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KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
8. Investment property
(in EUR) 2007 2006
At 1 January
Cost 22,895,497 16,740,290
Accumulated depreciation (2,303,381) (1,458,688)
Net book amount 20,592,116 15,281,602
Year ended 31 December
Opening net book amount 20,592,116 15,281,602
Acquisition of subsidiary 4,536,423 -
Additions 197,384 653,622
Transfer from property, plan and equipment (4,055,165) 5,894,467
Disposals (47,874) (590,382)
Depreciation charge (621,363) (647,193)
Closing net book amount 20,601,521 20,592,116
At 31 December
Cost 24,058,580 22,895,497
Accumulated depreciation (3,457,059) (2,303,381)
Net book amount 20,601,521 20,592,116
The following amounts have been recognised in the income statement:
284
(in EUR) 2007 2006
Rental income 1,737,018 1,268,461
Direct operating expenses arising from investment properties that generate rental income 1,198,783 345,902
The Group does not have any investment properties
that do not generate rental income. Lease
agreements are short-term and cancellable.
Fair value of the Group’s investment properties as
at 31 December 2007 is EUR 23,538,720 (2006:
EUR 25,631,860) as determined by an external
independent valuer. The determination of fair value
is not supported by the market approach, as there
is no publically available data in Slovenia. Therefore
the method of discounted cash flows is used, with
cash flow projections until 2010 and discount rate
of 5.5%.