Note 12 Intangible assets
Carrying amounts
| As at 31.12.2015 |
As at 31.12.2014 |
|
|---|---|---|
| Trademarks | 88 788 | 88 788 |
| Brand name | 130 545 | 130 545 |
| Customers portfolio | 84 729 | 105 020 |
| Patents and licences | 98 169 | 98 724 |
| Computer software | 33 549 | 31 945 |
| Development costs | 7 848 | 2 209 |
| Other intangible assets | 7 375 | 6 269 |
| 451 003 | 463 500 | |
| Intangible assets under construction | 27 212 | 17 728 |
| Exploration for and evaluation of mineral resources | 54 583 | 28 736 |
| 532 798 | 509 964 |
As at 31 December 2015, the carrying amount of the trademarks recognised on acquisition of Grupa Azoty POLICE amounted to PLN 55 688 thousand (31 December 2014: PLN 55 688 thousand). As at 31 December 2015, the carrying amount of the trademarks recognised on acquisition of Grupa Azoty PUŁAWY amounted to PLN 33 100 thousand (31 December 2014: PLN 33 100 thousand). Trademarks are not amortised. The Group assumed the indefinite useful life of trademarks due to their long-term existence on the market and lack of plans of their modification or replacement in the future.
As at 31 December 2015, the carrying amount of the brand name “POLICE” was PLN 25 545 thousand (31 December 2014: PLN 25 545 thousand), and of the brand name “PUŁAWY” was PLN 105 000 thousand (31 December 2014: PLN 105 000 thousand). Brand names, similarly as trademarks, are not amortised.
Information on impairment tests performed for intangible assets with indefinite useful lives was presented in Note 12.1.
As at the 31 December 2015, the value of customers portfolio mainly results from customers of Fertilizers-Agro segment. Customers portfolios were recognised on acquisition of Grupa Azoty POLICE and Grupa Azoty PUŁAWY. As at 31 December 2015, the carrying amount of the customers portfolio recognised on acquisition of Grupa Azoty PUŁAWY amounted to PLN 83 630 thousand (31 December 2014: PLN 103 371 thousand), which are going to be amortised over 4 years. The remaining part of customers portfolio was recognised on acquisition of Grupa Azoty POLICE and amounts to PLN 1 099 thousand (31 December 2014: PLN 1 649 thousand).
As at 31 December 2015, the most significant licenses comprised: licence for OXO alcohols production of PLN 24 971 thousand (31 December 2014: PLN 26 755 thousand), licence for production of nitrous acid of PLN 9 408 thousand (31 December 2014: PLN 9 777 thousand) and SAP licence of PLN 31 605 thousand (31 December 2014: PLN 31 216 thousand).
There are no intangible assets for which legal title is restricted or which are used as collateral.
The amortisation of intangible assets is generally allocated to the administrative expenses.
Carrying amounts of intangible assets
| Trademarks | Brand name | Customers portfolio | Patents and licences | Computer software | Development costs | Other intangible assets | Intangible assets under construction | Exploration for and evaluation of mineral resources | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Carrying amount at 01.01.2015 | 88 788 | 130 545 | 105 020 | 98 724 | 31 945 | 2 209 | 6 269 | 17 728 | 28 736 | 509 964 |
| Additions, including: | – | – | – | 8 177 | 7 922 | 5 873 | 2 030 | 26 169 | 25 847 | 76 018 |
| Additions through purchases, construction, transfer to use | – | – | – | 8 171 | 7 922 | 2 829 | 2 030 | 26 040 | 25 642 | 72 634 |
| Effect of movements in exchange rates | – | – | – | – | – | – | – | – | 205 | 205 |
| Other additions | – | – | – | 6 | – | 3 044 | – | 129 | – | 3 179 |
| Deductions, including:(-) | – | – | (20 291) | (8 732) | (6 318) | (234) | (924) | (16 685) | – | (53 184) |
| Amortisation | – | (20 291) | (8 691) | (5 420) | (233) | (704) | (35 339) | |||
| Sales | – | – | – | (41) | – | – | – | – | – | (41) |
| Liquidation | – | – | – | – | (10) | – | – | – | (10) | |
| Transfer to use | – | – | – | – | – | – | – | (16 685) | – | (16 685) |
| Impairment loss | – | – | – | – | (886) | – | (219) | – | – | (1 105) |
| Effect of movements in exchange rates | – | – | – | – | (1) | (1) | (1) | – | – | (3) |
| Other deductions | – | – | – | – | (1) | – | – | (1) | ||
| Carrying amount at 31.12.2015 | 88 788 | 130 545 | 84 729 | 98 169 | 33 549 | 7 848 | 7 375 | 27 212 | 54 583 | 532 798 |
| Trademarks | Brand name | Customers portfolio | Patents and licences | Computer software | Development costs | Other intangible assets | Intangible assets under construction | Exploration for and evaluation of mineral resources | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Carrying amount at 01.01.2014 | 88 788 | 130 545 | 150 067 | 97 403 | 27 367 | 2 471 | 6 061 | 13 046 | 3 532 | 519 280 |
| Additions, including: | 748 | 9 607 | 9 089 | – | 996 | 20 264 | 25 204 | 65 908 | ||
| Additions through purchases, construction, transfer to use | – | – | – | 9 558 | 9 066 | – | 972 | 20 114 | 24 657 | 64 367 |
| Acquisitions through business combinations | – | – | 748 | 22 | 2 | – | – | – | – | 772 |
| Effect of movements in exchange rates | – | – | – | – | 4 | – | 24 | – | 547 | 575 |
| Other additions | – | – | – | 27 | 17 | – | – | 150 | – | 194 |
| Deductions, including:(-) | – | – | (45 795) | (8 286) | (4 511) | (262) | (788) | (15 582) | – | (75 224) |
| Amortisation | – | – | (45 795) | (8 286) | (4 412) | (262) | (569) | – | – | (59 324) |
| Liquidation | – | – | – | – | (99) | – | – | (23) | – | (122) |
| Transfer to use | – | – | – | – | – | – | – | (15 489) | – | (15 489) |
| Impairment loss | – | – | – | – | – | – | (54) | (70) | – | (124) |
| Other deductions | – | – | – | – | – | – | (165) | – | – | (165) |
| Carrying amount at 31.12.2014 | 88 788 | 130 545 | 105 020 | 98 724 | 31 945 | 2 209 | 6 269 | 17 728 | 28 736 | 509 964 |
Gross carrying amounts of intangible assets
| Trademarks | Brand name | Customers portfolio | Patents and licences | Computer software | Development costs | Other intangible assets | Intangible assets under construction | Exploration for and evaluation of mineral resources | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross carrying amount | 88 788 | 130 545 | 204 748 | 147 569 | 56 766 | 10 489 | 10 876 | 27 282 | 54 583 | 731 646 |
| Accumulated amortisation (-) | – | – | (120 019) | (42 700) | (22 321) | (2 486) | (2 823) | – | – | (190 349) |
| Impairment loss (-) | – | – | – | (6 700) | (896) | (155) | (678) | (70) | – | (8 499) |
| Carrying amount at 31.12.2015 | 88 788 | 130 545 | 84 729 | 98 169 | 33 549 | 7 848 | 7 375 | 27 212 | 54 583 | 532 798 |
| Gross carrying amount | 88 788 | 139 995 | 204 748 | 139 563 | 49 278 | 4 617 | 8 888 | 17 798 | 28 736 | 682 411 |
| Accumulated amortisation (-) | – | (9 450) | (99 728) | (34 139) | (17 323) | (2 253) | (2 121) | – | – | (165 014) |
| Impairment loss (-) | – | – | – | (6 700) | (10) | (155) | (498) | (70) | – | (7 433) |
| Carrying amount at 31.12.2014 restated |
88 788 | 130 545 | 105 020 | 98 724 | 31 945 | 2 209 | 6 269 | 17 728 | 28 736 | 509 964 |
Impairment losses
| Patents and licences | Computer software | Development costs | Other intangible assets | Intangible assets under construction | Total | |
|---|---|---|---|---|---|---|
| Impairment loss at 01.01.2015 | 6 700 | 8 | 155 | 482 | 70 | 7 415 |
| Impairment recognised in profit or loss | – | 886 | – | 219 | – | 1 105 |
| Impairment loss at 31.12.2015 | 6 700 | 894 | 155 | 701 | 70 | 8 520 |
| Impairment loss at 01.01.2014 | 6 700 | 110 | 155 | 569 | – | 7 534 |
| Impairment recognised in profit or loss | – | – | – | 54 | 70 | 124 |
| Reversal of impairment loss recognised in profit or loss | – | (102) | – | (141) | – | (243) |
| Impairment loss at 31.12.2014 | 6 700 | 8 | 155 | 482 | 70 | 7 415 |
Significant expenditures on intangible assets under construction
Most significant expenditures on intangible assets under constructions include among others:
- Licence for Installation of Mechanical Granulation II in the Parent Company. As at the 31 December 2015, the capitalised expenditures amounted to PLN 1 000 thousand (31 December 2014: PLN 1 000 thousand),
- Licence OLEFLEX and SHP for PDH propylene production unit in the amount of PLN 11 315 thousand (31 December 2014: nil),
- Licence for the technology of the plant of ammonia modernisation in the amount of PLN 4 058 thousand (31 December 2014: nil).
