Akademiska Hus Annual Report

Financial Report34 Other liabilitiesGroupIFRSParent CompanyAnnual Accounts Act31-12-2007 31-12-2006 31-12-2007 31-12-2006Other interest-bearingliabilities 29,262 28,871 29,262 28,871Other non-interestbearingliabilities 108,494 278,441 8,343 12,930Total, other liabilities 137,756 307,312 37,605 41,801Other liabilities are reported and valued as Other financial liabilities. The fairvalue is equivalent to the reported value of Other liabilities.The Parent Company has entered into a supplementary agreement,Credit Support Annex, (CSA) to the ISDA, with the aim of handling exposureto counter-party risks in derivatives. The agreement means that the partiesmutually undertake to furnish collateral in the form of liquid funds or securitieswith a good rating for undervalues in outstanding derivatives. The agreementin turn gives the secured party right of disposal of collateral received. As of theyear-end, the Group received collateral through the CSA agreement totallingKSEK 29,262 (28,871).Of the Group’s other liabilities KSEK 130,814 falls due for payment withinone year of the year-end, KSEK 552 within 1–5 years of the year-end andKSEK 6,390 later than five years after the year-end.35 Accrued expenses and prepaid incomeGroupIFRSParent CompanyAnnual Accounts Act31-12-2007 31-12-2006 31-12-2007 31-12-2006Prepaid rental income 1,188,220 1,144,982 – –Accrued salary andpersonnel costs 25,609 26,239 6,037 5,292Accrued operatingand maintenancecosts 29,579 108,396 – –Accrued investments 73,744 191,574 – –Accrued interest 246,853 214,944 246,853 214,944Other interim liabilities 23,533 19,157 20,370 22,537Total 1,587,538 1,705,292 273,260 242,77337 Financial risk management (Group)In its capacity as a net borrower, the Group Hus is exposed to financial risks,particularly interest rate risks, refinancing risks, credit risks and exchange raterisks. The governing document, the Finance Plan, is adopted each year by theBoard. It contains the long-term strategic orientation, allocation of liability, theGroup’s approach to financial risks and the mandate to handle these risks.Plans to handle financial risks for the coming year are adopted in Decemberand include authorisation and mandates as well as concrete plans for financingoperations. The Group’s financial management is centralised at the ParentCompany’s Treasury Department, which allows effective and co-ordinatedfinancial risk management.Interest riskThe term ‘interest risk’ refers to the negative impact on Group profit as a resultof a change in market interest rates. The Group’s interest rate risk exposure ishigh due to the relatively high leverage and interest expense is the single largestcost item. The handling of the interest risk in the form of a choice of a fixedinterest period in the liability portfolio is consequently one of the most importanttasks. The Finance Plan states that the interest risk should be handledwithin a fixed interest mandate adopted by the Board. The current mandatestates that the fixed interest period, including interest derivatives, should be1–2.5 years. The Group defines the average fixed interest period as a measurementof the sensitivity in net interest income and expense in conjunctionwith a change in the market interest rates. The Group uses interest derivativesas a means of adjusting and securing the desired fixed interest period. Thepoint of departure, however, is that these derivatives should be used mainlywhen the desired fixed interest period is difficult to achieve within existing borrowingor can only be achieved at a considerable additional cost.The fixed interest period at the year-end was 1.6 years (1.9), includinginterest derivatives. The average fixed interest period during the year was 1.9years (2.1).Bonds with a real interest rate construction have been issued to securediversification so that the Group is not exposed exclusively to changes in nominalinterest rates. Real interest rate bond loans are handled in a separate portfoliooutside the fixed interest mandate. At the year-end this portfolio totalledSEK 190 million (190).36 Due date structure, liabilitiesDue date structureGroupIFRSParent CompanyAnnual Accounts Act31-12-2007 31-12-2006 31-12-2007 31-12-2006Liabilities that falldue for paymentwithin one year ofthe year-end 6,930,890 6,281,513 5,242,409 4,385,619Liabilities that falldue for paymentwithin 1-5 years ofthe year-end 7,454,553 9,293,423 7,435,205 9,270,616Liabilities that falldue for paymentlater than five yearsafter the year-end 13,068,698 12,118,953 5,377,482 4,600,695Total 27,454,141 27,693,889 18,055,096 18,256,93098 Akademiska Hus Annual Report 2007 | Notes