| SELECTED ACCOUNTING PRINCIPLES
Key items of other intangible assets include software, concessions, patents, licenses and similar items. Other intangible assets are measured at manufacturing cost less accumulated amortisation and impairment losses. Other intangible assets, except those which have not been made available for use, are amortised over their estimated useful lives. Depreciation and amortisation is calculated by reference to the initial value less the residual value. Residual value is included in determining the basis for calculation of depreciation charges, if for a given asset, an active market exists or a third party has committed to buy the asset upon completion of its useful life. PROFESSIONAL JUDGEMENT AND ESTIMATES Impairment As at each balance sheet date the Group assesses whether objective indication of impairment occurs in relation to intangible assets. Impairment tests for intangible assets are carried out in line with the accounting policy presented in Note 11. The period and method of depreciation and the residual value are subject to verification, at least at the end of each financial year. Any changes arising from the conducted verification are captured as the change in estimates, while the potential adjustment of depreciation charges is performed with the effectiveness as of the beginning of the reporting period, in which the verification was completed. Useful life periods The following average residual useful life periods were adopted for individual groups of other intangible assets: |
Table 1
Export to Excel| Asset group | Average remaining amortization period (number of years) |
|---|---|
| Software, concessions, patents, licenses and similar items | 4 years |
| Other | 9 years |
Year ended 31 December 2020
Export to Excel| Development expenses |
Perpetual usufruct right |
Software, concessions, patents, licenses and similar items |
Other intangible assets |
Intangible assets not made available for use |
Intangible assets total |
|
|---|---|---|---|---|---|---|
| COST | ||||||
| Opening balance | 8,946 | 15,605 | 822,069 | 183,967 | 114,253 | 1,144,840 |
| Direct purchase | – | – | – | – | 167,028 | 167,028 |
| Transfer of intangible assets not made available for use | 4,608 | – | 142,624 | 19,497 | (166,729) | – |
| Sale/Liquidation | (1,309) | – | (21,352) | (123) | (33) | (22,817) |
| Transfers to/from assets held for sale | (1,622) | – | (14,590) | (639) | (521) | (17,372) |
| Other movements | 3 | – | (46) | 409 | 5,315 | 5,681 |
| Foreign exchange differences from translation of foreign entity | – | – | 57 | – | – | 57 |
| Closing balance | 10,626 | 15 605 | 928,762 | 203,111 | 119,313 | 1,277,417 |
| ACCUMULATED AMORTIZATION | ||||||
| Opening balance | (6,250) | – | (562,534) | (97,765) | (30) | (666,579) |
| Amortization for the period | (983) | – | (80,276) | (10,498) | – | (91,757) |
| Impairment | (282) | – | (702) | (4,982) | (15) | (5 ,981) |
| Sale/Liquidation | 1,306 | – | 21,352 | 123 | – | 22,781 |
| Transfers to/from assets held for sale | 333 | – | 12,658 | 259 | – | 13,250 |
| Foreign exchange differences from translation of foreign entity | – | – | (57) | – | – | (57) |
| Closing balance | (5,876) | – | (609,559) | (112,863) | (45) | (728,343) |
| NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD | 2,696 | 15,605 | 259,535 | 86,202 | 114,223 | 478,261 |
| NET CARRYING AMOUNT AT THE END OF THE PERIOD | 4,750 | 15,605 | 319,203 | 90,248 | 119,268 | 549,074 |
Year ended 31 December 2019
Export to Excel| Development expenses |
Perpetual usufruct right |
Software, concessions, patents, licenses and similar items |
Other intangible assets |
Intangible assets not made available for use |
Intangible assets total |
|
|---|---|---|---|---|---|---|
| COST | ||||||
| Opening balance | 6,403 | 774,682 | 776,434 | 271,336 | 85,486 | 1,914,341 |
| Impact of IFRS 16 | – | (758,941) | – | (94,809) | (12,931) | (866,681) |
| Restated opening balance | 6,403 | 15,741 | 776,434 | 176,527 | 72,555 | 1,047,660 |
| Direct purchase | – | – | – | – | 120,034 | 120 ,034 |
| Transfer of intangible assets not made available for use | 2,543 | – | 65,962 | 9,041 | (77,546) | – |
| Sale/Liquidation | – | – | (19,938) | (562) | (469) | (20,969) |
| Other movements | – | (136) | (391) | (1,039) | (321) | (1,887) |
| Foreign exchange differences from translation of foreign entities | – | – | 2 | – | – | 2 |
| Closing balance | 8,946 | 15,605 | 822,069 | 183,967 | 114,253 | 1,144,840 |
| ACCUMULATED AMORTIZATION | ||||||
| Opening balance | (5,744) | (25,387) | (493,665) | (101,835) | (7) | (626,638) |
| Impact of IFRS 16 | – | 25,387 | – | 15,987 | – | 41,374 |
| Restated opening balance | (5,744) | – | (493,665) | (85,848) | (7) | (585,264) |
| Amortization for the period | (349) | – | (87,833) | (12,403) | – | (100,585) |
| Impairment | (157) | – | (970) | (59) | (23) | (1,209) |
| Sale/Liquidation | – | – | 19,936 | 545 | – | 20,481 |
| Foreign exchange differences from translation of foreign entities | – | – | (2) | – | – | (2) |
| Closing balance | (6,250) | – | (562,534) | (97,765) | (30) | (666,579) |
| NET CARRYING AMOUNT AT THE BEGINNING OF THE PERIOD | 659 | 749,295 | 282,769 | 169,501 | 85,479 | 1,287,703 |
| NET CARRYING AMOUNT AT THE END OF THE PERIOD | 2,696 | 15,605 | 259,535 | 86,202 | 114,223 | 478,261 |
Under other intangible assets, the Group presents perpetual usufruct rights to land in the amount of PLN 15,605 thousand, which relate to a limestone mine owned by a subsidiary, excluded from the scope of IFRS 16 Leases.