Integrated Report of KGHM Polska Miedź S.A.
and the KGHM Polska Miedź S.A. Group
for 2020

9.2 Other property, plant and equipment and intangible assets

in PLN millions, unless otherwise stated

Accounting policies

Other property, plant and equipment are recognised at cost less accumulated depreciation and accumulated impairment losses. Depreciation is done using the straight-line method.

For individual groups of fixed assets, the following useful lives have been adopted:

The Group Total useful lives
Buildings 25-60 years
Technical equipment and machines 4-15 years
Motor vehicles 3-14 years
Other fixed assets 5-10 years

 

Intangible assets presented as “other intangible assets” include in particular: acquired property rights not related to mining operations and software. These assets are measured at cost less any accumulated amortisation and impairment losses.

Intangible assets are amortised using the straight-line method over their anticipated useful lives. The useful lives of the main groups of intangible assets are as follows:

The Group Total useful lives

Acquired property rights not related to mining activities

5-50 years
Software 2-5 years
Other intangible assets 40-50 years

Other property, plant and equipment and intangible assets

Property, plant and equipment
Buildings and land Technical equipment, machines, motor vehicles and other fixed assets Fixed assets under construction Intangible assets Total
As at 31 December 2018
Gross carrying amount 2 440 2 331 194 555 5 520
Accumulated depreciation/amortisation (696) (1 301) (207) (2 204)
Impairment losses (161) (19) 1 (124) (303)
Net carrying amount 1 583 1 011 195 224 3 013
Change in accounting policies – application of IFRS 16
Gross carrying amount 187 24 (117) 94
Accumulated depreciation/amortisation 35 35
Impairment losses 4 4
As at 1 January 2019
Gross carrying amount 2 627 2 355 194 438 5 614
Accumulated depreciation/amortisation (696) (1 301) (172) (2 169)
Impairment losses (161) (19) 1 (120) (299)
Net carrying amount 1 770 1 035 195 146 3 146
Changes in 2019 net
Settlement of fixed assets under construction 103 281 (384) 5 5
Purchases 281 30 311
Self-constructed 32 2 34
Leases – new contracts, modification of existing contracts 3 11 14
[Note 4.1] Depreciation/amortisation, of which: (126) (213) (25) (364)
own fixed assets (125) (200) (25) (350)
right-to-use (leased fixed assets) (1) (13) (14)
[Note 4.4] (Recognition)/reversal of impairment losses (84) (117) (1) (9) (211)
Other changes (33) 26 50 6 49
As at 31 December 2019
Gross carrying amount 2 708 2 600 173 479 5 960
Accumulated depreciation/amortisation (831) (1 441) (195) (2 467)
Impairment losses (244) (136) (129) (509)
Net carrying amount, of which: 1 633 1 023 173 155 2 984
own fixed assets and intangible assets 1 452 972 173 155 2 752
leased assets (right-to-use assets) 181 51 232
Changes in 2020 net
Settlement of fixed assets under construction 97 240 (337)
Purchases 299 21 320
Self-constructed 120 1 121
Leases – new contracts, modification of existing contracts (1) 18 17
[Note 4.1] Depreciation/amortisation, of which: (70) (203) (21) (294)
own fixed assets and intangible assets (69) (185) (21) (275)
right-to-use (leased fixed assets) (1) (18) (19)
[Note 4.4] (Recognition)/reversal of impairment losses (96) (45) (2) (13) (156)
Other changes (20) (6) 34 (2) 6
As at 31 December 2020
Gross carrying amount 2 782 2 754 288 491 6 315
Accumulated depreciation/amortisation (899) (1 549) (207) (2 655)
Impairment losses (340) (178) (1) (143) (662)
Net carrying amount, of which: 1 543 1 027 287 141 2 998
own fixed assets and intangible assets 1 377 976 287 141 2 781
leased fixed assets (right-to-use) 166 51 217

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