Grifols SA | CIK:0001438569 | 3

  • Filed: 4/6/2018
  • Entity registrant name: Grifols SA (CIK: 0001438569)
  • Generator: Merrill
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1438569/000110465918022787/0001104659-18-022787-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1438569/000110465918022787/grfs-20171231.xml
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  • ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory

     

    (g)Property, plant and equipment

     

    (i)Initial recognition

     

    Property, plant and equipment are recognized at cost or deemed cost, less accumulated depreciation and any accumulated impairment losses. The cost of self-constructed assets is determined using the same principles as for an acquired asset, while also considering the criteria applicable to production costs of inventories. Capitalized production costs are recognized by allocating the costs attributable to the asset to “Self-constructed non-current assets” in the consolidated statement of profit and loss.

     

    At 1 January 2004 the Group opted to apply the exemption regarding fair value and revaluation as deemed cost as permitted by IFRS 1 First time Adoption of International Financial Reporting Standards.

     

    (ii)Depreciation

     

    Property, plant and equipment are depreciated by allocating the depreciable amount of an asset on a systematic basis over its useful life. The depreciable amount is the cost or deemed cost of an asset, less its residual value. The Group determines the depreciation charge separately for each item for a component of property, plant and equipment with a cost that is significant in relation to the total cost of the asset.

     

    Property, plant and equipment are depreciated using the following criteria:

     

     

     

    Depreciation method

     

    Rates

     

     

     

     

     

     

     

    Buildings

     

    Straight line

     

    1% - 3%

     

    Other property, technical equipment and machinery

     

    Straight line

     

    4%-10%

     

    Other property, plant and equipment

     

    Straight line

     

    7% - 33%

     

     

    The Group reviews residual values, useful lives and depreciation methods at each financial year end. Changes to initially established criteria are accounted for as a change in accounting estimates.

     

    (iii)Subsequent recognition

     

    Subsequent to initial recognition of the asset, only those costs incurred which will probably generate future profits and for which the amount may reliably be measured are capitalized. Costs of day-to-day servicing are recognized in profit and loss as incurred.

     

    Replacements of property, plant and equipment which qualify for capitalization are recognized as a reduction in the carrying amount of the items replaced. Where the cost of the replaced items has not been depreciated independently and it is not possible to determine the respective carrying amount, the replacement cost is used as indicative of the cost of items at the time of acquisition or construction.

     

    (iv)Impairment

     

    The Group tests for impairment and reversals of impairment losses on property, plant and equipment based on the criteria set out in note 4(i) below.