Note

Carrying amounts

* Financial information restated as presented in point 2.3 of the notes to the consolidated financial statements.

As at 31 December 2016, the carrying amount of the trademarks recognised on acquisition of Grupa Azoty POLICE amounted to PLN 55 688 thousand (31 December 2015: PLN 55 688 thousand). As at 31 December 2016, the carrying amount of the trademarks recognised on acquisition of Grupa Azoty PUŁAWY amounted to PLN 33 100 thousand (31 December 2015: PLN 33 100 thousand). Trademarks are not amortised. The Group assumed the indefinite useful life of trademarks due to their long-term existence on the market and lack of plans of their modification or replacement in the future.

As at 31 December 2016, the carrying amount of the brand name “POLICE” was PLN 25 545 thousand (31 December 2015: PLN 25 545 thousand), and of the brand name “PUŁAWY” was PLN 105 000 thousand (31 December 2015: PLN 105 000 thousand). Brand names, similarly as trademarks, are not amortised.

Information on impairment tests performed for intangible assets with indefinite useful lives was presented in Note 12.1.

As at the 31 December 2016, the value of customers portfolio mainly results from customers of Fertilizers-Agro segment. Customers portfolios were recognised on acquisition of Grupa Azoty POLICE and Grupa Azoty PUŁAWY. As at 31 December 2016, the carrying amount of the customers portfolio recognised on acquisition of Grupa Azoty PUŁAWY amounted to PLN 70 130 thousand (31 December 2015: PLN 83 630 thousand), which are going to be amortised over 3 years. The remaining part of customers portfolio was recognised on acquisition of Grupa Azoty POLICE and amounts to PLN 549 thousand (31 December 2015: PLN 1 099 thousand).

As at 31 December 2016, the most significant licences comprised: licence for OXO alcohols production of PLN 23 188 thousand (31 December 2015: PLN 24 971 thousand), licence for production of nitrous acid of PLN 9 039 thousand (31 December 2015: PLN 9 408 thousand) and SAP licence of PLN 33 950 thousand (31 December 2015: PLN 31 605 thousand).

Exploration for and evaluation of mineral resources includes mainly the expenditures related to the Kebemer exploration licence area (PLN 63 224 thousand as at 31 December 2016 and PLN 38 873 thousand as at 31 December 2015). The uncertainties concerning this asset’s valuation result, inter alia, from the specific nature of the mineral deposits’ geology. Simultaneously, the Group continues work on the verification of the geological documentation and on the requirement to prepare a feasibility study in accordance with international standards, introduced as part of the implemented Group reporting procedures. It is expected that the work will be completed in the second half of 2017. The appropriate decisions about the realisation of this investment will be made afterwards.

There are no intangible assets for which legal title is restricted or which are used as collateral.

The amortisation of intangible assets is generally allocated to the administrative expenses.

Carrying amounts of intangible assets

 * Financial information restated as presented in point 2.3 of the notes to the consolidated financial statements.

 * Financial information restated as presented in point 2.3 of the notes to the consolidated financial statements.

Carrying amounts of intangible assets

 Impairment losses

Significant expenditures on intangible assets under construction

Most significant expenditures on intangible assets under constructions include among others:

• Licence for Installation of Mechanical Granulation II in the Parent Company. As at the 31 December 2016, the capitalised expenditures amounted to PLN 1 000 thousand (31 December 2015: PLN 1 000 thousand),
• Licence OLEFLEX and SHP for PDH propylene production unit in the amount of PLN 11 315 thousand (31 December 2015: PLN 11 315 thousand),
• Licence for fumes desulphurisation technology, the capitalised expenditures amounted to PLN 1 282 thousand (31 December 2015: PLN 1 240 thousand),
• Expenditure for Financial Dashboard (FDB), expenditures amounted to PLN 1 143 thousand.

Intangible assets held under finance lease

The carrying amount of intangible assets held under finance lease amounted to PLN 349 thousand in 2016 (2015: nil)