4.10.1
Property, plant and equipment

  Land and buildings Machinery and equipment Under construction Total property, plant and equipment
  € x 1,000 € x 1,000 € x 1,000 € x 1,000
Cost
Balance at 1 January 2019
67,469
91,373
1,924
160,767
Investments 749 5,322 3,230 9,301
Divestments -4,107 -213 -27 -4,347
Divestments from discontinuation of business - -3,689 - -3,689
Divestments as a result of outgoing business combinations - -977 - -977
From / to under construction 588 472 -1,060 -
Currency translation differences 110 9 - 119
Balance at 1 January 2020
64,809
92,297
4,067
161,174
Investments 1,433 6,018 2,888 10,339
Divestments - -157 - -157
From / to under construction 4,204 439 -4,644 -
Currency translation differences -119 -193 1 -310
Balance at 31 December 2020
70,328
98,404
2,312
171,045
 
Accumulated depreciation
Balance at 1 January 2019
24,748
69,506
-
94,254
Depreciation 1) 1,377 7,548 - 8,925
Divestments -2,619 -55 - -2,674
Divestments from discontinuation of business - -3,112 - -3,112
Divestments as a result of outgoing business combination - -645 - -645
Balance at 1 January 2020
23,506
73,242
-
96,748
Depreciation 1) 1,322 6,913 - 8,235
Divestments - -90 - -90
Balance at 31 December 2020
24,828
80,065
-
104,893
 
Carrying amount
Balance at 1 January 2020
41,304
19,055
4,067
64,426
Balance at 31 December 2020
45,500
18,339
2,312
66,152
1) Total depreciation for 2019 includes € 8,695 thousand attributable to continuing operations and € 230 thousand attributable to discontinued operations.

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Land and buildings with a carrying amount of € 4.5 million at 31 December 2020 (2019: € 4.7 million) have been pledged as security; on the one hand, to the trustees of the UK pension fund in the amount of € 2.8 million (2019: € 3.0 million) and, on the other hand, as security for a bank loan in the amount of € 1.7 million (2019: € 1.7 million).

Property under construction at 31 December 2020 represents € 1.2 million for Accell Hunland (building and machinery), € 0.9 million for Accell Germany (showroom) and € 0.2 million for Wiener Bike Parts (building). Those assets are not yet ready for use.

Accounting estimates and judgement

Estimates are required to determine the (remaining) useful lives of fixed assets. Useful lives are determined based on an asset’s age, the frequency of its use, repair and maintenance policy, technological changes in production and expected restructurings.

The expected residual value is estimated per asset item and is the higher of the expected sales prices or the scrap value. The residual value is estimated based on recent market transactions involving the sale of similar items or on its material scrap value.

Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives as Accell Group believes that straight-line depreciation most closely reflects the expected consumption pattern of the future economic benefits embodied in the asset.

Accounting policy

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Any gain or loss on the disposal of an item of property, plant and equipment is recognised in profit or loss (depreciation). Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognised in profit or loss. Land is not depreciated. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted prospectively if appropriate.

The estimated useful lives of property, plant and equipment are as follows:

Buildings 40 years        
Machinery and equipment 3 - 12 years        

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Property, plant and equipment is derecognised when it is sold or scrapped. Gains on sales are presented in other income (see note 4.7.2) and losses on sales are included in depreciation (see note 4.7.5)