Skanska Annual Report 2003

Note 23 continuedThe book value of current-asset properties is divided between properties valuedaccording to acquisition value and properties valued according to net divestmentvalue as shown in the following table.Acquisition Net divestmentvalue value TotalGroup 2003 2002 2003 2002 2003 2002CommercialProject Development 8,079 11,110 1,170 1,500 9,249 12,610Other commercialproperties 795 1,518 256 602 1,051 2,120Residential ProjectDevelopment 2,975 4,402 419 412 3,394 4,814Total 11,849 17,030 1,845 2,514 13,694 19,544Fair value of current-asset propertiesThe market value of completed properties on December 31, 2003 was estimated atSEK 8.8 billion (11.1), partly in collaboration with external appraisers. This includedpartly owned properties. The corresponding book value was SEK 5.7 billion (7.2).Including projects booked as completed on January 1, 2004, estimated totalmarket value was about SEK 9.4 billion, and the corresponding book value was SEK6.2 billion.Other properties have an estimated market value that largely coincides with theirbook value of SEK 7.5 billion.Commercial Other Residential TotalProject commercial Project current-assetGroup Development properties Development propertiesBook valueOn January 1 12,610 2,120 4,814 19,544Acquisitions of companies 0 0 0 0Divestments of companies –896 –896New acquisitions 1,219 381 3,772 5,372Divestments –5,143 –761 –4,010 –9,914Writedowns/reversalsof writedowns 0 –29 –19 –48Reclassifications 738 –624 –36 78Exchange rate differences for the year–175 –36 –231 –442On December 31 9,249 1,051 3,394 13,694Reclassifications from ”Other commercial properties”, totaling SEK –624 M, weremainly commercial project developments and refer to properties in Denmark thatwere taken over by Commercial Project Development from Construction andServices.Information on assessed value for tax purposes ofcurrent-asset properties in SwedenAssessed valueCorrespondingbook value2003 2002 2003 2002Building 5,038 6,806 5,635 8,493Land 2,208 2,596 2,043 2,6897,246 9,402 7,678 11,182Assets pledgedCurrent-asset properties used as collateral for loans and other commitmentsamounted to SEK 91 M (620).Other mattersInformation on capitalized interest is reported in Note 14, ”Borrowing costs.”Note 24Inventories etc.Inventories are reported in compliance with RR 2, ”Inventories.” See ”Accountingand valuation principles,” Note 1.Group 2003 2002Raw materials and supplies 508 531Products being manufactured 102 58Finished products and merchandise 209 268Advance payments to suppliers 9 8Total 828 865Book value, valued atAcquisition value 803 855Net divestment value 25 10Total 828 865Other mattersThere are no significant differences between the reported value of inventoriesand their fair value. No portion of inventories were adjusted due to an increase innet divestment value. No merchandise was used as collateral for loans and otherobligations.Note 25Current receivablesOperating receivables in the operatinc cycle as well as interest-bearing receivablesexpected to be recovered within twelve months are reported as current receivables.See Note 2 C on the change of definition for current assets and its effect on currentreceivables.Other current receivablesGroupParent company2003 2002 2003 2002Liquid assets with restrictions 404 543Other interest-bearing current receivables 844 585Non-interest-bearing current receivables 2,006 2,757 23 23Total 3,254 3,885 23 23Prepaid expenses and accrued revenuesGroup 2003 2002Accrued revenues 424 345Prepaid expenses 866 1,271Total 1,290 1,616Note 26Shareholders’ equityRestricted and unrestricted equityAccording to Swedish law, shareholders’ equity must be divided between nondistributable(restricted) and distributable (unrestricted) funds. In a corporate group,a distribution to the shareholders’ may only total the unrestricted funds of theParent Company or the Group, whichever is lower.Capital stock (share capital) and the statutory reserve comprise restricted equity. Inthe consolidated financial statements, unrestricted equity only includes the portionof the unrestricted equity of subsidiaries that can be distributed to the ParentCompany without any need to writed down the shares in the subsidiary.In the consolidated balance sheet, the shareholders’ equity portion of untaxedreserves is also reported as restricted equity.The shareholders’ equity of the Skanska Group was divided into SEK 2,902 M(2 685) in restricted equity and SEK 11,276 M (11 532) in unrestricted equity. Theshareholders’ equity of the Group declined by SEK 1,110 M on January 1, 2003 dueto a change in accounting principle regarding pensions. See Note 2, ”Effects ofchanges in accounting principles.”The shareholders’ equity of the Parent Company was divided into SEK 1,256 M(1,256) in capital stock, SEK 598 M (598) in the statutory reserve (restricted reserves)and SEK 6,614 M (5 993) in unrestricted equity.The consolidated financial statements also included restricted equity representingthe shareholders’ equity portion of untaxed reserves in the Parent Company,amounting to SEK 666 (586), plus restricted reserves after eliminating the shares ofdirectly owned subsidiaries.The proposed but not yet approved dividend for 2003 amounts to SEK 1,256 M(837), equivalent to SEK 3 (2) per share.Provisions to restricted reserves totaled SEK 0 M (0).Exchange rate differencesNumber of sharesGroup/Parent Company 2003 2002Average number of shares 418,553,072 418,553,072Total number of shares 418,553,072 418,553,07270 Notes, including accounting and valuation principles – Skanska Annual Report 2003