ÖBB Annual Report 2023

Consolidated Financial Statements 232 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 14 Property, plant and equipment and investment property Property, plant and equipment and investment property in accordance with IAS 40 are carried at cost less depreciation and any impairment losses. Cost includes certain expenses incurred in the course of the construction or development of the rail infrastructure network, such as acquisition cost, material and personnel expenses, directly attributable fixed and variable overhead, the present value of obligations resulting from demolition, dismantling and removing the asset, restoration of sites, and borrowing costs directly attributable to qualifying assets. VAT charged by suppliers with a subsequent entitlement to input tax deduction is not included in acquisition or production cost. Property, plant and equipment under a finance lease are recognised at the lower of the present value of the minimum lease payments or fair value. Significant parts of an asset are capitalised separately if they have different useful lives than the rest of the asset. This is not the case if their acquisition cost is insignificant in relation to the entire acquisition costs for the item. Depreciation of property, plant and equipment and investment property is calculated on a straight-line basis over the estimated useful life of the asset and reported in the line item Depreciation and Amortisation in the Consolidated Income Statement. Expenses incurred in the carrying amount of an item of property, plant and equipment during its creation are shown as “Assets under Construction”. Leasehold improvements are also depreciated over the shorter of their estimated useful life or the term of the lease. There were no significant changes to the useful lives in the 2023 financial year. The economic useful lives are as follows for financial 2023 and 2022: Years Buildings Substructure 20–150 Power plants 80 Tunnels 80 and 150 respectively Railway tracks 100 Other substructures 20 and 80 respectively Superstructure 5–80 Roadbed and track 35–50 Security and telecommunications equipment 5–30 Automobiles and trucks 5–50 Technical equipment and machinery High-voltage and lightning equipment 5–50 Tools and equipment 4–20 Machinery 3–15 Other plant, furniture and fixtures 1–15 The following useful lives, which have not changed significantly compared to the previous year, form the basis for straight- line amortisation in the financial year 2023 with regard to the useful lives of the rights of use recognised in accordance with IFRS 16: Years Rights of use for land and buildings 1–42 Rights of use for automobiles and trucks 1–10 Rights of use for technical equipment and machinery 1–14 Rights of use for other plant, furniture and fixtures 1–6 Residual carrying amounts and remaining useful lives are reviewed each year as of the reporting date. Costs for maintenance measures and repairs are expensed as incurred, replacement, expansion, and value-increasing investments are capitalised. The distinction between maintenance measures and repairs that are expensed immediately and investments that are capitalised as mandatory is based on the rules of IAS 16 “Property, plant and equipment” and accounting principles derived from these for Group-specific circumstances. The cost and accumulated depreciation and amortisation of assets sold or retired are removed from the accounts, and resulting gains or losses are recognised in other operating income or expenses. The useful economic lifetimes and depreciation methods presented also apply to those assets that are reported in the item “Investment Property”.