The movements under this heading in the balance sheet in 2017 and key information affecting the heading are as follows:
Property, plant and equipment includes the transfer of the carrying amount of the building located at Avda. Meritxell 112 and the plant and equipment therein, increasing the value of the land, following the completion of works to demolish the old administration building. The net carrying amount of these assets at 31 December 2018 was 1,570,161.38 euros.
The demolition costs incurred in January and February 2018 (the final phase of the demolition works), amounting to 148,960.29 euros, were also capitalised and recognised as an increase in the value of the land.
These transfers were effected in accordance with IAS 40 and IAS 16, whereby the total cost of reallocating land, buildings and fittings, as well as demolition costs, may be included in the value of the land, provided the carrying amount of the land does not exceed its market value.
Following the decision of the Board of Directors on 17 December 2018 to cancel The Cloud project, the Company derecognised the asset recognised as property, plant and equipment under construction in respect of said building, reclassifying as a loss the costs incurred of 1.5 million euros (see note 22).
The Company also invested in the renovation of the TETRA emergency network, improving the core architecture of the 3G and 4G mobile network and increasing its capacity, improving the steering platform for roaming services, renewing the IPTV platforms and various improvements to its transport and access networks.
The assets contributed to the Company under the Decree, dated 17 June 2015, on the allocation and contribution of assets, rights and obligations to the government-owned company Andorra Telecom, SAU, effective for accounting purposes from 1 January 2015, include the following national assets (Annexe II of the Decree), which were valued by an independent expert on 8 June 2015. The carrying amount of the assets at the allocation date was as follows:
The breakdown of equipment and technical facilities at 31 December 2018 is as follows:
The Company’s bylaws state that its corporate purpose includes the management and operation of telecommunications services and the management of the national radio and television networks. As the Company is unilaterally responsible for the broadcast of radio and television signals, it receives no remuneration for the management of said networks. The Law on public radio transmissions and the creation of the government-owned company RTVA, SA granted the Government powers to allocate the assets needed for the operation of radio and television services. This allocation did not make any reference to the assets held by the Company.
Installed equipment recorded under Plant and equipment includes items owned by the Company but in the possession of third parties who are customers of the Company.
It is the Company’s policy to take out insurance against any risks that may affect its property, plant and equipment. The insurance policies which were valid at 31 December 2018 were adequate to cover the Company’s assets.