Saab 2014 Annual Report Download - page 104

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FINANCIAL INFORMATION – NOTES
NOTE 19 BIOLOGICAL ASSETS
Group
MSEK 2014 2013
Living forest
Carrying amount, 1 January 296 306
Change in fair value 5 4
Less fair value logging -12 -14
Carrying amount, 31 December 289 296
Of which fixed assets 289 296
On 31 December 2014, biological assets consisted of approximately 397,000 m³
of spruce, 659,000 m³ of pine and 75,000 m³ of hardwood. Forest growth is esti-
mated at 40,000 m³ timber per year. During the year, approximately 25,300 m³ of
timber was felled, which had a fair value in the Group, after deducting selling
expenses, of MSEK12 on the felling date.
The valuation of forests has been done with the help of independent appraisers.
The forestry property has been valued according to the market comparison met-
hod. In the valuation according to the market comparison method, the environme-
ntal impact on the firing range has not been taken into account. An adjustment for
the environmental impact has therefore been made by reducing fair value by an
amount corresponding to the market value of the size of the firing range
(4,457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 2014 2013
Carrying amount, 1 January 31 33
Revaluation 2 -2
Carrying amount, 31 December 33 31
Investment properties are recognised in the statement of financial position at fair
value, while changes in the value of these properties are recognised in the income
statement; see also note 1.
Investment properties comprise a number of rental properties leased to outside
tenants. Leases on offices and production space are normally signed for an initial
period of 2–6 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 figure. Net rental income has
then served as the basis for a valuation of fair value with a yield of 8 per cent. The
yield requirements correspond to the risk in net rental income. Fair value is not
based on the valuation of an independent appraiser.
Group
MSEK 2014 2013
Effect on net income/net rental income
Rental income 4 4
Direct costs for investment properties that
generated rental income during the year -2 -2
Effect on net income/net rental income 2 2
Information on fair value of investment properties in the Parent Company
In the Parent Company, investment properties are recognised as buildings accor-
ding to the acquisition cost method. Investment properties in the Parent Company
are mainly leased out to other companies in the Group and are therefore classified
as operating properties in the Group.
Parent Company
MSEK 2014 2013
Fair value
Opening fair value, 1 January 164 164
Revaluation - -
Closing fair value, 31 December 164 164
Parent Company
MSEK 2014 2013
Effect on net income/net rental income
Rental income 26 25
Direct costs for investment properties that
generated rental income during the year -9 -8
Effect on net income /net rental income 17 17
Information on carrying amount of investment properties
in the P arent Company
Parent Company
MSEK 2014 2013
Accumulated acquisition value
Opening balance, 1 January 128 128
Acquisitions - -
Closing balance, 31 December 128 128
Accumulated depreciation according to plan
Opening balance, 1 January -98 -94
Depreciation according to plan for the year -3 -4
Closing balance, 31 December -101 -98
Accumulated revaluations
Opening balance, 1 January 66 66
Closing balance, 31 December 66 66
Carrying amount, 31 December 93 96
NOTE 21 SHARES IN ASSOCIATED
COMPANIES AND JOINT VENTURES
CONSOLIDATED ACCORDING TO
THE EQUITY METHOD
Group
MSEK 2014 2013
Carrying amount, 1 January 367 300
Acquisition of associated companies and joint ventures 34 3
Sale of associated companies -123 -
Share in associated companies’ and joint ventures’
income 1) 18 25
New share issues 9 20
Reclassifications 47 39
Translation differences and internal gains 47 -10
Dividends -2 -10
Carrying amount, 31 December 397 367
1) Share in associated companies and joint ventures’ net income and non-controlling interests.
The Group’s associated companies and joint ventures are held for operating pur-
poses, i.e., they are related to operations of the business areas or in the venture
portfolio and are therefore recognised in operating income.
During 2014, Saab acquired Fortis Marine Solutions Pte Ltd, a joint venture, and
KedTech Holding AB, an associated company, and made investments in the ven-
ture portfolio. The associated company Hawker Pacific Airservices Ltd was sold in
2014. As contractually stipulated, control over the subsidiary Saab Grintek Techno-
100 – SAAB ANNUAL REPORT 2014