Other reports

Operating Assets, Liabilities, and Contingent Liabilities

(20) Property, plant, and equipment

Accounting and measurement policies
Recognition and initial measurement

In the course of determining cost, government grants received within the scope of IAS 20 are deducted. Grants receivable for financial support that are no longer linked to future costs are recognized in profit or loss.

Advance payments are disclosed together with the assets under construction.

Subsequent measurement

Subsequent measurement is based on amortized cost.

Property, plant, and equipment is depreciated using the straight-line method over the useful life of the asset concerned, and the corresponding expenses are allocated to the respective functional costs. Depreciation of property, plant, and equipment is based on the following useful lives:

 

 

Useful life

Production buildings

 

No more than 33 years

Administration buildings

 

No more than 40 years

Plant and machinery

 

6 to 25 years

Operating and office equipment, other facilities

 

3 to 10 years

The useful lives of the assets are reviewed regularly and adjusted if necessary.

An impairment test is performed if there are indications of impairment. External and internal information is used in this context. In the event of impairment, an impairment loss is recognized under other operating expenses. Impairment losses are reversed up to amortized cost and reported in other operating income if the original reasons for impairment no longer apply.

Significant discretionary decisions and sources of estimation uncertainty
Determination of depreciation

Assumptions and estimates are required in determining the appropriate useful life and the expected residual value in order to calculate the amount of depreciation on property, plant, and equipment. This applies in particular to the determination of the underlying remaining useful life. In making these estimates, the Group considers the useful lives of the property, plant, and equipment derived from past experience.

Identification of a need to recognize impairment loss and reverse impairment loss

Discretionary decisions are required in the identification of objective evidence of impairment as well as in identifying the need to reverse impairment of property, plant, and equipment.

€ million

 

Land, land rights, and buildings1

 

Plant and machinery1

 

Other facilities, operating and office equipment

 

Construction in progress

 

Total1

Cost as of Jan. 1, 2022

 

5,464

 

5,687

 

1,754

 

1,905

 

14,810

Additions due to business combinations

 

48

 

19

 

4

 

11

 

82

Other Additions

 

182

 

42

 

77

 

1,429

 

1,730

Disposals due to divestments/Reclassification to assets held for sale

 

 

 

 

 

Other Disposals

 

-88

 

-94

 

-95

 

-6

 

-282

Transfers

 

290

 

512

 

127

 

-930

 

-1

Currency translation difference

 

80

 

63

 

12

 

20

 

175

Dec. 31, 2022

 

5,976

 

6,228

 

1,879

 

2,429

 

16,513

 

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation and impairment losses as of Jan. 1, 2022

 

-2,304

 

-3,987

 

-1,287

 

-15

 

-7,593

Depreciation

 

-319

 

-374

 

-173

 

 

-866

Impairment losses

 

 

-19

 

 

-3

 

-21

Reversals of impairment losses

 

 

 

 

 

Disposals due to divestments/Reclassification to assets held for sale

 

 

 

 

 

Disposals

 

67

 

84

 

91

 

1

 

244

Transfers

 

-6

 

11

 

-1

 

-5

 

-1

Currency translation difference

 

-26

 

-35

 

-10

 

 

-70

Dec. 31, 2022

 

-2,588

 

-4,319

 

-1,380

 

-21

 

-8,308

 

 

 

 

 

 

 

 

 

 

 

Net carrying amounts as of Dec. 31, 2022

 

3,389

 

1,909

 

499

 

2,408

 

8,204

 

 

 

 

 

 

 

 

 

 

 

Cost as of Jan. 1, 2023

 

5,976

 

6,228

 

1,879

 

2,429

 

16,513

Changes in the scope of consolidation

 

 

 

 

 

Additions

 

169

 

32

 

56

 

1,723

 

1,981

Reclassification to assets held for sale

 

 

 

 

 

Disposals

 

-85

 

-93

 

-82

 

-18

 

-278

Transfers

 

385

 

542

 

120

 

-1,053

 

-6

Currency translation difference

 

-119

 

-84

 

-27

 

-37

 

-266

Dec. 31, 2023

 

6,326

 

6,625

 

1,946

 

3,045

 

17,943

 

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation and impairment losses as of Jan. 1, 2023

 

-2,588

 

-4,319

 

-1,380

 

-21

 

-8,308

Depreciation

 

-332

 

-389

 

-173

 

 

-895

Impairment losses

 

-1

 

-8

 

-2

 

-12

 

-23

Reversals of impairment losses

 

 

1

 

 

 

1

Disposals due to divestments/Reclassification to assets held for sale

 

 

 

 

 

Disposals

 

67

 

88

 

77

 

 

233

Transfers

 

-9

 

1

 

5

 

3

 

1

Currency translation difference

 

43

 

43

 

19

 

1

 

106

Dec. 31, 2023

 

-2,820

 

-4,584

 

-1,454

 

-29

 

-8,887

 

 

 

 

 

 

 

 

 

 

 

Net carrying amounts as of Dec. 31, 2023

 

3,506

 

2,042

 

492

 

3,016

 

9,056

1

Previous year’s figures have been adjusted, see Note (6) “Acquisitions and divestments”.

The individual additions to construction in progress in fiscal 2023 with an investment volume of more than € 50 million each are presented below:

Business sector

 

Investment project

 

Country

Life Science

 

Filtration plant

 

Ireland

Life Science

 

Capacity expansion for drug safety testing

 

USA

Life Science

 

Membrane factory

 

Ireland

Healthcare

 

Research center

 

Germany

Life Science

 

Filling and logistics center

 

Germany

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