Year 2017

 

 

 

 

 

 

 

7. Depreciation, amortization and impairment losses

 

EUR million

2017

2016

2015

Amortization on intangible assets

     

Development costs

1.5

1.4

0.9

Intangible rights

17.1

16.9

15.2

Total

18.6

18.3

16.1

       

Impairment losses on intangible assets

     

Impairment losses on intangible rights

1.2

4.3

8.6

Impairment losses on goodwill

33.9

-

-

Total

35.1

4.3

8.6

       

Depreciation on tangible assets

     

Buildings and structures

12.6

14.4

17.3

Investment properties

0.6

0.3

0.2

Machinery and equipment

31.6

32.2

33.6

Assets leased under finance lease

11.7

13.3

12.4

Other tangible assets

0.8

0.7

0.8

Total

57.2

61.0

64.4

       

Impairment losses on tangible assets

     

Impairment losses on machinery and equipment

0.2

0.3

0.0

Impairment losses on land and water

-

-

0.3

Impairment losses on buildings

0.1

1.5

2.9

Impairment losses on other tangible assets

0.0

-

-

Total

0.3

1.8

3.3

       

Total depreciation, amortization and impairment losses

111.2

85.3

92.4

       

Goodwill is not amortized but is tested for impairment annually and whenever there are indications for impairment. As a part of OpusCapita's restructuring and reallocation of activities, the future outlook and cash flow projections for the CGU have been updated, which resulted in a write off of EUR 33,9 million in 2017.

       

As part of divestment of OpusCapita's financial administration outsourcing (FAO) business in 2017, an impairment loss of approximately EUR 0.8 million was recognized on customer portfolio. The fair value was based on the expected sales price (level 2 of the fair value hierarchy).  Impairment losses on intangible assets in 2016 relate to capitalized development costs of OpusCapita's software products. In 2015, the majority of impairment losses relate to the customer portfolio of Itella Russia, which was booked to zero. The impairment loss was based on the decline in the recoverable amount of the assets (value in use).

       

More information about impairment testing of goodwill is presented in note 10.