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- 18. Intangible assets
- LOTOS Annual Report 2011 /
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- Financial data /
- Consolidated financial statements 2011 /
- Notes to the financial statements /
- 18. Intangible assets
18. Intangible assets
PLN '000 | Dec 31 2011 | Dec 31 2010 |
---|---|---|
Development expense | 184 | 184 |
Software | 2,312 | 3,914 |
Patents, trademarks and licences, including | 464,839 | 81,136 |
- licences of the AB LOTOS Geonafta Group(1) | 361,975 | - |
Other | 8,245 | 9,591 |
Total | 475,580 | 94,825 |
(1) In 2011, LOTOS Petrobaltic S.A. executed a transaction to acquire control over Lithuanian assets. The interest of LOTOS Petrobaltic S.A. in AB LOTOS Geonafta increased from 40.59% to 100% (see Note 2).
Changes in intangible assets
PLN '000 | Development expense | Software | Patents, trademarks and licences | Other | Prepayments for intangible assets | Total |
- including: exploration and appraisal assets (1) (restated) |
---|---|---|---|---|---|---|---|
Gross carrying amount as at Jan 1 2010 |
528 | 14,901 | 134,054 | 11,415 | - | 160,898 | 41,146 |
Increase | - | 1,589 | 33,090 | 5,544 | - | 40,223 | 26,160 |
- purchase | - | 965 | 21,873 | 3,040 | - | 25,878 | 21,872 |
- transfer from investments | - | 551 | 10,009 | 2,504 | - | 13,064 | 3,080 |
- exchange differences on translating foreign operations | - | 40 | 1,208 | - | - | 1,248 | 1,208 |
- other | - | 33 | - | - | - | 33 | - |
Decrease | - | (126) | (95) | (28) | - | (249) | - |
- sale | - | (45) | - | - | - | (45) | - |
- liquidation | - | (81) | (47) | (28) | - | (156) | - |
- other | - | - | (48) | - | - | (48) | - |
Gross carrying amount as at Dec 31 2010 |
528 | 16,364 | 167,049 | 16,931 | - | 200,872 | 67,306 |
Gross carrying amount as at Jan 1 2011 |
528 | 16,364 | 167,049 | 16,931 | - | 200,872 | 67,306 |
Increase | - | 2,547 | 471,646 | 910 | - | 475,103 | 21,176 |
- purchase | - | 131 | 12,836 | 92 | 79 | 13,138 | 12,836 |
- transfer from investments | - | 247 | 47,210 | 352 | - | 47,809 | 456 |
- acquisition of control over the AB LOTOS Geonafta Group | - | 1,669 | 378,436 | 438 | 47 | 380,590 | - |
- transfer | - | (32) | - | - | - | (32) | - |
- exchange differences on translating foreign operations | - | 378 | 33,164 | 28 | - | 33,570 | 7,884 |
- settled prepayments | - | 126 | - | - | (126) | - | - |
- other | - | 28 | - | - | - | 28 | - |
Decrease | - | (816) | (700) | (838) | - | (2,354) | (602) |
- sale | - | (11) | - | (3) | - | (14) | - |
- liquidation | - | (399) | (616) | (558) | - | (1,573) | (602) |
- reclassification into non-current assets held for sale | - | (406) | (15) | (277) | - | (698) | - |
- other | - | - | (69) | - | - | (69) | - |
Gross carrying amount as at Dec 31 2011 |
528 | 18,095 | 637,995 | 17,003 | - | 673,621 | 87,880 |
Accumulated amortisation as at Jan 1 2010 |
371 | 10,079 | 49,207 | 6,076 | - | 65,733 | 4,280 |
Increase | - | 2,364 | 8,533 | 1,288 | - | 12,185 | 981 |
- amortisation | - | 2,345 | 8,517 | 1,288 | - | 12,150 | 981 |
- exchange differences on translating foreign operations | - | 19 | - | - | - | 19 | - |
- other | - | - | 16 | - | - | 16 | - |
Decrease | - | (123) | (47) | (24) | - | (194) | - |
- sale | - | (45) | - | - | - | (45) | - |
- liquidation | - | (78) | (47) | (24) | - | (149) | - |
Accumulated amortisation as at Dec 31 2010 |
371 | 12,320 | 57,693 | 7,340 | - | 77,724 | 5,261 |
Accumulated amortisation as at Jan 1 2011 |
371 | 12,320 | 57,693 | 7,340 | - | 77,724 | 5,261 |
Increase | - | 4,115 | 51,780 | 2,007 | - | 57,902 | 1,497 |
- amortisation | - | 2,219 | 49,166 | 1,541 | - | 52,926 | 1,497 |
- acquisition of control over the AB LOTOS Geonafta Group | - | 1,610 | - | 438 | - | 2,048 | - |
- transfer | - | (32) | - | - | - | (32) | - |
- exchange differences on translating foreign operations | - | 289 | 2,614 | 28 | - | 2,931 | - |
- other | - | 29 | - | - | - | 29 | - |
Decrease | - | (705) | (631) | (589) | - | (1,925) | (602) |
- sale | - | (12) | - | - | - | (12) | - |
- liquidation | - | (324) | (616) | (558) | - | (1,498) | (602) |
- reclassification into non-current assets held for sale | - | (369) | (15) | (31) | - | (415) | - |
Accumulated amortisation as at Dec 31 2011 |
371 | 15,730 | 108,842 | 8,758 | - | 133,701 | 6,156 |
Impairment losses as at Jan 1 2010 |
(27) | 136 | 5,816 | - | - | 5,925 | 5,813 |
Increase | - | - | 21,950 | - | - | 21,950 | 21,950 |
Foreign exchange differences on translating foreign operations | - | - | 454 | - | - | 454 | 454 |
Decrease | - | (6) | - | - | - | (6) | - |
Impairment losses as at Dec 31 2010 |
(27) | 130 | 28,220 | - | - | 28,323 | 28,217 |
Impairment losses as at Jan 1 2011 |
(27) | 130 | 28,220 | - | - | 28,323 | 28,217 |
Increase | - | - | 30,646 | - | - | 30,646 | 30,646 |
Foreign exchange differences on translating foreign operations | - | - | 5,448 | - | - | 5,448 | 5,448 |
Decrease | - | (77) | - | - | - | (77) | - |
Impairment losses as at Dec 31 2011 |
(27) | 53 | 64,314 | - | - | 64,340 | 64,311 |
Net carrying amount Jan 1 2010 |
184 | 4,686 | 79,031 | 5,339 | - | 89,240 | 31,053 |
Net carrying amount Dec 31 2010 |
184 | 3,914 | 81,136 | 9,591 | - | 94,825 | 33,828 |
Net carrying amount Dec 31 2011 |
184 | 2,312 | 464,839 | 8,245 | - | 475,580 | 17,413 |
(1) The value of exploration and appraisal assets comprises the value of expenses capitalised until technical feasibility and commercial viability of extracting a mineral resource are demonstrable.
In the year ended December 31st 2011, the cost of amortisation of intangible assets in respect of which technical feasibility and commercial viability of extracting a mineral resource have been demonstrated amounted to PLN 39,981 thousand (December 31st 2010: PLN 804 thousand).
The cost of amortisation of exploration and appraisal assets recognised under intangible items amounted to PLN 1,497 thousand in the year ended December 31st 2011 (December 31st 2010: PLN 981 thousand).
In the year ended December 31st 2011, cash flows used in investing activities related to exploration and appraisal assets amounted to PLN 12,114 thousand (2010: PLN 26,581 thousand).
In the year ended December 31st 2011, impairment losses on exploration and appraisal assets recognised under intangible assets amounted to PLN 30,646 thousand and are related to the PL 455 licence described below (December 31st 2010: PLN 21,950 thousand).
As at December 31st 2011, LOTOS Exploration and Production Norge AS held the following exploration licence interests: 45% interest in licence PL 455, 10% interest in licence PL 497/497B, 25% interest in licence PL 498, 25% interest in licence PL 503/503B, and 20% interest in licence PL 515.
Under “Intangible assets” LOTOS Exploration and Production Norge AS recognised expenditure incurred on the exploration licences. As at December 31st 2011, the expenditure was NOK 140,042 thousand (PLN 79,488 thousand, translated at the mid-exchange rate for NOK quoted by the National Bank of Poland for December 31st 2011) (2010: NOK 115,892 thousand as at December 31st 2010 (PLN 58,769 thousand, translated at the mid-exchange rate for NOK quoted by the National Bank of Poland for December 31st 2010)), and was incurred primarily on the PL 455 licence. As drillings under the PL 455 licence produced no positive outcome, on December 31st 2011 (the balance-sheet date) the company recognised impairment losses on capitalised costs of exploration work related to this licence of NOK 57,660 thousand (PLN 32,728 thousand, translated at the mid-exchange rate for NOK quoted by the National Bank of Poland for December 31st 2011) (2010: NOK 55,646 thousand as at December 31st 2010 (PLN 28,218 thousand, translated at the mid-exchange rate for NOK quoted by the National Bank of Poland for December 31st 2010)). As at December 31st 2011, the net value of intangible assets related to exploration licences, net of impairment loss, amounted to NOK 26,737 thousand (the equivalent of PLN 15,176 thousand, translated at the mid-exchange rate for NOK quoted by the National Bank of Poland for December 31st 2011), see Note 46 (2010: NOK 60,246 thousand as at December 31st 2010 (PLN 30,551 thousand, translated at the mid-exchange rate for NOK quoted by the National Bank of Poland for December 31st 2010)).
This is a translation of a document originally issued in Polish.