The Group KD Group and KD Group dd

The Group KD Group Annual Report 2009
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2009
8. Investment property
(in EUR) 31.12.2009 31.12.2008
As at 1 January
Cost 32,693,964 24,058,580
Accumulated depreciation (3,986,377) (3,457,059)
Carrying amount 28,707,587 20,601,521
Year ended 31 December
Opening carrying amount 28,707,587 20,601,521
Acquisition of subsidiary - -
Disposal of subsidiary - (12,566,563)
Additions 2,688,537 1,649,333
Transfer from property, plan and equipment - 20,202,004
Disposals (1,051,007) (536,071)
Depreciation charge (531,577) (642,637)
Closing carrying amount 29,813,540 28,707,587
As at 31 December
Cost 34,292,196 32,693,964
Accumulated depreciation (4,478,656) (3,986,377)
Carrying amount 29,813,540 28,707,587
In 2009 the Group increased their share of investment properties owned by the Group. Consequently, this resulted in an
increase in the investment property recognised in the consolidated financial statements and a reduction in the value of
property, plant and equipment.
The following amounts have been recognised in the income statement:
(in EUR) 2009 2008
Rental income 3,212,082 1,141,511
Direct operating expenses arising from investment properties that generate rental income 723,642 956,250
The Group does not have any investment properties that do not generate rental income. Lease agreements are short-term
and cancellable.
Investments in land and buildings are initially measured at acquisition price, including all costs of the transaction. After initial
recognition, they are disclosed at acquisition price, decreased by the depreciation charge and accrued loss attributable to
impairment (cost model) - much like intangible assets.
The Group assesses the need for impairment of investment property based on valuations of a licensed real estate appraiser,
material changes in real estate prices, and under normal market conditions, on a three to five-year basis.
144