ANNUAL REPORT 2004 - Skanska

Note 23 continued
Fair value of current-asset properties
The market value of completed commercial properties on December 31, 2004 was
estimated at SEK 6.6 billion (8.8), partially in collaboration with external appraisers.
This included partly owned properties. The corresponding book value was SEK 4.4
billion (5.7).
Including projects booked as completed on January 1, 2005, estimated total
market value was about SEK 6.9 billion (9.4), with a corresponding book value of
SEK 4.6 billion (6.2).
Other properties have an estimated market value that largely coincides with their
book value of SEK 7.2 billion (7.5).
Commercial Project Other commercial Residential Project Total current-
Development properties Development asset properties
Group 2004 2003 2004 2003 2004 2003 2004 2003
Book value
January 1 9,249 12,610 1,051 2,120 3,394 4,814 13,694 19,544
Acquisitions of companies 6 0 0 0 6 0
Divestments of companies –1 –137 –896 –138 –896
New acquisitions 1,331 1,219 270 381 3,665 3,772 5,266 5,372
Divestments –3,130 –5,143 –383 –761 –3,505 –4,010 –7,018 –9,914
Writedowns/reversals of writedowns –98 0 –9 –29 –13 –19 –120 –48
Reclassifications –48 738 332 –624 –171 –36 113 78
Exchange differences for the year –54 –175 12 –36 35 –231 –7 –442
December 31 7,256 9,249 1,272 1,051 3,268 3,394 11,796 13,694
Information on assessed value for tax purposes of current-asset
properties in Sweden
Corresponding
Assessed value book value
2004 2003 2004 2003
Buildings 3,281 5,038 4,418 5,635
Land 2,840 2,208 1,897 2,043
6,121 7,246 6,315 7,678
Assets pledged
Current-asset properties used as collateral for loans and other commitments totaled
SEK 89 M (91).
Other matters
Information on capitalized interest is reported in Note 14, ”Borrowing costs.”
Note 24 Inventories etc.
Inventories are reported in compliance with RR 2, ”Inventories.”
See ”Accounting and valuation principles,” Note 1.
Group 2004 2003
Raw materials and supplies 317 508
Products being manufactured 91 102
Finished products and merchandise 202 209
Advanced payment to suppliers 122 9
Total 732 828
Book value, valued at
Acquisition value 638 803
Net realizable value 94 25
Total 732 828
The increase in inventories that were valued at net realizable value came from the
Swedish specialized companies that were reported as ”Discontinuing operations.”
Other matters
There were no significant differences between the reported value of inventories
and their fair value. No portion of inventories was adjusted due to an increase in
net realizable value. No merchandise was used as collateral for loans and other
obligations.
Note 25 Current receivables
Operating receivables in the operating cycle as well as interest-bearing receivables
expected to be recovered within twelve months are reported as current receivables.
Other current receivables
Group Parent Company
2004 2003 2004 2003
Liquid assets with restrictions 1,453 404
Other interest-bearing current receivables 1,035 844
Non-interest-bearing current receivables 3,489 2,006 35 23
Total 5,977 3,254 35 23
The amount for other interest-bearing receivables included SEK 582 M for divested
Group companies for which payment will be received early in 2005.
Prepaid expenses and accrued revenues
Group 2004 2003
Accrued revenues 1,078 424
Prepaid expenses 762 866
Total 1,840 1,290
Note 26 Shareholders’ equity
Restricted and unrestricted equity
According to Swedish law, shareholders’ equity must be allocated between non-distributable
(restricted) and distributable (unrestricted) funds. In a corporate group, a
distribution to the shareholders may only total the unrestricted funds of the Parent
Company or the Group, whichever is lower.
Capital stock (share capital) and the statutory reserve comrpise restricted equity.
In the consolidated financial statements, unrestricted equity only includes the portion
of the unrestricted equity of subsidiaries that can be distributed to the Parent
Company without any need to write down the shares in the subsidiary. In the consolidated
balance sheet, the shareholders’ equity portion of untaxed reserves is also
reported as restricted equity.
The shareholders’ equity of the Skanska Group was allocated between SEK 2,238
M (2,902) in restricted equity and SEK 13,828 M (11,276) in unrestricted equity.
The shareholders’ equity of the Parent Company was allocated among SEK 1,256 M
in capital stock, SEK 598 M (598) in the statutory reserve (restricted reserves) and
SEK 6,849 M (6,614) in unrestricted equity.
The consolidated financial statements also included restricted equity representing
the shareholders’ equity portion of untaxed reserves in the Parent Company,
amounting to SEK 0 M (666), plus restricted reserves after eliminating the shares of
directly owned subsidiaries.
The proposed but not yet approved dividend for 2004 amounts to SEK 1,674 M
(1,256), equivalent to SEK 4 (3) per share.
Transfers to restricted reserves amounted to SEK 110 M (0). This amount was related
to transfers in Poland.
74
Notes, including accounting and valuation principles – Skanska Annual Report 2004