Accounting policy
PP&E are stated at cost less accumulated depreciation
and impairment charges. Costs include expenditures
that are directly attributable to the purchase of
the asset, including borrowing cost of investment
projects under construction.
PP&E are depreciated over estimated useful life after
deduction of estimated residual value. Depreciation
methods, useful lives and residual values are
reassessed annually. Changes to the estimated
residual value of useful life are accounted for as a
change in estimate.
Costs of major maintenance activities are capitalised
and depreciated over the estimated useful life.
Maintenance costs which cannot be separately
defined as a component of PP&E are expensed in the
period in which they occur.
Estimate and judgement
The Group assess the carrying value of intangible
assets and PP&E whenever events or changes in
circumstances indicate that the carrying value of an
asset may not be recoverable.
If the carrying value of an asset exceeds its estimated
recoverable amount, an impairment loss is recognised
in the income statement.
The assessment for impairment is performed for
assets generating largely independent cash inflows.
The Group reverses impairment losses in the income
statement if and to the extent this is substantiated
by a change in the estimates used to determine the
recoverable amount
2015 2016 2017 2018 2019
Additions - Property, plant and equipment (NOK million)
In % of revenue from contracts with customers
857
Additions - Property, Plant and Equipment (NOK million)
In % of Revenue from contracts with customers
1 030
839
911
1 273
5.4% 6.6% 5.2% 5.3% 6.6%
40,0%
30,0%
20,0%
10,0%
0,0%
1 400
1 200
1 000
800
600
400
200
0
2015 2016 2017 2018 2019
Share of
Additions - PP&E
2019
29 %
BUILDINGS
25 %
MACHINERY, VEHICLES
AND EQUIPMENT 8 %
RIGHT OF USE
ASSETS
30 %
CONSTRUCTION IN
PROGRESS
8 %
ELECTRICAL
INSTALLATIONS
Back to Notes for the Group
JOTUN GROUP
30