Review of 2010 – USD version - Skanska

Note
06 Continued
Collateral
The Group has provided collateral (assets pledged) in the form of financial receivables
amounting to USD 147.0M (153.5). See also Note 33, “Assets pledged, contingent
liabilities and contingent assets.” These assets may be utilized by a customer if Skanska
does not fulfill its obligations according to the respective construction contract.
To a varying extent, the Group has obtained collateral for trade accounts payable in
the form of guarantees issued by banks and insurance companies and, in some cases, in
the form of guarantees from the parent companies of customers.
The Group obtained a commercial property in the Czech Republic, Vysocanska brana,
at a carrying amount of USD 26.5 M, which served as collateral for a receivable.
Note
07
Business combinations
Business combinations (acquisitions of businesses) are reported in compliance with
IFRS 3, “Business Combinations.” See “Accounting and valuation principles,” Note 1.
Acquisitions of Group companies/businesses
During the year, Skanska made no acquisitions. In 2009 Skanska made some minor
acquisitions in Poland and Finland, totaling USD –1.3 M. At the time of these purchases,
USD 0.7 M was allocated to intangible assets in the form of customer contracts in
Poland and USD 0.7 M to goodwill in Finland. The acquisitions are part of the Construction
business stream.
Note
08 Revenue
Projects in Skanska’s contracting operations are reported in compliance with
IAS 11, “Construction Contracts.” See Note 9. Revenue other than project revenue
is recognized in compliance with IAS 18, “Revenue.” See “Accounting and valuation
principles,” Note 1.
Revenue by business stream
2010 2009
Construction 15,706.6 17,037.5
Residential Development 764.8 1,233.4
Commercial Property Development 1,009.6 647.5
Infrastructure Development 44.3 19.7
Other
Central 79.9 20.3
Eliminations, see below –648.4 –779.3
Total 16,956.7 18,179.0
Reported as eliminations:
Intra–Group construction for
2010 2009
Construction –199.1 –242.0
Residential Development –288.6 –256.5
Commercial Property Development –121.9 –253.0
Infrastructure Development 1
Intra–Group property divestments –1.4 –27.0
Other –37.5 –0.8
–648.4 –779.3
1 Construction included USD 992.4 M (779.8) in intra-Group construction for Infrastructure
Development. Elimination does not occur, since this revenue comprises invoicing to joint
ventures, which are not consolidated but are instead recognized according to the equity method
of accounting.
Revenue by category
2010 2009
Construction contracts 14,039.3 15,766.5
Services 882.6 912.3
Sales of goods 266.9 73.8
Rental income 109.3 101.5
Divestments of properties 1,658.6 1,324.8
Total 16,956.7 18,179.0
As for other types of revenue, dividends and interest income are recognized in financial
items. See Note 14, “Net financial items.”
Other matters
Invoicing to associated companies and joint ventures amounted to USD 1,114.6 M
(799.0). For other related party transactions, see Note 39, “Related party disclosures.”
Skanska Review of 2010 – USD version Notes, including accounting and valuation principles 117