Annual Report LRP 2007 - Rheinland Pfalz Bank
Annual Report LRP 2007 - Rheinland Pfalz Bank
Annual Report LRP 2007 - Rheinland Pfalz Bank
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
NOTES<br />
<strong>LRP</strong> <strong>2007</strong><br />
97<br />
(48) Net Income/Loss from Investment Securities<br />
The net income/loss from investment securities includes<br />
disposal and impairment losses from availablefor-sale<br />
securities, as well as equity investments and<br />
investments in unconsolidated companies. This item<br />
also includes reversals of impairment losses on investment<br />
securities following credit rating-induced writedowns<br />
up to the amount of amortized cost.<br />
<strong>2007</strong> 2006<br />
1 thousands<br />
Net gain/loss on the disposal of 11,653 21,514<br />
securities (AfS) 5,924 17,114<br />
equity investments (AfS) 23,314 4,400<br />
other investment securities (AfS) – 17,585 0<br />
Impairment losses – 113,499 – 2,769<br />
Net income/loss from investment securities (AfS) – 101,846 18,745<br />
Net gain/loss on the disposal of 103 140<br />
securities (LaR) 103 – 95<br />
equity investments (LaR) 0 0<br />
other investment securities (LaR) 0 235<br />
Net gain from investment securities (LaR) 103 140<br />
Total net income/loss from investment securities – 101,743 18,885<br />
The impairment results from write-downs on securitization<br />
transactions in the form of collateralized debt<br />
obligations (particularly CDO on ABS) and securitization<br />
vehicles (SIVs). Valuation of these investment securities<br />
was based on the exchange rates provided by the<br />
particular arranger as of 31 December <strong>2007</strong>. We consider<br />
these rates not to be in line with usual market conditions<br />
due to the financial market crisis; generally, they<br />
are so-called “firesale prices”.<br />
Income from available-for-sale investment securities<br />
(AfS) includes those amounts totaling W 9,000 (previous<br />
year W 367,000) which were removed from equity as<br />
part of the derecognition of financial instruments and<br />
allocated to the income statement.<br />
(49) Net Income/Loss from Investment Property<br />
<strong>2007</strong> 2006<br />
1 thousands<br />
Rental income 317 0<br />
Income from disposals 1,823 62<br />
Income from investment property 2,140 62<br />
Operating expenses for leased properties 185 0<br />
Write-offs and impairment losses 52 0<br />
Expenses from investment property 237 0<br />
Income/loss from fair value adjustment – 16 – 343<br />
Net income/loss from investment property 1,887 – 281
Change language