Skanska Annual Report 2003

Note 22 continuedInformation on losses in associated companies that have not been ”reported”because the book value of Skanska’s holding ”is already zero.”Group 2003 2002Loss for the year –84 –85Loss in prior years –1,033 –948The losses occurred in partly owned limited partnerships (aircraft leasing), for whichthe Group has no obligation to provide additional capital.Other mattersThe associated companies have no liabilities, provisions or contingent liabilitieswhich the Group may become responsible for paying,nor any obligations concerning future investments.DivestmentsGroup 2003 2002Divestment revenueCommercial Project Development 7,572 780Other commercial properties 803 493Residential Project Development 4,581 5,32812,956 6,601Book valueCommercial Project Development –5,173 –486Other commercial properties –731 –413Residential Project Development –4,010 –4,653–9,914 –5,552Gross incomeNote 23Current-asset properties/Project developmentCurrent-asset properties are reported in compliance with RR 2, ”Inventories”. See”Accounting and valuation principles,” Note 1.Beginning in 2003, Skanska’s current-asset properties were divided intoCommercial Project Development, other commercial properties and ResidentialProject Development. In prior years, the book value of properties was dividedbetween properties in real estate operations and other current-asset properties. SeeNote 2 F for the effect on 2002 book value of the change in accounting principle.The division of balance sheet items among the various business streams can beseen below.Balance sheet itemCommercial Project DevelopmentOther commercial propertiesResidential Project DevelopmentBusiness streamCommercial Project DevelopmentConstruction and ServicesResidential Project DevelopmentFor a further description of the respective business streams, see Note 3, ”Segmentreporting.”Income from current-asset properties comes mainly from Commercial ProjectDevelopment and Residential Project Development. Operations at Construction andServices include only a few remaining projects in the construction-related portion ofSkanska’s operations that are awaiting divestment.Completed properties, properties under construction and development propertiesare all reported as current-asset properties.Book valueTotalCommercial Project Development 2,399 294Other commercial properties 72 80Residential Project Development 571 6753,042 1,049Breakdown of divestments by Commercial Project Development amongcompleted properties, properties under construction and development propertiesProperties underCompleted construction andproperties development properties Total2003 2002 2003 2002 2003 2002Divestment revenue 4,772 503 2,800 277 7,572 780Book value –3,580 –234 –1,593 –252 –5,173 –486Gross income 1,192 269 1,207 25 2,399 294Writedowns/reversals of writedownsCurrent-asset properties are valued in compliance with RR 2, ”Inventories” andare thus valued at acquisition value or net divestment value, whichever is lower.Adjustment till net divestment value via a writedown is reported, as are reversals ofprevious writedowns, in the income statement as a construction, maufacturing andproperty management expense.The following table shows that during 2003, writedowns totaling SEK 43 M (98)were reversed. The reason for this was that net divestment value increased duringthe year.Reversals ofWritedowns writedowns TotalGroup 2003 2002 2003 2002 2003 2002CommercialProject Development –20 –103 20 40 0 –63Other commercialproperties –29 –144 0 58 –29 –86Residential ProjectDevelopment –42 –26 23 0 –19 –26–91 –273 43 98 –48 –175Completed Properties Development current-assetproperties under construction properties propertiesGroup 2003 2002 2003 2002 2003 2002 2003 2002Commercial Project Development 5,692 7,227 945 3,449 2,612 1,934 9,249 12,610Other commercial propertiesand residential Project Development 913 1,520 715 2,197 2,817 3,217 4,445 6,934Total 6,605 8,747 1,660 5,646 5,429 5,151 13,694 19,544Skanska Annual Report 2003 – Notes, including accounting and valuation principles 69