FY 2010 Annual Report - Part II - Orascom Development

ODH Annual Report 2010
9 INVESTMENT INCOME
___________________________________________________________________________________
CHF 2010 2009
Interest income:
- -
- Bank deposits (i) 3,439,148 10,640,125
- Other loans and receivables
(ii)
Dividends received from equity
investments
(i)
(ii)
8,905,629 2,233,318
8,158 343,950
12,352,935 13,217,393
The decrease in 2010 is due to lower interest rates on short
term funds as well is lower cash and bank balances during
the current year due to an increased cash demand for
projects under development.
The increase in 2010 is partly due to increase in imputed
interest income on long term real estate accounts
receivables during the year (see note 20).
Investment income earned on financial assets by category of
assets is CHF 12,344,777 (CHF 2009: 12,873,443) for loans
and receivables including cash and bank balances and CHF
8,158 (CFH 2009: 343,950) for dividend income earned on AFS
financial assets.
Income relating to financial assets classified as at fair value
through profit or loss is included in Other gain and losses in note
10.
10 OTHER GAINS AND LOSSES
___________________________________________________________________________________
CHF 2010 2009 (restated)
Gain on disposal of
property, plant and
305,021 223,996
equipment
Gain on disposal of
subsidiaries and
7,824,706 -
associates (i)
Gain from disposal
of AFS financial
assets (ii) - 5,233,080
Net foreign
exchange
(losses)/gains
Gain from change
in fair value of
investment property
(iii)
(i)
(ii)
(iii)
Other income
(6,575,798) 1,396,768
14,120,934 5,170,672
3,488,161 4,672,603
19,163,024 16,697,119
This gain mainly relates to the sale of the six percent stake in
the former Garranah subsidiaries which resulted in a loss of
control (see note 34).
In 2009 the Group derecognized the shares owned in Albion
Development Holding (ADL), a real estate project in
Mauritius, according to the call option agreement with Club
Méditerranée. These shares were classified by the Group as
AFS assets and carried at cost since they represent
investments in unquoted equity instruments that do not have
a quoted market price in an active market, and whose fair
value cannot be measured reliably.
This gain represents the effect from the revaluation of the
investment properties and the subsequent change in use of
several premises in El Gouna (Egypt) after the retrospective
implementation of the new accounting policy as described in
note 3.3.
No other gains or losses have been recognized in respect of loans
and receivables or held-to-maturity investments, other than as
disclosed in note 11 and impairment losses recognized and / or
reversed in respect of trade and other receivables in note 24.
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