15 Property and equipment
16 Investment properties
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17 Other assets
Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
The impairments recognised per 31 december 2016 relate
to property for own use of the local Rabobanks. Vacancy of
property as a result of the restructuring (decreasing usage of
square meters) triggered impairments calculations and resulted
in impairment losses for a total amount of 112.
The fair value of the investment properties amounts to
303 (2015: approximates the carrying amount). External
valuations of investment properties were performed by duly
certified external parties in accordance with RICS valuation
standards or other equivalent standards. Investment properties
are valued, for the determination of fair value, on the basis
of the methodologies which are most appropriate for that
property. This includes the discounted cash flow valuation
method and the capitalisation method based on net initial
yields for comparable transactions.
Valuations
2016
2015
External valuations
100%
100%
Internal valuations 0% 0%
Most investment property is unique. There is often no active
market for similar properties in the same location and condition.
Appraisals of the different types of investment properties are
based on a large number of parameters, which are derived
from current contracts and market information as much as
possible. A certain degree of judgement and estimation cannot
be avoided. As a result, all investment property has been
designated as level 3 in line with the fair value classification
under IFRS 13. When determining the fair value of investment
property, the parameters used include the following, depending
on the type of property: current and expected future market
rent per m2, current and expected future vacancy rates, location
of the property, the marketability of the property, the average
discount rate, the development budget, and any credit risks.
in millions of euros
2016
2015
Opening balance
381
452
Purchases
14
4
Sales
(79)
(44)
Transfer to held for sale
(48)
Depreciation
(9)
(11)
Impairments
19
(25)
Other
15
5
Closing balance
293
381
Cost
627
774
Accumulated depreciation and impairments
(334)
(393)
Net carrying amount
293
381
Real estate projects
in millions of euros
2016
2015
Building sites and equalisation funds
1,104
1,206
Work in progress
816
761
Finished goods
43
324
Total real estate projects
1,963
2,291
in millions of euros
Land and
buildings
Equipment
Total
Year ended 31 December 2016
Opening balance
1,945
5,820
7,765
Foreign exchange differences
3
20
23
Purchases
88
2,160
2,248
Disposals
(61)
(656)
(717)
Transfer to held for sale - - -
Changes due to sale of Athlon
(3,475)
(3,475)
Impairments
(112)
(112)
Depreciation
(109)
(141)
(250)
Depreciation of operating lease assets
(969)
(969)
Other
(27)
104
77
Closing balance
1,727
2,863
4,590
Cost
3,140
4,846
7,986
Accumulated depreciation and
impairments
(1,413)
(1,983)
(3,396)
Net carrying amount
1,727
2,863
4,590
Year ended 31 December 2015
Opening balance
1,969
5,179
7,148
Foreign exchange differences
14
105
119
Purchases
109
2,400
2,509
Disposals
(47)
(722)
(769)
Impairments - - -
Depreciation
(109)
(141)
(250)
Depreciation of operating lease assets
(1,002)
(1,002)
Other
9
1
10
Closing balance
1,945
5,820
7,765
Cost
3,292
9,285
12,577
Accumulated depreciation and
impairments
(1,347)
(3,465)
(4,812)
Net carrying amount
1,945
5,820
7,765
in millions of euros
Note
2016
2015
Receivables and prepayments
1,833
2,217
Accrued interest
1,351
1,500
Precious metals, goods and warehouse
receipts
1,172
901
Real estate projects
1,963
2,291
Accrued income
672
379
Employee benefits
25
7
7
Other assets
880
559
Total other assets
7,878
7,854
221 Notes to the consolidated financial statements