15 Investment Property

In CHF million  
Notes  2010 2009
Balance as at 1 January
  13 292 12 663
Effect of amendment to IAS 40
  92
Additions
  880 694
Capitalised subsequent expenditure
  212 215
Classification as assets held for sale and other disposals
  –187 –524
Gains/losses from fair value adjustments
  306 184
Transfers from/to property and equipment
17  38 –16
Foreign currency translation differences
  –399 –16
Balance as at end of period
  14 142 13 292
 
Investment property consists of
 
completed investment property
  13 817 12 966
investment property under construction
  325 326
Total investment property
  14 142 13 292


Investment property held by the Group includes residential, commercial and mixed-use properties primarily located within Switzerland, and comprises both completed investment property and investment property under construction. Property held for investment purposes comprises land and buildings owned by the Group to earn rentals and/or for capital appreciation. Property that is used by the Group itself or leased to, and occupied by, another entity of the Group is classified as owner-occupied property under property and equipment. Property acquired with a view to its subsequent disposal in the near future is carried under assets held for sale.

Rental income from investment property from continuing operations was CHF 718 million for the period ended 31 December 2010 (2009: CHF 735 million). Operating expenses arising from investment property from continuing operations that generated rental income stood at CHF 153 million for the period ended 31 December 2010 (2009: CHF 158 million). Operating expenses arising from investment property from continuing operations that did not generate rental income during the period stood at CHF 0.1 million for the period ended 31 December 2010 (2009: CHF 0.1 million).

The adoption of an amendment to IAS 40 Investment Property and a consequential amendment to IAS 16 Property, Plant and Equipment led to the reclassification of property under construction or development for future use as investment property from property and equipment to investment property as at 1 January 2009. The amount reclassified came to CHF 92 million.

 
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