Annual Report & Accounts 2009 - Anglo Irish Bank

Notes to the financial statements continued
32. Investment property - held on own account
33.
98
Cost
31 December 30 September
2009 2008
€m €m
At beginning of period 110 26
Additions 279 87
Disposals - (1)
Exchange movement (13) (2)
At end of period 376 110
Accumulated depreciation
At beginning of period 2 1
Charge for the period 10 1
Impairment 101 -
Exchange movement (4) -
At end of period 109 2
Net book value
At end of period 267 108
At beginning of period 108 25
Fair value
The Group
Investment property held on own account includes hotel, office and retail properties, previously acquired by the Group’s
Private Banking and Lending businesses which were not allocated to policyholders under investment contracts or sold to
private clients.
Impairment on investment property reflects weakening economic conditions in the markets where the assets are located and a
consequent reduction in the recoverable amounts of the assets, based on the estimated future cash flows to be derived from
these assets.
The fair value of investment property held on own account at 31 December 2009 is €173m (30 September 2008: €115m). Fair
values are based on valuations provided by independent third party valuers during the period which have been reviewed and
agreed by management. These values are based on a sale in current, highly illiquid markets and reflect a lack of recent
transactional evidence. The fair values do not represent the expected longer term recoverable value of the properties on which
the carrying amount is based.
Investment property - held in respect of liabilities
to customers under investment contracts
The Group
31 December 30 September
2009 2008
€m €m
At beginning of period 1,796 2,090
Additions - 72
Disposals (50) (23)
Fair value movements (603) (343)
At end of period (note 40) 1,143 1,796
Investment property held in respect of liabilities to customers under investment contracts is included in the statement of
financial position at fair value. Fair values are based on valuations provided by independent third party valuers using, where
relevant, accepted Royal Institution of Chartered Surveyors guidelines or equivalent local guidelines appropriate to the location
of the property. Fair values are reviewed and agreed by management.