Saab 2010 Annual Report Download - page 100

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 2010 2009
Carrying amount, 1 January 25 239
Reclassification from/to asset held for sale 211 -214
Carrying amount, 31 December 236 25
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.
Group
MSEK 2010 2009
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 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 2010 2009
Accumulated fair value
Opening fair value, 1 January 159 159
Closing fair value, 31 December 159 159
Parent Company
MSEK 2010 2009
Effect on net income/net rental income
Rental income 24 24
Direct costs for investment properties that generated
rental income during the year -11 -24
Effect on net income /net rental income 13 -
Information on carrying amount of investment properties in Parent Company
Parent Company
MSEK 2010 2009
Accumulated acquisition value
Opening balance, 1 January 127 127
Closing balance, 31 December 127 127
Accumulated depreciation according to plan
Opening balance, 1 January -83 -78
Depreciation according to plan for the year -4 -5
Closing balance, 31 December -87 -83
Accumulated revaluations
Opening balance, 1 January 73 73
Closing balance, 31 December 73 73
Carrying amount, 31 December 113 117
Tax assessment value
Group Parent Company
MSEK 31-12-2010 31-12-2009 31-12-2010 31-12-2009
Tax assessment value
of buildings 66 8 48 48
Tax assessment value
of land 7 - - -
NOTE 21
SHARES IN ASSOCIATED COMPANIES CONSOLIDATED ACCORDING TO THE
EQUITY METHOD
Group
MSEK 2010 2009
Carrying amount, 1 January 356 334
Acquisition of associated companies - 19
Sale of associated companies -25 -1
Share in associated companies’ income 1) 40 -41
Hedge reserve 2 31
Reclassifications to assets held for sale -113 -
Other reclassifications -4 -17
Translation differences and internal gains 1 44
Dividends -6 -13
Carrying amount, 31 December 251 356
1) Share in associated companies’ income after tax and non-controlling interests.
Results from Eurenco , Wah Nobel (Pvt) Ltd. and Sörman Intressenter 
are recognised as nancial income and expenses through prot or loss. Other
associated companies are held for operating purposes, i.e., they are related to
operations of the business units or in the venture portfolio and are therefore
recognised in operating income.
During the rst half of , Saab sold all its shares in the associated com-
pany Eurenco  (. per cent) to the company’s majority shareholder. e
hedge reserve relates to cash ow hedges in Grintek Ewation (Pty) Ltd.
Shares in associated companies as of  December  include goodwill
of   ().
e reclassication from associated company to asset held for sale refers
to Grintek Ewation (Pty) Ltd within Electronic Defence Systems.
e Group’s share of sales, income, assets, liabilities and the carrying amount
of shares in associated companies is as follows.
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2010 97