13. Property, Plant and Equipment

Property, plant and equipment are accounted for at production cost less depreciation based on use. Production costs include both direct costs and an appropriate share of indirect production costs to the extent that they are attributable to the production process. Borrowing costs are recognized in production costs insofar as they relate to qualifying assets. In accordance with IAS 16, demolition obligations are accounted for at present value as incidental purchase costs. Expected residual values are taken into account when determining depreciation.

The remeasurement method is not used at BLG LOGISTICS.

If the conditions of IAS 16 for the application of the component approach are met, the assets are broken down into their components, which are capitalized individually and depreciated over their useful lives.

Asset-related government grants are recognized as a liability and released over the useful life of the subsidized asset using the straight-line method. Please refer to note 25.

The straight-line pro rata temporis method is the sole method used for depreciation and amortization, which is presented in the statement of profit or loss in the item “Depreciation, amortization and impairment of non-current intangible assets, property, plant and equipment and right-of-use assets from leases.” This is based on the following standard useful lives:

If there are indications of impairment and if the recoverable amount is less than the amortized cost, the property, plant and equipment are impaired (see also note 12 under “Impairment”).

Impairment is recognized in the line item “Depreciation, amortization and impairment of non-current intangible assets, property, plant and equipment and right-of-use assets from leases.” In the 2023 financial year, in addition to depreciation, write-downs of a building and related assets amounting to EUR 5,198 thousand (previous year: EUR 0 thousand) were recognized owing to a reduction in the useful life (change in estimate in accordance with IAS 8). The building in question is allocable to the central department.

In the previous year, the write-down of a heavy-duty slab (EUR 2,664 thousand) was reversed as a result of an increase in future cash flows in connection with a lease. The heavy-duty slab is allocable to the AUTOMOBILE segment.

Advance payments and assets under construction of EUR 5,064 thousand (previous year: EUR 4,701 thousand) related exclusively to assets under construction.

As in the previous year, no financing costs were capitalized for qualifying assets.

The right-of-use assets from rental agreements and leases included in property, plant and equipment are presented in note 14.

There are no other assets reported under property, plant and equipment that have been pledged as collateral for non-current loans. Right-of-use assets capitalized in accordance with IFRS 16 are not assigned as collateral, as legal ownership remains with the lessor.

The assets included in property, plant and equipment for which there is an operating lease developed as follows: