Note 32 - Property, plant and equipment

Accounting Policy

Property, plant and equipment along with property used by the owner are accounted for under IAS 16. The investment is initially recognised at its acquisition cost and is thereafter depreciated on a linear basis over its expected useful life. When establishing a depreciation plan, the individual assets are to the necessary extent split up into components with differing useful life, with account being taken of estimated residual value. Property, plant and equipment items which individually are of little significance, for example computers and other office equipment, are not individually assessed for residual value, useful lifetime or value loss, but are assessed on a group basis. Property used by the owner, according to the definition in IAS 40, is property that is mainly used by the Bank or its subsidiary for its own use.

Property, plant and equipment which are depreciated are subject to a depreciation test in accordance with IAS 36 when circumstances so indicate. Property held in order to earn rentals or for capital appreciation is classified as investment property and is measured at fair value in accordance with IAS 40. The group has no investment properties. 

2022            
Parent Bank   Group
Buildings and other real property Machinery, inventory and vehicles Total (NOK million) Total Machinery, inventory and vehicles Buildings and other real property
104 133 237  Cost of acquisition at 1 January  546 236 310
26 30 56  Additions  60 34 26
-9 -3 -12  Disposals  -12 -3 -9
- - -  Disposals Subsidiaries*  -31 -24 -8
122 160 282  Cost of acquisition at 31 December  563 243 320
             
73 79 151  Accumulated depreciation and write-downs as at 1 January  334 163 170
8 15 23  Current period's depreciation  34 19 15
- -0 -0  Current period's write-down  -0 -0 -
-9 -2 -10  Disposals  -10 -2 -9
- - -  Disposals Subsidiaries* -26 -20 -7
73 92 165  Accumulated depreciation and write-down as at 31 December  331 162 170
             
49 68 117 Book value as at 31 December  232 81 150
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* As from fourth quarter 2002 the subsidiary SpareBank1 Markets have been reclassified to investment held for sale. The effect has been presented as disposals. 

2021        
Parent Bank   Group
Buildings and other real property Machinery, inventory and vehicles Total (NOK million) Total Machinery, inventory and vehicles Buildings and other real property
110 168 278 Cost of acquisition at 1 January  574 260 314
3 39 42 Additions  55 50 5
-9 -74 -83 Disposals  -85 -75 -9
- - - Addition from acquisition of companies  1 1 -
104 133 237 Cost of acquisition at 31 December  546 236 310
71 139 210 Accumulated depreciation and write-downs as at 1 January 380 219 160
8 13 20 Current period's depreciation  32 18 14
0 -0 -0 Current period's write-down  1 0 1
-5 -73 -79 Disposals  -80 -75 -5
- - - Addition from acquisition of companies  1 1 -
73 79 151 Accumulated depreciation and write-down as at 31 December  334 163 170
             
31 54 86 Book value as at 31 December  212 72 139
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Depreciation

With a basis in acquisition cost less any residual value, assets are depreciated on a straight-line basis over expected lifetime as follows:

  • Machinery 3-5 years
  • Fixtures 5-10 years
  • Technical installations 5-10 years
  • Means of transport 10 years
  • Buildings and other real property 25 years

Collateral

The Group has not provided security or accepted any other infringements on its right of disposal of its fixed tangible assets. 

Acquisition cost of depreciated assets

The acquisition cost of fully depreciated assets still in use in the Bank in 2022 is NOK 107 million (NOK 180 million).

Gross value of non-current assets temporarily out of operation

The Group has no significant non-current assets out of operation as at 31 December 2022.

Financial results

Annual report and notes

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