The Group has reduced the value of its property inventories to their possible recovery value, basing its calculations on the appraisals carried out by independent experts.
The existing provision of this item at 31 December 2013 amounts to €12,984 thousand (€6,735 thousand in 2012). The net provision allowance booked in 2013, to the
amount of €6,249 thousand, is included under “Inventory impairment” in the attached consolidated comprehensive profit and loss statement for 2013.
Below, the conciliation of the “Provisions” account is presented, with the variation in inventories for 2012 and 2013 presented in the consolidated comprehensive profit
and loss statement:
2012
2013
Net Changes in
Inventories
Purchases Total Procurements Net Changes in
Inventories
Purchases Total Procurements
Undeveloped land
-
-
-
157
-
157
Finished works
6,160
-
6,160
59
-
59
Trade inventories
(649)
(74,767)
(75,416)
53
(66,964)
(66,911)
Total
5,511
(74,767)
(69,256)
269
(66,964)
(66,695)
The Group currently owns approximately 1,535,000 square metres of land subject to the urban development regulations of the San Roque General Urban Zoning
Plan approved by the Cadiz Provincial Town Planning Commission on 2 November 1987, which generally classifies the land owned by the Group as land for scheduled
development. . The average cost of developed land amounted to 42 euros per square metre and the cost of undeveloped land was of 22 euros per square metre at 31
December 2013. The Group also has valuations carried out by independent third parties, which state that the market value of this land exceeds the book value.
On 23 April 2007, the Group entered into a legal-administrative town planning agreement with the San Roque Town Council pursuant to Act 7/2002 of 17 December on
the Urban Zoning of Andalusia. The maximum plot area in said agreement totalled 633,893 m
2
with 2,887 housing units, which greatly exceeded the figures set forth in
the Plan’s initial review in February 2005. The reviewwas left without effect and the maximumplot area was raised to the figure assigned in the aforementioned General
Plan of 1987.
Based on the appraisals conducted by American Appraisal España, S.L. and by Tasaciones Inmobiliarias, S.A. on 2013 June, the market value of the Group’s property
inventories was as follows:
Thousand euros
Developed land
44,828
Undeveloped land
117,108
Finished works
20,511
Total
182,447
The comparative market method and the development method have been used as part of the valuation process. The valuer’s report does not contain any warnings or
limitations that could affect the valuation.
At 31 December 2013, the value of inventories used as security for mortgage loans amounted to EUR 4.194 million (EUR 4.194 million in 2012) (see Note 16).
13.-
TRADE RECEIVABLES
This item reflects different accounts receivable from the Group’s operations. The breakdown at 31 December 2013 and 2012 is as follows:
Thousand euros
2013
2012
Trade receivables for services provided
127,190
130,016
Trade receivables for real-estate product sales
7,654
6,625
Provision for bad debts
(15,649)
(15,144)
Total
119,195
121,497
As a general rule, these receivables do not accrue any interest at all and are due at less than 90 days with no restrictions on how they may be used.
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
81
