as at December 31, 2003 - EFG Bank Group

40
Notes to the Consolidated Financial Statements (continued)
27. Property, plant and equipment
Land, Furniture,
buildings, equipment, Computer Total
leasehold motor hardware, Investment fixed
(All figures in thousands of CHF) improvements vehicles software properties assets
Cost
At January 1, 2003 669’168 225’403 467’364 320’899 1’682’834
Transfers (7’107) (19) 259 7’107 240
Arising from acquisition 6’648 8’491 7’668 - 22’807
Exchange adjustment 44’615 16’079 26’546 23’309 110’549
Additions 58’528 20’845 158’745 8’151 246’269
Disposals and write-offs (52’148) (15’087) (47’031) (7’948) (122’214)
Impairment (64’408) - - - (64’408)
Net gains from fair value adjustments - - - 8’621 8’621
At December 31, 2003 655’296 255’712 613’551 360’139 1’884’698
Accumulated depreciation
At January 1, 2003 194’022 116’180 230’626 - 540’828
Transfers - 3 (3) - -
Arising from acquisition 9’670 5’236 10’011 - 24’917
Exchange adjustment 13’104 8’943 13’229 - 35’276
Provision for devaluation (285) (17) (840) - (1’142)
Disposals and write-offs (5’389) (8’208) (17’871) - (31’468)
Charge for the year 26’207 23’760 102’317 - 152’284
At December 31, 2003 237’329 145’897 337’469 - 720’695
Net book value at December 31, 2003 417’967 109’815 276’082 360’139 1’164’003
Net book value at December 31, 2002 475’146 109’223 236’738 320’899 1’142’006
The fire insurance value of buildings is CHF 318’070 thousands (2002: CHF 271’335 thousands) and of other
tangible assets CHF 170’608 thousands (2002: CHF 89’386 thousands).
Leasehold improvements are in respect of premises occupied by the Group for its own activities and include CHF
13’400 thousands (2002: CHF 47’900 thousands) relating to assets under construction.
In 2003, an impairment of CHF 64’400 thousands (CHF 47’700 thousands, net of deferred tax) was made against
the fixed asset properties of the Group’s subsidiary Banc Post SA (Romania), this impairment was considered to have
arisen before the Group’s acquisition and subsequent consolidation of Banc Post SA in November 2002. As a result
a goodwill adjustment of CHF 25’100 thousands was recorded in 2003, of which CHF 12’900 thousands was directly
written off to the statement of income and minority interests were reduced by CHF 22’600 thousands directly in
shareholders’ equity.
Investment properties
During 2003, a gain from the fair valuation of investment properties of CHF 1’400 thousands (2002: CHF 43’682
thousands) was recognised in other operating income and properties previously classified as land and buildings of
CHF 7’100 thousands (2002: CHF16’700 thousands) were reclassified to investment properties as a result of being
leased out under an operating lease to third parties. Also during 2003, an amount of CHF 17’600 thousands (2002:
CHF 4’800 thousands) was recognised as rental income from investment properties in other operating income.
Capital commitments in relation to investment properties as at December 31, 2003 totalled CHF 1’100 thousands
(2002: CHF 5’000 thousands).
EFG Bank Group