16. Property, plant and equipment
Back to the list| RUB million | Land and buildings | Plant and equipment | Fixtures and fittings | Construction in progress | Total |
|---|---|---|---|---|---|
| Cost | |||||
| At 1 January 2011 | 12,262 | 36,232 | 2,215 | 15,455 | 66,164 |
| Reclassification | — | 541 | (541) | — | — |
| Additions | — | 1,738 | 313 | 14,750 | 16,801 |
| Transfers | 1,778 | 7,487 | — | (9,265) | — |
| Disposals | (184) | (662) | (38) | (190) | (1,074) |
| At 1 January 2012 | 13,856 | 45,336 | 1,949 | 20,750 | 81,891 |
| Reclassification | 465 | (2,097) | 1,632 | — | — |
| Additions | 394 | 1,269 | 417 | 12,801 | 14,881 |
| Consolidation of LLC “Metachem” | 444 | 346 | 69 | 421 | 1,280 |
| Transfers | 5,504 | 9,685 | 59 | (15,248) | — |
| Disposals | (153) | (893) | (114) | (44) | (1,204) |
| At 31 December 2012 | 20,510 | 53,646 | 4,012 | 18,680 | 96,848 |
| Accumulated depreciation | |||||
| At 1 January 2011 | (3,008) | (15,772) | (714) | (190) | (19,684) |
| Depreciation charge | (794) | (4,757) | (253) | — | (5,804) |
| Reversal of impairment | — | — | — | 190 | 190 |
| Disposals | 80 | 415 | 28 | — | 523 |
| At 1 January 2012 | (3,722) | (20,114) | (939) | — | (24,775) |
| Reclassification | (37) | 1,139 | (1,102) | — | — |
| Depreciation charge | (792) | (5,040) | (471) | — | (6,303) |
| Disposals | 43 | 637 | 78 | — | 758 |
| At 31 December 2012 | (4,508) | (23,378) | (2,434) | — | (30,320) |
| Net book value at 1 January 2011 | 9,254 | 20,460 | 1,501 | 15,265 | 46,480 |
| Net book value at 1 January 2012 | 10,134 | 25,222 | 1,010 | 20,750 | 57,116 |
| Net book value at 31 December 2012 | 16,002 | 30,268 | 1,578 | 18,680 | 66,528 |
(a) Impairment testing
At the reporting date the Group performed an impairment testing under IAS 36. Cash flow forecasts for different factories representing separate cash-generating units were prepared for the forecast period of 5 to 8 years and a terminal value was derived after the forecast period. The following assumptions were applied in the impairment testing:
- After-tax discount rate 12.9% (2011: 13.8%)
- Terminal growth rate 3% (2011: 3%)
Based on the analysis, no impairment loss was recognised. A 2% change in the discount rate would not have resulted in an impairment loss.
(b) Security
Properties with a carrying amount of RUB 1,270 million (31 December 2011: RUB 1,783 million) are pledged to secure bank loans, see note 26.
(c) Leasing
Plant and equipment (railway wagons) with the carrying value of RUB 3,679 million (31 December 2011: RUB 2,620 million) is leased under various finance lease agreements, see note 28.