29. 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. 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.
Financial data
Changes in ‘Property, plant and equipment’ in the course of the reporting period
Changes in ‘Property, plant and equipment’ in the course of the reporting period
In the period from 1 January to 31 December 2023 the Group acquired ‘Property, plant and equipment’ amounted PLN 706 million (in 2022 – PLN 170 million), while the net carring amount of property, plant and equipment sold amounted to PLN 17 million (in 2022 – PLN 39 million).
The amount of compensations received from third parties for impairment of loss of property, plant and equipment items recognized in the income statement for 2023 stood at PLN 1 million (in 2022 – PLN 2 million).
In the period from 1 January to 31 December 2023 and in 2022 there have been no property, plant and equipment whose title is restricted and pledged as security for liabilities.
Contractual commitments
As at 31 December 2023 the contractual commitments for the acquisition of property, plant and equipment amounted to PLN 20 million, (as at 31 December 2022 – PLN 12 million).