Annual Report 2011 - Skanska

Note08RevenueNoteProjects in Skanska’s contracting operations are reported in compliance with IAS 11,“Construction Contracts.” See Note 9.Revenue other than project revenue is recognized in compliance with IAS 18,“Revenue.” See “Accounting and valuation principles,” Note 1.Revenue by business stream2011 2010Construction 114,972 113,213Residential Development 5,763 5,513Commercial Property Development 4,339 7,277Infrastructure Development 286 319OtherCentral 356 576Eliminations, see below –6,982 –4,674Total 118,734 122,224Reported as eliminations:2011 2010Intra-Group construction forConstruction –386 –1,435Residential Development –4,356 –2,080Commercial Property Development –1,807 –879Infrastructure Development 1Intra-Group property divestments –45 –10Other –388 –270–6,982 –4,6741 Construction included SEK 8,554 M (7,153) in intra-Group construction for InfrastructureDevelopment. Elimination does not occur, since this revenue comprises invoicing to jointventures, which are not consolidated but are instead recognized according to the equitymethod of accounting.Revenue by category2011 2010Construction contracts 98,849 101,195Services 7,321 6,362Sales of goods 2,502 1,924Rental income 544 788Divestments of properties 9,518 11,955Total 118,734 122,224As for other types of revenue, dividends and interest income are recognized infinancial items. See Note 14, “Net financial items.”Other mattersInvoicing to associated companies and joint ventures amounted to SEK 6,360 M(8,034). For other related party transactions, see Note 39, “Related partydisclosures.”09Construction contractsConstruction contracts are recognized as revenue at the pace of project completion.See “Accounting and valuation principles,” Note 1.For risks in ongoing assignments, see Note 2, “Key estimates and judgments,”and the Report of the Directors.Information from the income statementRevenue recognized during the year amounted to SEK 98,849 M (101,195).Information from the statement of financial positionGross amount due from customers for contract work 2011 2010Accrued revenue 69,994 58,088Invoiced revenue –64,886 –53,147Total, asset 5,108 4,941Gross amount due to customers for contract work 2011 2010Invoiced revenue 213,577 208,973Accrued revenue –196,750 –192,036Total, liability 16,827 16,937Accrued revenue in ongoing projects including recognized gains minus recognizedloss provisions amounted to SEK 266,744 M (250,124).Advance payments received totaled SEK 823 M (420).Amounts retained by customers, which have been partly invoiced according toan established plan and which the customer is retaining in accordance with contractualterms until all the conditions specified in the contract are met, amounted toSEK 2,277 M (2,156).Note10Operating expenses by category of expenseDuring 2011, revenue decreased by SEK 3,490 M to SEK 118,734 M (122,224). Operatingincome increased by SEK 2,955 M to SEK 8,413 M (5,458). Personnel expenses forthe year amounted to SEK –25,706 M (–25,261).Other operating expenses adjusted for current-asset properties divested andincome in joint ventures and associated companies amounted to SEK -80,506 M(-80,838).2011 2010Revenue 118,734 122,224Personnel expenses 1 –25,706 –25,261Depreciation/amortization –1,393 –1,301Impairment losses –175 –250Carrying amount of current-asset properties divested –7,483 –9,657Income from joint ventures and associated companies 4,942 541Other operating expenses 2 –80,506 –80,838Operating income 8,413 5,4581 Recognized as personnel expenses are wages, salaries and other remuneration plus socialinsurance contributions, recognized according to Note 36, “Personnel,” and non-monetaryremuneration such as free healthcare and car benefits.2 Other operating expenses included purchased materials, machinery rentals and subcontractors.130 Notes, including accounting and valuation principles Skanska Annual Report 2011