11 Intangible assets
|
(CHF 1,000) |
|
Investments in airport operator projects |
|
Intangible asset from right of formal expropriation |
|
Other intangible assets |
|
Cost |
|
|
|
|
|
|
|
Balance as at 1 January 2019 |
|
130,475 |
|
154,029 |
|
92,377 |
|
Additions |
|
242,449 |
|
0 |
|
721 |
|
Disposals |
|
–211 |
|
–20,000 |
|
–5,580 |
|
Transfer |
|
–572 |
|
0 |
|
8,926 |
|
Reclassification |
|
2,035 |
|
0 |
|
–2,035 |
|
Foreign exchange differences |
|
–20,417 |
|
0 |
|
–295 |
|
Balance as at 31 December 2019 |
|
353,759 |
|
134,029 |
|
94,114 |
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2020 |
|
353,759 |
|
134,029 |
|
94,114 |
|
Additions |
|
30,245 |
|
0 |
|
0 |
|
Disposals |
|
0 |
|
0 |
|
–22,288 |
|
Transfer |
|
0 |
|
0 |
|
9,556 |
|
Reclassification |
|
4,326 |
|
0 |
|
–4,326 |
|
Foreign exchange differences |
|
–88,771 |
|
0 |
|
0 |
|
Balance as at 31 December 2020 |
|
299,559 |
|
134,029 |
|
77,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortisation |
|
|
|
|
|
|
|
Balance as at 1 January 2019 |
|
–4,843 |
|
–60,292 |
|
–74,492 |
|
Additions |
|
–7,808 |
|
–2,892 |
|
–6,935 |
|
Disposals |
|
0 |
|
0 |
|
5,252 |
|
Reclassification |
|
–486 |
|
0 |
|
486 |
|
Foreign exchange differences |
|
2,668 |
|
0 |
|
108 |
|
Balance as at 31 December 2019 |
|
–10,469 |
|
–63,184 |
|
–75,581 |
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2020 |
|
–10,469 |
|
–63,184 |
|
–75,581 |
|
Additions |
|
–7,733 |
|
–2,255 |
|
–7,594 |
|
Disposals |
|
0 |
|
0 |
|
21,867 |
|
Reclassification |
|
–1,618 |
|
0 |
|
1,618 |
|
Foreign exchange differences |
|
2,397 |
|
0 |
|
0 |
|
Balance as at 31 December 2020 |
|
–17,423 |
|
–65,439 |
|
–59,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount as at 31 December 2019 |
|
343,290 |
|
70,845 |
|
18,533 |
|
Net carrying amount as at 31 December 2020 |
|
282,136 |
|
68,590 |
|
17,366 |
INVESTMENTS IN AIRPORT OPERATOR PROJECTS
The investments in airport operator projects in the amount of CHF 282.1 million (2019: CHF 343.3 million) consist of concession rights which, due to the application of IFRIC 12, comprise minimum concession payments recognised as assets and investments made. They relate to the expansion and operation of the Chilean airports in Antofagasta and Iquique (CHF 56.2 million; 2019: CHF 34.3 million), the expansion and operation of the Brazilian airport in Florianópolis (CHF 128.9 million; 2019: CHF 178.3 million), the expansion and operation of the Brazilian airports in Vitória and Macaé (CHF 92.4 million; 2019: CHF 130.7) and initial investments for the concession relating to Noida International Airport (India) (CHF 4.6 million; 2019: CHF 0.0 million). The decrease in investments relating to the Brazilian concessions is due to unfavourable movements in the exchange rate of the relevant currency.
The obligations of CHF 23.2 million (2019: CHF 26.3 million) relating to the relevant concessions have been recognised as current and non-current liabilities (see note 18, Financial liabilities).
INTANGIBLE ASSET FROM RIGHT OF FORMAL EXPROPRIATION
With the award of the operating licence, Flughafen Zürich AG was also granted a right of formal expropriation in respect of property owners exposed to aircraft noise. This right of formal expropriation was granted on condition that the airport operator bears the costs associated with compensation payments and is recognised as an intangible asset at the date when the probable total cost can be estimated based on final-instance court rulings, so that the cost can be reliably estimated in accordance with IAS 38.21.
On 22 November 2019, the Swiss Federal Supreme Court handed down a ruling in test cases regarding the period of limitation on claims for compensation in Oberglatt. This Swiss Federal Supreme Court ruling and other fundamental issues that have been decided enabled Flughafen Zürich AG to undertake a reappraisal of the outstanding cost of compensation for formal expropriations. Based on the recalculation, the total cost expected in relation to formal expropriations decreased from CHF 350.0 million to CHF 330.0 million, enabling the provision for formal expropriations to be reduced by CHF 20.0 million as at 31 December 2019 (see note 19, Provision for formal expropriations plus sound insulation and resident protection). At the same time, the intangible asset from the right of formal expropriation was reduced by the same amount.
As at 31 December 2020, Flughafen Zürich AG has therefore recognised an intangible asset from the right of formal expropriation in the amount of CHF 68.6 million (2019: CHF 70.8 million). This is amortised using the straight-line method over the remaining term of the operating licence (i.e. until May 2051).
Impairment
Due to the coronavirus pandemic and the related indicators that investments in airport operator projects may be impaired, Flughafen Zürich AG performed an impairment test (see II. Judgements and significant estimates and assumptions in the application of accounting policies, Impairment of assets in accordance with IAS 36).
