Page 26 - Annual Report KELAG Group 2018
P. 26

As long as intangible assets are not yet available for use, they must be tested for impairment
           annually.

           Property, plant and equipment is recognised at cost (including restoration and decommissioning
           costs to be capitalised), less accumulated depreciation and/or accumulated impairment losses.


           The cost of self-constructed assets includes direct labour and materials costs and an appropriate
           portion of overheads.


           This cost includes, among other things, the cost of replacing part of the property, plant and
           equipment and borrowing costs for long-term construction projects (see the explanations on
           judgements for more details) if the recognition criteria are met.

           When significant parts of property, plant and equipment are required to be replaced at intervals,
           the Group recognises such parts as individual assets with specific useful lives and depreciation in
           each  case.  When  a  major  inspection  is  performed  (mainly  turbine  inspections),  its  cost  is
           recognised in the carrying amount of the item of property, plant and equipment as a replacement
           if the recognition criteria are satisfied. All other repair and maintenance costs are recognised
           through profit or loss as incurred.

           An item of property, plant and equipment is derecognised upon disposal or when no future
           economic benefits are expected from its use or disposal.

           Depreciation of property, plant and equipment subject to depletion is based on the expected
           useful lives. The following useful lives have been used:
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