ANNUAL REPORT 2011 - DONG Energy

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