27. Intangible assets

Changes in intangible assets (by group) in the year ended 31 December 2015
  Costs of completed development works Acquired concessions, patents, licenses and similar items, including: Computer software Intangible assets under construction Other intangible assets Total intangible assets
Gross value of tangible assets – opening balance 51,233 942,948 817,592 187,851 547,722 1,729,754
Increases (due to): 3,362 371,930 367,165 252,721 310,484 938,497
purchased and manufactured by use of own means 1,842 6,701 6,391 191,065 291 199,899
- change in group composition 260 220,403 220,403 58,893 302,750 1) 582,306
- reclassification from tangible assets under construction   1,260 144,357 140,363 - - 145,617
- other - 469 8 2,763 7,443 10,675
Decreases (due to): (6,938) (44,856) (3,947) (265,655) (3,752) (321,201)
- sale and liquidation (6,938) (44,656) (3,747) (116,589) (3,398) (171,581)
- reclassification from tangible assets under construction   - - - (145,617) - (145,617)
- other - (200) (200) (3,449) (354) (4,003)
Exchange differences (81) (620) (584) - (202) (903)
Gross value of tangible assets – closing balance 47,576 1,269,402 1,180,226 174,917 854,252 2,346,147
Accumulated depreciation – opening balance (30,731) (576,441) (492,418) (81) (92,620) (699,873)
Changes (due to): (1,936) (79,916) (81,653) - (160,607) (242,459)
- depreciation for the period (6,595) (89,390) (84,856) - (161,619) (257,604)
- sale and liquidation 4,683 9,587 2,847 - 2,804 17,074
- exchange differences (24) 241 257 - (2,146) (1,929)
- other - (354) 99 - 354 -
Accumulated depreciation – closing balance (32,667) (656,357) (574,071) (81) (253,227) (942,332)
Impairment losses – opening balance - (42,267) (8,102) (118,922) - (161,189)
Changes in other operating expenses - - - (37) - (37)
Other changes - 34,1652) - 116,4142) - 150,579
Impairment losses – closing balance - (8,102) (8,102) (2,545) - (10,647)
Net value of intangible assets – closing balance 14,909 604,943 598,053 172,291 601,025 1,393,168

1) Including assets acquired in company takeover transactions (trademark, CDI) amounting to PLN 300,000 thousand.

2) The Item indicates, among others, derecognition of total expenditures incurred for the GraphTalk project in the amount of PLN 116,309 thousand and the life unit-linked insurance management module and the base license GraphTalk in the amount of PLN 34,165 thousand and charged to impairment losses reported in the preceding periods.

Changes in intangible assets (by group) in the year ended 31 December 2014
  Costs of completed development works Acquired concessions, patents, licenses and similar items, including: Computer software Intangible assets under construction Other intangible assets Total intangible assets
Gross value of tangible assets – opening balance - 764,179 649,709 185,704 1,961 951,844
Increases (due to): 50,355 201,713 187,219 132,885 539,393 924,346
-purchased and manufactured by use of own means 469 9,682 8,409 129,640 128 139,919
- change in group composition 49,798 76,031 67,273 2,072 539,2651) 667,166
- reclassification from tangible assets under construction   88 115,898 111,435 - - 115,986
- other - 102 102 1,173 - 1,275
Decreases (due to): - (22,601) (18,911) (130,753) (585) (153,939)
- sale and liquidation - (7,739) (4,049) (13,301) - (21,040)
- transfer to a category of assets designated for sale in accordance with IFRS 5 2) - (14,853) (14,853) (70) (485) (15,408)
- reclassification from tangible assets under construction   - - - (115,986) - (115,986)
- other - (9) (9) (1,396) (100) (1,505)
Exchange differences 878 (343) (425) 15 6,953 7,503
Gross value of tangible assets – closing balance 51,233 942,948 817,592 187,851 547,722 1,729,754
Accumulated depreciation – opening balance - (476,148) (398,033) - (836) (476,984)
Changes (due to): (30,731) (100,293) (94,385) (81) (91,784) (222,889)
- depreciation for the period (1,136) (76,049) (73,162) - (87,853) (165,038)
- sale and liquidation - 7,283 3,590 - - 7,283
- change in group composition (29,068) (42,412) (35,789) (80) (2,877) (74,437)
- transfer to a category of assets designated for sale in accordance with IFRS 5 2) - 10,745 10,745 - - 10,745
- exchange differences (527) 249 360 (1) (1,154) (1,433)
- other - (109) (129) - 100 (9)
Accumulated depreciation – closing balance (30,731) (576,441) (492,418) (81) (92,620) (699,873)
Impairment losses – opening balance - (34,165)3) - (131,969)3) - (166,134)
Changes in other operating expenses - (301) (301) (121) - (422)
Other changes: - (7,801) (7,801) 13,168 - 5,367
- change in group composition - (8,075) (8,075) - - (8,075)
- other - 274 274 13,168 - 13,442
Impairment losses – closing balance - (42,267)3) (8,102) (118,922)3) - (161,189)
Net value of intangible assets – closing balance 20,502 324,240 317,072 68,848 455,102 868,692

1) Including assets acquired in company takeover transactions (customer relations, relations with brokers, future profits from concluded insurance contracts) amounting to PLN 536,387 thousand.

2) The item presents transfer of PZU Lithuania’s assets to assets held for sale due to the transaction described in Note 2.4.1. The decrease of assets was translated at average rate described in Note 5.3.

3) The item “Impairment losses” indicates losses for total expenditures incurred for the GraphTalk project in the amount of PLN 116,309 thousand and the life unit-linked insurance management module and the base license GraphTalk in the amount of PLN 34,165 thousand.

Intangible assets with indefinite period of use (trademarks with a total value of PLN 269,322 thousand as at 31 December 2014: PLN 169,344) were tested for impairment; as a result of the test, there was no reason found for impairment losses recognition.

Amortization of intangible assets by position in the consolidated statement of profit or loss 1 January - 31 December 2015 1 January - 31 December 2014
Insurance claims and change in technical provisions 18,527 18,650
Acquisition costs 29,691 19,111
Administrative expenses 46,273 38,365
Other operating expenses 1) 163,064 88,830
Costs of investment activities 45 81
Other 4 1
Total depreciation 257,604 165,038

1) Including amortization of intangible assets acquired in acquisitions transactions in the amount of PLN 161 081 thousand (in 2014: PLN 87 795 thousand).