Annual Report 2008 - Skanska

Note
Note
38
Fees and other remuneration to auditors
KPMG
Audit assignments 52 58
Other audit-related assignments 7 6
Tax advisory services 11 9
Total 70 73
“Audit assignments” refers to examination of the annual accounts as well as the
administration by the Board of Directors and the President, as well as other tasks that
are incumbent upon the Company’s auditors to perform. “Other audit-related assignments”
refers to advisory services related to accounting issues and advisory services
concerning the disposal and acquisition of businesses.
39 Related party disclosures 2008 2007
Through its ownership and percentage of voting power, AB Industrivärden has a significant
influence, as defined in compliance with IAS 24, “Related Party Disclosures.” All
transactions have occurred on market terms.
Skanska sells administrative services to pension funds that manage assets intended to
cover the Group’s pension obligations.
Associated companies and joint ventures are companies related to Skanska. Information
on transactions with these is presented in the following tables.
Information on remuneration and transactions with senior executives is found in
Note 36, “Personnel,” and Note 37, “Remuneration to senior executives and Board
members.”.
Transactions with joint ventures 2008 2007
Sales to joint ventures 5,918 7,031
Purchases from joint ventures 131 146
Dividends from joint ventures 272 186
Receivables from joint ventures 384 317
Liabilities to joint ventures 82 6
Contingent liabilities for joint ventures 767 651
Transactions with associated companies 2008 2007
Purchases from associated companies 7
Skanska’s pension fund directly owns 600,000 (250,000) Series B shares in Skanska.
There is also an insignificant holding of indirectly owned shares via investments in
various mutual funds.
Note
40 Leases
Skanska is a lessee in both finance and operating leases.
When Skanska is a lessee, finance lease assets are recognized as a non-current asset
in the balance sheet, while the future obligation to the lessor is recognized as a liability
in the balance sheet.
As a financial lessor, Skanska recognizes the present value of its claim on the lessee
as a financial receivable.
As an operating lessor, Skanska leases properties to tenants via its Commercial
Development operations.
A. Skanska as a lessee
Finance leases
Leased property plant and equipment including buildings and land (“Property”) as well
as machinery and equipment (“Plant and equipment”) are recognized in the consolidated
financial statements as finance leases.
Of the amount in the balance sheet for finance leases, most is related to car leases in
Sweden. Agreements with lease companies in other countries are operating leases.
Finance leases, carrying amount 2008 2007
Property, plant and equipment
Property 46 5
Plant and equipment 246 204
Total 292 209
Cost 866 328
Depreciation for the year –97 –50
Accumulated depreciation, January 1 –477 –69
Carrying amount 292 209
Variable fees for finance leases included in 2008 income amounted to SEK –4 M (–3).
No property leased to Skanska has been subleased to others.
Future minimum lease payments and their present value can be seen in the following
table
Future minimum
lease payments
Present value of future
minimum lease payments
Expenses, due date 2008 2007 2008 2007
Within one year –13 –63 –9 –51
Later than one year but
within five years –127 –70 –96 –52
Later than five years –43 –50 –37 –40
Total –183 –183 –142 –143
Reconciliation, future minimum lease payments
and their present value
2008 2007
Future minimum lease payments –183 –183
Less interest charges 41 40
Present value of future minimum lease payments –142 –143
Operating leases
Most of the amounts for future minimum lease payments are related to leased cars
and office space for operations in the United Kingdom. Also included are site leasehold
agreements, especially in Stockholm.
The Group’s leasing expenses related to operating leases in 2008 totaled SEK –609
M (–615), of which SEK –491 M (–546) was related to minimum lease payments and
SEK –118 M (–69) was related to variable payments. The Group had SEK 0 M (5) in leasing
income related to subleasing on operating leases.
The due dates of future minimum lease payments for noncancellable operating
leases were distributed as follows:
Expenses, due dates 2008 2007
Within one year –438 –423
Later than one year but within five years –758 –940
Later than five years –457 –454
Total –1,653 –1,817
Of this amount, SEK 0 M (2) was related to properties that were subleased.
132 Notes, including accounting and valuation principles Skanska Annual Report 2008