annual financial statement 2011 - conwert Immobilien Invest SE

CONWERT IMMOBILIEN INVEST SE
ANNUAL FINANCIAL 2011 STATEMENT ANNUAL REPORT 2011
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8.10. FINANCIAL INSTRUMENTS
8.10.1. FINANCIAL ASSETS
Non-current financial assets consist primarily of shares in Vienna Estate Immobilien AG, an
Austrian property holding company, and shares in CD Deutsche Eigenheim AG, a German property
company, which are classified as available for sale and carried at cost.
Trade accounts receivable (less impairment charges recognised as of 31 December 2011) total
€ 30.9 million (2010: € 56.8 million) and comprise receivables from the sale of objects and shares
in properties as well as rents receivable and receivables due to the property, management and
property service companies.
The purchase prices for shares in properties are generally paid without delay, and impairment
charges are therefore not recognised. The agreements for the sale of buildings and property
companies call for payment when the title is transferred or short-term payment with settlement
through a trustee. Therefore, impairment charges are not recognised to these items.
Trade accounts receivable are related to the rental business and do not normally have specific
payment terms. The recognition of impairment charges to these items is based on experience with
default.
Rents receivable of € 14.1 million (2010: € 16.3 million) were adjusted through impairment charges
to reflect any loss in value as of the balance sheet date. The conwert Group holds deposits of
€ 1.5 million (2010: € 1.9 million) as security for these outstanding items. Overdue receivables do
not represent a material valuation risk for the Group.
The following tables show the age structure of rents receivable for 2011 and 2010 that were not
reduced through impairment charges:
2011
in € million
Up to 30
days
The changes in impairment losses are as follows:
30 to 60
days
60 to 90
days
90 to 120
days
Over 120
days
Austria, Germany, CEE 7.5 0.9 0.2 0.8 9.7
2010
in € million
Up to 30
days
30 to 60
days
60 to 90
days
90 to 120
days
Over 120
days
Austria, Germany, CEE 9.8 0.9 0.6 1.0 11.5
in € million 2011 2010
Balance as of 1 January 7.5 3.0
Impairment of receivables – addition 2.2 5.7
Derecognition to reflect non-collectability / reversal to reflect payment 4.6 1.2
Balance as of 31 December 5.1 7.5
The impairment testing of rents receivable also includes any changes in the credit standing of
tenants as of the relevant balance sheet date. Only individual adjustments are recognised. There is
no material concentration of credit risk because the Group has a very broad tenant base and there
is no concentration or correlation. Management is therefore convinced that no provisions for risk
are required above and beyond the previously recognised impairment losses.