75 Property and equipment
16 Investment properties
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Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Land and
Operating
in millions of euros
20/7 20/6
in millions of euros
buildings
Equipment
lease assets
Total
Cost
627 774
Year ended 31 December2017
Accumulated depreciation and impairments
(334) (393)
Opening balance
1,727
451
2,412
4,590
Net carrying amount as per 1 January
293 381
Foreign exchange differences
(16)
(9)
(196)
(221)
Purchases
68
91
1,087
1,246
Opening balance
293 381
Disposals
(73)
(15)
(165)
(253)
Purchases
11 14
Impairments
(91)
(91)
Sales
(30) (79)
Reversal impairments
42
1
43
Transfer to held for sale
(52) (48)
Depreciation
(110)
(128)
(238)
Depreciation
(8) (9)
Depreciation of operating
lease assets
(528)
(528)
Impairments
(1) 19
Other
Other
(20) 15
(1)
(4)
44
39
Closing balance as per
Closing balance as per 31 December
193 293
31 December
1,546
387
2,654
4,587
Cost
291 627
Cost
2,912
1,239
3,816
7,967
Accumulated depreciation and impairments
(98) (334)
Accumulated depreciation
Net carrying amount as per 31 December
193 293
and impairments
(1,366)
(852)
(1,162)
(3,380)
Net carrying amount as per
31 December
1,546
387
2,654
4,587
The fair value of the investment properties amounts to 230
Year ended 31 December 2016
(2016: 303). External valuations of investment properties were
Cost
3,292
1,457
7,828
12,577
performed by duly certified external parties in accordance
Accumulated depreciation
and impairments
(1,347)
(939)
(2,526)
(4,812)
with RICS valuation standards or other equivalent standards.
Net carrying amount as per
Investment properties are valued, for the determination of
1 January
1,945
518
5,302
7,765
fair value, on the basis of the methodologies which are most
Opening balance
appropriate for that property. This includes the discounted cash
1,945
518
5,302
7,765
Foreign exchange differences
3
2
18
23
flow valuation method and the capitalisation method based on
Purchases
88
119
2,041
2,248
net initial yields for comparable transactions.
Disposals
(61)
(33)
(101)
(195)
Transfer to held for sale
(522)
(522)
Valuations
Changes due to sale of Athlon
(3,475)
(3,475)
2017 2016
Impairments
(112)
(112)
External valuations
100% 100%
Depreciation
(109)
(141)
(250)
Internal valuations
0% 0%
Depreciation of operating
lease assets
(969)
(969)
Other
(27)
(14)
118
77
Most investment property is unique.There is often no active
Closing balance as per
31 December
1,727
451
2,412
4,590
market for similar properties in the same location and condition.
Appraisals of the different types of investment properties are
Cost
3,140
1,314
3,532
7,986
based on a large number of parameters, which are derived
Accumulated depreciation
from current contracts and market information as much as
and impairments
(1,413)
(863)
(1,120)
(3,396)
Net carrying amount as per
possible. A certain degree of judgement and estimation cannot
31 December
1,727
451
2,412
4,590
be avoided. As a result, all investment property has been
The impairments and reversal impairments recognised per
31 December 2017 relate to property for own use in segment
Domestic retail banking. Vacancy of property as a result of the
restructuring (decreasing usage of square meters) triggered
impairments calculations and resulted in impairments for a
total amount of 91 (2016:112). As a result of increasing use
of properties impairments were reversed for an amount of 42
(2016:0).
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.
Rabobank Annual Report 2017 - Consolidated financial statements
221
