2020

2019

 

 

 

Property for own use

72,537

86,150

Equipment

28,953

34,546

 

 

 

Balance sheet value as at 31 December

101,490

120,696

The movement in the property for own use is as follows:

 

2020

2019

 

 

 

Purchase value as at 1 January

95,495

96,365

Cumulative revaluation as at 1 January

-1,596

-1,596

Cumulative depreciation as at 1 January

-7,749

-6,629

 

 

 

Balance sheet as at 1 January

86,150

88,140

Purchase

152

3,724

Depreciation

-2,322

-1,043

Revaluation

-

-

Impairment

-4,971

-

Transfer to equipment *

-

-4,663

Transfer to held for sale

-5,764

-

Exchange rate differences

-708

-8

 

 

 

Balance sheet value as at 31 December

72,537

86,150

 

 

 

Purchase value as at 31 December

79,196

95,495

Cumulative revaluation as at 31 December

-1,596

-1,596

Cumulative depreciation as at 31 December

-5,063

-7,749

 

 

 

Balance sheet value as at 31 December

72,537

86,150

* With the realisation of a new office building in The Netherlands in 2019 a part of the development cost of this building in the amount of EUR 4,663 has been transferred to equipment.

The Executive Board of Triodos Bank decided in December 2020 to sell the buildings located at the Nieuweroordweg 1 and Utrechtseweg 60 in Zeist and related to Triodos Head Office. The decision to sell the buildings was made in December 2020 and is a consequence of the new way of working within Triodos Bank during 2020 resulting from the COVID-19 pandemic. This way of working entails a combination of working from home and working from the office. Triodos Bank believes that this is a more efficient way of working and it is in line with the Triodos Bank values of lowering the carbon footprint which will be continued after the COVID-19 pandemic such that less office space is required.

This decision triggered an impairment because the carrying value of the buildings will no longer be recovered through its continuing use, but through the sale of the property. An impairment loss of EUR 5.1 million for property and equipment related to Triodos Head Offices combined is recorded in profit or loss statement. The impairment is recognised to adjust the carrying value to the fair value less cost of disposal.

An external valuation report is used to estimate the fair value less cost of disposal. Therefore the fair value less cost of disposal is categorised as a level 3 valuation within the fair value hierarchy. This valuation report estimated a market price of EUR 6.2 million for the buildings. Disposal costs are costs that are incremental an directly attributable to the disposal of the buildings and are estimated at 4% of the market price and an additional EUR 90 thousand moving costs need to be taken into account . The buildings are expected to be sold during 2021, such that the buildings located at the Nieuweroordweg 1 and Utrechtseweg 60 in Zeist will be reclassified to assets held for sale. Refer to note 12 Non-current Assets Held for Sale for further details.

The movement in equipment is as follows:

 

2020

2019

 

 

 

Purchase value as at 1 January

60,460

36,982

Cumulative depreciation as at 1 January

-25,914

-24,085

 

 

 

Balance sheet value as at 1 January

34,546

12,897

Purchase*

2,856

21,638

Sale**

-1,226

-4

Depreciation**

-6,954

-4,614

Impairment

-83

-60

Transfer from property for own use ***

-

4,663

Transfer to held for sale

-97

-

Exchange rate differences

-89

26

 

 

 

Balance sheet value as at 31 December

28,953

34,546

 

 

 

Purchase value as at 31 December

56,736

60,460

Cumulative depreciation as at 31 December

-27,783

-25,914

 

 

 

Balance sheet value as at 31 December

28,953

34,546

* The purchase in 2019 mainly relates to the investment in the installation and the inventory of the new office building in The Netherlands.
** Excluding disposal in the amount of EUR 4.1 million (2019: EUR 3.0 million).
*** With the realisation of a new office building in The Netherlands in 2019 a part of the development cost in the amount of EUR 4,663 has been transferred from property for own use to equipment.