KB prezent. angl - Komerční banka

144 ➔145
Consolidated Financial Statements
under IFRS
26. Tangible and intangible fixed assets
The movements during the year ended 31 December 2003 are as follows:
CZK million Intangible Land Buildings Fixtures, fittings Assets under Total
fixed assets and equipment construction
Cost
31 December 2002 3,135 426 12,809 8,821 747 25,938
Additions 462 3 214 1,027 2,549 4,255
Disposals/transfers (8) (3) (180) (564) (1,726) (2,481)
31 December 2003 3,589 426 12,843 9,284 1,570 27,712
Accumulated depreciation
31 December 2002 2,258 0 4,343 7,302 41 13,944
Additions 598 0 499 933 0 2,030
Disposals (3) 0 (136) (545) 0 (684)
Impairment charge (66) 0 (187) (34) (27) (314)
31 December 2003 2,787 0 4,519 7,656 14 14,976
Net book value
31 December 2002 877 426 8,466 1,519 706 11,994
31 December 2003 802 426 8,324 1,628 1,556 12,736
As of 31 December 2003, the net book value of assets held by the Group under finance lease agreements was CZK 264 million (2002:
CZK 444 million).
The Group reviewed the location, appearance and positioning of its branch network and future utilisation of intangible fixed assets in
the context of its strategic plans in the medium term. As of 31 December 2001, this review identified a number of buildings, owned
and leased, whose location and appearance is not compatible with such plans. The Group’s intention is to dispose of these premises
and vacate the leases in the medium term. During 2003, the Group undertook a review of a set of owned buildings held for sale and
leased buildings which served as a basis for adjusting the level of provisions charged against these buildings to reflect their estimated
recoverable values. From this review, the Group maintains impairment provisions of CZK 614 million as of 31 December 2003 (2002:
CZK 798 million) which include expected losses on the sale of premises presently owned by the Group, and the writedown of
leasehold improvements on leased premises which the Group intends to sell or terminate the rental agreements. The impairment
charge is included within accumulated provisions and depreciation in the table shown above. Provisions recognised for the
writedown of the carrying amount of prepaid rentals which the Group intends to vacate are reported within Accruals, provisions and
other liabilities (refer to Note 30).
In addition, the Group identified a set of intangible fixed assets which it intends to take out of service or replace. The impairment
charge resulting from this review amounts to CZK 54 million as of 31 December 2003 (2002: CZK 121 million).
The increase in “Assets under construction” is largely attributable to capitalised costs of pending projects of restructuring the
Group’s activities, operations and systems and the related purchases of systems, IT applications and hardware.
27. Amounts due to banks
Amounts due to banks comprise:
CZK million 2003 2002
Current accounts 1,667 1,248
Amounts due to banks 18,418 23,049
Total amounts due to banks 20,085 24,297