Accounting rules
Investment properties are maintained in order to generate income from rent, growth in value or both. The Group selected the purchase price model at initial recognition.
Investments in properties are amortised on a straight-line basis. Amortisation begins in the month following the month in which the investment in property is accepted for use.
Income from renting investment properties is recognised in profit or loss on a straight-line basis throughout the contract term.
Significant judgements and estimates
Key assumptions regarding verifying the economic life of investment properties are described in an explanatory note concerning property, plant and equipment (note 14), and key assumptions concerning impairment are described in a note in the section of these financial statements relating to the impairment of non-financial assets.
Investment properties
| As at | ||
| 31 December 2021 | 31 December 2020 | |
| Gross value | ||
| As at 1 January | 30 982 | 33 682 |
| Purchase | 42 | 77 |
| Liquidation | (20) | (2 777) |
| As at 31 December | 31 004 | 30 982 |
| Accumulated depreciation | ||
| As at 1 January | (8 154) | (9 892) |
| Depreciation | (977) | (1 009) |
| Liquidation | 3 | 2 776 |
| Other | – | (29) |
| As at 31 December | (9 128) | (8 154) |
| Impairment | ||
| As at 1 January | (1 589) | (681) |
| Decreases | – | 5 |
| Increases | (5) | (913) |
| As at 31 December | (1 594) | (1 589) |
| Net value | ||
| Net value at 1 January | 21 239 | 23 109 |
| Net value at 31 December | 20 282 | 21 239 |
No collateral was established on investment properties.
Presented below are revenue and costs related to investment properties:
|
Year ended |
||
| 31 December 2021 | 31 December 2020 | |
| Income from investment properties | 2 366 | 2 520 |
| Operating costs related to income-generating investment properties | (2 998) | (4 544) |
The Group classifies office buildings and other premises as investment properties.
The ENEA S.A. headquarters was the most valuable investment property recognised in the books at PLN 7 490 thousand net. The Group estimates that the fair value is close to the value recognised in the books.