semi-annual report 30 Sep 2010 - SEB Asset Management

30 | SEB ImmoInvest
account of possible deferred tax liabilities. The purchase price
reductions were calculated as reduced depreciation opportunities
for the purchaser. The difference between the current
market values and the cost of the properties for tax purposes
was used as the basis for this. The benefit for the purchaser
of lower transfer taxes on the purchase of shares was offset.
Following the entry into force of the Investment-
Rechnungslegungs- und Bewertungsverordnung (InvRBV –
German Investment Fund Accounting and Valuation Regulation)
on 23 December 2009, provisions for deferred capital
gains taxes must be recognised in full. No adjustment may
be made for reinvestment reserves that are permitted in
the target investment countries. As a result, provisions for
expected capital gains on Belgian and Dutch properties are
now also recognised.
The provision of 35% of the nominal value of the deferred
taxes previously recognised for SEB ImmoInvest, which was
based on past experience and the properties’ expected
future turnover rate, must now be increased to 100%. The
legislature has specified a transition period for this, which
expires on 23 December 2014. The provisions will be recognised
using the straight-line method during this period.