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10. Property, plant and equipment

The carrying amounts of all assets summarized in property, plant and equipment, are as follows:

in thousand EUR   2019   2018
Land   56 331   14 204
Forest roads   5 460   5 657
Buildings and improvements   5 764   5 529
Machinery and vehicles   3 702   3 872
Leased machinery and vehicles     2 559
Furniture and fixtures   522   554
Construction in progress   4 451   1 330
Advanced payments for PPE   853   1 511
Total carrying amounts   77 083   35 217

The Group uses different valuation methods for its assets. Beside the land in Brazil and Gabon, which, since 2019, is disclosed at fair value according to the revaluation model of IAS 16 Property, Plant and Equipment, the assets are held at cost. The effects of this revaluation are presented in other comprehensive income and form the revaluation surplus on land in equity, details including land movements within PPE are presented in Note 11.

Since 2019, the leased assets are disclosed separately according to IFRS 16 Leases, details are presented in Note 22. Also since 2019, the forests in Brazil are disclosed separately as biological assets, according to IAS 41 Agriculture and are further detailed in Note 12.

Assets held at cost
in thousand EUR   Forest roads
  Buildings
and
improve-
ments
  Machinery
and vehicles
  Leased
machinery
and vehicles
  Furniture
and fixtures
  Construction
in progress
  Advanced
payments for
PPE
  Total
PPE at cost
Cost
At 1 January 2018   11 421   20 536   29 883   3 591   2 254   390   2 889   67 373
Additions   374   275   1 272   1 082   182   1 833     3 935
Disposals       –1 010     –218       –1 228
Reclassifications land   124   405   247   105     –881   –4   –108
Currency effects   –471   –230   –709     –26   –12   –307   –1 755
At 31 December 2018   11 448   20 986   29 683   4 778   2 192   1 330   2 578   72 996
Reclassification finance leases to right-to-use assets               –4 778               –4 778
At 1 January 2019   11 448   20 986   29 683     2 192   1 330   2 578   68 218
Additions   150   874   790       120   3 747     5 681
Disposals     –910   –1 693       –0   –42     –2 645
Reclassifications     410   145       28   –583    
Currency effects   –70   –34   –84       –0   –1   –40   –230
At 31 December 2019   11 528   21 326   28 841     2 340   4 451   2 538   71 024
 
Accumulated depreciation and impairment
At 1 January 2018   5 694   14 888   26 301   1 618   1 707     1 196   51 404
Charge for the year   311   715   1 138   584   172       2 920
Reversal of impairment   –15             –4   –19
Elimination on disposals       –1 010     –218       –1 228
Reclassifications       –17   17        
Currency effects   –199   –146   –601     –23     –126   –1 095
At 31 December 2018   5 791   15 457   25 811   2 219   1 638     1 066   51 982
Reclassification finance leases to right-to-use assets               –2 219               –2 219
At 1 January 2019   5 791   15 457   25 811     1 638     1 066   49 763
Charge for the year   323   712   1 024       180       2 239
Impairment charge                 650   650
Reversal of impairment   –15                 –15
Elimination on disposals     –586   –1 631       –0       –2 217
Currency effects   –31   –21   –65       –0     –31   –148
At 31 December 2019   6 068   15 562   25 138     1 817     1 685   50 272
 
Carrying amount
At 31 December 2018   5 657   5 529   3 872   2 559   554   1 330   1 511   21 013
At 1 January 2019   5 658   5 529   3 872     555   1 330   1 511   18 455
At 31 December 2019   5 460   5 764   3 702     522   4 451   853   20 752

For certain land acquired by Precious Woods in Brazil, the land title registration is not yet finalized. These transactions are disclosed as advanced payments for property, plant and equipment at historical cost. For advanced payments for land titles with a certain risk of losing the land, an allowance is recorded based on Management’s estimate of the probability of not being able to prove the ownership of the land. Despite the continued efforts to clean the land titles from legal issues, Precious Woods was not able to reclassify in 2019 any advanced payments for property, plant and equipment to land (2018: EUR 3 535).

Accounting policies

In general, assets in property, plant and equipment are recorded at cost less accumulated depreciation and any impairment in value. Depreciation is applied using the straight-line method over the estimated useful life of the assets as follows:

  • Permanent forest roads: 25 years
  • Buildings and improvements: 3 to 25 years
  • Machinery and vehicles: 4 to 10 years
  • Furniture and fixtures: 5 to 10 years

The assets’ residual values and useful lives and methods of depreciation are reviewed at each financial year-end and adjusted prospectively, if appropriate. Gains and losses on disposals are determined by comparing proceeds with carrying amounts. These are included in the consolidated statement of profit or loss.