14 - Property, plant and equipment

Accounting policies

Property, plant and equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical costs include expenditure that is directly attributable to the acquisition of the items and is calculated after deducting trade discounts.

Subsequent costs are included in the asset’s carrying amount, or recognized as a separate asset as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the costs of the item can be measured reliably.

The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their costs, net of their residual values, over their estimated useful lives as follows:

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. No impairments occurred for the current and previous financial year.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in Other income in the consolidated statement of profit or loss.

Fixed assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows, which are largely independent of the cash inflows from other assets or groups of assets (CGUs).

Non-financial assets other than goodwill that have suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

Sources of estimation uncertainty

Depreciation and amortization

Depreciation of property, plant and equipment, and amortization of intangible assets are based on management's estimates of the useful lives, residual values, and method of depreciation or amortization.

The estimated useful lives can vary for similar assets across different entities within the Group. Factors that can cause this variation include local growth rates, market maturity, history of asset replacements or transfers, and the quality of the components used.

The movement in property, plant and equipment over the years is as follows (In € 1,000):

Capital commitments

Other than the contract and lease liabilities included in de financial Statement the Group does not have material capital commitments.