Amounts in thousands of EUR | 2022 | 2021 |
|---|---|---|
Property for own use | 68,905 | 71,516 |
Equipment | 19,786 | 23,148 |
Balance sheet value as at 31 December | 88,691 | 94,664 |
The movement in the property for own use is as follows:
Amounts in thousands of EUR | 2022 | 2021 |
|---|---|---|
Purchase value as at 1 January | 80,297 | 79,196 |
Cumulative revaluation as at 1 January | -1,596 | -1,596 |
Cumulative depreciation as at 1 January | -7,185 | -5,063 |
Balance sheet as at 1 January | 71,516 | 72,537 |
Purchases | - | 212 |
Depreciation | -2,009 | -1,998 |
Impairments | - | - |
Exchange rate differences | -602 | 765 |
Balance sheet value as at 31 December | 68,905 | 71,516 |
|
|
|
Purchase value as at 31 December | 77,960 | 80,297 |
Cumulative revaluation as at 31 December | - | -1,596 |
Cumulative depreciation as at 31 December | -9,055 | -7,185 |
Balance sheet value as at 31 December | 68,905 | 71,516 |
The movement in equipment is as follows:
Amounts in thousands of EUR | 2022 | 2021 |
|---|---|---|
Purchase value as at 1 January | 57,930 | 56,736 |
Cumulative depreciation as at 1 January | -34,782 | -27,783 |
Balance sheet value as at 1 January | 23,148 | 28,953 |
Purchases | 2,678 | 2,129 |
Sales | -4 | -113 |
Depreciation | -6,080 | -6,551 |
Impairments | 144 | -1,378 |
Exchange rate differences | -100 | 108 |
Balance sheet value as at 31 December | 19,786 | 23,148 |
|
|
|
Purchase value as at 31 December | 57,393 | 57,930 |
Cumulative depreciation as at 31 December | -37,607 | -34,782 |
Balance sheet value as at 31 December | 19,786 | 23,148 |
Fully depreciated equipment with a total purchase value of EUR 2.4 million (2021: EUR 1.4 million) has been disposed of.
Accounting policy
Items of property and equipment are stated at cost less accumulated depreciation and impairment losses.
Depreciation is charged to profit or loss on a straight-line basis so as to write-off the depreciable amount of each item of property and equipment over its estimated useful life. The depreciable amount is the cost of an asset less its residual value. Land for own use is not depreciated.
The estimated useful lives of Triodos Bank’s property and equipment are:
Property and leasehold property: 40 years (or lease term if shorter)
Machinery: 3 to 5 years
Furniture and fixtures: 5 years
The residual value and useful life of property and equipment are reviewed at each balance sheet date and updated for any changes to previous estimates.
Property under development is valued at the lower of the expenditure and the expected realised value upon completion. The expenditure consists of payments made to third parties. The difference between the proceeds on disposal of equipment and net carrying value is recognised in the profit or loss account under Other income.
Property and equipment are annually reviewed for impairment triggers. If there is an impairment trigger, any impairments will be recognised in the profit or loss accounts in line with the impairment accounting policy for fixed assets as included on page Impairment of non-financial assets.
Critical judgement and estimates
In December 2019 Triodos Bank moved in the Netherlands to the newly developed office building de Reehorst. The innovative design is based on principles of the circular economy and biomimicry. The design and production of materials are based on the structure derived from nature. The building is re-mountable and modular, built with sustainable and reusable materials.
Within common accounting policies the residual value of owned offices is set at zero as information on residual value is lacking. Because this building is circular and set up to have value in the future, Triodos Bank has investigated the residual value. This was captured in a report from a third party circular demolishing company, in which the value of several re-useable components has been calculated. The value is achieved if the components are remounted as a whole in a new building, considering costs for removing. Based on this report Triodos Bank currently estimated the residual value of de Reehorst at EUR 3.0 million.
The residual value gets its value from the market in which components from the building can be reused. At this moment in time this market is in development and new building initiatives using re-useable materials as a starting point are few. Developments on these fronts and other changes (e.g. CO2-tax) can impact the residual value of de Reehorst in the future.