Annex2totheAnnualReportforthe
1978financial yeargivesthedefinitive amountsfor1977»Thesearethesums
givenunderitem74.
•TheEPR1926millioncompensation paidtothehealthcareinsurance sheme
isnotanaidbutenoptionalpayment (Regulation 1192/69)»Althoughnota

-15-
legalentityseparate from,theSWOB,thesocialwelfarefundisregardedas
independent oftheSNOBforaccounting purpose.
r
15.Exceptional profits(item91*2)
Theexceptional profitsofBFR100miobreakdownasfollows :
• mioBFR
Exceptional revenue
-re-entry ontheassetssideofthebalancesheetoffixed
assetspreviously regarded asamortized ,pursuant tonew
legalisation oncompanyaccounts "1 897
-exceptional paymentattheendofthefinancial yearof
deductible VAToninvestments - 100
1997
Exceptional charges
-reserves setupforthefirsttimeasaresultofnew
legalisation oncompanyaccounts 1804
-firstwritings-down ofcertainitemsontheassetsside
following newlegalisation 57
-exceptional depreciation ontheconcession fortheGhent-
Zelzaeteline 36
1897
Netresuitï 100

Lifetime and residual value offixed assets
: ITEMUseful .
LifeResidual
value
d!
15.
:LAND :> «
: 100 :
:STRUCTURES :«
:Buildings :
► •
• «
: Administrative premises :: 50 :: 0 :
Stations and halts 50 :! °
: Workshops and depots :: 50 :: 0 :
Various "buildings . : 50 : 0
Structures
• <9 ·
> ·
» •
Tunnels 102» •
;o
: Bridges :: 102 ;: 0 :
Footbridges ; 102 : 0 :
» •
i •
: Other structures :: .102 :: 0 :
:LAND WITH BUILDINGS :» 0
» •
:Buildings :
: -Administrative premises :: 50 :» »
: 0 :
Stations and halts : 50 : 0
: Workshops anddepots :: 50 :: 0 :
Various "buildings : 50 : 0
• ·
Structures
Tunnels 102 ; 0 !
: Bridges :: 102 :: 0 :
Footbridges 102 ; 0
: Other structures :: 102 :: 0 :
*TRACK INSTALLATIONS
: Infrastructure : 100 :
Main line s 26
t10
:Secondary line s : 40 :: 10 :
Enclosures and level crossings : 30 : o ;
:Hydraulic installations : 30 ::0 :
Station installations : 30 o ;
:Heating installations : 25 : 0 :
Other track installations ,excluding work­: 15 : 0 !

-17-
+ANNEX
: ITEMUseful :
LiferResidual :
value Î
* *
: s
sWOHKSHOP INSTALLATIONS ,EQUIPMENT ANDTOOLS :«
«
«
4
<
• '
r~^?Hfshop installations :20 : 5> :
Equipment 10
«10
» •
> •
:Tools i
*mm> –_ •
» – •
» •
• «
:FITTINGS s
ι ·» •
ι __ ·
• ■
:ELECTRICAL AND SIGNALLING INSTALLATIONS :
'*ι ·
k •
« •• •
• ' 4
:Signalling . !» •
» •
All-relay 'electrical signalling "boxes 20
»
»6
• •
: Other electrical signalling boxes :: 20 ' • U , •
« '
Automatic signalling 20
k
»• •6
• •
• m
: Protected level crossings: 22 : 0 . :
Level crossings with automatic signalling 22
■
■• •
0
• •
• •
Limiting andpower •• _ • •
• •
■ft.
• •
Transformer sub-stations 20
»• •6
• •
: High voltage lines : 20 6 ;•« U •
Limiting installations 20
»
»!6
• «• •
: Power installations : 20 •6• •U •
:Télécommunications
ι»
»'• •
• •
• •
: Telephone andtraffic control system
: installations , ":• 20
9 *• •
: 10 :
• •
• •
Telegraph installations*' '20 ! 10
• •
• •
Radiotelephone installations : 20ν : 10
Train timetable anddeparture indicators ' ,20 * 10 *
• •
• •
: Overhead lines and cables : 20 : 10 :
• •
• <
:Traction andcatenary sub-stations»
■• •
• •
• •
• ♦
• *
: Traction sub-stations ,power supply points :
: ewitohing andremote ,control stations :: 30t •
: 15 :
• •
• •
Catenary installations 30• •
: 15 :
• •
Internai transport equipment rmddépréciât io;isame astransport equip­
ment

-18-
: ITEMUseful
lifeResidual
value
*
:Transport equipment otnerthaninternal :
:Diesellocomotives andlight-rail motor :;30 :: 5 :
tractors
:Dieselrailcars ::24 :: 3 ■=
Electric locomotoves:35 ::5 :
:Electric railcars ::35 :: 3 :
Hauledpassenger coaches andbrake-vans 35 : 3
:HauledwagonsandDrake–vans ::40 :: 5 :
Containers ;10 10
:Roadtransport vehicles ;
Delivery vans(large :t : 10
:Delivery vans(small) :: 4 :: 10
Lorries 10 10
:Trailers ;: 10 :: 5 :
vSemi-trailers 10 5
:Tractors 7 10 :

•.-19-'
'-% ''
■■■' 'v,
DanskeStatsbaner (DSB)
/ (
- " .A ' .
– •• . * '

BALANCE Si!EST Tabla2a
At31.3.1978
Undertaking s.DSBMillions ofDKR
ASSETS LIABILITIES
LOMC-TERM ASSETS
Filedassets(Net)
10Landandfixedinstallât Ions
11Transport stockandequipmeftt
12Otherstockandequipment
13Fixedassetsunderconstruction
Otherfixedaaaeta' '
14Shareholdings Inotherundertakings
15lung-term loana
16Costoffloatingloansandloanredemption
premiums /1'
Sub-total17Miscellaneous fixedassets
CURRENT ASSETS
■ *y
Stocka "* ■.
20-21(Inatoraorbaingmanufactured )
Realizable aaaeta ■ ,
.30Debtors
41Loanarepayable withinoneyear
42Billsreceivable ■»
45Securities
Bankbalances andcash
43-46-47-48Chequesinhand,postal cheque
accounts,bankaocounts ,cash
inhand
9ub*total
4
Resulta
06.1Lossesforpreviousfinancial years
07.1Loseforthefinancial year
Assets:Total3777
2786
222
362
316785
6793
316
JL
710
7503
■■■■■■■Capital andreserves
00Capital
01Reserves
'02Contribution toinvestment costs
03Provisions -
04Fundsforstaff
05Long-tern financial debts
-debentures
-Stateloans
-otherfinancial debts
Sub-total
Currentliabilities
31Creditors '
40Financial debtsoflessthanone-year term
44Billspayable
•Sub-total
Results
06,0Profitsforpreviousfinancial years
07.0Profitforthe*financial year
Liabilities :Total6913
462
1286913
6913
590
.1.121.

PROFIT ANDLOSSACCOUNT Table?\j
I.GENERAL OPERATION
Undertakings :DSB KillWisofDKR1.4.1977 to
Teors31.3.1978
EXPENSES REVENUE
60*Staffcoats
61*Material supplied andservicesperformed by
thirdparties
62*Taxesanddues
<63«Allocations fordepreciation .
64*Allocations toprovision accounts
's
65.Financial chargeaX918
759
154
28470.Traffle revenue
0.Passenger andluggagetraffic
\•aVbyrail ,•
blbyroad
■0)byothrfraeonsoftransport
"1.Goodstraffic
•)byrail
l)falltrainsandwagonloads
-national traffic
-international traffic
iiVpartloadsandparcel*
-national traffic
–International traffic
bjbyroad',
o)byoth»rmeansoftransport
2*Postaltraffio ,'"
•• • '
Sub-total
71.Flnanoial revenue
72.Other .revenue
'73.Contraofcostsbookedtootheraccounts
74*Compensations andaidsreceived under
0.Regulation (EEC)H°1191/69
1.Regulation (EEC)K°1192/69
2.Regulation (EEC)H®1107/70,Article3.
3*Othercompensations andaids
Sub-total:714
123
168
577
356'
157
199
221
197
,24
5
228.
706
40
1601005
810
61
1876.
8
305
926
*'Totedexpenses ,>
91.0Operating profitforthefinanoial year3115 Totalrevenue 3115
91*1Operating lossforthefinancial year
II.PROFIT ANDLOSSSUMMARY
3
191.1:
Operating lossforthefinancial year . it-',j91.0Operatingprofitforthefinancialyearss t
I * ■ t
91.3Exceptional losses' !91«2Exceptional profites
t t »
t91.4
I
ICorporation tax. s I91.5Balancingsubsidy
{-Article4ofRegulation (EEC)N#IIO7/7O|,-Other , 'V» » .- »
.I,- i
91-6Profitforthefinancial year V • • 191.7LOSBforthefinancial year •>:*•■j.■,«
^ ·.I

-22-
DSB:FINANCIAL YEAR1APRIL1977-31MARCH1978
EXPLANATQKY BPTES
I.BALANCE SKEET
Items10–13-Assets
Underthestandard national accounting procedure ,items10-12
includethecostoffixedassetsunderconstruction .Itisnotpossible
togivefiguresfortheoriginal costoffixedassetsorforcumulative
depreciation .
Itéra20-Stocks
DSBstockvaluation isbasedoncurrentprices.
II.PROFIT ANDLOSSACCOUNT
Item60-Staffcosts
Thisitemincludes contributions topension schemesinrespectof
personnel whosepayandconditions arefixedbypayagreement betweenthe
employer andthetradeunionsaswellasDSBcontributions totheemployees'
pensionfund(ATP)inrespectofallpersonnel .
Itdoesnotincludepensions paidtoretired DSBstaff.Thesepensions
areincluded intheGovernment budgetaandarenotchargedtotheDSB,a
procedure whichappliestoallretiredcivilservants ,notjustthoseof
theDSB.
Staffexpenditure relating tofixedassetsisenteredundertherelevant
assetsheadings .
/•

Item63-Allocations fordepreciation
DSBdepreciation isonastraight-line basis,subdivided asfollows :
Depreciation Depreciation Period
Percentage (years)
Permanent way,roads,buildings ,0,75 133»3
portinstallations ,etc. -
Safetyinstallations ' 3 33»3
Rollingstock 2,5 40
Ferries • 2,5 40
Furniture 3 33»3
Motorvehicles .15 6,67
Item65-Financial charges -
'ThefixedassetswhicharepartoftheState'sinterest inDSBbear
interestat4»5
-DSB1scurrentaccountattheFinanceMinistry (item40)bearsinterest
at3,5% -
Item70–Traffic revenue
MuchofDSB'strafficrevenuecannotbesplitintothemodesof
transport indicated .Allpassenger andgoodstrafficonrouteswhich
includeacrossing byferry,al-1transport bylorriesandpartofthe
bustransport istreatedasanintegralpartofrailwaytransport and
thereisnoseparatepricing.,However,separatepricingandaccounting
•existsforcars,commercial vehicles andpassengers wherethetransport
islimitedtoacrossing byferry.Thesereceiptsareshowninaccounts
70.0.cand70.I.e.Thereceipts showninaccounts 70e0.band70.1.bare
frompassengers andsmallparcelscarriedinDSB'sregularbusservices and
pricingisinaccordance withtheseparate busrates.Permanent way,roads,buildings ,0,75
portinstallations ,etc. -
Safetyinstallations ' 3
Rollingstock 2,5
Ferries • 2,5
Furniture 3
Motorvehicles .'.15

-24
Item74-Compensations andaids
mioDO
74.0Compensation forpublicserviceobligations
(Regulation (EEC)n°1191/69)*
-Copenhagen suburbantransport 138.9
-Otherpassenger transport 470.8
-Freightandmail 96.0
74.1Compensation inrespectofnormalization ofaccounts
(Regulation (EEC)n°1192/69):
-ClassIX:Staffsurplustotherequirement of
theundertaking 29.O
-ClassXRecognition ofservices rendered by
stafftotheircountry 0.4
-ClassXI:Allowances payabletostaff 10.6
40.0

-25-
Deutsche Bundesbahn (DB)

BALANCE Si!ESTTableJa
AtJ1.12.1977
Undertaki >DBMilione ofrv
: ASSET3 ! LIABILITIES
1
! LONG-TERM ASSETS« i
I !i >
! ::
i?isedaesetB (Net) *« Capital andreserves ii
s
:>0Landandfiiedinstallât ions 26561« !
i00Capital '19423 s X
;11Transport stockandéquipaient I(
\2Otherstockandequipment .,13275♦ I t–
01Reserves x2061 ,21484
1722« !
, i02Contribution toinvestment costs:4302 *
:
;13Viiedassetsunderconstruction t
s . :
:Otherfia^dassets 1
:14Sharenoldingainotherundertakings |3906 '414.64 Ii
!03Provisions : t 94 :
« !
. !t .
!04Fundsforstaff: ι
449" I
« i
I05Long-term financial debts : ss
n
1961.♦ ι
ιI-debentures 12402
515Lung-terra loans *4
!16Cogtoffloatingloansandloanredemption
1premiums 1#,
: " 1
t17Miscellaneous fixedassets t* 14– ■'X
t -Stateloans t t
155: . !
1-otherfinancial debts 19559 :31961 1
«LIS !î ;
[ Sub-total'I
tx
57841 1
1*
3 •
• Sub-total : :48029 ]I
t t :
: 1
: »
j CURRENT ASSETS I' !
« . !
1 '|
1♦I
S
*s
t
ts
t
i
X-.. «Stoeks .« i
I i\ •
I I1
:1
t
:20-21 (Instoreorbeingmanufactured ) 1
: *
sRealizable aeeets *« 9371 s ζ
« !
« iI '
I !I
tt
I
x___.. tY)Debtors 17311 s
t «
;41Loansrepayable withinoneyear s
'42Bilîareceivable ..219 » s :
I I I i
I *
:45Securities I(0 f 1950 ICurrentliabilitiess«
t
t *
2fcarücbalances andcaBh ls 1
* iilCreditors 3087t
S
43-46-47-48Chequesinhand,postal cheque _#
accounts ,bankaccounts ,cash *
* inhand • 1924!
t
1l92440Financial debtsoflessthanone-year term:
1 •
!44Billepayable•310 ::
3397»
: *
Sub-total►, j
!.4.811 !j *
! Sub-total 3397
• *
1esu11s t•– I
» i
1 !I
Results: t
06.1LoseeBforpreviousfinancial years i.
07.1Lobbforthefinancialyear j
Assets:Total!3874 : !06.0Profitsforpreviousfinancial years : «
4524 18i99 !!07.0Profitforthefinancial year
612}8 Liabilities :Total 61233
s •
; :• 1
II
1 ;
i

PROFIT ANDLOSSACCOUNT Table3i>•
r
I*CB?ERAL OPERATION '
Undertaking :DB ' \ Tear!197?
IEIPEII 3ES' !,. REVENUE .. *
, :
*
S60.Staffcoata .,i
•J17877 !70.Traffic revenue .s I :
s
t61.Material supplied andservicesperformed by!»
V!■.
8120!0.Passenger andluggagetraffic ■
Iihvr*j&i1 \V)62
t*963 1
t
ιthlrdparties I r<r*–: tb)byroad 529.S t
s
t62.Taxesanddues t 99o)byothermeansoftransport 30
21
8012 !1 t 1.Ooodstraffic *
7081«
i63.Allocations fordepreciation 2 1761 ! e)byrail t •r t
i, t •i i)fulltrainsandwagonloads. 2 5936 1ν «
I64*Allocations toprovision accounts t -national traffic , 2 38»7 2 s
2 t- •international traffic S 2049 2 t
265;Financial charges t 2407 ii)partloadsandparcels I•1145 l >
s > » -national traffic 2 1043 1 2
1 I« «international traffic ; 102*s t
2 <. b)byroad -•*, '» 922 ι i
s t. 0)byothermeansoftransport I 9 2' \ ■ 2
<.
st
t2.'Postaltraffict
t369 !
i < s
.'y Sub-total t 112344 •'1
2
s.t
1I
I71.Finsnoial revenuet
t 164 ;
I ,t -i72.Otherrevenue l s 1386 ■i
«
tt
t73.Contraofcostsbookedtootheraccountst.
414567
t t 74.Compensations andaidsreceived under It-s ■•t
t t 0.Regulation (ESC)N*1191/69 -» 2721 t. ι
t t ■'• URegulation (ESC)V1192/69 : 3365 t •t
1 t 2.Regulation (ESC)N»1107/70.Artide3 « 25 2 .t
t .tI
l 3*Othercompensations andaids 2 1164 t *
2 tι
i Sub-total : t 7275 1
2
2Totalexpenses ". 30264 {
!I
!Totalrevenue.2
:25756 _?
91.0Operating profitforthefinancial year • 1*• 1
1|91*1Operating lossforthefinancial year
I *:4508.j
IX.PROFIT ANDLOSSSUMMARY
I • *91»lOperatinglossforthefinancialyear »4508 !91«0Operatingprofitforthefinancialyear .s '-
91-3Exceptionallossea j.48.^j9V-2Exceptionalprofits , j j46'.
91.4Corporationtax I 14j91-5Balancingsubsidy t I*
' « j-Article4ofRegulation (EEC)»•1107/70 «-
■ ; » i I-Other .;.- {-
91.6Profitforthefinancialyear j.-.}91«7Lossforthefinancialyear •" 'J4524

DB:FINANCIAL YEAR1977
BXPLANATO RYILOTES
«
I.GHTERAL
figuresinbracketsrefertoitemsintheDB'snational accounts ,e.g.
Velasincluded intheannualreportpublished ,bytheGermanFederalRailways .
II.BALAXCE SHEET
Item00–Capital
Capital
Contributions bytheFederal Government
tocoverlossescarried over
Less
LoansbytheFederal Government toincrease DB
capital ,notyet -writtenoffmioDM
19360
2183
(2120)
19423
Theloanstoincrease thecapital wereincluded inthecapitalas
acontratoanentryontheassetssideofthebalancesheet.Theloss
shownasanassetinthebalance sheethasnotbeendeducted fromthis
item.Aslongasthebalancesheetlosswasnotmetbyfinancial aid
fromtheFederal Government orbyprovision inthereserves ,theDB
hadtoprefinance thisitemitself.
In1977contributions tocoverlossescarriedoveramounted to
DM949mio.
Item05-Long-term financial debts
mioDT-t
Theotherfinancial debtsinclude :
-long'-term de'bts(V.2and3) 15550
-otherdebts(VI„3and4) 4005
-portions oftheotherliabilities (VIl) 4
19559

-29-
»
Theitemincludes someJM2127miointheformoffinancial debtstowards
undertakings inwhichtheDBhasashareholding. -
Items10to12-Fixedassets .
*Adjustments fordepreciation whichappearontheliabilities sideinthe
DB's"balancesheetarededucted fromtheseitems.Depreciation iscalculated :
fromtheoriginalvaluesshownontheassetssideandfromtheusefullifeof
thefixedassetsandiswrittenoffinequalannualinstalments overthisperiod..
Depreciation equaltotheresidual bookvalineoffixedassetswhichhavebeen ■
writtenoffbeforetheendoftheirusefullifeisalsoincluded underdepre­
ciation.
Theitems,inmioDM,breakdownasfollows :
Items
10 '11. 12
Valueofassets , 48987 21395 3581.
Depreciation 22426~8120 1859
2656I .■'->13275 1722
Theusefullife-differswiththetypeofequipment ,asfollows :
-1--,.Years
-Tunnels 100
-Levelcrossings ,10-25
-Bridges 60-90
-Superstructures ,depending ontype 10-60
-Buildings 40-100
Λ
-Otherfixedinstallations . "10-50
-Signalling andtelecommunications installations .20-35
-Mechanical andelectromechanical installations . 8-50
-Locomotives 25-40
-Railcars 15-40
-Passenger coachesandgoodswagonsingeneral 20-40
' *-Roadvehicles « > 6-20a)
-Boats . 25-50
(à)Trailers

-30-
Items1Ato16-Otherfixed_anaate
Item14showssharesandotherholdings tothevalueofDM449*5mio
(I.EandF),lessvaluation corrections oftheliabilities sideofDM0.2mio
(II.B).
Item15includeslong-term loansofEM1906mio(i.G)andaportionof
theotherassetstothevalueof56mio(II.B.7-part),lessvaluation
corrections oftheliabilities sideofDM0.7mio(II.B).Italsoincludes
DM786mioinloanstoundertakings inwhichtheDBhasashareholding .
Items30and41-Bankbalances andcash
mioDM
Item30includes :
-Advances anddebitaccounts inrespectof
servicesrenderedtothirdparties (III.V.1and2)985,6
-Closingoftheaccounts (IV) 749
-Portionsofotherassets(III.B.7) 0,4
1735,6
Lessvaluation corrections oftheliabilities side 4.2
Item41includes theremaining DM219mioworthofassets.
Items31140and44-Currentliabilities
Item31includesotherdebtsamounting toDM3049mio(VI.5-and 6)
andDM38mio(VIIl)inrespectoftheclosingoftheaccounts.
Item40includes theremainder oftheotherliabilities amounting to
DM310mio(VII).mioDM
985,6
749,6
0,4
1735,6
4,2
1731,4

-31-
3Ci6mB *33.A&tsÆ-Bsaik MJ-anees ana eaan
This items includes :
43.Cheques
46.Post office giro account
47•Bank accounts
48.Cash inhand
II.PROFIT AND IOSS ACCOUNT
Item 60–Staff costs
This item ismade upofpersonnel expenditure amounting toDM17407 mio
A(14)aswell associal charges extraneous totheundertaking andpensions
totalling DM469mio (29and30).
Item 61-Materials supplied andservices performed "bythird parties
This item covers expenditure onmaterials and services rendered
amounting toDM5354mioandexpenditure (excluding taxes )relatihg to
current operations totalling DM2166mio.These figures arekept ina
separate account ."TheDM5354mio includes some investment expenditure
entered inthebalance sheet bywayofitem 73*
; . s •
Item 62-Taxes and dues
•■mio DM
Taxes and dues include :
26
5 .
6
0
1
7
0
54mio DM
79
45
1762
38
1924
-Turnover tax (charges tobepaid )
-Motor vehicle tax
-Property tax
-Contribution todikes
-Other taxes
-Contribution pursuant tothelawonseriously -
handicapped persons
-Contribution towards balancing thecharges
-.Various taxes
99

λ2-
Item63-Allocations fordepreciation
Foranexplanation ofthedepreciation showninthisitemascharges ,
pleaseseetheexplanatory notesonItems10and12ofthebalancesheet.
Thisitemalsoincludesthecredits (20and22to24).
Item70-Traffic revenue
Item70"breaks downintorevenue from:
mioDM
Passengertraffic,luggageandexpressparcels 4387.6(l)
Goodstraffic 7587.7(2)
Postaltraffic 369.0(3)
12344.3
Itisnotpossible totranspose thisitemdirectly asintheDB's
annualaccounts revenue fromexpressparcelsisincluded withpassenger
andluggagetraffic ,whileinthetransposed accounts expressparcelsare
putwithgoodstraffic.
Asfarasrevenue fromgoodstrafficisconcerned ,itwasonlypossible
todifferentiate betweennational andinternational trafficbymeansof
sampling enquiries .
Item72-Otherrevenue
Thisitemismadeupof:
mioDM
72.1Revenuefromworkdonefor,andsupplies to,
theState -
72.2Revenuefromworkdonefor,andsupplies to,
thirdparties ^ 448
72.3Revenuefromotheractivities ,including rents 801
72.4Variousrevenue 137
1386
./•

-33-
Item73-Contraofcosts "bookedtootheraccounta
» 4
.Theamountentered ,asrevenueinthisitemrepresents theDM1217mio
worthofservices (l8)provided laytheDBitselfandenteredaschargesin
theoperating accountandthesumofDM3370mioenteredinthe"balance
sheetaspropertyinvestments (seeItem61ofthetransposed accounts).
Item74-Compensation andaids .
-** ' •• * }
Item74.3includes Federal Government contributions towardsinterest
payments (inrespectofthereorganization ofthecapitalStructure ,andin
respectofloansandotheroutsidefinanceforincreasing thecapite-l).The
DM949mioFederal Government allocation tocoverlossescarriedoverand
theDM237mioforrepayment ofloansforincreasing thecapital donotaffect
operating resultsandthusdonotappearintheprofitandlossaccount.-
TheDM279mio"paid "bytheFederalStateisarepayment ofthetaxon
mineraloilstotheDB,aswellastocertainothertransport undertakings ,
madepursuant toalegislative decision ,andnotintheformofcompensation
bytheState,thesumhasbeendeducted fromchargesforenergysupplies in.
Item61. ~ -
Items91.2and91.3 •'
Item91»2showsotherrevenue(8and9)anditem91*3othercharges
*.
(25,26and3l)oftheDB'sprofitandlossaccount.

™34-
SOCIETE NATIONALE DESCHEMINS DEFERFRANÇAIS *
(SNCF)

»*LATCESHEST Table4a
At31.12.1977
! ASSETS ]'LIABILITIES i
1 ^ ■ - !
s •LONG-TERMASSETS
! . I' .i
« !!v ;t
tFixedassets (Net) I « ·i »Capital andreserves :• ι
χ *
*10LandandfiiedInstallations Π784« !!00Capital 14 s i
* • *
x11Transport stockandequipment 1á_ilá4 >. I
_«,' !i »–
I01Réservés j 3745; ■3759!
*12Otherstockandequipment 308« - !
_• i!02Contribution toInvestment costs '• - 1
s13Fixed (assetsunderconstruction : 589 «17597ι .·
03Provisions t ï 10
i I
tOtherfixedat)seta' ■ t»■.· ι
» !04Pundsforstaff *
t t8 - *
t■ *
■ I14Shareholdings inotherundertakings 1142«1-. 1
_. I05Long-term financial debts : t t
• a
:15Long-term loans I 298-i i
• i•debentures 13626 1 v«
_• lI ,• • I
J16Costoffloatingloansandloanredemption t
.,premiumst •Stateloans j 1440 s I
1000« .
_. · ·|-otherfinancial debts 2063 !17129'
°-«• •
;i?Miscellaneous fixedassets t 15._» 2455 !.Sub-total'"i TTI
1"20898'ï • 1 '. 1 t \
i Sub-total : l200521 :
** t
t I
X S
I CURRENT ASSETS It
S
t[ '' 1
* s
\ Xt. I
t t
I t
Stocks * : «s
fr 1
• •
»20-21(Instoreorbeingmanufactured ): •>a143 I «• •
t I
I I
(Realizable adaete It
SI « *
- I1 I
ι I
,'30Debtors . [<996» \
_. i■ - 1
Ρ >\t t
• •
141Loansrepayable withinoneyear 1 07» 1
_«I· . ·
• '• 5,
I' «
42Billsreceivable ./- .* 270_. 1«
.• , •–
t43oeouriiioa » l1136 :8489 I•·
Currentliabilities J\ »
Ι X
• •• •
XBaiikbalances andcash t• 1
« ■1.I31Creditors •>',6754'9 »
X I
43-46-47-48Chequesinhand,postalchequeaccounts,bankaccounts,cash 1inhand • *»
I ·.
I40Financial debtaoflessthanone-year tern: 5403i I
! t
246 1 246 !.s
!44Billspayable .-1586 13743'
« * X–
-' ,Sub-total J
5 I-X -–■
10_g78 Sub-total|
\, *• «
j13_743_'
Results •*
i' t« i
« !Results Is i
: t
x06,1Loosesforpreviousfinancial years t2758 I06.0Profitsforprevious financial years x : x
07*1Lossi'orthefinancialyear * 953I i
3711 !!.07.0Profitforthefinancialyear |.XΧ X
5 |–
Assets:Total!-» ; i
Î34641 II ! •
I '.''Liabilities :Totalj *34641;
i i
: ; '" ':i
: ;• !ί
; χ

PROFIT AMDLOSSACCOUNT Tabl«4b
I.GENERAL OPERATION
Undartaklnra ;SNCF
EXPENSES'Million® ofFF
REVENUETear:
60.Staffcosts
61*Materialsupplied and■ervioesperformed by
thirdparties
62.Taxesanddues
63*Allocations fordepreciation
64.Allocations toprovision accounts
65.Financial charge*19226
8567
408
2074
15
166470*Traffic revenu.
0.Passenger andluggagetraffic
byrail
blbyroad
c)byothermeansoftransport
1.Goodstraffic
•)byrail
i)full_trainsandvagonloads
-•national traffic
' -international traffic
ii)partloadsandparcels
-national traffic
-international traffic
b)byroad
0)byotheroeans.oftransport .
2.Postaltraffic:
Sub-total
71•Finanoial revenue
72>Otherkrevenua
73.Contraofcostsbookedtootheraccounts
74*Compensations andaidsreceived under
0.Regulation (EEC)N°1191/69
X.Regulation .(ESC)N*1192/69
2.Regulation (EEC)N®1107/70,Article 3
3.Othercompensations andaids
Sub-total69X3
106
887
955
055
900
932
778
154
124
97
3139
421
4053
12587019
10108
310
17437
328
1753
1004
8871
Totalexpenses 31974 Totalrevenue 29393
91.0Operating profitforthefinanoial year 91*1Operating lossforthefinancial year 2501
II.PROFIT ANDtOSSSlJMMAflY
91.1Operating lossforthefinancial year
91*3Exceptional losses
91*4Corporation tax
91*6Profitforthefinancial year2581
16
091.0Operating profitforthefinancial year
91.2Exceptional profits -„ '
91*5Balancing subBidy ■-Article4ofRegulation (ESC)N#IIO7/7O
-Other
91*7Lossforthefinancial year1587264Cî)
1587
(l)OfwhichFF207millionallocated toreserves *

-37-
SuCF:FINANCIAL YEÀR1977
EXPLANATORY HOTES
.BALANCE "SKEET . *
Items10to12-Depreciation andusefullife
1.Methodofcalculating depreciation *
Article23ofthe27January1971supplementary agreement totheCon­
ventionof31August1937provided fortheSNCFtouse'anewdepreciation
systemasfrom1970*
'ItstatesthattheSNCFistocalculate thedepreciation intermsof
thenormalusefullifeoffixedassetsandwithreference tothecommon
lawprovisions on'taxes.
TheDirectorate-General forTaxesauthorised theSNCFtocalculate
itsannualdepreciation appropriation after1January 1970soastoremain
withintheceilingthatwouldhave "beenestablished iftheassetsandlia­
bilities hadbeenrevalued in1959andastraightlinemethodofdepreciation
hadbeenusedinthepast.
Theannualallocations arethrefore calculated :
-onthebasisofexpenditure onfixedassetscommissioned duringthe
financial year,andtheoretically revaluedattheendof1959bymeans
ofthelegalcoefficients forrevaluing assetsandliabilities ;
-onthebasisoftheusefullivesproposed bytheSDTCFandapproved by.
decisionofDirectorate-General forTaxes.Theseusefullivesmaybe
reviewed byagreement withtheDirectorate-General forTaxestotake
account,interalia,oftechnological developments andtheresulting .
obsolescence }
-byusingthestraight-line methodreferred toabove;
/

-38-
-forthesakeofsimplification taking,ameandate,namely1Julyofeach
financial year,asthedateofentryoffixedassetsintheassetsside
ofthebalancesheet,whichmeansthatthefirstandlastyearofthe
depreciation periodwilleach "bearonlyonehalfoftheannualrate.
2.Determining thetotaldepreciation allocation
Thetotaldepreciation allocation forafinancial yearcomprises :
-anindustrial depreciation allocation calculated onthe"basisofnon-
revalued expenditure oninvestments ;
-asumsetasideforrenewals equivalent tothedifference betweentotal
depreciation calculated onthebasisofinvestments asrevalued in1959
andthepreviousdepreciation allocation (therevaluation usedasabasis
forthiscalculation isnotpartoftheaccounting procedure).
Thistotalallocation isenteredinthedepreciation accounts onthe
assetssideofthebalance sheet.
/.

-39-
3.Usefullivestakenasa"basis .
Asset Usefullife
FIXïïDBTSTALLATIOÎTS
Electrification ........................
Electrical powerequipment ...............
Levelcrossings ......................
r-
Signalling ,telecommunications andlimiting•••
Track -
Structures
Buildings anddwellings
ROLLIÎTGSTOCK
Locomotives andelectriclightrailmotortractors
(forshunting)
Locomotives anddieseliigfrtrailmotortractors
(forshunting)
Accumulator railcars andmotor-driven electric
units
Railcars andmotor-driven engines .
Li^itrailmotortractors
Passenger coaches••••..••••.••.•••••••• v......
Freight wagons
FITTINGS AM)TOOLS '20years
50years
20years
15years
20years
50years
50years
25years
20years
20years
15years
20years
20years
5years
8years
10years(1)
(1)Dataprocessing equipment ■
■ ■ ■ ... *
Item15 , '
Seetheattachedtablefordetailsofloansgiventocompanies in
which3NCFhasashareholding andwhichareincludedin^long-term loans".

-40-
II.PROFIT ANDIOSSACCOUNT .
Item62-Taxesanddues
mioPP
–Transport ,subsidycharge,landandproperty -
taxes,"businesstaxandotherlocaltaxes,..
taxesoninterest andrepayment premiums ,taxes
onfundrevenues andexpenses , 35I
\
-Subscriptions andspecialcontributions in
respectofapprenticeship andtraining 35
-Registration andstampduty 21
-Various dues 0
406
Items91.2and91»7
Thesetwoitemstakeintoaccountasurplusonthesaleofnon-
depreciable assetsofPP207miowhichwasallocated toreserves.

AIINEXTOITEM15OPTHEBALANCE SHEET
Detailsofloansgrantedtoundertakings inwhichtheSNCFhasashareholding '
andincludedin"Long-term loans"
/ inmioFF
Karaeofundertakings v ■ 1 ,Loa-nsgranted
»iAllocation for
:depreciation:Netamount shown:
:inbalance ,§ieets
.StéFrançaise deTransports etEntrepôts Frigorifiques ' 1
'(S.T.E.F.)., ..» • •• »
• ' •3.5*:.3-5 :
:Sté-deContrôleetd'Exploitation deTransports Auxiliaires i
:(S.C.E.T.A. )» ι• «
:3.0»
■
»» ^• •
» »
:3.0 :
*StédesVoiesFerréesdesLandes(V.F.L.)
• • !i.o : .î.o» •• *
» •
:Stedes'CheminsdeferdesPyrénéesOrientales :1.3 i:1.3» ■•
» •
» , •
"StédesVoiesFerréesDépartementales duMidi(V.F.D.M.)..... •';o.o !» «
► .<
i <0.0
» - •
:SteConcessionnaire du,Chemindefersous-marin entrela :
:Franceetl'Angleterre ............ !» «
► '
!1.0 !» i 4
» 4
:1.0: !» •
» _ ';»i " ■ •
.StéD'EtudesetdeDéveloppement desAéroglisseurs Marins,ter–
\restresetamphibies (S.E.D.A.M. )......' !«
i
1.3 :1.3I •
I β
I •
:Compagnie AirTransport (C.A.T.) !''4.7 !:4.7 s__ •
.StéImmobilière desCheminsdeferFrançais (S.I.C.F.)....... ^':9.0i ë
i «
> • -. «9.0 :
:StedeCréditImmobilier desCheminsdefer(S.O.C.R.I. F.)..... si67.8 :
>. «
ι «► I•^ a
i a67.8 :
»
•
.- '.TOTAL
• • ^ _ •92.6 ;9.3 :83.4 :
■Τ ■'■■■

-42.-
CORASIOMPAIR EIREAM
(C.I.E.)

BALANCE Si!EST Table5a
Ai31-12.1977
tJM^akini ;:CIE - MillionsofIFS.
: ASSETS' j: : 1| LIABILITIES !
ι : ι
! D3NG-TERM ASSETS *, -– I' ,t !, -»
« * •
XFixedpeseta(Net) •'I Capital andreserves t i :
110LandandflxedInstallât Ions 2*5t!00Capital 1« i
s11Transport stockandequipment i_33.8»
«i ■*
S01Reserves t.5-1 «5.1
*.12Otherstockandequipment •._1*0:02Contribution toinvestmentcosts | 12.2'
I *
313Fixedassetsunderconstruction S_ «i •
!03Provisions t*–––––– 5
«0.3 ,
i ' • « «
tOtherfixedassets I t
'.... i I 114Shareholdings inotherundertakings . ■- .04Fnndsforstaff-
05long-term financial debts 3
• ·.9.9« _ »
1 ■-1
t t
< •
t.ISLong-term loans t__-debentures .n .• s
(· . * ~« I
I16Costoffloatingloans.andloanredemption {
Dremiums .: -Stateloans •, v 124.0 «. »
I ■,-etherfinancial debts » .11.9 145.8 *
; *
117Miscellaneousfixedassets / t :-·1Sab-total (
\\ ' '■»
!;i • • . .«!...– '
1 Sub-total :
t •146.3 !
« i
I «
t CURRENT ASSETS t'•:i*.... »
5 . tt t
I t
iStocks•m■ ■.m t.i
r t
120-21(Instoreorbeingmanufaotured ) s I10.6 ] S I t
i t
tRealizable assets I* 1
« 1t
, .1I.1
: t
30Debtors 10.3• «
1 «I * •
341Loansrepayable withinoneyear . 3- 3■. s. 1 :
1"42Billsreceivable *•- * :1 t
I .KI *
I45Securities I1.9* I
1Ihl !1 *
\Currentliabilities .t s
t »
S . i
1Bank -balances andcash s* I
« -'i1 ■ ••
I>1 '19.33 t
*43-46-47-48Chequesinhand.postalcheque• 1
1 !!40Financial debtsoflessthanone-year term:■-3-4–X *
/X.. 3
accounts ,bankaccounts ,cash: ihhand . *1.9'1.9 !I44Billspayable . _! :
: i-
® Sub-total * V24.7 Sub-total' *22.7
: i
-V - •'Results> I
:Ί. .·
Results ^ |t t
ι ι
i06.1Lossesforcrevious financial years ;t.;4.6 3 06.0Profitsforpreviousfinancial years 3«i. «
807.1Lossforthefinancial year 0.5 15.1 !i i »07.0Profitforthefinancial year „ - . " .
s. * «-
| AssetstTotalj
: ' 't'76.1 ILiabilities !Total*176-1
: 1i ■ : X |

PROFIT AKDLOSSACCOUNT
I.GENERAL OPERATION
Undertaking «CIE ,Kmiw,,ofm lS£*»WI
EXPENSES REVENUE
60*Staffcosts
■i*
61.Material supplied andservicee performed by
thirdparties
62.Tarnsanddues '
6}.Allocations fordepreciation
64.-Allocations toprovision accounta
65*Finanoial charges78.6
36.3
4.6
β.β
4.570.Trafficrevenue
0.Passenger andluggagetraffic
•)byrail
b)byroad
■c)byothermeansoftransport
1*Ooodetraffic
*)Wrail
i)fulltrainsandwagonloads
-national traffic
-international traffic
•.ii)partloadsandparcels
•national traffic
-international traffic
blbyroad ^c)byothermeansoftransport
-_2.Postaltraffic ^
Sub-total
71»Finanolal revenue
72.Otherrevenue
73-Contraofcoetabookedtoot.heraccounts
74*Compensations andaidsreceived under
0.Regulation (EEC)N°1191/69
1.Regulation (EEC)N«1192/69
2.Regulation (EEC)N"1107/70,Article3
3.Othercompensations andaids
Sub-total**
i
c13.0
45.4
I0.1
*11.6
5-3
I 4.9
s 0.4
I6.3
-•■• 6.2
I 0.1
<11.3
s0.2
I
f
t
s
s
1
s-
f
s
i13a
* 2.3
7-3
io.i
t58.5
23.1
0.7
62.3
7-5
9-7
22.8
Totalexpenses 132.6 Totalrevenue 122.3
91*0Operating profitforthefinancial year 91.1Operating lossforthefinancial year 10.5
II.PROFIT ANDLOSSSUMMARY
91*1Operating lossforthefinancial year 1
91.3Exceptional loaaea
91.4Corporation tax
91.6Profitforthefin10.5
0.491.0Operating profitforthefinancial year
91*2Exceptional profits
91.$Balancing subsidy-Article4ofRegulation (EEC)N#1107/70
-Other10.4
JÇwI
91*6Profitforthefinancial year 91-7Lossforthefinancial year 0.5

-45-
CIE:FEtfAUCIAL YEAR1977
EXPLANATORY BOTES
I.BALANCE SHEET
PixedAssets (Net) "
Asaconsequence ofthecapitalre-organisation resulting fromthe
provisions oftheTransport Act,1958»"theamountsshownagainstthe
fixedassets(net)represent theactualcostoffixedassetslessaccunni-
mateddepreciation acquired since1950?toutexcludes anyamount ,forrail­
waylinesandworks.
13.FixedAssetsunderConstruction
InkeepingwithClE'saccountancy practice ,theamountsforfixed
assetsunderitems10,11and12ofthetransposed BalanceSheetinclude
fixedassetsunderconstruction (workinprogress).
20-21.Stocks
StockofStoresarevaluedatcost.Costisgenerally determined ,
onthe "basisofaveragecostwhichiscomputedaftermakingadequate
.provision foralldefective andobsolete stocks. •;
II.PROFIT ANDIQSSACCOUNT
60Staff'costs include:totalpayrollcoststoallemployees ,including
Board'scontribution tosocialwelfare funds.
Board'scontribution tosuperannuation andpen­
:sionfundsinrespectofactiveemployees .
Pensionpaymentstoretiredemployees bornebyv
*theBoard.
/.

-46-
62Thisheadingincludes Non-deductible VATcostsj
ImportandExcisedutypayments
63Depreciation :Roadtaxandlicences inrespectofroadvehicle
operations '•»
Depreciation provisions forrail,coaching stock
androadpassenger vehicles calculated onbasis
ofreplacement costofunder-age vehicles inthe
fleetspreadoverexpected lives
Wagonstockprovision basedoncostofvehicles
required toreplaceexistingfleetspreadover
expectedlives "'
Allotherprovisions (locomotives ,roadhaulage
vehicles,plantandmachinery )basedonoriginal
costspreadoverexpectedlives
HotelPremises andotherproperties :depreciation
iscalculated onthestraight linebasisatarate
of25°perannumonthenetcostafterdeduction
ofstategrants
Equipment ,furniture ,fittings andmotorvehicles ,
depreciation onstraightlinebasisatratesranging
between10$and25foperannum.
65Financial Charges Interest onTransport Stocks
Interest onrepayable stateadvances forcapital
expenditure -
Sundryinterest payments
72OtherRevenue Includes mainly:
RevenuefromHotelsandCatering Services
Revenue fromRosslare Harbouroperations

-47-
RevenuefromCanaloperations
Sundryrailandroadservices
rhireofequipment ,furniture storage,etc.)
>
.'•Jorkforthirdparties * .
Rentsreceivable -
\
Thisheading embraces workonfixedassets.

-48-
AZIENDA AUTONOMA DELLEFERROVIE
DELIOSTATO(F.S.)

BALANCE 3HEST
At31.12.1977Tabl«6a
Uridf;r-taX i.)£iFS
s J99ET9 ' ' j
î ; ■I LIABILITIES *
ι ... :
8 LONG-TERM ASSETS. - 1 ii i «
! 'ti- i
I ι
sFixedassets(Net) 1 t |Capitalandreserves s > <
110LandandfizedInstallations;2572 00Capital • r 45« t
• «
<11Transport stockandéquipaient t1872t
t 01Reserves t 1162 »·1207,V
1.12Otherstockandequipment ' J25 02Contribution toinvestment costs ! s1633 8
I *
:13Fixedassetsunderconstruction I _«4569 !\ •
I03Provisions s s 644t
« - »
lOtherfixedassets I
814Shareholdings inotherundertakings j
t15lung-term loans I15«
I 04Fundsforstaff , 'f
05Long-term financial debts I\I. I
t■ :
t t
-debentures . 2090* S
I
,4572• i
116Costoffloatingloansandloanredemption (
premiunn 4
>17Miscellaneous fixedassets IS -Stateloans ;. t : s
231 -vOtherfinancialdebts ! 1275 8'T937 1
» 246
j Sub-total
i:: • •■■;I11421j
8 8I
8.- 8
s tvot t
: Sub-total 1
» «
• •8A.8.1;.
t
t .
't CURRENT ASSETS I r S 't tI
Stocka»
»» «
t t
x :20-21(instoreorbeingmanufactured ) 1 « 509 ! .8 t 1
«- «
tRealizable assets II
« .1
.1I t
'I t
830Debtors I 401« --■•• • 1
> .4
1 ' 1
I41Loansrepayable withinoneyear I It 1 ï
142Billsreceivable« i I
« tiι 'ι
I45Securities t4.•• « 401!
Currentliabilities #I t
• ts »
1Bankbalances andcash t1 j
« ii 7^ ■ :
ICpurfitart 1303t t
'143-46-47*48Chequesinhand,postal chequet
t 40Financial debtsoflessthanone-year term1-ϊ 1
: *
accounts ,bankaccounts ,cash
8 inhand ■ 8 666 1 666 44Billspayable . _ί1
« -, 8
8■ Sub-total 8-s–––
;– ι[ Sub-total
i 1 \.îj-jfj-
*Results : •IResults ' ■ , .ι :
i* * \
t06.1Lossesforprevious financial years •i5427 s .06«0Profitsforpreviousfinancial years s ιV. »
07*1Lossforthefinancial year
Assets:Total986 641X07.0Profitforthefinancialyear ?( I
_» ■■■■■•-* j
: !| iLiabilities:Totalj
I • :V
!i2J2L–!
: î

.*
. . .PROFIT ANDLOSSACCOUNT Table6b
I.GENERAL OPERATION
Undertakings :F3 - , 000MillionsofLIT–-*1977
'• EXPGK SB3 v I
i .REVENUE
: , .
I60.Staffcoate ' 1695
t ,■ »
t61.Material supplied andservicesperformed by t
tthirdparties >.1035
s »
s62.Taieaanddues »,70
t - •»
8<53«Allocations fordepreciation i •-
I :
864.Allocations toprovision accounts < 3<3
» , «
865*Financial chargea s 390
î .*
I «
i' .«
a* i
« * .
8 *
S » t
S *
g I'
s * .
8 1 ' 1.
I *
s »
I «
I t
i • ... .! * 1s : :
70*Trafficrevenue : j s
0*Passenger andluggagetraffic N. 577
•)byrail '^ |
b)byroad .
c)byothermeansoftransport , 1
• • $
'1.Ooodstraffic : J 362 j
a)byrai1 t t • :
i)fulltrainsandwagonloads : : r
-national traffic i i »
-international traffic s j j
il)partloadsandparcels . t J s
-nationaltraffic ! ;
-international traffic til
b)byroad .1. it i
elbyothermeansoftransport : t t
2.Postaltraffic ! * 2 1
.* • t t
Sub-total ..** t 941 .t
71.Plnanoial rev$nue * 18'
72«OtherrevenMe/ t i 120 i
i i i73*Contraofcostsbookedtootheraccounts 't i* x
74*Compensations andaidsreceived under t t' '■'i
0.Régulation (EEC)R°1191/69 *482".•j j
1.Régulation (EEC)N"1192/69 ':381'i j
2.Regulation (EEC)1107/70,Article3- 8 ~ » '
}.Othercompensations andaids t-l i
' ' Sub-total t s 663 :
_.. 1 TT7ZTotalexpenses . .3513 {
s • ♦ ij Totalrevenue *2267 J
i , : :■ : :
91.0Operating profitforthefinancial year *- jI ί ιj91>1Operatinglossforthefinancialyear' ' *1246 "
i ; : : L
II.PROFIT ANDLOSSSUMMARY
« « i : . i
s91.1Operatinglossforthefinancialyeiar :1246 j91*0Operatingprofitforthefinancialyear * J
j91.3Erceptionallosses jIj91.2Exceptionalprofits j j
<91.4Corporation tax »- j91«5Balancingsubsidy «" I
! 't {Article4ofRegulation (EEC)N*1107/'?!) I223
: ■ : J-Other , •- '<i :
! .38•;
I " s
. ·- .
■ 223
,91.6Profitforthefinancial year • •.- 191*7Lossforthefinancial year )\ , ;'986.;;
iI

-51-
PS:FINANCIAL YEAR1977
EXPLANATORY NOTES
I..BALANCE SHEET , 1
Accounts 10-12
Thefiguresarenotexpressed innetterms,i.e.afterdeduction
ofdepreciation ,asthePSdoesnotpractise thesystemofdepre-
•ciatingfixedassets.;
Account 13
Ν -
Expenditure onconstructing andacquiring lines,installations ,
"buildings androlling-stock ischargeddirectly toaccounts 10-12
Γ · -
asitoccurs.
Account00 ,
InitialStateallocation forlines,installations ,"buildings and
rolling-stock andsubsequent changes.Theonlychangewhiohhas
actually takenplacesofaristhesubtraction oftheoriginal
valueofthelinesclosedtotraffic.
II.PROFIT ANDIOSSACCOUNT
Account 63
TheFSdoesnotdepreciate itsfixedassets,"butsetsupanannual
reservefortheirrenewal (atleast10$oftrafficrevenue).This
reserveis"bookedtoaccount 64.
m

-52-
SOCIETE NATIONALE •'
DESCHEMINS DEFERLUXEMBOURGEOIS
(CFL)

BALANCE SHES? ' Table7a
Atil.. t
12.1977
UnJertak \mjsCFL Millions ofLFR
* ASSETS
: . 'LIABILITIES *
» : ι
: U3NG-TERM ASSETS.. ΖI
1 i • •:: <
1 •
tFixedaseets(Net) t1Capitalandréservés 11 t
110Landandfixedinstallâtions ._622« I
i00Capital * 1600« . »
» »
t11TransDort stockandequipment t_155°• !
t 01Reserves I 783 ι2383 ,
112Otherstockandequipment ._ 4)t02Contribution toinvestment costs/X _ 1
i «
t13Fixedassetsunderconstruction l_329 » 2627 03Provisiona t t 356 :
t «• # ï
IOtherfixedassets I
514Shareholdings inotherundertakings *S
t '~
! -04Fundaforstaff
OSLong-terra financial debts t
1 •1 «
l– i
t s
1 . «
f15Lo»*-term loans *__-debentures * „ 343• <
S ■ -i l
'16Co£toffloatingloansandloanredemption (
*Dremiunm-Stateloans 1 533 1 i
seotherfinancial debts ■ 520'■1396 !
I - V, I-
t17Miscellaneoua fixedassets t > 12;' ■Sub-total
• .I
ί.. ■ ■ · '-«14135'
s 1
t î
t ît I
l ,Sub-total s
1 I! !
«2679'
■■■■••■■■■«■•M« ■
I «
I CURRENT ASSETS It .
t•' t
•' tt *
1 t
1Stocka * '..1
' •. « i
s20-21(instoreorbeingmanufactured )t « YlL•'•• '' 1 « t
» t
1Realisable aseeta SI
tI
tt 1
t t
'30Debtors !_834• I
1I •
s41Loansrepayable withinoneyear t 600*
S , •• t 1 : :
142BillsreceivableI I
»l I
• (
* 1
:45Securities t 96 : 1530 _.: ■'-.·. ;
1Ciirr<>nt nnhnUli>H sI t
I I
ÎBankbalances andcash •*•• :» .!i --•
ifS>»Hitnm 617ι χ
: s
143-46-47-48Chequesinhand,postal cheque : .Ί~ , « : 1
40Financial debtsoflessthanone-year termx .- * t
accounts ,banKaccounts ,cash t
1 inhand •. 44 1 44 44Billapayable . .au–
1 *-
' Sub-total|i
! 1|. Sub-total
1 ■ -1 617
1mrnmWwmmmmmmmmmm J
1ResultsIResulte .* *
106.1Lossesforprevious financial years :•148 t 06.0Profitsforpreviousfinancial years :1 A, |
'07.1tassforthefinancial vear -(1)1 148 07.0Profitforthefinancialyear '- !-,
! " ;< I-
1 Assets:Totalt––––––
!4752 Liabilities :Total _ :LUI.....
1 <
2 *1lrnmmmmmmMmmmmmmm
t i| ■ L_
(l)Thefinancialyear'slosshasbeenabsorbedbythereserves *

PROFITANDLOSSACCOUNT Table7V
xI.GENERAL OPERATION
Undertaking iCFL , MillionsofLFR' '
1 EXPENSES
s :! REVENUE
i 8
26θ·I»Staffcoete•:
« 4079<
1
!70.Traffic revenue \\ : i
I
Material supplied andservicesperformed by-ι i
!0*Passenger andluggagetraffic ;198;:61.
ι 404a)byrail 172
tthirdparties , b)byroad' 26t t
:
« 52l
I c)byothermeansoftransport• ι
262.Taxesanddues i 2
t 1269 ss t 1*Goodstraffic J\
it248s63-
iAllocations fordepreciation i 3601
I a)byrail i : «
ι 1)fulltrainsandwagonloads l 1223 : s
264*
sAllocations toprovision accounts « 154 •national traffic 4r 168 : :
t -international traffic is 1055 : ι
«65f
fFinancial charges X.164ι
«.î 1i)partloadsandparcels JI 25 I s
si
i -national traffic St 1 : s
s t i -international traffic î5 24 tr 2
2 z1
I\
I b)byroad( 21 t :
8' t c)byothermeansoftransport \ ! 2
S t
t2*Postaltraffict t _ it " .i
« <t Sub-total i «1467 .«
3
Vs
1î
171-Finanoial revenue\
I1 28 .1
t s
s t 72.Otherrevenue l ι 83 :
t <73.Contraofcostsbookedtootheraccountsi t
t s
s,tî
t74.Compensations 'andaidsreceived under 1ι t t
8 2 .0.Regulation (EEC)N°1191/69 <; 930 2 2
2 I 1.Regulation (EEC)N°1192/69 >J 1653 2 2
2 2I
t2.Regulation (EEC)N"1107/70,Artici*3 i 976 2 2
1 2I
1 3«Othercompensations andaids i 2 2
2 2I
1\
1 ' Sub-total j :L559
2Totalexpenses . 15213]
i
t
i! : : j
{ Totalrevenue
: , ;?»?-;
91.0Operating profitforthefinancial year
2I
jI91.
i1Operating loasforthefinancial year; 76;
II.PROFIT ANDLOSSSUMMARY
"291*1Operatinglossforthefinancialyear 276j91.0Operatingprofitforthefinancialyear
91*3Exceptional losses ." j91*2Exceptionalprofits !I 2 -a «
!91.4Corporation tax »~ j91>5Balancingsubsidy I
I' I jArticle4ofRegulation (EEC)N#1107/70 i
s i ;-Other iIt' .•
t
91.6Profitforthefinancial year *• t91*7Lossforthe-financial years • 2 : " j |76;

CPL:FINANCIAL YEAR1977
EXPLANATORY NOTES
BALANCE SHEET
Thedifference betweenthetotalsintheCPLbalancesheetand.the
transposed balancesheetarisesfromthefactthatthegrossamountOf
fixedassetsinenteredontheassetssideandthedepreciation ofthese
fixedassetsisenteredintheliabilities sideofthesamebalancesheet.
Item03
Fixedassetspriorto1June1945»including thelandandfixed
installations ,formpartoftheconcession andwerethusplacedatthe
disposaloftheCFLbytheGrandDuchywhenthecompany wasformed.As
thesefixedassetshaveneverbeenassessed andthisnevervalued,they-
1
appearinthebalancesheetasatokenentry,i.e.atzerorating.
.Asthenormalrulesofdepreciation cannotbeappliedtoazero
value,theCFLgenerally considers theannualrenewalcostforthese
fixedassetsasadepreciation allocation chargedtotheoperating
account.
Items10-12
Theamountsundertheseheadingsareinnetterms(acquisition
valuelessaccumulated depreciation ofthefixedassetsbuiltandacquired
bythecompanysinceitwasformed. N
Thegrossvalueandtheaccumulated depreciation areasfllows:

-5°-
LFR million
Title Gross value Accumulated Net value
depreciation
10 Land and fixed installations 1144
\
11Transport stock andequipment 2682
12Other stock and equipment 141447
1124
98697
1558
43
Thedepreciation applied bythe CFL inrespect ofthese fixed assets
(recorded atacquisition value )isbased ontheir useful life andonthe
criteria applying toprivate industry .
Item 13
Theactual cost ofthework inprogress isentered intheCPLbalance
sheet and inthetransposed balance sheet .
Item 06.1
These losses relate totheperiod 1.6.1945 "to31.12 .1947 andare
being written off .
Item 07.1
The loss forthe financial year has been absorbed bythereserves .The
remaining losses ofLFR1.8miorelating toearlier years have also been
absorbed bythereserves .
Item 05
Other financial debts .This item ismade upasfollows ?
million LFR
Cash advances which can beconsolidated 400
Debts toanundertaking inwhich CPLhave a
capital participation ,i.e. Eurofima120
520
•/

-57-
II.PROFITANDLOSSACCOUNT '• - ~
Item60-Staffcosts
Theremunerations ofstaffinactiveemployment includes remunerations
forthemaintenance offixedassetsexcluding remuneration forinvestment ,
whichischargedtotheinvestment account# -
Ttern62–Taxesanddues .*
Thisitemconsists of:
mioLPR
municipal payrolltax . 19
municipal tradetax .32
municipal taxonlandbuildings
Item74-Compensations andaids
Article 74*1 "breaksdownasfollows :
mioLFR
1.Familyallowances
2.Retirement andotherpensions
3*Crossingfacilities
4*Recognition ofservices rendered bystaff
totheircountry ■
-5*Lackofnormalization inthepast
6.Revenuenotcollected in1974
1652.8
TheaidofLFR97°millionunderItem74*2isgrantedasabudgeted
amountasregardsboththeStateandCPLbudgets.Mostofthisaidis
Statecompensation forsomeoftheinfrastructure costsbornebythecom­
pany,'i.e.:32
1
52•
bsssssb :
'34.3
.1468.6
29.6
0.1
4.8 .
1537.4 •
115.4
•A
«

-58-
million LFR
Current costs 517.2
-Overheads 251.4
Total 768.6
(TheStatedoesnotcovercompanyformation orrenewalexpenses).
Thisaidisalsointendedtocovertheexcessadditional expenditure
devolving attheCFLasaresultoflegislation : -
-increases inthesliding wagescale;
-otherlegalprovisions infavourofthestaff
insofarasotherundertakings donotbearthesecosts.
Inthefinaldetailed accounts thesetwofactorsarelargelyattributed
topublicserviceobligations (Regulation n°1191/69-Item74.0)andthe
normalization ofaccounts (Regulation N°II92/69-Item74.l).
TheamountofLFR976millionshouldtherefore notbeincludedin
Item91.5~balancing subsidy.
Item91.7
Astheoperating losshasbeenabsorbed bythereserves ,thesumof
LFR76millionhasnotbeencarriedoveritem07.01inthebalancesheet..
ThelossbalanceofLFR1.8millionforthepreviousfinancial yearnow
closedhasalsobeenabsorbed bythereserves. *
/.

-59-
NAAMLOZE VENOOT SCHAP
NEDERLANDSE SPOORWEGEN
(N.S.)

BALANCE SUEST Table8a
Atil.12.1977
Undertaking sN3Millions ofHFL
ASSETS
tnWG-TERMASSETS 71.
Fixedassets(Wet)
10L&ndandfixedinstallations
11Transport stockandequiprtent
12Otherstockandequipment
13Fixedassetsunderconstruction
»
Otherfixedassets
14Shareholdings inotherundertakings
15Lung-term loans
16Costoffloatingloansandloanredemption
premiums
^7Miscellaneous fixedassets
Sub-total
•, •»
CURRENT ASSETS
Stocka
20-21(instoreorbeingmanufactured )
Realizable aBerets
30Debtors
41Loansrepayable withinoneyear
42Billsreceivable
'45Securities
Êankbalances andcash
43-46-47-48Chequesinhand,postalcheque
\
Resultsaccounts|bankaccounts tcash
inhand .•
Sub-total
06.1Lossesforpreviousfinancial years
07.1Lossforthefinancial year
Assets:Total1276
700
600
Jli.
1144
Jâ2-
357
61LIABILITIES
2576
1S20
ΑΛΙ6..
147
499
61
4eoj
■SBBkBICapital andreserves
00Capital
01Reserves
02.Contribution toinvestment costs
03Provisions
04Fundsforstaff
05Long-term financial debts
-debentures
-Stateloans
-otherfinancial debts
Sub-total
.i°.iCurrentliabilities
31Creditors
40Financial debtsoflessthanone-year term
44Billspayable
Sub-total
Results
06.0Profitsforpreviousfinancial years
07.0Profit,forthefinancial year
Liabilities :Total484
1852
J22.
55
1559
379
1192336
81
24
1864
4305
498-•
498
4803

PROFIT ANDLOSSACCOUNT Table8b
1.CENERAL OPERATION
Un4«rttJcinga iHS KilionsofHFL '1,77
EXPENSES
60.Staffcoete
61.,fMaterialsuppliedandservicesperformed T>y
thirdparties
62*Taxesanddues
63*Allocations fordepreciation
64.'Allocations tobrovlsion accounts
65.Financial charges12(1
442
7
269
131
31REVENUE
70.Traffic revenue
0.Passenger andluggagetraffic
a)byrail
b)byroad I
c)byotheroeanBoftransport
1.floodstraffic
a)byrail
i)fulltrainsandwagonloads
-national traffic
-international traffic
ii)partloadsandparcels
*national traffic
*international traffic
b)byroad
c)byothermeansoftransport
2.Postaltraffic
Sub-total
71.
72.
73.
74.Pinanoial revenue
Otherrevenue *
ContraofcostsbookedtootheraccovultB
Compensations andaidsreceived under
0.Regulation (EEC)N*1191/69
1.Regulation (EEC)N°1192/69
2.Regulation (EEC)N»1107/70,Article3
3»Othercompensations andaids
Sub-total676
257
706
38676
257
35
968
20
41
193
744
Totalexpenses 2148 Totalrevenue 1986
91*0Operating profitforthefinancial year 91*1Operating lossforthefinancial year162I
o\
I
II.PROFIT ANDLOSSSUMMARY
91.1Operating lossforthefinancial year
91>3Exceptional losses '
91>4Corporation tax162j91-0Operatingprofitforthefinancialyear
]91*2Exceptionalprofits
|91.5Balancingsubsidy'
|-Article4ofRegulation (EEC)N®1107/70
!-Other .162
162
91*6Profitfor.thefinancial year 91*7Lossforthefinancial year

-62-
N»S0:FINANCIAL YEAR1977
EXPLANATORY NOTES
I.BALANCE SHEET
00Capital Thecompany'sequityconsists ofHFL1000million
dividedintoonemillion HFL1000shares,ofwhich
HFL484*4millionwereissuedandpaidupon
31December 1977*
01Reserves Apartfromthegeneralreservewhichdidnotchange
inthefinancial year,thisitemcontains thereserve
forrevaluations ofassetsandthereserveforshare­
holdings .
Thereserveforrevaluations ofassetswaschanged
inrespect of:
«•additional depreciation ,i»e,thedifference
"betweendepreciation basedoncurrentpricesand
thatcalculated fromthepurchaseprice,charged
totheprofitandlossaccount ;
–thedifferences resulting fromtherevaluation of
stocksatthepriceestimated forthe "beginning of
thefollowing year;
-thevariations onthevaluation ofloansdenominated
inforeigncurrency ,wheretheyhavenot "been
repaid.
The.reserveforshareholdings waschangedinrespect
ofchangesintheintrinsic valueoftheITSholding
wherethishadnot "beencaused "byanincrease or
decreaseinmajority orminority shareholdings .
/

-63-
02Contributions
toinvestment
costsThisitemconc6m£ Stateparticipation inthe
financing ofnewlineswherethistakesplace "by-
meansofnan-returnable payments.
03Provisions Thisitemconsists of:
-maintenance offixedassets;-
-reorganization offreighttransport ;
-otherprovisions including insurance funds.
Itincludes provisions fortheequaldistribution
ofcertainchargesandthecoverofvspecificrisks.
04Fundsin
respectof
staff-Thisitemconsists ofaprovision forearlyreti­
rementpensions andpension commitments whichare
notcoveredbytherailway'spensionfund.
05Long-tenn
fiftancial
debtsThesearedebtswhichstillhavemorethanayear
torun.Theannualrepayments wjaichhavetobe
madeonthelong-term loansinthenextyearare
included underitem40-Financial debtswhose
termislessthanoneyear.
Thedebtsareenteredatnominalvalue.Foreign-
currency loansareconverted atthelatest
exchange ratein1977.Thedifference inrates
ischargedtoowncapitalundertheitem
ReserveforRevaluations .'.
Assessment offuturecommitments underthisitem
ismainlybasedoncurrentvaluecalculations .
TheU.S.oweEurofima HFL308millionforthe
purchase ofrollingstock.

-64-
10LandandfixedTheassetsfallingwithinthisgroupareentered
installations , ._.... ./-rrtr..,,.\attneiracquisition pnce[2605million )minus
depreciation calculated according tothenumber
ofyearsofusefullifewhichhaveelapsed (l)
(HFL1329million).Landisnotdepreciated .
Expenditure onthemaintenance of ■permanent way
(trackandpoints),withtheexception ofthe
strengthening ofthepermanent waystructures ,is
chargedtotheoperating account -underthe
provision for"Maintenance ofthepermanent way".
11Transport
stockTheassetsfallingwithinthisgroupareentered
attheiracquisition price(HFL1564million)
minusdepreciation according tothenumberof
yearsofusefullifewhichhaveelapsed (l)
(HFL864million).Thisitemincludestherolling
sotckobtained fromEurofima onhirepurchase .
Theobligations towards Eurofima areenteredunder
item05-Long-term financial debts-andthe
redemption oftheseobligations inthecomingyear
■undertheitem40~Financial debtswithless
thanoneyeartorun.
12Otherstock
and
equinmentAtokenentryofHFL1hasbeenmadeformachinery ,
toolsandservicevehicles .Theacquisition
covering HFL18millioninthefinancial year
arecompletely writtenoffintheyearof
acquisition .
13Fixedassets
under
constructionTheseassetsareenteredinrespectofexpenditure
incurred minusaprovisionfornon-recoverable
expenditure .Depreciation doesnottakeplace
untilafterentryinservice.
(l)Fordetailsoftheseperiods,seeiDmex,
./■

-65-
Theseassetscover:
-Landandfixedinstallations
-Transport stockandequipment
-OtherstockandequipmentmioHFL
510-
84
6
600
14Shareholdings
inother
undertakingsTheshareholdings inthecapitalofotherunder­
takingsareassessed fromtheshareoftheN.S.in
theintrinsic valuerevealedinthemostrecently
published balancesheetsoftheundertakings in
question.
Forthispurpose,intrinsic valueisdefinedas
owncapital shownintheannualaccounts ,with
dueallowance forprofitorloss.
15Long-term
loansThelong-term loans,consisting ofloanswithmore
thanoneyeartorun,includes aclaimonthe
StateinrespectofasumofHFL1080million.
Thisclaimistheoutcomeofthearrangement
reachedwiththeStateinI976anthefinancial
situation oftheN".S»andconcerns lossesupto
1976«Theportionofthisdebtfallingduein
thenextyearis*enteredunderitem41-Loans
repayable withinoneyear.Thisitemalsoincludes
thecostsforfinancing newlines(HFL34million),
enteredasanasset.Thesefinancing costsrelate
toexpenditure onnewlinesiftheyhavenotbeen '
/*financed byincreasing thesharecapitalorother
financial contributions bytheState.Oncethese
linesorsectionsthereofareputintoservice,-
thefinancing costsarechargedasinteresttothe
profitandlossaccountoveraperiodof25years.

-66-
Thisitemincludesa long-term loanofHFL3«5
milliontoNemeoginwhichtheN.S.hasashare­
holding.
Withtheexception oftheunquoted securities
includedinthisitem,theclaimsarebookedat
nominal value.Theunquoted securities are
assessed atestimated yield,notexceeding the
nominal value.
20Supplies in
storeorin
theyardsThesupplies arealmostexclusively intended for
themaintenance andrenewal offixedassetsand
rollingstock.Theyareassessed according tothe
estimated pricelevelfor1January1978»minusa
provision forobsolesence .Anypricedifferences
arecredited orchargedtothereservefor
revaluations (itemOl).
30Debtors Theclaimsincluded inthisitemarelistedat
nominalvalue,minustheprovisions deemed
necessary .
31Créditors Thedebtsincluded inthisitemarelistedat
nominal value.
40Financial
debtswith
lessthan
oneyearto
runThisitemcoverstheredemption inthecomingyear
ofloanswitharemaining termofmorethanone
year.Theshort-term debtsarelistedatnominal
value.
Theredemption offoreign-currency loansis
converted intoguilders according tothelast
exchangeratequotedin1977oThedifference in
exchange ratesischargedtoowncapitalunderthe
reserveforrevaluations (itemOl).

-67-
41•Loanswith
lessthan
oneyearto
runThisitemliststhepartoftheclaimontheState
resulting fromlossesuptoandincluding 1975and
fallingdueinthecomingyearHFL53million)/
andtheshort-term investments .Theshort-term
debtsarelistedatnominal value.
43-48
Bankbalances
andcashTheseliquidassetsarelistedatnominalvalue*
II.PROFIT ANDLOSSACCOUNT
60Staffcosts Theitemonstaffcostsincludes remuneration
(HFL820million),socialsecuritycosts(HFL
4I4million,including HFLII5forpensions and
aprovision ofHFL9millionforearlyretirement
pensions),otherstaffcosts(HFL18million)and
thecostspfaretaining payarrangement (HFL
16million)._■
61Materials
supplied and
services per¬
formedby
thirdpartiesThisitemincludes maintenance materials and
maintenance bythirdparties (HFL222million,,
HFL110million ofwhichforfixedinstallations
andHFL86millionforrollingstock),thecosts
ofelectricity ,fuelandcommunications (HFLI44
million)andthecostsofautomatic data-
processing (HFL36million).
62Taxesand
duesTheitemconcernsnon-deductible VAT,taxon
immovable property,environmental andothernon-
deductible taxes. s

-68-
63Allocations
for
depreciationThisitemcontains repreciation onthebasisof
+hepurchaseprice(d?I.1.2/imillion),additional
depreciation (r-!u312million),expenditure
whichcannot entered ontheassetsside(HFL
33million )andbookvaluelosses(including the
balanceofrevenue andexpenditure intheeventof
liquidation ,)(HFL0,1million).
64Allocations
toprovision
accountsThisitemcoversallocations toprovisions forthe
maintenance ofthepermanent way(HFL111million),
forthemodification andimprovement ofrolling
stock(HFL12million),accidentrisk(HFL7
million)aridinternalfireinsurance (HFL1
million )„
°5Financiad .
chargesThisitemcoversthebalance ofinterest paidand
received ,minusthecostoffinancing newlines
entered ontheassetsside,andtheinterest
received onaloan,toasubsidiary company.
Details ofinterest booked ; mxoHFL
Interest paidonloans
-longterm
-shorttermandother158
8
Lessthecostsoffinancing newlines
(chargedtotheprofitandloss
accountoncethelineisopen)166
-13
153

-69-
Interest received
Aidfromthepublicauthorities to
financelossesincurred uptoand
including 1975(seeexplanation given
underitem74) s97■"-0HFL
153 .
Short-term investments 25
-122
Balance ofinterest carried over
toitem65 31.
-70Traffic
revenue
70.0Passenger and
-'luggage
trafficThiscategory of.revenueconcerns onlyrail
traffic(a). 1'
70.1GoodsTraffic a)Rail.Thefollowing breakdown maybemade:
mioHFL
i)completetrainsandwagonloads
-national traffic
-international traffio^
ii)partloadsandparcels
-national traffic
-international traffic229
88
141
11
1
v10
AtotalofHFL17millionremainstobeallocated
inrespectofmiscellaneous revenue (luggage,
marshalling etc.)*
71Financial
revenueThisitemalsoincludes thecorporation taxfor
1976transferred totheK.S.in1977byitstax
%
consolidated subsidiaries ;nocorporation taxwas
duetothetaxauthorities in1976becauseofthe
fiscallossrecorded bytheN.S.

-70-
74Compensation and
aids
74.3Othercompensa-Theothercompensations andaidsrelat8tothe
tionsandaids _,,– following :
-Statesubsidyforgoodstrafficin1977
(HFLI5Imillion)
-Proposed supplementary Statesubsidyforgoods
trafficin1977(HFL11million)
-Corrections madetothecompensation forpublic
serviceobligations andtotheStatesubsidy
forgoodstrafficfor1976.
Theaboveamountsincludethelossesandgoods
trafficandotheractivities (insignificant)
calculated onthebasisofthefullcost.
Thismeansthatbothpassenger andgoodstraffic
bearpartofthejointcosts.Ifthespecific
costswerechargedsolelytogoodstraffic (in
otherwordsthecostswhichwoulddisappear if
thesewasnogoodstraffic),thelossesinthe
goodssectorwouldamounttoHFL66million.
AtotalofHFL162million couldtherefore be
bookedasabalancing subsidy.
Thefollowing aidshavenotbeenincludedin
item74s
-HFL64millionininterest oncumulative losses
uptoandincluding 1972andbornebytheState.
Thishasalsobeenmentioned under"interest
received ".
-HFL81millioninrepayments ofthe.samedebt;
thismerelyservestoreducetheState'sdebt
x totheU.S.andisnottherefore showninthe
profitandlossaccount.
./

HFL42millioninlossesincurred between1973
and1975(inclusive )whichdonotinvolvethe
publicservice..Thisamountincludes HFL32
millionforinterest (interestreceived)and
HFL10millionforredemption whichalsoreduces
theStatedebttotheH.S.andisnottherefore
shownintheprofitandlossaccount.

-72-
SUKI'IARY OFTEEDEPRECIATION PERCENTAGES APPLIED
BYS,S,ANNEX
Percentage
Description
Tractiveunits
-electric locomotives ,diesel-electric locomotives
aridlightrailmotortractors
-locomotives andlightrailmotortractors with
diesel-electric internal combustion engines3.5
10
Passenger stock
-passenger coaches (including thestockleasedby
Eurofima )
-electric anddiesel-electric stock(l)
-stockwithdiesel-electric internal combustion
engines
-rollingstockwithautomatic control
-relay "boxes
–otherequipment –amortized withinthe
residual usefullifeforeachtypeof
stockfittedout3.5
4
10
6.5to8
Goodswagons
-goodswagonsandluggagevans(including the
stockleasedbyEurofima )
–mail-train sets
-mailrailcars3
5
5
(l)Excludinginternalcombustion engineFtcck„

-73-
AMEX
Percentâge
Ferries andsnips
Containers
containers ,tankcontainers ,wagonsforthe 10
transport oftrailers •v 10
Housing
-stone , 2
-Wood 2.5
Tools,equipment andservicevehicles
-land -
-platforms ..1.5
Bridges,viaducts andplatform subways
-infrastructure offixedandmovablebridges 1
-superstructure offixedbridges 1.25
-superstructure ofmovablebridges I.75
-bridges,viaducts ,platform subways,footbridges
andloadingramps(concrete) 2
-culverts 1„5
-brakingandsecuring devices 3
-mobileequipment 2
Ballast , _ 2
Buildings ,pavingandenclosures
–passenger buildings andbuildings principally
constructed ofstone 1«33
-otherpublicbuildings madeofstone,paving,
wallsandstationcanopies 2
–stonebuildings forspecialpurposes " 3
-ironandwoodenbuildings 2.5
–enclosures 100
•/

–"sex;6.^'ttype's*t?.i1on
–concrete peyuigfe?ie/v.Iorü^~\Ui>r ?> 4
Safetyandcontroi
–conventional safetyfievices 4
-xnoo.erasaïetyd*.vaces A
-safety d«àvicesforle^elcross-;r«s 5
-computerized safetydevices 3
Te1ecomnrunicationsegtapreent
-radioinstallations 10
-time-indication systems 10
-remote-controlled trainindicator -./stems* 8
-loudspeaker equipment 6.67
-telephone cables 3
-mtercom equapment 10
--rematecontrci equipicent 5
Pixedeleetrifioationinstallaii-'.rs
-catenaries 2*c>
-substations andswitchga&r units 4
–supplycables 3

Miscellaneous installations
-lifta
-turntables andweighbridges
-railbrakes
-escalators
-pneumatic tubesystems
-lighting pylonsAITOSX
Percentâge
6
4
10
5
10
1.25
./

-76-
BRITISH RAILVJAYS BOARD
(B.R.B.)

BALANCE SKEET Table9a
Atil.12.1977
ASSETS * { -LIABILITIES
! ,LONG-TERMASSETS1 11""" \
« -i
« ''I1 1 ■ 11 '■1 11
i *
I t! »
r •
«
iFixedassets(Net) l Capital andreserves t s. I
'10Landandfixedinstallations .■328.6 00Capital .'ι 1
| »
t11Transport stockandeauipmeht '• t384.7• I_« " I1 ''' ,
[01Reserves t194.7 »19".7,
*1?Otherstockandequipment 5iî5ι !- ' ι!02Contribution toinvestment costst t
2 »
i13Fixedassetsunderconstruction I_ _«76*^ 03Provisions »• 3«_41-3 ,
»' *
tOtherfixedassets I
*14Shareholdings inotherundertakings ._(o£):
«04Pundsforstaff
.05Long-term financial debts t
i . •'531.1 «
t t
i t
t ; *~
215lon^-term loans %_527D■•-debentures• . i
I i. t
116Costoffloatingloansandloanredemption­
*oremiumfl« '–Stateloans ; t330.9 ι :
.• »•• •.-otherfinancial debts 101.7 !432,6 !',.....t17Miscellaneous fixedasssts –t 1.7!«5284 |Sub-total
'V* I
•s t
« «» - 1
t ■ Sub-total i
« .«1
«1293.6 j
• !
» «
» ■- CURRENT ASSETS ' «t
IS
t« :
« i
Stocks ■t > 1I *
! I» i
S «
t20-21(Instoreorbeingmanufactured )t •135·7 t t
« : -, »
tRealisable assets »1
I. ;t t
t t
*JODebtors !154,2t * t
t îi- -
t41Loansrepayable withinone.year ims t
142Billsreceivablet«
tt t
•t
s iI i
t45Securities t «155,5iOtiprnni liabilitiesi i
i ' i
:Bankbalances andcash t,1
.■« . !.... s
IWÊreditora *300.9s s
: t
143-46-47-48Chequesinhand.postalcheque« i
t ' !1~
40Financial debtsoflessthanone-yearternl__•54.7 : *
accounts ,bankaccounts 9cash
1 "Inhand • 8.2'8.2 !I44Billspayable î__!25i£_:!
I ... I-
!. Sub-total *-« ;
!__299_.4 |I *
! r–Sub-total' !355*6,|naMas m î•» »
*Résulta •*■ –––––––––– ––
t. * « ^ ' ;«
[Results -.|I. , *
t t
s06.1Lossesforprevious financial years t t 06.0Profitsforpreviousfinancial years J10.7 t I
07.1tassforthefinancial vear-1
_ i07.0Profitforthefinancial year 27.0î-2L2
9 - .
'x, Assets:Total
: :–i
I 1»–
Liabilities :Total
tî1593.0 *
i t

PROFIT ANDLOSSACCOUNTTable9b
/ I.GENERAL OPERATION v
Undertakings :BRB Millions ofUKL. YearI1977
: EXPENSES !: i!" REVENUE
i s
:£0.StaffCostai
1990.9 .1; 1
!70*Trafficrevenue :s :
s •s
I
Material supplied andservicesperformed by' ■> !0*Passenger andluggagetraffics;706.5 Ix61. ι
«605.5i a)bvrail1636.1
thirdparties b)byroadχ I *
1 » 1
•ÄÄ 1i c)byothermeansoftransport 70.4«' 1
X62.Taxesanddues : * < χ
t469.6 1t s 1*Goodstraffic 1
χ63.
iAllocations fordepreciation 1·36.θ S a)byrail t419.9 : t
t i)fulltrainsandwagonloads 346.6 : t
x64*
tAllocations toprovision accounts t 0.4 •national traffic <341.7 x x
Λ t -international traffic 1 4.9 t !
X65·
1Financial chargesX 44-4 li)partloadsandparcels t 73.3 .t t
X -national traffic •' 73*3 t s
1 s «international traffic 2 x x
s I II b)byroad .s X X
X t ( c)byotherBeansoftransport χ 49.7 Χ X
X t2.Postaltrafficχ
i-*:36.0 *t *»
xX ► Sub-total χ­ ι1212*1 χ
χ * !
« 171*Finanoial revenuex
x8*6 1
x• •72*Otherrevenue χ i111.3 s
t »
t73*Contraofcostsbookedtootheraccountsχ
XX X
:X ." Î
I X• 74*Compensations andaidsreceived under χ X X
t X 0.Regulation (EEC)N°1191/69 X363.5 X X
X 1.Regulation :(EEC)N°1192/69X 10.5 I ,t
X X 2.Regulation (EEC)N«1107/70,Artide3- 1-9 » i
« 3*Othercompensations andaide x Χ X
X L [ , 3ub-totalt I375-9 :
t
XTotalexpenses s1678.2 , 1
?;
j Totalrevenue
1 ! :χ
i..1707-9 •*
x x
91-0Operating profitforthefinancial year j29.7 91*1Operating lossforthefinancial yearχ
: j:
II.PROFIT AfTDLOSSSUMMARY
X
X91*1Operating loosforthefinancial year :-.91.0Operating profitforthefinancial yearχ
X: x
* 29.7 *
91.3Exceptional losses 2.7 91*2Exceptional profits ,>
x.a »I
i91*4
xCorporation tax X 91*5Balancing subsidy χ X X
«* ■ML-Article4ofRegulation (EEC)N#1107/70 .χ· :
χ X f-Other ,
:91.6Profitforthefinancial year 27.0 91.7Lossforthefinancial year :' î

-79-
B»R.B*:"FINANCIAL YEAR1977
EXPLANATORY NOTES
Ï.GENERAL
1.1A"netaccounting "systemisoperated-amountsrecovered inrespect
ofworkdonsforthirdparties (otherthaninthenormalcourseof.
businessofcarryingpassengers andfreight)andthecostofwork
chargedtoCapitalAccountaxeoffsetagainsttheexpenditure
incurred .
1.2Financial reconstructions in1962,19^9a*1*3-1974haveresultedin
largeamountsofassetvaluesbeingwrittenoutofthebooksin
ordertobringtheworthoftheassetsinlinewiththeirearning
power." ,'
II.BALANCE SHEET . ' •.
2.Capital Accounting ,Depreciation andAmortisation
2.1FixedassetsEirenormally includedinCapitalAccountathistoric
costlessanycapitalgrantsreceived.^
2.2Withtheexception ofRailinfrastructure referredinpara.2.3.3
(track,earthworks ,signalling ,etc.)investment expenditure is
capitalised aboveminimummonetarylevels,(usuallyUKL25,000for
fixedinstallations andUKL1,000forstockandequipment).Below
theselevelsinvestment expenditure isofaconstantrecurring
natureyearbyyearandtheresulting chargetoProfitandLoss
Accountrepresents anapproximate equalannualcharge.
f
/

-80-
2.3Fixedinstallations
2.3®1Expenditure onadditions andalterations toandreplacements
ofbuildings abovetheminimummonetary level,together with
certainexpenditure ontrackworksinconnection withnew
routesandnewelectrification schemes,ischargedtoCapital
Account.
2.3.2Theexpenditure isamortised overperiods oftimefixedwith
dueregardtotheusefullivesoftheassetsbutwitha
maximumof40years.
2.3*3Expenditure on(a)replacements ,and(b)alterations tofixed
installations andtrackworksotherthanasdescribed in
paragraph 2.3.1 signalandtelecommunications equipment
ischargedtoProfitandLossAccountasincurred .
2.3.4Property whichisnotrequiredforoperational use(described
asNon-operationalproperty )i.e.letproperty andproperty
heldforsale,isnotamortised inviewofthecontinuing
appreciation inproperty values.Proceeds overthebookvalue
ofproperty soldaretransferred toCapitalReserve.
2.3.5Ascapitalisation ismainlyrelatedtoblocksofexpenditure
ratherthanindividual assets,expenditure isnormallyretained
inCapital Accountuntilfullyamortised exceptwhereiden­
tifiable assetsaredisplaced andnotreplaced whenCapital
Accountisadjusted ,i.e.thereisareduction inexisting
facilities .
2.3.6Ondisplacement ,anyunprovided amountsarenormally charged
toaGeneralObsolescence Provision *Netproceeds from
disposal arenormallytransferred toGeneralReserve.

-81-Y
2.4Operational Land •
misisanattributedarbitraryvalueandisreducedbydisposals
beingcreditedatestimatedmarketvalues.Noamortisation is
provided onoperational land.
2.5StockandEquipment
2.5.1Expenditure onadditionsandreplacements ofrollingstock,
shipsandplantandequipment (otherthanthoseassociated
withinfrastructure -seeparagraph2.3.3)abovetheminimum
monetarylevelischargedtoCapitalAccount.Depreciation
isprovidedinequalamountsonthebookvaluesoftheassets
overperiods ,oftimerelatedtotheirestimated ,usefullives.
Livesusedforthemajorassetsares–
'Rail
-Locomotives _ 20years
-HighSpeedTrains 15years
-ElectricMultipleUnits 25years
-Passenger Carriages 20years
\-DieselMultipleUnits 20years
Skips 20years
Hovercraft 10years
PlantandEquipment 5to20years
2.5.2Expenditure onalterations toshipsiswrittenoffovernot
morethanhalfthenormalbooklife.Alterations andmodifi­
cationstoallotherassetsarechargedtoProfitandLoss
Accountasincurred.
2.5.3AssetsarewrittenoutofCapitalAccountandDepreciation
Account whendisplaced .

-82-
2.5.4 *Thesumsenteredunder"fixedassets""breakdownasfollows :
I
mioUKL
item10 grossvalue :3°0.9
' -depreciation :52.3
328.6
item11
item12grossvalue
depreciation
grossvalue
depreciation991.2
606.5
97.7
45.5384.7
52.2
3.Shareholdings inotherundertakings (itemI4)
-• /
Shareholdings inotherundertakings
Valueofshareholdings inother -
undertakings (seestatements 3Dand1B)(l)
Tobededucted :
.-Capitalloans.Transferred toitem15
-Balances ofcurrent accounts
(includedinitem30-Debtors)
itemI4mioUKL
10.4
7.6
3.4
(0.6)
4.Long-term loans(itemI5)
Long-term loanstoothercompanies
Other
Seealsoitem14mioUKL
-7.6
519.4
527.0
(l)References are-tostatements inB.R.B.annualaccounts

-83-
5»Stocks(items20-and21/
/
20.Stocksinstore
-allocations aocount
21.Stocksbeingmanufactured155.0
26.2
6.Long-term financial debts(item05)
Thisitembreaksdownasfollows:~
-CapitaldebtstotheMinistryofTransport
(Statement 3P)(l)
-Long-termborrowings (statement3j)(i)
-Portionoflong-term borrowings notrepaid
(seeStatement3J")(l)
-Shorttermbankandforeignloans
7.Pundsforstaff(item04)
*■
Includesthefollowing :
-Staffsavingsbank
-Deposits bystaffsuperannuation funds
*-Fundingdebtsrepayable 1979/86mioUKL
128.8
6.9
135-7
mioUKL
330.9
55.7
31.9
14.1
432.6
mioUKL
-21.8
34.3
475.0
Thesolvencyofmostoftheschemeswhichprovidepensionbenefits
fortheBoard'sstaffisguaranteed bytheBoardandpayments are
beingmadeinimplementation ofalmostalloftheseguarantees .
ItisprovidedthattheBoardshallfundtheseinherited obligations
andshallbereimbursed bytheSecretary ofStateastopayments
ofprincipal andinterest.
(l)seefootnote(l)p.82

-84-
TheUKL475(mio)represents thedebtsassessedtodateandinviewof
thefactthattheBoardhastherighttoreimbursement ofpayments ,an
equivalent amounthasbeenincluded withinlong-term loans–
Account No.I5.
8.Financial debtsoflessthanone-yearterm(item40)
mioTJKL
-Unsecured bankloans 27«2
-Short-term borrowings 27*5
54.7
III.PROFIT ANDLOSSACCOUNT
Reconciliation betweenProfitandLossAccount1977
(Transposed Accounts )andB.R.B.AnnualReport
andAccounts 1977
REVENUE
Transposed Accounts 1977 B.R.B.AnnualAccounts 1977
Account No. mioUKLIAnnualAccount Statement mioUKL
70.0a)Passenger and 6APassenger faresand
Luggage byRailj
I
Icharges 593,1
6AStationCatering 28.2
6ATrainCatering I4.8
636.1
70.0c)Byothermeansof 6AShips:Passenger and
transport ΉΛ !Catering Revenue
(Gross) 66.4
2DHovercraft :Gross
income 4.0
\
22Λ

-85-
REVENUE (Contd.)
Transposed Accounts1977 B.R.B.AnnualAccounts1977
AccountNo. mioUKLIAnnualAooountStatement mioUKL
70.1GoodsTraffic . (Notpublished)-Goods
byrail Traffic,Rail.Pulltrain:
National 341.7National •341.7
FerryVanTraffic(rail
#International 4.9portion) 4.9
346.6I6A'Freight-RailIncome 346.6
PartLoadsandParcels (Notpublished)-
National,73.3Parcels 73.3
International 36.0 Postal 36.0
106AParcelsandPost 109*3
OfficeMails
By-othermeans 6ABalanceofShips
ofTransport 49.7
IRevenue 49.7
71Financial Revenue1
8.62JIncomefromInterestsin
IotherTransportUnder-
Itakings 0.1
J(Sch.l3Notpublished)
IInterestonCapitaletc
I-forworkforOutside
IPartiesandLondon
1Transport
I2JSpecialLeasingBenefit 1.5
j(Sch.4Notpublished)
IInterestReceived 1.4
!lAErchangeGain 4.5
8.6
-r
*
TheInternational trafficincludesonlythewagonstransported byferry
boat,i.e.thetraffiowhichisknowntobe,ortohavebeen,effectedby
railoutsidetheB.R.B.network. './•

-86-
REVE NUE(Contd.)
Transposed Accounts .1977 B.R.B.AnnualAccounts 1977
Account No. mioUKLAnnualAccount Statement mioTJKL
72OtherRevenue 111.3 23RailWorkshops -
External Income 9.6
2EHarbours-Gross Income IS.1
2FHotels-Gross Income 29.9
6ANonOperational Property-
GrossIncome 10.5
6AOperational Property
(Letting) 18.5
6aTransmark 2.9
6aMiscellaneous -Rail 15.7
I
I6AOtherIncome(Adj.forTax)11.8
LessshownunderCode71
(ahove):
Interest inOtherUnder­
takings o.l
Interest onCapitalfor
workforOutsideParties 1.1
I
!LeasingBenefit 1.5
I7M7
111.3
74*EEC1191/69 363.5IlAPSOSupport 363.5
EECII92/69 10.5fcLALevelCrossings Compensa-10.5
tion
page45
EEC1107/70 1.9 Research Grant 1.9
TOTALREVENUE 1,707.9 TOTALREVENUE 1,707.9
Seeadditional annex(pp89to91)

-87-
ΕΧΡΕΝSES
T'rnr.sposedAccounts1977 \I\B.R.B.AnnualAccounts1977
Account No# mioUKLAnnual A.ccountaStatement mioUKL
60StaffCosts 990.9 4BStaffExpenses 983.9
1ACorporate Expenses-
assumedStaffExpense
element - •-•-2.5
2BRailWorkshops –External
IncomelessExternal
Operating surplus =
External Worksexpenditure
of£9.0MAssumedStaff
Expenseelement 4.5
990.9
61Katerialsupplied and 4BMaterials .Supplies and
services performed by Services 480.7 •
thirdparties 605.5 4BPuelandPower 106.9
1ACorporate Expenses –
balance(seeabove) 1.6
2BRailWorkshops –Balance
(seeabove) 4.5"
Page31Transmark –Expenses 2.6.
(Sch.5–notpublished )
Intez*-Activity expenses
tobeexcluded /2.8/
1ALevelCrossings Compensa­
tion(creditedagainst
expenditure ) -10.5 "
1D(13)Research Grant
(creditedagainstespen-
diture) 1.9.
\1D(9)Interne 1.Insurance /0.4/
605.5

-88-
EXPENSES (Contd.)
Transposed Accounts 1977niioUKLB.R.B.AnnualAccounts 1977mioUKL
Account No. AnnualAccount Statement
62TaxesandDues 0.2
63Allocations for
deprection 36.8
64Allocations toProvision
Account * 0.4LATaxation-Overseas-Transmark 0.2
6AProvisions forDepreciation
andAmortision 36.8
3HProvided during
-r
Year 0./
I ■,
65Financial Charges 44*4
/•"- ' .i
2K'Interest Charges 43.0
(Sell.4-notpublished )
AddbackInterest
received 1.4
44.4
TOTALEXPENSES 1*678.2 TOTALEXPENSES
91.0Operating Profitfor
theYear 29.7ASurplusbeforeextra .-
ordinary items 29.7
I
!'91.3Exceptional Losses 2.7
r• -'2LFreightLossI9775.5
Adjustment reS.39
,Paymervts since197478.2/
.2.7
Thissumscoversdomestic premiums on.,c.,j&.-.»■~-v>vnr'sr"Provisions for
domesticinsurances "(initem05).

-89-
■Item74
Financial Support 1977
Transposed Accounts
PublicServiceObligation
RailPassenger sector
Normalisation
Levelcrossings
Other
Grantforrailfreightand;
parcels (transitional -to
ceaseatendofI977)
GrantsunderS.56of
Transport Act1968 '
-Researchgrants-S.57
ofTransport Act1968mioUKL
363.5AnnualAccounts
Statement 2A-
Railways Operating Account
10.5-Statement 4A-
-Trackandsignalling
ZHÏ7
11.7
1.9
SupportforCurrent
Operations >384.9
Pensionsupport-funding,
refundofdepositsetc.,106.8Statement lA-
Consolidated ProfitandLossAccount
Statement ID-
Accounting Policies andNoteson.
Accounts-paragraph 4-Capitalgrants
Statement ID-
Paragraph 13
Statement 1D-
Paragraph 2
Paragraph 2 ,
Paragraph 334.7
;5.°
67.I
106.8
TOTALFINANCIAL SJPPORT 491.7

Item74
Capitalaids
ThesumofUKL11.7givenunder5.56oftheTransport Act1978(see
note4ofStatement ID)iscapitalaidandwilltherefore notbeincluded
initem74.Thisaidhasbeendeducted fromtheexpenditure onfixed
assetsincluded inthebalance sheet.
Pension Fund
mioUKL
Thisitemincludes :
a)reimbursement ofdeposits bythestaff
superannuation fund 34•7
b)interest ondeposits bythepensionfund 5.0
39.7
c)interest onthesumsetasidefor
fundingdebts 67.1
106.8
Itema)hasbeentreatedascapital.Asindicated intheB.R.B.'s
Consolidated ProfitandLossAccount,itemsb)andc)werereimbursed bythe
Ministerinaccordance withtheRailways Act1974»and.therefore donot
appearintheresults,i.e.theoperations havebeentreatedasadirect
debit/creditbookkeeping entry.
Theremaining paragraphs ofthissectiondealwiththetreatment ofthese
Ioperations inthebalancesheetsubmitted inaccordance withRegulation
(EEC)Wo.2830/77.
Inapplication ofB-R.B*order1973(amendingtheprovisions onpeno?cns),
theBoardmaynolongeracceptanyfurtherdeposiis bystaffsuperannuation
funds,anddepositsexisting at31December 1973axecurrently beingrepaid.
TheRailways Act197' :providesthatthisrepayment ,+.04,rwithinterest
onthedeposit -'j,she"bemadebyth<3State,SwusorU;'.L34,7mioand
5.0iioro?pectively v -epa-idinJ.977.,Thafinalrepco-^eat sofprincipal
endinternt p.-;-ms1- me.'.,;-.in

-91-
The1977balancesheetshowsareduction inthedeposits ofthestaffsuper­
annuation fundfromUKL69.0mioat31December I976to34.3mioat31
December 1977~adropofUKL34*7ni®*whichistheamountgivenabove.
Item04ofthetransposed balancesheet(Fundsforstaff)breaksdownas
follows : ■ ■* '
. , . mioUKL
-Depositsofthestaffsuperannuation funds 34.3
-Financing ofdebtsrepayablein1979/80 . 475*0
'-Depositsinstaffsaving.bank - 21.8
Item04 531.1
AsumofUKL475.0mioisincludedinthelong-term loans(seenotes2and3
ofStatement ID-Accounting Policies andNotesontheAccounts,andState­
ment3E)anditem15ofthebalancesheet. ,-^
mioUKL
-Debtstostaffsuperannuation funds :475-0
-LoanstoRailwayFinanceLtd 40.6
-Loanstopermitcontributions tothecapital
ofothertransport undertakings 1.6
-Other "-3.8
,^ 7 ••....,•' ■527.0
TheRailway Act1974providesthatthebalanceoftheobligations inrespect
ofpensions (capitalandinterest)inherited bytheBoardshallberepaid
bytheState.
Currentemployer'scontributions tothesuperannuation fundareentered
underrevenue andtreatedasstaffcosts.<
/

.■>
NORTHERN IRELAND RAILWAYS
COMPANYLtd(tf.I.R.)

BALANCE SHEST Tabla10&*
,Ai2.4.1978
Undertakini:HIR 1 1-•- ^
- • • "■ ;.■ , oooofukl
ASSETS tt-i-LIABILITI ESI
! LONG-TERM ASSETS !. ,.i 2Tt ,
II.f2
t: t
sFixedasnete(Net). t I Capital andreserves s ts
t
110Landandfixedinstallations , 8242!ii
i
i-00Capital ,21002 2
9 *
:,11Transport stockandequipment < i6896•
«1 01Reserves 2 2885 s.129?52
112Otherstockandéquipaient .m*ιt
i
î02Contribution toInvestment costs -2:12881
» * •
2'13Fixedassetsunderconstruction I 65_»15940 03Provisions ι ι 32
t ' >•I
2Otherfixedassets 1
1-14Shareholdings inotherundertakings *t
I
ts
I04Fundsforstaff
05Lonff*-term finanoial debts1
2
t2
t■
ts
2
«
• »
215U>ng-term loans 2i-debentures ,* s χ
i ·, i
s._«... . .. . :16Co6toffloatingloansandloanredemption {^premiums2. s *•Stateloanfl 2 I t
i
ii•otherfinancial debts», 100 * 100I
i »
:17Miscellaneous fixedassets • s t *•;.Sub-total
4X.159991
X I
s« Sub-total :l
i_940^_}
itt
t.
si
i
t
t, i
! CURRENT ASSETS 1 It" ./
2t
tt
t
Stocks ,•.„ • »t
ι ·..l,..v t
tt
t2
I20-21 (instoreorbeingmanufactured )t
• ■«I 299i
i
!t
ti
ι2
• •'\ * *lRealizable assets 1 S t 2 2 2
|30Debtors' *, s' 17932
.■·■...'ν..· ■■■■■> ·■42
9-I
92
t41loansrepayable withinoneyear t•
21 .. •2. 2
142Dil?;jrtceivaMo '• 1 -ι2
-# ■t
•<S
245Secjpitiea " 2' «Lms
>Currentliabilities2 ,«
i t t I 2 t 2
2fiankbalances andcash 2 2:
i31Creditors214052
43-46-47-48Chequesinhand,postalcheque
accounts ,bankaccounts ,CQ.sh
1 inhand ■■.,.1 '1
2 40Financial debtsoflessthanone-year term–* _
2 2
(427)'(427)i
I.44Billspayable2172_ 1577•2
2 2–
| ', .Sub-total|–2–
11665
t9ub-total*–i–
2
2-.3.5772
2
Results * 4 *t
t■ Results '.,2
22
2
206*1Losbssforpreviousfinancial years .2• s 06.0Profitsforpreviousfinancial years 22 V. 2
07.1Lossforthefinancial year2"07.0Profitforthefinancial year250 sa2
*
2 • –
Asesta:Total)τχ
'17605i
tιLiabilities :Total I17605'2
1
1

PROFIT ANDLOSSACCOUNT Table10b
I.GHJJERAL OPERATION
Undertakings :NIR000ofUKL.1.4-1977
'2.4.1978
EXPENSES REVENUE
tO.Staffcosts
Si.Material supplied andservicesperformed by
thirdparties
62»Taxesanddues
63-Allocations fordepreciation
£4*Allocations toprovision accounts
*
65*Financial charges .
ft.
14ν3057
5884
22
499
1470.Traffic revenue
0«Passenger andluggagetraffic
a)byrail
b)byroad
'c)byothermeansoftransport
1.Goodstraffic
a)byrail
i)fulltrainsandwagonloads
-national traffic
-international -traffic
li)partloadsandparcels
v-national traffic
-international traffic
blbyroad
?o)byothermeansoftransport
2.Postaltraffic
'« Sub-total
71•,P.inanoial revenue
72.Otherrevenue
73.Contraofcostsbookedtootheraccounts
74*Compensations andaidsreceived under
0.Regulation (EECJN»1191/69
1.Regulation (EEC)N°1192/69
2.Regulation (EEC)N°1107/70,Article3
3*Othercompensations andaids
Sub-total2074
1201
550
550
651
631
20
1678
30
314:
":
't■2074
1201
15
3290
216
4748
2022
Totalexpenses 10276 Totalrevenue 10276
91.0Operating profitforthefinancial year 91.1Operating lossforthefinancial year
II.PROFIT ANDLOSSSUMMARY
:91*1Operating lossforthefinancial year
|91.3Exceptional Iobsbs
:91.4Corporation tax91.0Operating profitforthefinancial year
91.2Exceptional profits
91.5Balancing subsidy-Article4ofRegulation (EEC)N«IIO7/7O
-Other30(11
.91*6Profitforthefinancial year 30 91*7Lossforthefinancial year
(l)Repayment ofcooporation tax*

N.I.R. :ACCOUNTS CLOSED 2APRIL1978
EXPLANATORY NOTES
General remaries
I.BALANCE SHEET
1.BasisofAccounting ;
Accounts areprepared ,onthehistorical costbasisofaccounting ,
wherebyitemsarerecorded atthevaluesatthedateswhentheywere
acquiredorrevalued ,theliabilities wereincurredorthecapital
obtained .
2.FixedAssets
Fixedassetstransferred fromNorthern IrelandTransport Holding Company
on1stAprilI968,byvirtueofSection68oftheTransport Act(Northern
Ireland)1967»&reincludedasvaluedon29thMarch1970a*1'!otherfixed
assetsatcost,
3.Depreciation
Depreciation isnotcharged onexpenditure onassetsnotyetinuse.
Withtheexception ofsignalling ,bridges andpermanent way,deprecia­
tiononfixedassetsischarged soastowritethemoffovertheir
expectedusefullivesatratesrangingfrom3%to25%perannumof
valuation oncost.Inthecaseofsignalling andbridges,expenditure
iswrittenoffintheperiodinwhichitisincurred .
Deprecitiation ischargedagainstReserves inrespectofallassets
otherthantwoitemsofplanandMachinery onwhichdepreciation is
chargedtoProfitandLossAccount.
nie

AA^cc
f-9
Theseconsistmainlyofengineering »aterials^X--oludirg versanent v*y
andsignalling )and.storesoffuelandoil,f";sbasisof■/sinationis
thelowerofaveragecostorestimated realisable vsJ.v.^'
II.PROFIT ANDLOSSACCOUNT
AnajaountofUKL30?000isreceivable ix-onkG.ooupCompanies inrespect
ofGroupTaxation Relief,
6#ParentComoany
TaeCompanyieawholly-owned -sun"'
Holding Companywhich ,isin-"orr;-or::1o.'a:-}'.'i."Noruiyrn .IrelandTransport
e-lxn5oether "..;.Irs1anda
Sceci2.1conunents
BALANCE SHSET
Items00to05
OCCapital
01Reserves
02Contribution
tomyestseeat
COB''Jssnares
capital;reserv
reserveforrepla.c-.uigfi
assets
reserveforrevaluation
fixedassets
Government aids
■■-idto765
^36'5000UICL
100
,885

-97-
03Provisions
05Long-term
financial
debtsadditional provisions
baddebts
unsecured borrowings
bytheHolding Company12
20000UKL
32
100
Items10to12
10-13 Grossvalueoffixedassets
lessdepreciation
Netvalueoffixedassets
Depreciation periods '
a)Landand.buildings
Minorexpenditure onrevamping .5years
Majorexpenditure onconstruction ;33«3years
b)Permanent way 20years
c)Workshops andmachinery 15years
d)Motorvehicles 4years
e)Rollingstock 20years
f)Supplies,furnishings andfittings 5years
g)Signalling andbridges 0years
#Thisexpenditure iswritten downduringtheperiod
inwhichtherelevant contracts arecompleted and
thereistherefore nodepreciation .22,363
6,423
15,940
Item31
Expenditure brought
forward
^Suppliers -
Miscellaneous769
286
350
1,405
Note:TheUKL1,549,000isthefiguregiveninthecompany'spublished
accounts under"Debtorsandexpenditure broughtforward"and
breaksdownasfollows(figuresinbracketsrefertotheheadings•/•

-98-
inthetransposed ,accounts wheretheseitemsmaybefound):
000UKL
–Debtors (item31) 1»405
-Bills(item44),I72
lessamounts duetotne
N.I.R.byothersubsi­
diariesoftheHolding
Company –60
-Entered asacontram
provisions (item03) 32
1,549
II.PROFIT ANDLOSSACCOUNT
Item60
*-Staffwagestodsalaries 3»204
-Paidleave 277
–Insurance contributions 336
–Employer 1scontributions
topension schemes 40
Totalstaffcosts 3»857
*Thisfigureisgivenaspartofstaffwages
andsalaries inthepublished accounts and
nottreatedseparately .

-99-
Items61to65
Theitemsofexpenditure inthetransposed accounts compareasfollows
.- s
withtheitemsinthepublished accounts :1
000UKL
Figuregivenforexpenditure inthepu-
blishedaccotaits 4845
plusRegional Employment Premium (part
ofsub-item 74.3ofthetransposed
accounts) 26
Compensation forchargesinrespectof
levelcrossings (sub-item 74.Iofthe
transposed accounts) 30
Additional costs
(partofitem72ofthetransposed
accounts) 128
5,029
ThesumofUKL5,029,000isthetotalforitems61,62,63and65ofthe
transposed accounts,9,777,000lessitem73(costsbookedtootheraccounts
4,748,000 . -■• ■
Items72and1^,.'
72Otherrevenue
(giveninthepublishedaccounts) -88
Additional costs 128
216
73Expenditure onfixedassets
(giveninthepublishedaocounts)4,011
Valueofworkdoneforthirdparties 737
4,748
74*3Aidsfor"travelagencies 288
Regional Employment Premium 26
314
•/•

-100-
Thedifference between telafignrasgiv'a<\xx).taetransposed ,accounts and.
thosecommunicated totheCommittee onAidsisduetothefactthatthe
latterarebasedonthecalendar yearandcoveractualpayments during
theyearwhilsttheaccountsareba^edonthefinancial year(Aprilto
April)andgivethe -amountsduetotheU"SI.R.fortheyearinquestion
ratherthanthepaymentsactually madsduringthatperiods

-101-
PARTTWO
STRUCTURE OFTHETRANSPOSED ANNUAL ACCOUNTS

-102-
STRUCTURE OFTHETRA^SPOSFO ^,'irjALACCOUNTS
1.Theaimofthesummarytablesa.-ic.\agrajusistopermitafirstcompa­
risonbetweentherailways.Atthisstageanysuchcomparison islimitedin
ixsusefulness because ofthedifferences between themethods usedfor
accounting andforcalculating certaindata,apointwhichhasalreadybeen
mentioned inthisreport,
2.Thus,Tables11and12analyseandpresentthestructure ofthebalance
sheetsandprofitandlossaccounts inpercentages inordertohighlight the
relative importance ofcertainitemswhilstTable13analyses theextentof
workingcapitalbothfromthepointofviewoffinancing fixedassetsoutof
long-term capitalandfromthatofcovering currentliabilities bycurrent
assets.
3.Inthisfirstreportthefigureshavenotbeenpresented inEuropean
unitsofaccount.Apresentation inthisformwouldleadtocomparisons of
datawhichdiffergreatlyasbetweenthenetworks .Ahanalysis which
concentrates onthesedifferences whichresultmainlyfromthesizeofthe
countries andthedensityofthenetworks shouldbeavoided,andattention
directed insteadtotheproblems commontoalltherailways.
4.Koreover ,inordertoachievebettercomparability ,itemsofthesame
naturehavebeengrouped andmostofthefigures havebeenroundedoff.
Structure ofthebalance sheets
5.Table11(a)anddiagram11(b)showtherailwaysindecreasing order
ofimportance oftheirfixedassets.Theproportion oftotalassets
accounted forbyfixedassetsvariesconsiderably ,representing asmuchas
90/6fortheD.S.B.anddroppingtolessthan40>fortheF.S.
6.Nevertheless ,thesefiguresshouldbeinterpreted withcareasthere
areseveralgoodreasonsforthedifferences ,e®g.:

-103-
--themethodofdealingwithlosses(immediate deduction orcarry-forward to
thenextyear);
-theaccounting methodsusedwithregardtofixedassets(netorgrossvalue,
historicorreplacement value,etc),
7.Thefinancialsituation oftherailwaysreflectedincumulative losses
isthefirstexplanation whichcanheoffered.Theselossesrepresent 50$of
theassetssideoftheF.S.;D.B»deficitsalsoincludealargeproportion of
lossescarriedfoiwardfrompreviousyears,whereasfouroftheundertakings
shownolossesorevenaprofit.Differences inaccounting methodsshould
alsohetakenintoaccount.ThustheC.F.L.'slossesareshownasonlyyf0of
totalassets,becauseallthelosseshavebeenabsorbedbyreserves.
8.Theaccounting principles appliedtofixedassetsalsopartlyexplain
'thedifferences betweentherailways.Whilsthistorical valueisusedas
depreciation basisformostofthefixedassets,themethodsforbookingthis
valuearenotthesame.Mostoftherailways,showthenetvalueofinvest­
ments(purchasevaluelessdepreciation )ontheassetsside.S.N.C.B.and
P.S.however,althoughtheyenterfixedassetsontheassetsside,charge
renewalstothereplacement fundwhichisenteredinitem03oftheliabili­
tiesside. ,, .
9.Thereareotherdifferences too.TheB.R.B.andC.I.E.donotcapitar-
lisecertainfixedassets(track,structures andsignalling andtelecommuni­
cationsinstallations )inthebalancesheet,whilstotherrailwaysputin
tokenentriesforatleastsomeofthesefixedassets.Yetothersenterin
thebalancesheetonlythosefixedassetsexceeding acertainvalue;assets
whosevalueislessthanthatamountarechargedtotheprofitandloss
account.
10.Underthesecircumstances itisdifficult todrawconclusions without
firstmakingadetailedanalysis oftheannualaccounts andthetransposed
accounts.Thereareplansforsuchananalysistobemadewiththe
assistance oftheCommitteeestablished underRegulation No.2830/77.

-104~
11,Ontiieliabilities side,suosrtaxrt ?aldit'"erences may "benoted ,between
theproportions ofowncapitaland.1on°;~teborrowings .Asdistinct from
theC.I»EtandF«S„,theD.S.B.aftdIC.I avenot,orhardly,rosortedto
long-term borrowing .Inthecaseofthe5\,3.partoftheeixplanation forthe
highproportion ofloansliesinthefactthattheyareobligedtocoverany
deficit "bymear.soflor^-term borrowing ,,ExceptfortheS.NeC.F. ,theremai­
ningrailways areclosetoanevenbalance "betweencapitalandreserves ,and
long-term debts;fortheS.N«C.F. snorttermdebtsmakeupalargeproportion .
Itwillonlyhepossibletoanalysethesedifferences andclarifytheeffects
offinancial policyontheresults bymakinguseoftherailway'sannual
accounts andwiththehelpoftheabove-mentioned Committee .
Structure oftheprofitandlossaccounts
12.Table12(a)anddiagram12(b)showtherailwaysindecreasing order
oftherelative importance ofstaffcosts.Inordertotakeaccountof
exceptional profits andlossesandofthebalancing suhsidi.es ,thegeneral
operating accountandthesummaryhavebe^nincluded inasinglepresentation .
Charges
13.Staffcostsrepresent almost60foofallcostsforsevenofthe
railways (Community average;5&%)•FortheC.F.L®thesecostsaremuch,
higher(78^)butfortheF.S.andtheH.I.R.theyarelower(48/^and37/£
respectively ).
14.Indecreasing orderofimportance thenextitemisexpenditure on
materials supplied andservices performe d"bythirdparties ,,Eightofthe
railways remainveryclosetotheCommunity averageof2£fvtwhichisalittle
lessthanhalfofstaffcosts.OnlytheCeP.L.(at8^3)andthe2>T.I.R.(at
51$)arefarremovedfromtheaverage.
15*Asthecostsconcerned areofthesametype,allocations for
depreciation andtoprovision accounts havebeengroupedasoneitem.The
firstheadingcoversallsumssetasidefordep.,relation ,wM1rfcthesecond .
forsomerailwayspartlycoversamour .13int-nc^dfortherenewaloffixed
assets.Onaveragetheallocations represent -only8^cftotalcosts,wir.fr
oily\helf»S«st1$£andtheB.R»3.at2hvC^ingconsiderably i'iomthe
average. ,

-105-
16.Financial chargesrepresent 5$oftotalcostsonaverage,withonly
theF.S.at10$exceedingthisfigure.
revenues
17.Therelativeimportance oftrafficrevenuevariesconsiderably from-
onerailwaycompanytothenext.Thisformofincomerepresents lessthan
, . Ν
30$forthreeofthenetworks (C.F.L.,S.N.C.B.andF.S.)andhardlymore
thanthatfortheN.I.R.,whilstthefigurefortheB.R.B.is71$.Thereare
evenbiggervariations intheproportion ofrevenuefrompassenger andfrom
,?ooastraffic.Thustheratiopassengers/goodsTangesfromsome2.15for
theU.S.andC.I.E.toO.I5fortheC.F.L.Inthecaseoffouroftheother
railways ('B.R.B.,N.I.R.,F.S»andD.S.B.)revenuefrompassengers exceeds
thatfromgoodswhilstinthecaseoftheS.N.C.F.,D.B.andS.N.C.B.the
reverseistrue. "
18..Contributions fromthestate(including balancing subsidies but ,'
excludingcapitalgrants)represent between20$andnearly70$oftotal •
revenu.Fiveoftherailwaysreceivebetween20$and30$oftheirrevenuein
thisform,andtwoothersslightly morethan30$.Onlyinthecaseofthe
Beneluxrailwaysisthisaverageconsiderably .exceeded (N.S.-42$,
S.N.C.B*-52$andC.F.L.-68$).
19«Totalrevenuefromtraffic andtheStatedefinedasabovecovers
almost80$oftotalexpenditure but,inthecaseoftheN.I.R.,thistotal
coversonly52$,whilstthefigureis58$fortheF.S.and65$fortheD.B.
In1977thelasttworailways showedoperating lossesofsome28$and15$
respectively .
20.Financial andotherrevenue,generally'littleover5$,contributed
onlymodestly towardscoveringcosts.
21.Finally,contraaccountsvariedconsiderably ,beingzeroforthe
C.F.L.,D.S.B.andB.R;B.andrangingfrom3$fortheS.N.C.F.to46$for.
theH.I.R. , -•
./

–10o–
Analysisoftheelementsmakingupthebs.ler.cesheet
22.InTable13theaimistosetoutthesimplified financial situation
oftherailwayundertakings byhighlighting theirlongandshort-term assets
ar.dtheirworkingcapital.
23.Fromthispointofview,anundertaking possesses workingcapitalas
longasitsfixedassetsdonotabsorballitscapital,reserves andlong
termdebts,oraslongasitscurrenta.ssetsexceeditscurrentliabilities ,
whichcomestothesamething*Therearetworatioswhichindicate the
financial situation ofanundertaking :
-theratioofcapital,reserves andlongtermdebtstofixedassets,
and
-theratioofcurrentassetstocurrentliabilities .
I
24,IfweexamineTable13wecanseethat,exceptfortheS.lf.C.F. and
theB,R.3e,thisratioisgreaterthan1.0fortbaotherrailways ,sothat
thesedohaveworkingcapitalattheirdisposals However,thisdoesnot
seemtobesubstantial exceptinthecaseoftheCjF.L.and,toalesser
extent,theIsT.S.,D.B.andD.SeB.
25.Thefactthatsomeiworkingcapitalisavailable isnotinitselfa
sufficient indicator forjudgingwhether anundertaking isfinancially
soxuid.Workingcapitalalsoneedstobelargeenoughand,asfaras
possible ,currentliabilities shouldbebalanced byliquidassets,sothat
stocksandsimilarcurrentassetsneedbefinancedtotheleastpossible
extentbysuchliabilities .ThisisnotthecaseforanyoftheCommunity' s
railways .Todrawvalidconclusions fromthisstateofaffairswillrequire
detailed analysis everaperiodof-time..
J.

-107-
Ar;r.l;.-GisofcertainProfitandLossAccountitems
It^asbeenconsidered ,ofinteresttorevealtheextenttowhicha
r.ii.iberofchargesdirectlyarisingfromrailwayactivities arecoveredby^
-^'•afficrevenueandcompensations .Table14showsthenetworksin
c-ocreasingorderofthedegreeofcoverage ;forthecomparison thefollowing
•/firsts-cenintoaccount ,:trafficrevenue andthecompensations grantedto
railwaysbyvirtueofRegulations II9I/6.9and119^69ontherevenueside,
staffcostsandmaterials andservices bythirdparties onthechargesside.
27.Inordertoputthisanalysisintoproperperspective ,thetablealso
recallstherelativeimportance oftheitemsanalysed whichmakeupfrom78°Jo
to93/ooftotalchargesandfrom48$to93%oftotal ^revenueoftheprofit
andlossaccount.■'
•' 1 Λ
28.InTable14fourdegreesofcoverage werecalculated ,onwhichthe
^r
-RatioA(Trafficrevenue+compensations /staffcosts)
Foralltennetworks (exceptC.F.L.S9?t>)staffcostsarepretty
wellmetbytrafficrevenueandtheabovecompensations .
Threerailways (S.N.C.F.,F.S.andD.B.)arealittlebetterthan
inbalance,whilstfortheotherssurplusrevenueissignificantly
high,risinginthecaseofB.R.B.toasmuchas60$.
. V
-RatioB(Trafficrevenue/Staffcosts)
Ifcompensations arenottakenintoaccountonlytworailways /
(B.R.B.andC.I.E.)covertheirstaffcostsbytrafficrevenue,
fortheothersthedegreeofcoveragevariesfrom98$(D.S.B.)
to36%(C.F.L.). •
•/

-108-
-RatioC(Trafficrevenue+compensations /staffcosts+materials and
services bythirdparties)
Ifmaterials andservices rendered bythirdpartiesareaddedto
staffcosts,thesechargesareprettywellcoveredbyonly
threerailways (NaSe,B.R.B.a.ndD.S.B.)fromtrafficrevenueand
compensations ,Fortheothers,thedegreeofcoverage varies
from90joto5!/&•
-RatioD(Trafficrevenue/staffcosts+materials andservicesby
thirdparties)
Settingtnesesamechargesagainsttrafficrevenueonly,it
becomesclearthatnotoneoftherailways hassucceeded in
covering them.Theposition variesgreatly,withdegreesof
coverage rangingfrom76%to34%.
29.Theseratiosshowtherelative significance oftrafficrevenue and
compensations onthefinancial resultsoftheundertakings .Inviewofthe
omission fromthiscomparison ofcertainchargesandrevenues ,conclusions
canonlybedrawn,inthisinstance too,afteramorethorough analysis of
thevariousitemsoftheprofitandlossaccount.

RAILWAY UNDERTAKINGSTable11a
STRUCTURE OPTHETRANSPOSED BALANCE SHEETS ASAT31.12.1977
Percent 4
• '
• !
• ' ■''v !DSB^NIR^: i :
NSlBRB:DB»SNCB
: : :CIE SNCF• H• «
CFL JPSJ
• Β
» • a
'ASSETS
• –– ;
jFixedassets
:Currentassents JRealizable
assets
• Bankbalance
andcash
:Losses
1ι'90,6
9,0
i
0,4
0»ι
ί90,5
ι
t11,9
(2,4)
!
o'!
*» 4
! i
!85,3 !
t- i
13,4 !
*
1,3i
!;0 1
» 4
» I: : i
i t i
81.2:78,4:75,8 i
j t i
18.3:4,7*17,3
s :
0,5:3,2s0,6
: s
'0;:13,7i6.3
: :t i
> 4
t i
60,8 Î
30,0
2,5
6.7i «
► ,*
ι
t57,9
!
i30,7
!
0,7 ■
;"io,7ί : ι
t : Î
56,4:3"•'
i
39,6;Î?
0,9: '
! ■:
ί3,1ί50,1
» '•t •
LIABILITIES
Capital andReserves
Longtermloans -
?Currentliabilities
.Profits
2 ·92,1 ;
»;
7,9;
4o:90,3 ;
4
0,6!
4
9,o;
0..i
I
'- «
<50,8
38,8
10,4
0; :
: ι
;48,1;42,3::42,0
I • •
!27,2!52,2î40,5
■ί'':'":
I · · ι22,3î5,5!17,5
•è •
2,4:o!0
• •
: •:ι
;io,o
|60,2
!29,8
»
i
'010,9
49,4
39,7
0: χ
i i -
!57,6î27,'
i •
!29,4!62,0
» «
;i?,.;io.i • o
>. • ■>
1o*~■"
» »
» *
! : i
1)Asat31.3.1978 .
.2)Asat2.4.1978.
/

Figure11b
LEGEND
Fixedassets
i
///ACurrentassets M
m - •farfr?Losses
Profitsis
VoCvCurrentliabilities
Longtermloans
Capitalandreserves

Tabla1?a
RAILWITUtTDERTAKTHOS
STRUCTURE 0?TIETRANSPOSED PROFIT ANDLOSSACCOUNT FOR1977
Percent
i
i,CPL *DSBΤΠSNCF j;DB !1CIE
!_!»3
t _j,SNCB«BRB'!FSihiT^t
i
1EXPET/SESINiI–cI
SX
Ii? i
i \ι.1i
it
t:
ιj
iΓS S
< tJ
1l
I.I
1
Staffcosta ;78,2 61,6i
j!a»'1"!59,0159,0. 59,0 59,0 !58,0';48,2 "37,4i
i
Materlals/jrdpartyservices 7,7 .24,4i
i;26-7 i26,81
I27,3 20,6 ; :35,5 !29,5. ::57,1t
\
Depreciation etc*X
xX
t5,8^ ;;
J6,6 16,6 11,2 .;i±;9,2 :5,1
I
lTaxesχ
i1,0I
iJ
il X
'1.3 ■ «t
I0,3;
13,4.t
*0,3 i0X i
t0> iι
2,0.*f
;
Financial charge*. *-2 9'1I
I'Sí 1,3,3 .7,9 3,4 1,5•,l
• I4,5;2:«J .0,:8
I
I
•|Exceptional lossesS
I• •t
1^-I
iι0,1 .;ιi
I0,2I
t0,3ι
ιj
i\.
\-x i
i0,2 t». ι
0 i\
it
t
jProfitsi
X ;I
I"'i
,Ji. i
l i\,
t""i
jl
i'""i
i~,• j
.•it
i**>•5.1
!0,3I
f
S
<RKVfHUKS IN<I
II
I.I
•I\ i
t,, I\
iI.
\
.«IJ
J\
V­I t
1'* t
• .•I
I. 1
I
<Traffio -revenue .I28,1 «60,2 • Iι"54.5 ιi40,7I
Ii61,8/»45.1 ι27,0 «71,0 i26,8 ιr31.9 s
-Passengers 3,8i32,2 21,9 13,1 43,9I31,5 .10,3 •41,4 16,4 20,1t
–Qooaa :24,3«26,0 31,6 26,4 17,4 12,0 16,1 27,5 10,3 11,7
-Postaltraffio . 0
I2'° 1.°
I -1'2 °,5: ;1-6 0,6;2'x 0,1 0,1
Flnanoial revenue ;°.5 0,3
1 °'5
1r
i°-9ιlo,5' 0,5 0,5\
i"*ι
8
XOtherrevenue ι.1,6 ».9,8 ιι5,5 '>4,6 ι5,6 i>2,8 Ii6,3 •ι6,5 »3,4 ιι2,1
ContraaccountsS
ι .ι
χI
I:ν 15.11
J7.3 •9.0.-,J
'''J13.1Χ Χ
χ~ ,,:9,2 :46,1χ
χ'
xStaterevenues x »χ
ι68,3χ
«29.71
I1,1
132,7 I\
i'24,03
JI
t24,9χ
χ42,2i
iι51.5χ χ
»-22,0 .»30,9 ir19,6Χ
.<
'-1191/69 ' 17,9«22,6 9,8!9,0 9,8t32,9 23,7:21,3 n,7 16,3s
-1192/69 31,7 1.3 1,3»11,1 1.7 1,8 16,4 0,6 10,9 0,3
-1107/70(Art.3) :18,7t-5.8 .12,7 o,l 5.5 11,4 01
•Others :3.9 3,8 0,1 .3.0
-Balancing subsidy
iX•X 1L:5-°i*
1i
I<7.8
X7.5,|6,3
X
X
lExceptional profitsX
X- IX
IJ
•I\ X
ι0,2 ·ι\-
\0,2x
"X\. X
X-I
'\Y
t0,1X X
X- <i.V ':0,3X
X
Losses
χi
X"II»„ I
;>.° 14,9'V X
1"0,4.'x i
i■1,5I ,X
Χ X28,1 .I
X
1)1.4.1977to31.3.1978 .
2)1-4.1977to2.4.1978.

E
X
P
E
N
S
E
S
R
E
V
E
N
U
E
SRAILWAY UNDERTAKINGS
STRUCTURE OPTHETRANSPOSED PROFITANDLOSSACCOUNTTOR1977(i"/')
*_ÎOO
.80
■60
■40
■20
-0
*■0
-20
-40
-60
-80
-100CFL .DS3(l)SNCF DB CJE
τττττ••«
m•••
••
••«
9♦
EZZZ
5X3
(1)1.4.1977-31.3.1978mmNS
7ΤΓ7SîTCB
77T7
ΝS
(2)1.4.1977-2.4.1978ESSF3 JITR(3
••
•·1
•·
••%
MΆ
•«I
•·«••
t•»•
•«••
«I•«
177717.Figure12b
«••
%•%•
i
κ
••»
»»«♦
%••■LEGEND
Staff
Materials/3rd
partyservices
Dépréciation
Financial charges
ιProfits
m
to
I
Losses
Staterevenues
Financial revenues
™(GoodsTraffic
revenue >Passengers

* Table ,13
ANALYSES OP.THEBALANCÉ SHEET
Inmillions ofnational currencies
• *
• '
9rCFL ;
• <:ns,:
» <icíe;
» «;ps :db.
I 4DSB
I *;SNCB ;
I 4;NIRt);
* •BRB ;
4;.SNCF *
:(l)Capitalandreserves
• $3,987 4305»
ι48,3
»500849443 691370396 :16028 123717.157 •
• w
:(2)Fixtedassets 26794096'46.3 4815.>480294
6793J
<6999515940 129320052:
Ν
:Ratio(l)i*(2) 1,49 1,05 1,04 t1,04 1,03 •1,02 1,01 1,01 0,960,co:
>•
;(3)Currentassets 1925 707.24,7 1576 !
«4811' 71016600 1665;29910 i
1(4)Currentliabilities 617 49822,7 1383'3397 59016199 1577 .35613743:
î•Ratio(3)(4) 3,12 1,42l',09< 4
1,14 !
«
«1,41 1,20 1,02 1,06 -0,84-•
0,7 ?
«
«
E–– •–C ––––––
• «
:Différence (1-2)-(3-4)
:(Netcurrentassets)
•1308»
209 2,0 ^193SSSSSSSSSE :
-1414 1201
401 88-57-2865:
a)In000millionLIT... • •
b)In000UKL
(1)Capitalandreserves(accounts00to05)lessaccumulated losses(accdunts06.1and07»l)orafteraddingaccumulated
profits (accounts06.0and07.0).
(2)Long-termassets(accounts 10to17)«, .' '
(3)Currentassets(accounts 20-21,30,41,42,43,45"to48). , -
(4)Currentliabilities (accounts31,40and44). '''*' ■' • "

K
.. TableI4
COVERAGE OPCHARGES BYREVENUES
Percent
Degreeofcoverage of
oIBRB :
•;DSB •
•NS» ■ <'NIR'
• «•CÍE ;
*'SNCB ;;SNCF ';PS !:DB;'CPL:
5 •
•. .1J
*A;Staffcostsvbytrafficrevenue
*pluscompensations (4)160
1137:135 ;
1
• 1130 124-!114109 106 103: :
:99:
B:Staffcostsbytraffic
'revenue (2) :
0 ':122 98 76 85105 45 915669■ *
t36:
' •
.CsStaffcosts,materials and.third
I'partyservices (3)bytraffic
*;revenuepluscompensations99♦
98100 51 85 80 76 66 7190
D:Staffcosts,materials andthird ,
partyservices bytrafficrevenue
«76 7057 :34 72 ;32 63 34 ..4733:
%
IMPORTANCE OPABOVEITEMSINTOTALOPTHEPROFITANDLOSSACCOUNT
Percent
îStaff(1)LBRB'
» !.DSB !'NS
:J'NIR :
• 1
1 <CIE •'
1 1SNCB :
» 1'SNCF ■:
»'PS :
»
»•DB*CPLS
• •
B A
58;:62:
» «;,59;37;
• I *:59 :
» 1:59 :
► <:60 ;
I I:48;
» I:59:
» «:78•
.Traffic (2) * !
• - 1– . «71;;;601
» 1
• <!45:
• I:32;
► *:62;
» «;27;:55:
> «:27:
* *41 ■
: i;28:
9Staff+materialsthirdpartyservices 4
• : ui_>,93:
► «:86;.80:
4,.95:
» 4:86«» 1
84:
► 4,87:
» i;78:86:► •
:86•
.Traffic +compensations (4)• \r/ «
»I «
/*\ - ..;93;84;80;
! • 4:48;
> « a:67;
«66'
4
> 4:51:
4» «
'61*
«
.«:78:
(1)Account60 ($)Accounts60+61
(2)Account70 (4)Accounts70+74.0+74.1
ι

-ll5-
PARTTHREE
CONCLUSIONS AFDHJRTHER WORK

-116-
CONCLUSIONS ANDFURTHER WORK
1.Theconclusions ofthisfirstreportconcernthevariousstages
requiredtoachievecomparability betweentheaccounts oftherailway
companies .Whatisneeded ,is:
-tonotethepositive aspectsoftheworkcarriedoutandtocomment onthe
problems whichhaveariseninthecourseofthetransposition now
completed ;
-todetermine theextenttowhichtheresultsarecomparable asbetweenthe
railways ;
-toseekoutthecausesthereof,i.e.theobstacles totruecomparability ,
andfinally
-totrytofindsolutions totheseproblems.
Transposing thefiguresforthe1977financial year
2.Whilstthenetresultsoftherailways' ownprofitandlossaccounts
areidentical tothoseinthetransposed accounts ,thisdoesnotmeanthat
accounting datacouldsimplybetransfered fromthefirstsetofaccountsto
thesecond,thoughtherewereafewexceptions .Generally ,variousbreak­
downshadtobemadeandmostoftheseareexplained inthenotestothe
accounts.Aconsiderable amountofworkwasinvolved,requiring anexchange
ofinformation betweentherailways andtheCommission .
Thebalance sheet
3.Inthefirstplace,thefixedassetsaccounts provedeasiertotrans­
posethanhadbeenfeared;thefiguresinthetransposed accounts aregenerally
thosefromtheannualaccounts.Thereremainofcoursethefamiliar reasons
fordifferences ,whichwereexaminedinpoints8and9onpage103.For
instance ,somenetworks ,usethsdepreciation methodinvolving deductions from
thevalueenteredintheassets,whilstothersusea,rep3.acea.ent fund;estima­
tedusefullifetimes maydifferandfixedassetsanprocessofbeingcompleted
aresometime.s directlyattributed tootherassetaccounts­

-117-
4.Fortheremaining itemsonthe"balancesheetitwasnecessaiy tomake
' •
morearbitrary .breakdowns .Toaddtotheotherdifficulties ,thenomenclar -
turesoftheRegulation donotooveralltheaooounting situations oftheten
railways ,whichmeantthatcertaindatanotdirectlydealtwithinthe
Regulation hadto"beattributed somehow.Thequestionofwhetherthiswas
donecorrectlystillhastobechecked.
N «
V '
ProfitandLossAccount
5.Thestructures oftherailway'sannualprofitandlossaccountsare
generally ratherdifferent fromthoseprovidedforintheRegulation butit
wouldseemthattheproblems ofattribution werealmostallresolved.
6.-Thebreakdown ofrevenuefromtrafficintoitsvarioussub-sections
stillcausessomeproblems ;aneffortwillbemadetoseekmethodological
solutions by~analysing thesourcesofthedata.
7.Theallocation ofpensionchargeswhichinvolvebothItem60(staff
Costs)andItem74*1(Compensations underRegulation 119^69)isaproblem
towhichnosolution hasyetbeenfound.Forthemomentthefigures
communicated inthetransposed accounts havebeenadoptedastheyare.For
instance,pensions maybepaiddirectly bytheundertaking ,inwhichcase
theyappearinItem60,whilstcompensation fornormalization appearsin
sub-item 74»1»Ontheotherhandthepayment maybemadethroughanagency
moreorlessdirectly linkedwiththeundertaking -andinthiscasetheagency
receivesthecompensations .Heretheundertaking 'scontributions tothe
agencyareenteredinItem60.Oragain,theStatemaypaypensionsdirectly
andtheundertaking 'scontributions totheStatehavetobeenteredin
Item60.Whatismore,therearesomeinterimarrangements whichalsogive
risetocompensations .Asolutionwillhavetobefoundwhichprovides a:
methodofaccounting forpaymentsthat-ensuresthattheeffectsare
comparable . . \'
8.Itshouldalsobestressedthatcompensations andaidsgrantedtothe
railways mustbetransposed correctly inordertoshowclearly howmuchis
paidinsubsidies tobalancetheaccounts-asubsidywhichshoulddisappear
asfinancial balanceisachieved betweenchaises andrevenues.

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Towardsgreatercomparability
9.Asrecalledintheirtreduction ,Regulation No,2330/77isintendedto
contribute towardsthefinancial reorganization oftherailwaycompanies .
Itistherefore notenoughsimplytorabber-stamppresentaccounting
procedures .Everyeffortmustbemadetomaketheaccounts morecomparable ,
forinstance bygoingforgreaterharmonization incertainaccounting
methods andpractices ,withintheframework oftransposition .
10.Forexample,asregardsthedepreciation offixedassets,althoughthe
methodsusedforcalculating andaccounting donotvaryallthatmuchfrom
onerailv.'aycompanytothenext,theydovaryconsiderably inotherrespects ,
whichmakesitverydifficult tocompare animportant itemontheassets
sideofthebalancesheet.Thisproblemturnsupagaininconnection with
financing therenewaloffixedassetswhich,inaperiodofinflation ,cannot
beensuredsimplybycalculating depreciation onhistoric value.
11.Equally,someoftheitemsinthetransposed accounts includeactivi­
tiesratherremotefromtransport .Woulditnotbebettertolimitthe
transposed accountstothelattersector?Khllstthispossibility seemsto
raisefewerdifficulties asregard.stheprofitandlossaccount,sucha
differentiation wouldbemoredifficult toachieve inthebalance sheet
because oftheinterconnection betweentheaccounts ofthevariousactivities .
Further work
12.•Thesearesomeofthepossible objectives tobelaidbeforethe
Consultative Committee setupundertheRegulation .Itispossiblethat,
inthecourseofworking onthem,itwillbecomeclearthattheRegulation
mayhavetobeamendedsoonerorlaterinordertodealwithsituations not
apparent whenitwasdrafted.Thiswork,too,wouldbecarriedoutwiththe
helpofthenational experts.-

-11Q-
ASDEMDUM
to
B.R.B*EXPLANATORY NOTES
Dépréciation andAmortisation
LivesforDepreciation Purposes-Depreciation TypeAssets
_'. AssetLives
CategoryofAssets –(Years)
Ships '/ - 20
Rolling Stock
Locomotives 20
HighSpeedTrains 15
Advanced passenger (Trains 15
Coaching vehicles-Passenger carriages -
Locomotive-hauled 20
Dieselmechanical multipleunits 20
Dieselelectric multiple units 20
Electric multipleunits .■.' 25
Pullman - 15
Coachingvehicles-non-passenger carrying 20
Freightvehicles 15.
Containers ' 5
Preightliner vehicles '15
RailwayServicevehicles .
Carriages ,Cranes,Runnerwagonsandother
specialist vehicles 20
Material carrying wagons 10
Other _ 10
RoadServicevehicles •
Heavycommercial vehicles (23cwt,+1*2tonnesand
over),trailersand"buses16seatsandover 5
Privatecars/lightcommercial vehicles (under23cwt,
+1.2tonnes),"busesofunder16seats 3

-120-
AssetLives
(Years)
PlantandEquipaient
Workshops plantandmachinery 10
FixecLcrânes 10
Mobilecrânes 7
StationTractors ,Sweepers andForkLifttrucks 7
Deootcleaning equipment 7
Internal carriage cleaning equipment 5
Escalators 20
Lift-passenger (including administration ) 20
Other-Fixed 10
-Mobile 7
Computers 7
Officemachinery 5
OfficeFurniture 10
RatesforAmortisation Purposes -WayandStructure TvneAssets
„^ „ . RateofAmortisationCategory ofAssets –––––-–––
Continuous weldedrailonHewRoutes 5%
AllotherWayandStructure Assets(exceptLand)