15. Depreciation and amortization
Significant accounting policies
Depreciation expense for property, plant and equipment and investment properties and the amortization expense for intangible assets are calculated using straight line method over the expected useful life of an asset. Depreciated value is defined as the purchase price or cost to develop a given asset, less residual value of the asset. Depreciation rates and residual values of assets, determined for balance-sheet purposes, are subject to regular reviews, with results of such reviews recognized in the same period.
The satement of financial position depreciation and amortization rates applied to property, plant and equipment, investment properties and intangible assets as follows:
- depreciation rates applied for non-current asstes
| Buildings and structures and cooperative ownership rights to residential premises and cooperative ownership rights to commercial premises | 1.5% – 10.0% |
| Technical equipment and machines | 4.5% – 30.0% |
| Vehicles | 7% – 25.0% |
- amortization rates for intangible assets
| Buildings and structures and cooperative ownership rights to residental premises and cooperative ownership rights to commercial premises | 10.0% – 50.0% |
| Technical equipment and machines | 12.5% – 33.3% |
| Vehicles | 12.5% – 33.3% |
Land, non-current assets under construction and intangible assets under development are not subject to depreciation and amortization.
Depreciation are charged to the income statement in the item ‘Depreciation and amortization’, whereas the impairment losses are charged to the income statement in the item ‘Other operating expenses’
Financial data
Depreciation of property, plant and equipment and intangible assets
| 2021 | 2020 | |
|---|---|---|
| Property, plant and equipment | -320,880 | -307,865 |
| Intangible assets | -327,338 | -231,086 |
| Total | -648,218 | -538,951 |