ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
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notes<br />
16 Property, plant and equipment<br />
Other production assets<br />
As described under rights in note 15, a DKK 527 million impairment<br />
loss was recognised on the offshore gas pipelines from the<br />
North Sea to Denmark in <strong>2011</strong>. The impairment was recognised<br />
in the <strong>Energy</strong> Markets segment.<br />
Other signifi cant production assets were tested for impairment,<br />
including primarily power stations and wind farms. It is estimated<br />
that the recoverable amount of other production assets<br />
exceeds the carrying amount, and no impairment losses were<br />
consequently recognised in respect of other production assets.<br />
In 2010, a DKK 317 million impairment loss was recognised, including<br />
DKK 299 million in respect of small-scale power stations.<br />
Part of this impairment loss related to the small-scale Maribo-<br />
Sakskøbing CHP plant, which was subsequently sold in <strong>2011</strong>.<br />
Therefore, of the impairment loss recognised in 2010, DKK 59<br />
million has been reversed.<br />
Exploration assets<br />
Exploration assets are tested for impairment when suffi cient<br />
data have been obtained to assess each asset’s technical<br />
and commercial potential and if there is any indication of<br />
impairment. Impairment testing is also carried out at the<br />
time commercial fi nds of oil and/or gas have been identifi ed,<br />
and when exploration assets are reclassifi ed to assets under<br />
construction.<br />
90 94 COnsOliDatED finanCial statEmEnts – <strong>DONG</strong> ENERGY GROUP <strong>ANNUAL</strong> <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>REPORT</strong> <strong>2011</strong><br />
<strong>2011</strong><br />
Signifi cant parameters in connection with the determination of<br />
the recoverable amount of exploration assets are expectations<br />
concerning reserves, oil and gas prices, exchange rates and<br />
discount rates.<br />
There were no indications of impairment in <strong>2011</strong>, and no<br />
impairment losses were therefore recognised in <strong>2011</strong> on the<br />
Group’s exploration assets.<br />
property, plant and equipment under construction<br />
Signifi cant items of property, plant and equipment under<br />
construction, including wind farms and oil and gas fi elds, were<br />
tested for impairment. It is estimated that the recoverable<br />
amount of property, plant and equipment under construction<br />
exceeds the carrying amount.<br />
Other property, plant and equipment<br />
The carrying amounts of other property, plant and equipment<br />
are assessed annually to determine whether there is any indication<br />
of impairment. If any such indication exists, an impairment<br />
test is carried out.<br />
Based on the impairment testing of other property, plant<br />
and equipment, it is estimated that the recoverable amount<br />
exceeds the carrying amount. No impairment losses were consequently<br />
recognised in <strong>2011</strong> in respect of the Group’s other<br />
property, plant and equipment.