IBRC annual report for 2011 - Irish Bank Resolution Corporation ...

Irish Bank Resolution Corporation LimitedAnnual Report & Accounts 2011Additions in the current year include investment property assets of €2m acquired under the INBS Transfer Order on 1 July 2011.These assets were reclassified as held for sale on 31 December 2011.Impairment on investment property in 2010 reflected weakening economic conditions in the markets where the assets arelocated and a consequent reduction in the recoverable amounts of the assets, based on the estimated future cash flows to bederived from these assets.The fair value of investment property held on own account at 31 December 2011 is €98m (2010: €216m). Fair values areprimarily based on valuations provided by independent third party valuers during the year which have been reviewed andagreed by management.33.Investment property - held in respect of liabilitiesto customers under investment contractsFair valueThe Group2011 2010€m €mAt beginning of year 1,193 1,143Additions - -Disposals (90) -Fair value, exchange and other movements 27 50At end of year (note 40) 1,130 1,193Investment property held in respect of liabilities to customers under investment contracts is included in the statement offinancial position at fair value. Fair values are based on valuations provided by independent third party valuers using, whererelevant, accepted Royal Institution of Chartered Surveyors guidelines or equivalent local guidelines appropriate to the locationof the property. Fair values are reviewed and agreed by management.87