Consolidated Financial Statements and Consolidated Management ...

12. INVENTORIES
The composition and movements for this item of the consolidated balance sheet at 31 December 2011 and 2010 was as follows in both years:
Balance at
31/12/09
Assignments
(Note 9)
Net Changes in
Inventories
Balance at
31/12/10
Write-offs
Net Changes in
Inventories
Balance at
31/12/11
Developed land 46,542 - 16 46,558 - - 46,558
Undeveloped land 12,126 - 135 12,261 - (670) 11,591
Finished works 57,184 (4,095) (2,768) 50,321 369 (973) 49,717
Ancillary materials and others 10,185 - (352) 9,833 - (1,471) 8,362
Total 126,037 (4,095) (2,969) 118,973 369 (3,114) 116,228
Net Changes in
Inventories
2011 2010
Purchases
Total Procurements
Net Changes in
Inventories
Purchases
Total Procurements
Developed land - - - (16) 16 -
Undeveloped land 670 - 670 (135) 135 -
Finished works 973 - 973 2,768 541 3,309
Trade inventories 1,471 74,964 76,435 352 79,898 80,250
Total 3,114 74,964 78,078 2,969 80,590 83,559
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 2011.
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 m² with 2,887 housing units, which greatly exceeded
the figures set forth in the Plan’s initial review in February 2005. The review was left without effect and the maximum plot 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 30 June 2011, the market value of the
Company’s real estate inventories was as follows:
Thousand euros
2011 2010
Developed land 51,219 7,956
Undeveloped land 200,713 4,947
Finished works 54,088 (782)
Total 306,020 21,444
At 31 December 2011, the value of inventories used as security for mortgage loans amounted to 28,319,000 euros (29,401,000 euros in 2010) (see Note 16).
13. TRADE RECEIVABLES
This item reflects different accounts receivable from the Group’s operations. The breakdown at 31 December 2011 and 2010 is as follows:
Thousand euros
2011 2010
Trade receivables for services provided 131,320 138,454
Trade receivables for real estate product sales 8,194 6,939
Provision for bad debts (18,323) (17,999)
Total 121,191 127,394
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.
Movements in provision for bad debts during the years ending 31 December 2011 and 2010 are as follows:
Miles de Euros
2011 2010
Balance at 1 January 17,999 12,051
Currency translation differences 11 22
Allowances 1,869 7,898
Applications (1,556) (1,972)
Balance at 31 December 18,323 17,999
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REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS