Annual Report 2023

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

31.12.2023 31.12.2022
Non-current assets, including: 1,777 1,446
land and buildings 1,162 880
machinery and equipment 383 360
transport vehicles 106 107
other 126 99
Non-current assets under construction and prepayments 169 126
Total 1,946 1,572

Changes in ‘Property, plant and equipment’ in the course of the reporting period

2023 LANDS AND BUILDINGS MACHINERY AND EQUIPMENT MEANS OF TRANSPORTATION OTHER NON-CURRENT ASSETS UNDER CONSTRUCTION TOTAL
GROSS VALUE
Opening balance 2,729 1,570 158 457 126 5,040
Increases, including: 474 163 30 54 261 982
acquisitions 379 36 27 4 260 706
transfer from non-current assets under construction 33 125 2 50 210
other 62 2 1 1 66
Decreases, including: -333 -63 -35 -13 -218 -662
liquidation and sale -221 -63 -35 -13 -332
transfer to non-current assets held for sale -96 -96
transfer from non-current assets under construction -210 -210
other -16 -8 -24
Closing balance 2,870 1,670 153 498 169 5,360
ACCUMULATED DEPRECIATION
Opening balance 1,787 1,204 49 358 3,398
Increases, including: 164 125 18 27 334
depreciation 161 123 13 27 324
other 3 2 5 10
Decreases, including: -307 -48 -20 -13 -388
liquidation and sale -217 -48 -20 -13 -298
transfer to non-current assets held for sale -70 -70
other -20 -20
Closing balance 1,644 1,281 47 372 3,344
IMPAIRMENT
Opening balance 62 6 2 70
Increases 3 3
Decreases -1 -2 -3
Closing balance 64 6 70
NET VALUE
Opening balance 880 360 107 99 126 1,572
Closing balance 1,162 383 106 126 169 1,946

Changes in ‘Property, plant and equipment’ in the course of the reporting period

2022 LANDS AND BUILDINGS MACHINERY AND EQUIPMENT MEANS OF TRANSPORTATION OTHER NON-CURRENT ASSETS UNDER CONSTRUCTION TOTAL
GROSS VALUE
Opening balance 2,840 1,531 178 467 109 5,125
Increases, including: 56 90 16 10 140 312
acquisitions 11 8 11 140 170
transfer from non-current assets under construction 21 82 2 10 115
other 24 3 27
Decreases, including: -168 -51 -36 -20 -123 -398
liquidation and sale -99 -46 -35 -20 -200
transfer to non-current assets held for sale -65 -5 -70
transfer from non-current assets under construction -115 -115
other -4 -1 -8 -13
Closing balance 2,728 1,570 158 457 126 5,039
ACCUMULATED DEPRECIATION
Opening balance 1,717 1,141 53 356 3,267
Increases, including: 171 113 21 22 327
depreciation 171 113 13 22 319
other 8 8
Decreases, including: -102 -50 -25 -20 -197
liquidation and sale -62 -45 -25 -20 -152
transfer to non-current assets held for sale -38 -5 -43
other -2 -2
Closing balance 1,786 1,204 49 358 3,397
IMPAIRMENT
Opening balance 24 2 2 28
Increases 44 4 1 49
Decreases -6 -1 -7
Closing balance 62 6 2 70
NET VALUE
Opening balance 1,099 388 123 111 109 1,830
Closing balance 880 360 107 99 126 1,572

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).

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