Property, Plant and Equipment
Movement in property, plant and equipment for the year ended December 31, 2014 was as follows:
| Land and buildings | Machinery and equipment | Transport and motor vehicles | Furniture and fixtures | Leasehold improvements | Construction in progress | TOTAL | |
COST |
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| Balance at January 1, 2014 | 1 442 677 | 3 220 619 | 67 389 | 76 175 | 25 262 | 677 754 | 5 509 876 |
| Additions | – | – | – | – | – | 351 145 | 351 145 |
| Assets put into operation | 112 035 | 449 849 | 18 253 | 5 739 | 4 856 | (590 732) | – |
| Disposals | (4 358) | (67 969) | (1 533) | (1 341) | – | (5 214) | (80 415) |
| Reclassifications | (440) | (127) | (1) | (826) | 803 | 591 | – |
| Currency translation adjustments | (526 850) | (1 092 648) | (27 673) | (23 236) | (2 108) | (239 201) | (1 911 716) |
| BALANCE AT DECEMBER 31, 2014 | 1 023 064 | 2 509 724 | 56 435 | 56 511 | 28 813 | 194 343 | 3 868 890 |
ACCUMULATED DEPRECIATION AND IMPAIRMENT |
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| Balance at January 1, 2014 | (287 005) | (1 290 127) | (33 684) | (48 138) | (5 567) | – | (1 664 521) |
| Depreciation charge | (37 454) | (215 393) | (4 895) | (8 904) | (1 318) | – | (267 964) |
| Impairment | (1 135) | – | – | – | – | – | (1 135) |
| Disposals | 1 136 | 62 978 | 1 309 | 1 257 | – | – | 66 680 |
| Reclassifications | 19 | (488) | – | 495 | (26) | – | – |
| Currency translation adjustments | 109 504 | 469 492 | 12 032 | 17 058 | 134 | – | 608 220 |
| BALANCE AT DECEMBER 31, 2014 | (214 935) | (973 538) | (25 238) | (38 232) | (6 777) | – | (1 258 720) |
| NET BOOK VALUE AT DECEMBER 31, 2014 | 808 129 | 1 536 186 | 31 197 | 18 279 | 22 036 | 194 343 | 2 610 170 |
| NET BOOK VALUE AT JANUARY 1, 2014 | 1 155 672 | 1 930 492 | 33 705 | 28 037 | 19 695 | 677 754 | 3 845 355 |
Movement in property, plant and equipment for the year ended December 31, 2013 was as follows:
| Land and buildings | Machinery and equipment | Transport and motor vehicles | Furniture and fixtures | Leasehold improvements | Construction in progress | TOTAL | |
COST |
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| Balance at January 1, 2013 | 1 397 843 | 3 066 462 | 65 938 | 69 257 | 18 920 | 697 932 | 5 316 352 |
| Additions | – | – | – | – | – | 516 214 | 516 214 |
| Assets put into operation | 124 539 | 343 396 | 4 248 | 10 890 | 6 554 | (489 627) | – |
| Disposals | (4 854) | (34 406) | (1 440) | (1 037) | – | (1 948) | (43 685) |
| Increase due to acquisition of subsidiaries (Note 10) | 10 845 | 10 680 | 271 | 882 | – | 27 | 22 705 |
| Reclassifications | (2 302) | 918 | 1 384 | – | – | – | – |
| Currency translation adjustments | (83 394) | (166 431) | (3 012) | (3 817) | (212) | (44 844) | (301 710) |
| BALANCE AT DECEMBER 31, 2013 | 1 442 677 | 3 220 619 | 67 389 | 76 175 | 25 262 | 677 754 | 5 509 876 |
ACCUMULATED DEPRECIATION AND IMPAIRMENT |
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| Balance at January 1, 2013 | (262 127) | (1 167 234) | (31 450) | (41 743) | (4 164) | – | (1 506 718) |
| Depreciation charge | (39 618) | (222 556) | (4 361) | (9 879) | (1 440) | – | (277 854) |
| Impairment | (4 243) | – | – | – | – | – | (4 243) |
| Disposals | 2 982 | 28 505 | 1 164 | 928 | – | – | 33 579 |
| Reclassifications | 133 | 428 | (561) | – | – | – | – |
| Currency translation adjustments | 15 868 | 70 730 | 1 524 | 2 556 | 37 | – | 90 715 |
| BALANCE AT DECEMBER 31, 2013 | (287 005) | (1 290 127) | (33 684) | (48 138) | (5 567) | – | (1 664 521) |
| NET BOOK VALUE AT DECEMBER 31, 2013 | 1 155 672 | 1 930 492 | 33 705 | 28 037 | 19 695 | 677 754 | 3 845 355 |
| NET BOOK VALUE AT JANUARY 1, 2013 | 1 135 716 | 1 899 228 | 34 488 | 27 514 | 14 756 | 697 932 | 3 809 634 |
As at December 31, 2014, bank borrowings were secured by properties and equipment with a carrying value of 129,274 (December 31, 2013: 117,945).
As at December 31, 2014, there were indicators of impairment of certain property in the Russia operating segment, therefore, the Group performed an impairment test in respect of these assets. As a result of the test, the Group determined that the carrying value of the property exceeds its recoverable amount. Resulting impairment loss of 1,135 was recognised in the income statement for the year ended December 31, 2014 (December 31, 2013: 4,243).
Capitalised Borrowing Costs
The Group has the combination of borrowings, that are specific to the acquisition and construction of a particular qualifying asset, and general borrowings. The amount of borrowing costs capitalised during the year ended December 31, 2014 was 25,535 (2013: 16,972). The rate of the specific borrowing used to determine the amount of capitalised borrowing costs in the year ended December 31, 2014 was 9.47% (2013: 5.19%); the capitalisation rate relating to general borrowings was 9.64% (2013: 6.52%).