Gschäftsbericht 2018

104 | Galenica financial statements 2018 Finance Notes to the consolidated financial statements of the Galenica Group 14. Property, plant and equipment Accounting principles Property, plant and equipment are measured at cost less accumulated depreciation and impairment. Depreciation is charged on a straight-line basis over the assets’ useful lives as follows: Years Land unlimited Buildings 10–50 Warehouse equipment 6–15 Furniture, fittings 5–10 IT equipment 3–10 Vehicles 3–10 Other property, plant and equipment consists of warehouse equipment, furniture, fittings, IT equipment and vehicles. Subsequent expenditure is only capitalised if it results in extending the useful life, expanding capacity or contributing to a marked reduction in operating costs. Maintenance or repair costs are recognised directly in profit or loss. When property, plant and equipment are sold or derecognised, gains are recognised in other income and losses in other operating costs. Assets are tested for impairment whenever there are indications that they could be impaired. Any impairment is recog- nised in profit or loss under depreciation and amortisation and disclosed separately as an impairment. Reversal of impair- ments on property, plant and equipment and investment properties are recognised immediately in profit or loss. in thousand CHF Real estate Assets under construction Other property, plant and equipment Total property, plant and equipment Net carrying amount as at 31.12.2016 157,019 4,569 92,077 253,665 Addition 12,125 1,598 16,131 29,854 Disposal (34) — (727) (761) Reclassification 12,509 (306) (12,090) 113 Depreciation (13,314) — (19,624) (32,938) Addition to scope of consolidation 564 — 855 1,419 Incorporation of Galenica Ltd. — — 61 61 Net carrying amount as at 31.12.2017 168,869 5,861 76,683 251,413 Addition 8,008 1,670 17,765 27,443 Disposal (48) — (834) (882) Reclassification — (634) 732 98 Depreciation (14,395) — (20,235) (34,630) Addition to scope of consolidation — — 1,548 1,548 Net carrying amount as at 31.12.2018 162,434 6,897 75,659 244,990 Overview as at 31.12.2017 Cost 299,882 5,861 245,961 551,704 Accumulated depreciation and impairment (131,013) — (169,278) (300,291) Net carrying amount as at 31.12.2017 168,869 5,861 76,683 251,413 Overview as at 31.12.2018 Cost 305,753 6,897 254,366 567,016 Accumulated depreciation and impairment (143,319) — (178,707) (322,026) Net carrying amount as at 31.12.2018 162,434 6,897 75,659 244,990