Saab 2011 Annual Report Download - page 109

NOTE 19
BIOLOGICAL ASSETS
Group
MSEK 2011 2010
Living forest
Carrying amount, 1 January 299 256
Change in fair value 15 53
Less fair value logging -9 -10
Carrying amount, 31 December 305 299
Of which fixed assets 305 299
On  December , biological assets consisted of approximately
,m³ of spruce, , m³ of pine and , m³ of hardwood. Forest
growth is estimated at ,–, m³ timber per year. During the year,
approximately , m³ of timber was felled, which had a fair value in the
Group, aer deducting selling expenses, of   on the felling date.
e valuation of forests has been done with the help of independent
appraisers. e forestry property has been valued according to the market
comparison method. In the valuation according to the market comparison
method, the environmental impact on the ring range has not been taken
into account. An adjustment for the environmental impact has been made by
reducing fair value by an amount corresponding to the market value of the
size of the ring range (, hectares) less the value of the timber.
NOTE 20
INVESTMENT PROPERTIES
Information on fair value of investment properties in the Group
In the Group, investment properties are reported according to the fair value
method.
Group
MSEK 2011 2010
Carrying amount, 1 January 236 25
Reclassification from/to asset held for sale - 211
Revaluation -12 -
Carrying amount, 31 December 224 236
Investment properties are recognised in the statement of nancial position
at fair value, while changes in the value of these properties are recognised in
the income statement; see also Note .
Investment properties comprise a number of rental properties leased to
outside tenants. Leases on oces and production space are normally signed
for an initial period of – years. Prior to expiration, renegotiations are held
with the tenant on the rent level and other terms of the agreement, provided
the lease has not been terminated.
Fair values have been determined by analysing rental income and
expenses for each property, thereby producing a net rental income gure. Net
rental income has then served as the basis of a valuation of fair value with a
yield of  per cent. e yield requirements corresponds to the risk in net
rental income. Fair value is not based on the valuation of an independent
appraiser.
e  reclassication refers to a real estate company that was previ-
ously recognised as an asset held for sale.
Group
MSEK 2011 2010
Effect on net income/net rental income
Rental income 26 26
Direct costs for investment properties that generated
rental income during the year -10 -12
Effect on net income /net rental income 16 14
Information on fair value of investment properties in Parent Company
In the Parent Company, investment properties are recognised as buildings
according to the acquisition cost method. Investment properties in the Parent
Company are leased out to other companies in the Group and are therefore
classied as operating properties in the Group.
Parent Company
MSEK 2011 2010
Accumulated fair value
Opening fair value, 1 January 159 159
Revaluation 6 -
Closing fair value, 31 December 165 159
Parent Company
MSEK 2011 2010
Effect on net income/net rental income
Rental income 27 24
Direct costs for investment properties that generated
rental income during the year -9 -11
Effect on net income /net rental income 18 13
Information on carrying amount of investment properties in Parent Company
Parent Company
MSEK 2011 2010
Accumulated acquisition value
Opening balance, 1 January 127 127
Closing balance, 31 December 127 127
Accumulated depreciation according to plan
Opening balance, 1 January -87 -83
Depreciation according to plan for the year -4 -4
Closing balance, 31 December -91 -87
Accumulated revaluations
Opening balance, 1 January 73 73
Closing balance, 31 December 73 73
Carrying amount, 31 December 109 113
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2011 105