29. Property, plant and equipment

[Financial notes are presented in PLN thousand]

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. Historical cost consists of purchase price or development cost and costs directly related to the purchase of a given asset.

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.

In the period from 1 January to 31 December 2022 the Group acquired ‘Property, plant and equipment’ amounted PLN 169 969 thousand (in 2021 – PLN 230 637 thousand), while the value of property, plant and equipment sold amounted to PLN 39 313 thousand (in 2021 – PLN 28 317 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 2 241 thousand (in 2021 – PLN 1 570 thousand).

In the period from 1 January to 31 December 2022 and in 2021 there have been no property, plant and equipment whose title is restricted and pledged as security for liabilities.

As at 31 December 2022 the contractual commitments for the acquisition of property, plant and equipment amounted to PLN 11 815 thousand, (as at 31 December 2021 – PLN 8 498 thousand).