Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ACQUISTIONS AND CAPITAL EXPENDITURE
4.4 TANGIBLE ASSETS
Land
Buildings
Buildings, leased
for own use
Jan 1-Dec 31, 2022
Machinery &
equipment
Machinery &
equipment,
leased for own
use
Fixed assets
under
construction
Advance
payments
Total
Tangible assets, MEUR
Opening gross acquisition cost
6.7
333.3
365.5
664.4
232.2
11.5
Opening accumulated depreciation
-152.2
-154.1
-464.5
-109.6
Opening net book value
6.7
181.1
211.4
199.9
122.6
11.5
3.5
3.5 1,617.1
-880.4
736.7
Opening net book value
6.7
181.1
211.4
199.9
122.6
11.5
3.5
736.7
Translation differences
0.0
-1.6
1.9
-0.5
0.8
-0.4
0.0
0.2
Increase
7.0
44.5
58.9
62.9
23.3
1.6
198.4
Decrease
-0.8
-2.1
-3.4
-1.5
-0.8
-0.1
-8.7
Reclassifications
2.7
0.0
9.3
0.0
-8.9
-3.6
-0.4
Companies acquired (note 4.1)
0.2
0.2
0.4
Depreciation
0.0
-15.0
-63.8
-68.1
-62.9
Closing net book value
5.9
172.1
190.8
198.3
122.8
25.3
1.6
-209.8
716.8
Closing gross acquisition cost
5.9
336.7
Closing accumulated depreciation
-164.6
Closing net book value
5.9
172.1
403.6
-212.8
190.8
714.2
-515.9
198.3
249.5
25.3
1.6
-126.7
122.8
-
1,736.9
-1,020.0
25.3
1.6
716.8
During the period of Jan 1-Dec 31, 2022, capital expenditure on production facilities, installation equipment, R&D tools, as well
as on information systems, including new assets recognized for lease agreements, totaled to EUR 209.2 (217.1) million. Capital
expenditure on leases consists mainly of maintenance vehicles and office facilities.
Lease payments in cash flow totaled to EUR -124.3 (-121.0) million.
Accounting principles
Property, plant and equipment
Property, plant and equipment are measured at cost less
accumulated depreciation and any impairment losses, when
applicable. Depreciation is recognized on a straight-line
basis over the economic useful lives of the assets or over
the lease contract period, if shorter. Economic useful lives
are as follows:
Buildings
Machinery and equipment
Land is not depreciated.
5-40 years
4-15 years
Expenditure on repairs and maintenance of property, plant
and equipment is recognized as expense when incurred.
The carrying amount of any tangible asset is impairment
tested (see impairment of assets accounting principles)
when an indication of impairment exists.
Leases
As a lessee, KONE recognizes a right-of-use asset
representing its right to use the underlying asset and a
lease liability representing its obligation to make lease
payments, amounting to the present value of the future
lease payments. The value of right-of-use asset
corresponds the value of future lease payments at the
inception of the lease, discounted with the incremental
borrowing rate.
Right-of-use assets are depreciated over the contract
period or over the useful life of the asset, which is the
shorter. An option to extend or terminate the lease contract
is included to the lease period when exercising such option
is considered highly probable. The cost arising from short-
term leases and leases of low value assets are recognized
as an expense on a straight-line basis over the contract
period.
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KONE ANNUAL REVIEW 2022View entire presentation