ANNUAL REPORT 2006 - Skanska

Note 18 continued
Information about cost and accumulated impairment losses
Goodwill
2006 2005
Accumulated cost
January 1 4,306 3,941
Acquisitions of companies 550 31
Divestments of companies –33
Divestments –2
Reclassifications –1
Exchange rate differences for the year –197 337
4,626 4,306
Accumulated impairment losses
January 1 –152 –42
Impairment losses for the year –108
Exchange rate differences for the year 16 –2
–136 –152
Carrying amount, December 31 4,490 4,154
Carrying amount, January 1 4,154 3,899
Note 19
Intangible assets
Intangible assets are recognized in compliance with IAS 38, ”Intangible assets,”
See ”Accounting and valuation principles,” Note 1.
Intangible assets and useful life applied
Useful
2006 2005 life applied
Expressway concession 451 540 26 years
Other intangible assets, externally acquired 289 92 3–50 years
Intangible assets, internally generated 0 12 3–5 years
Total 740 644
The expressway concession in Santiago, Chile went into full operation in mid-
2006. Amortization will occur over the concession period.
”Other intangible assets, externally acquired” consisted of the year’s allocation
of acquired service contracts totaling SEK 112 M upon the acquisition of
McNicholas as well as extraction rights for gravel pits and rock quarries in
Sweden plus utilization rights for computer software. Extraction rights for rock
quarries and gravel pits are amortized as material is extracted. Computer
software is amortized in 3–5 years. The acquired service contracts upon the
acquisition of McNicholas are being amortized in 3–6 years.
In 2005, computer software was recognized as internally generated intangible
assets.
Amortization of other intangible assets by function
All intangible assets were amortized, because they have a limited useful life.
of which amortization
of internally
generated assets
Amortization by function 2006 2005 2006 2005
Cost of sales –34 –29 –12 –14
Selling and administration –41 –24 –1
Total –75 –53 –12 –15
Impairment losses/reversals of impairment losses on other intangible assets
During 2006, impairment losses/reversals of impairment losses on other intangible
assets amounted to SEK 0 M (0).
Information about cost, accumulated amortization and accumulated impairment
losses
Intangible
Other intangible assets,
Expressway assets, internally
concession externally acquired generated
2006 2005 2006 2005 2006 2005
Accumulated cost
January 1 552 440 236 179 64 64
Acquisitions of companies 112
Other investments 2 5 37 46
Divestments –2 –2
Reclassifications 1 203 2
Exchange rate differences
for the year –75 107 –28 11
480 552 558 236 64 64
Accumulated amortization
January 1 –12 0 –142 –109 –52 –37
Reclassifications 1 –96
Amortization for the year –18 –12 –45 –26 –12 –15
Exchange rate differences
for the year 16 –7
–29 –12 –267 –142 –64 –52
Accumulated impairment losses
January 1 –2 –2
0 0 –2 –2 0 0
Carrying amount, December 31 451 540 289 92 0 12
Carrying amount, January 1 540 440 92 68 12 27
Other matters
Information about capitalized interest is presented in Note 15, ”Borrowing costs.”
Direct research and development expenses amounted to SEK 72 M (47).
96 Notes, including accounting and valuation principles
Skanska Annual Report 2006