Review of 2012 – EUR - Skanska

Note22Current-asset properties/Project developmentCurrent-asset properties are reported in compliance with IAS 2, “Inventories.” See“Accounting and valuation principles,” Note 1.The allocation of items in the statement of financial position among the variousbusiness streams is presented below.Business stream Dec 31, 2012 Dec 31, 2011Commercial Property Development 1,639.8 1,241.0Residential Development 1,324.1 1,384.4Central 169.2Total 3,133.1 2,625.4For a further description of the respective business streams, see Note 4, “Operatingsegments.”Completed properties, properties under construction and development propertiesare all reported as current-asset properties.Impairment losses/Reversals of impairment lossesCurrent-asset properties are valued in compliance with IAS 2, “Inventories,” and arethus carried at cost or net realizable value, whichever is lower. Adjustment to netrealizable value via an impairment loss are recognized, as are reversals of previousimpairment losses, in the income statement under “Cost of sales.”Net realizable value is affected by the type and location of the property and by theyield requirement in the market.The following table shows that during 2012, impairment losses totaling EUR 0.2 M(0.1) were reversed. The reason for this was the net realizable value increased during theyear.Reversals ofImpairment losses impairment losses Total2012 2011 2012 2011 2012 2011Commercial PropertyDevelopment –0.2 –5.2 0.2 0.0 –5.2Residential Development –13.6 –8.5 0.1 –13.6 –8.4Total –13.8 –13.7 0.2 0.1 –13.6 –13.6Carrying amountCompleted properties Properties under construction Development properties Total current-asset propertiesDec 31, 2012 Dec 31, 2011 Dec 31, 2012 Dec 31, 2011 Dec 31, 2012 Dec 31, 2011 Dec 31, 2012 Dec 31, 2011Commercial Property Development 1 289.5 326.7 680.8 480.2 669.5 434.1 1,639.8 1,241.0Residential Development 103.6 40.1 579.7 607.6 640.7 736.7 1,324.1 1,384.4Central 169.2 169.2Total 393.2 366.8 1,260.5 1,087.8 1,479.4 1,170.8 3,133.1 2,625.41 Of the amount for properties under construction, EUR 680.8 M , EUR 235.9 M consisted of properties completed during 2012 and EUR 444.9 M of ongoing projects.Commercial Property Development Residential Development Central Total current-asset properties2012 2011 2012 2011 2012 2011 2012 2011Carrying amountJanuary 1 1,241.0 1,109.5 1,384.4 1,154.6 0.0 2,625.4 2,264.1Investments 738.2 386.0 890.9 807.1 1.1 1,630.2 1,193.0Carrying amount, properties divested –337.6 –291.6 –809.9 –537.2 –3.0 –1,150.5 –828.8Impairment losses/Reversals of impairmentlosses 0.0 –5.2 –13.6 –8.4 –13.6 –13.6The year’s provision for intra-Group profitsin contracting work –18.7 –7.8 –7.4 –1.8 –26.1 –9.5Reclassifications –0.3 34.2 –161.4 –35.3 168.8 7.0 –1.1Exchange-rate differences for the year 17.3 15.9 41.0 5.5 2.3 60.6 21.4December 31 1,639.8 1,241.0 1,324.1 1,384.4 169.2 3,133.1 2,625.4The carrying amount of current-asset properties is allocated between properties carried at cost and properties carried at net realizable value, as shown in the following table:Cost Net realizable value TotalDec 31, 2012 Dec 31, 2011 Dec 31, 2012 Dec 31, 2011 Dec 31, 2012 Dec 31, 2011Commercial Property Development 1,585.0 1,128.3 54.9 112.7 1,639.8 1,241.0Residential Development 1,307.2 1,342.3 16.9 42.2 1,324.1 1,384.4Central 169.2 169.2Total 3,061.4 2,470.6 71.7 154.9 3,133.1 2,625.4Skanska Review of 2012 – EUR version Notes, including accounting and valuation principles 139