77. Investment Properties - - About this Report Chairman's Foreword Corporate Management Report Appendices Governance Consolidated Financial Company Financial Statements Statements Amounts in millions of euros 2018 2017 Cost 291 627 Accumulated depreciation and impairments (98) (334) Net carrying amount as per January 1 193 293 Opening balance 193 293 Purchases 28 11 Sales (22) (30) Transfer to held for sale (52) Depreciation (8) (8) Impairments (2) (1) Reversal impairment 2 Other 2 (20) Closing balance as per December 31 193 193 Cost 259 291 Accumulated depreciation and impairments (66) (98) Net carrying amount as per December 31 193 193 The fair value of the investment properties amounts to EUR 208 million (2017: EUR 230 million). 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 determining of fair value, based on 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 2018 2017 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 many parameters, which are derived from current contracts and market information as much as possible. A certain degree of judgment and estimation cannot be avoided. Therefore, 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. Annual Report 2018 - Consolidated Financial Statements 190

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Annual Reports Rabobank | 2018 | | pagina 192