30. Property, plant and equipment
Significant accounting policies
Property, plant and equipment are defined as controlled non-current assets and assets under construction. Non-current assets include certain tangible assets with an expected useful life longer than one year, which are maintained for the purpose of own use or to be leased to other entities.
Property, plant and equipment are recognized at historical cost less accumulated depreciation and accumulated impairment write downs.
Each component of property, plant and equipment, the purchase price or production cost of which is significant compared to the purchase price or production cost of the entire item is a subject to separate depreciation. The Group separates the initial value of property, plant and equipment into its significant parts.
Subsequent expenditures relating to property plant and equipment are capitalized only when it is probable that such expenditures will result in future economic benefits to the Group, and the cost of such expenses can be reliably measured.
Service and maintenance costs of property, plant and equipment are expensed in the reporting period in which they have been incurred.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognized as an expense.
Financial data
| 31.12.2021 | 31.12.2020 | |
|---|---|---|
| Non-current assets, including: | 1,720,780 | 1,791,346 |
| land and buildings | 1,099,493 | 1,224,142 |
| machinery and equipment | 387,813 | 384,718 |
| transport vehicles | 122,782 | 73,407 |
| other | 110,692 | 109,079 |
| Non-current assets under construction and prepayments | 109,451 | 128,101 |
| Total | 1,830,231 | 1,919,447 |
Changes in ‘Property, plant and equipment’ in the course of the reporting period
| 2021 | LANDS AND BUILDINGS | MACHINERY AND EQUIPMENT | MEANS OF TRANSPORTATION | OTHER | NON-CURRENT ASSETS UNDER CONSTRUCTION | TOTAL |
| GROSS VALUE | ||||||
| Opening balance | 2,948,720 | 1,555,430 | 155,341 | 490,811 | 128,101 | 5,278,403 |
| Increases, including: | 107,556 | 139,732 | 87,507 | 24,420 | 129,167 | 488,382 |
| acquisitions | 12,646 | 6,083 | 82,570 | 235 | 129,103 | 230,637 |
| transfer from non-current assets under construction |
19,039 | 100,820 | 2 | 20,185 | – | 140,046 |
| increases due to the acquisition of Idea Bank S.A. |
– | 22,880 | 2,656 | 3,369 | 64 | 28,969 |
| other | 75,871 | 9,949 | 2,279 | 631 | – | 88,730 |
| Decreases, including: | -215,932 | -164,561 | -64,614 | -48,568 | -147,817 | -641,492 |
| liquidation and sale | -72,439 | -163,459 | -63,807 | -48,227 | – | -347,932 |
| transfer to non-current assets held for sale | -7,209 | -1,061 | -210 | -341 | – | -8,821 |
| transfer from non-current assets under construction |
– | – | – | – | -140,046 | -140,046 |
| other | -136,284 | -41 | -597 | – | -7,771 | -144,693 |
| Closing balance | 2,840,344 | 1,530,601 | 178,234 | 466,663 | 109,451 | 5,125,293 |
| ACCUMULATED DEPRECIATION | ||||||
| Opening balance | 1,718,162 | 1,168,980 | 81,171 | 381,647 | – | 3,349,960 |
| Increases, including: | 179,021 | 109,876 | 22,310 | 21,044 | – | 332,251 |
| depreciation | 175,433 | 109,876 | 14,527 | 21,044 | – | 320,880 |
| other | 3,588 | – | 7,783 | – | – | 11,371 |
| Decreases, including: | -180,221 | -137,405 | -50,525 | -46,747 | – | -414,898 |
| liquidation and sale | -68,268 | -136,567 | -50,187 | -46,293 | – | -301,315 |
| transfer to non-current assets held for sale | -5,248 | -838 | -104 | -278 | – | -6,468 |
| other | -106,705 | – | -234 | -176 | – | -107,115 |
| Closing balance | 1,716,962 | 1,141,451 | 52,956 | 355,944 | – | 3,267,313 |
| IMPAIRMENT | ||||||
| Opening balance | 6,416 | 1,732 | 763 | 85 | – | 8,996 |
| Increases | 18,438 | – | 1,733 | – | – | 20,171 |
| Decreases | -965 | -395 | – | -58 | – | -1,418 |
| Closing balance | 23,889 | 1,337 | 2,496 | 27 | – | 27,749 |
| NET VALUE | ||||||
| Opening balance | 1,224,142 | 384,718 | 73,407 | 109,079 | 128,101 | 1,919,447 |
| Closing balance | 1,099,493 | 387,813 | 122,782 | 110,692 | 109,451 | 1,830,231 |
Changes in ‘Property, plant and equipment’ in the course of the reporting period
| 2020 | LANDS AND BUILDINGS | MACHINERY AND EQUIPMENT | MEANS OF TRANSPORTATION | OTHER | NON-CURRENT ASSETS UNDER CONSTRUCTION | TOTAL |
| GROSS VALUE | ||||||
| Opening balance | 2,788,773 | 1,459,397 | 134,813 | 465,674 | 176,952 | 5,025,609 |
| Increases, including: | 176,264 | 287,113 | 49,747 | 39,599 | 233,319 | 786,042 |
| acquisitions | 18,236 | 75,959 | 24,768 | 359 | 233,319 | 352,641 |
| transfer from non-current assets under construction |
51,843 | 190,374 | 1,629 | 38,324 | – | 282,170 |
| other | 106,185 | 20,780 | 23,350 | 916 | – | 151,231 |
| Decreases, including: | -16,317 | -191,080 | -29,219 | -14,462 | -282,170 | -533,248 |
| liquidation and sale | -13,335 | -110,750 | -6,951 | -10,788 | – | -141,824 |
| transfer to non-current assets held for sale | – | – | – | – | – | – |
| transfer from non-current assets under construction |
– | – | – | – | -282,170 | -282,170 |
| other | -2,982 | -80,330 | -22,268 | -3,674 | – | -109,254 |
| Closing balance | 2,948,720 | 1,555,430 | 155,341 | 490,811 | 128,101 | 5,278 ,03 |
| ACCUMULATED DEPRECIATION | ||||||
| Opening balance | 1,493,849 | 1,168,869 | 61,285 | 372,663 | – | 3,096,666 |
| Increases, including: | 232,477 | 130,944 | 44,144 | 23,097 | – | 430,662 |
| depreciation | 161,103 | 114,953 | 13,813 | 17,996 | – | 307,865 |
| other | 71,374 | 15,991 | 30,331 | 5,101 | – | 122,797 |
| Decreases, including: | -8,164 | -130,833 | -24,258 | -14,113 | – | -177,368 |
| liquidation and sale | -8,023 | -104,441 | – 2,354 | -10,493 | – | -125,311 |
| transfer to non-current assets held for sale | – | – | – | – | – | – |
| other | -141 | -26,392 | -21,904 | -3,620 | – | -52,057 |
| Closing balance | 1,718,162 | 1,168,980 | 81,171 | 381,647 | – | 3,349,960 |
| IMPAIRMENT | ||||||
| Opening balance | 6,086 | 2,520 | – | 85 | – | 8,691 |
| Increases | 2,957 | – | 763 | – | – | 3,720 |
| Decreases | -2,627 | -788 | – | – | – | -3,415 |
| Closing balance | 6,416 | 1,732 | 763 | 85 | – | 8,996 |
| NET VALUE | ||||||
| Opening balance | 1,288,838 | 288,008 | 73,528 | 92,926 | 176,952 | 1,920,252 |
| Closing balance | 1,224,142 | 384,718 | 73,407 | 109,079 | 128,101 | 1,919,447 |
In the period from 1 January to 31 December 2021 the Group acquired ‘Property, plant and equipment’ amounted PLN 230,637 thousand (in 2020 – PLN 352,641 thousand), while the value of property, plant and equipment sold amounted to PLN 28,317 thousand (in 2020 – PLN 5,254 thousand).
The amount of compensations received from third parties for impairment of loss of property, plant and equipment items recognized in the income statement for 2021 stood at PLN 1,570 thousand (in 2020 – PLN 1,827 thousand).
In the period from 1 January to 31 December 2021 and in 2020 there have been no property, plant and equipment whose title is restricted and pledged as security for liabilities.
Contractual commiments
As at 31 December 2021 the contractual commitments for the acquisition of property, plant and equipment amounted to PLN 8,498 thousand, (as at 31 December 2020 – PLN 45,043 thousand).