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FINANCIAL INFORMATION – FINANCIAL STATEMENTS
NOTE 19 BIOLOGICAL ASSETS
ACCOUNTING PRINCIPLES
Biological assets in the form of forests are carried at fair value after deduction
of estimated selling expenses. Fair value is based on the valuation of an
independent appraiser.
Group
MSEK 2015 2014
Living forest
Carrying amount, 1 January 289 296
Change in fair value 10 5
Less fair value logging -9 -12
Carrying amount, 31 December 290 289
Of which fixed assets 290 289
On 31 December 2015, biological assets consisted of approximately 371,000 m³
of spruce, 603,000 m³ of pine and 98,000 m³ of hardwood. Forest growth is esti-
mated at 48,000 m³ timber per year. During the year, approximately 23,200 m³ of
timber was felled, which had a fair value in the Group, after deduction of selling
expenses, of MSEK9 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
method. In the valuation according to the market comparison method, the
environmental impact on a firing range within the property 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
ACCOUNTING PRINCIPLES GROUP
Investment properties are properties held to earn rental income, for capital appre-
ciation or a combination of both. Investment properties are carried in the state-
ment of financial position at fair value. Fair value has been determined by calcula-
ting net rental income, which then serves as the basis of a valuation of fair value.
Information on fair value of investment properties in the Group
Group
MSEK 2015 2014
Carrying amount, 1 January 33 31
Revaluation 1 2
Carrying amount, 31 December 34 33
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 2015 2014
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
ACCOUNTING PRINCIPLES 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 mainly leased out to other companies in the Group and are there-
fore classified as operating properties in the Group.
Information on fair value of investment properties in the Parent Company
Parent Company
MSEK 2015 2014
Fair value
Opening fair value, 1 January 164 164
Revaluation - -
Closing fair value, 31 December 164 164
Parent Company
MSEK 2015 2014
Effect on net income/net rental income
Rental income 32 26
Direct costs for investment properties that
generated rental income during the year -10 -9
Effect on net income /net rental income 22 17
Information on carrying amount of investment properties
in the P arent Company
Parent Company
MSEK 2015 2014
Accumulated acquisition value
Opening balance, 1 January 128 128
Acquisitions 7 -
Reclassifications 12 -
Divestments -20 -
Closing balance, 31 December 127 128
Accumulated depreciation according to plan
Opening balance, 1 January -101 -98
Depreciation according to plan for the year -4 -3
Reclassifications -9 -
Divestments 5 -
Closing balance, 31 December -109 -101
Accumulated revaluations
Opening balance, 1 January 66 66
Reclassifications 6 -
Closing balance, 31 December 72 66
Carrying amount, 31 December 90 93
SAAB ANNUAL REPORT 2015– 91