ANNUAL REPORT 2006 - Skanska

Note 22 continued
Carrying amount
Properties
Total
Completed properties under construction Development properties current-asset properties
2006 2005 2006 2005 2006 2005 2006 2005
Commercial Development 2,525 3,157 1,226 599 1,832 2,048 5,583 5,804
Other commercial properties 99 44 54 444 803 908 956 1,396
Residential Development 194 261 810 601 4,284 2,420 5,288 3,282
Total 2,818 3,462 2,090 1,644 6,919 5,376 11,827 10,482
Other commercial
Total
Commercial Development properties Residential Development current-asset properties
2006 2005 2006 2005 2006 2005 2006 2005
Carrying amount
January 1 5,804 7,395 1,396 1,272 3,282 3,268 10,482 11,935
Divestments of companies –154 –1 –154 –1
Investments 1,639 1,135 272 640 5,153 3,181 7,064 4,956
Divestments –1,666 –2,804 –291 –574 –3,418 –3,347 –5,375 –6,725
Impairment losses/reversals
of impairment losses –72 –8 –5 –40 –77 –48
The year’s provision for intra-Group
profits in contracting work –58 –58
Reclassifications –79 –127 –339 25 563 43 145 –59
Change for the year due to IAS 39 –4 7 –4 7
Exchange rate difference for the year –53 198 –10 41 –133 178 –196 417
December 31 5,583 5,804 956 1,396 5,288 3,282 11,827 10,482
Note 23
Inventories etc.
Note 25
Cash equivalents
Inventories are reported in compliance with IAS 2, ”Inventories.” See ”Accounting
and valuation principles,” Note 1.
2006 2005
Raw materials and supplies 301 340
Products being manufactured 149 120
Finished products and merchandise 34 41
Total 484 501
Investments with an insignificant risk of fluctuations in value and which can easily
be transformed into cash are reported as cash equivalents. Their maturity from
the acquisition date is three months or shorter.
Cash equivalents are allocated as shown in the table below.
2006 2005
Held-to-maturity investments 237
Financial assets available for sale 2,131 2,858
Total 2,131 3,095
Other matters
There were no significant differences between the carrying amount for 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 26 Equity/Earnings per share
Note 24
Trade and other receivables
In the consolidated financial statements, equity is allocated between equity
attributable to equity holders (shareholders) and minority interest. Minority interest
accounts for less than one percent of total equity.
Non-interest-bearing business receivables are reported as ”Trade and other
receivables.” Trade and other receivables are part of the Group’s operating cycle
and are consequently recognized as current assets.
2006 2005
Trade accounts receivable 18,995 18,941
Operating receivables from associated companies 1
Operating receivables from joint ventures 231 183
Prepaid expenses and accrued income 1,564 1,621
Other operating receivables 2,472 2,240
Total 23,263 22,985
During the year, equity changed as follows
Closing balance, 2005 18,587
Attributable to equity holders
Dividend –2,721
Translation differences –679
Effect of reporting of pensions in compliance with IAS 19 501
Effect of share-based payment in compliance with IFRS 2 18
Effect of IAS 39 cash flow hedge –18
Change in minority interest –6
Profit for the year attributable to
Equity holders 3,635
Minority 20
Closing balance, 2006 19,337
Skanska Annual Report 2006 Notes, including accounting and valuation principles 101