89 ANNUAL REPORT 2010 ❏ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF AEGON N.V. AMOUNTS IN EUR MILLION, UNLESS OTHERWISE STATED NOTE 1  GENERAL INFORMATION NOTE 2   SUMMARY OF SIGNIFICANT ACCOUNTING  POLICIES NOTE 2.1  BASIS OF PRESENTATION NOTE 2.1.1 ADOPTION OF NEW IFRS ACCOUNTING  STANDARDS IFRS 3 (revised) ‘Business Combinations’ AEGON N.V., incorporated and domiciled in the Netherlands,  is a public limited liability share company organized under  Dutch law and recorded in the Commercial Register of  The Hague under its registered address at AEGONplein 50,  2591 TV The Hague. AEGON N.V. serves as the holding company  for the AEGON Group and has listings of its common shares in  Amsterdam, New York and London.  AEGON N.V. (or ‘the Company’), its subsidiaries and its  proportionally consolidated joint ventures (AEGON or  ‘the Group’) have life insurance and pensions operations in  over twenty countries in Europe, the Americas and Asia and  are also active in savings and investment operations, accident  and health insurance, general insurance and limited banking  operations. Headquarters are located in The Hague, the  Netherlands. The Group employs approximately 27,500  people worldwide.  The consolidated financial statements have been prepared in  accordance with International Financial Reporting Standards  (IFRS), as adopted by the European Union (EU), with IFRS as  issued by the International Accounting Standards Board (IASB)  and with Part 9 of Book 2 of the Netherlands Civil Code. The  consolidated financial statements have been prepared in  accordance with the historical cost convention as modified by  the revaluation of investment properties and those financial  instruments (including derivatives) and financial liabilities that  have been measured at fair value. Information on the standards  and interpretations that were adopted in 2010 is provided below  in paragraph 2.1.1. Certain amounts in prior years have been  reclassified to conform to the current year presentation. These  reclassifications had no effect on net income, shareholders’  equity or earnings per share. The consolidated financial  statements are presented in euros and all values are rounded  to the nearest million except when otherwise indicated. With regard to the income statement of AEGON N.V., article  402, Part 9 of Book 2 of the Netherlands Civil Code has been  applied, allowing a simplified format.  The preparation of financial statements in conformity with IFRS  requires management to make estimates and assumptions  affecting the reported amounts of assets and liabilities as of the  date of the financial statements and the reported amounts of  The adoption of IFRS 3 (revised) does not change the  accounting treatment, including the accounting for contingent  consideration, for past acquisitions. The adoption of this  standard did not have any impact during the current period  as there were no acquisitions. The revised IFRS 3, applicable prospectively to all new  acquisitions undertaken after January 1, 2010, continues to  require the application of the acquisition method to business  combinations, with some significant changes. For example, all  payments to purchase a business will be recorded at fair value  at the acquisition date, with contingent payments classified as  liabilitty subsequently re-measured at fair value through profit  or loss. There is a choice on an acquisition-by-acquisition basis  to measure the non-controlling interest in the acquiree either  at fair value or at the non-controlling interest’s proportionate  share of the acquiree’s net assets. All acquisition-related  transaction costs will be expensed. New standards become effective on the date specified by IFRS,  but may allow companies to opt for an earlier adoption date.  In 2010, the following new standards issued by the IASB and  Interpretations issued by the IFRS Interpretations Committee  (formerly known as the IFRIC) became mandatory:  revenues and expenses for the reporting period. Those  estimates are inherently subject to change and actual results  could differ from those estimates. Included among the material  (or potentially material) reported amounts and disclosures that  require extensive use of estimates are: fair value of certain  invested assets and derivatives, deferred acquisition costs,  value of business acquired and other purchased intangible  assets, goodwill, policyholder claims and benefits, insurance  guarantees, pension plans, income taxes and the potential  effects of resolving litigated matters.  The consolidated financial statements of AEGON N.V. were  approved by the Executive Board and by the Supervisory Board  on March 23, 2011. The financial statements are put to the  Annual General Meeting of Shareholders on May 12, 2011 for  adoption. The shareholders’ meeting can decide not to adopt  the financial statements but cannot amend them.  ■ IFRS 3 (revised) Business Combinations. ■ IAS 27 (revised) Consolidated and separate fi nancial  statements. ■ Improvements to IFRS (2009). SHARPENING OUR FOCUS