13. Property, plant and equipment
Assets under Construction | Vessels | Plant Equipment and Vehicles | Land and Buildings | Total | |
|---|---|---|---|---|---|
€m | €m | €m | €m | €m | |
Cost | |||||
At 1 January 2018 | 103.5 | 286.7 | 56.1 | 26.9 | 473.2 |
Additions | 61.5 | 16.4 | 4.1 | 0.6 | 82.6 |
Reclassification | (4.0) | - | 4.0 | - | - |
Disposals | - | (24.8) | (0.8) | (1.6) | (27.2) |
Currency adjustment | - | (0.2) | - | - | (0.2) |
At 31 December 2018 | 161.0 | 278.1 | 63.4 | 25.9 | 528.4 |
Adjustment on application of IFRS 16 (note 30) | - | - | (4.7) | - | (4.7) |
Additions | 2.8 | 40.6 | 2.3 | 0.1 | 45.8 |
Reclassification | (156.9) | 156.9 | - | - | - |
Disposals | - | (47.5) | (0.8) | - | (48.3) |
Currency adjustment | - | 1.0 | 0.2 | - | 1.2 |
At 31 December 2019 | 6.9 | 429.1 | 60.4 | 26.0 | 522.4 |
Accumulated depreciation | |||||
At 1 January 2018 | - | 171.8 | 42.7 | 9.2 | 223.7 |
Depreciation charge for the financial year | - | 18.3 | 3.2 | 0.4 | 21.9 |
Eliminated on disposals | - | (23.4) | (0.8) | (0.7) | (24.9) |
Currency adjustment | - | - | - | - | - |
At 31 December 2018 | - | 166.7 | 45.1 | 8.9 | 220.7 |
Adjustment on application of IFRS 16 (note 30) | - | - | (3.5) | - | (3.5) |
Depreciation charge for the financial year | - | 24.1 | 3.0 | 0.4 | 27.5 |
Eliminated on disposals | - | (38.9) | (0.8) | - | (39.7) |
Currency adjustment | - | 0.2 | 0.1 | - | 0.3 |
At 31 December 2019 | - | 152.1 | 43.9 | 9.3 | 205.3 |
Carrying amount | |||||
At 31 December 2019 | 6.9 | 277.0 | 16.5 | 16.7 | 317.1 |
At 31 December 2018 | 161.0 | 111.4 | 18.3 | 17.0 | 307.7 |
Assets previously designated as held under finance leases under the previous leasing standard were reclassified as right of use assets on the initial application of IFRS 16: Leases at 1 January 2019. Further information is provided at note 30.
In accordance with IAS 16, the property, plant and equipment of the Group and Company has been reviewed in relation to the residual values used for the purpose of depreciation calculations. In considering residual values of passenger ships, the Directors have taken into consideration the valuation of the scrap value of the ships per light displacement tonne. Residual values are reviewed annually and updated where the Directors consider the latest estimates of residual value estimates would lead to a significant change in depreciation charges.
Estimations of economic life and residual values of ships are a key judgemental estimate in the financial statements. A 10% increase/ decrease in residual values of ships would have a €0.2 million (2018: €0.2 million) decrease/ increase on depreciation in the Consolidated Income Statement and a €0.2 million (2018: €0.2 million) increase/ decrease on the carrying value of property, plant and equipment in the Statement of Financial Position. In relation to the remaining estimated economic life of the ships, a one year increase/ decrease would have a €0.8 million (2018: €1.6 million) decrease/ €1.0 million (2018: €2.3 million) increase in depreciation in the Consolidated Income Statement, and a €0.8 million (2018: €1.6 million) increase/ €1.0 million (2018: €2.3 million) decrease on the carrying value of property, plant and equipment in the Statement of Financial Position.
Assets under construction at 31 December 2019 amounted to €6.9 million of which €6.4 million relates to a vessel under construction and the balance relates to other works. Deposits paid for the construction or delivery of assets in excess of work completed at the Statement of Financial Position date are treated as prepayments and included in Trade and other receivables.
During the year the vessel W.B. Yeats, which had been delivered to the Group in December 2018, completed final certifications entering service on 22 January 2019. Costs related to this vessel of €156.9 million were reclassified from Assets under Construction to Vessels on final certification.
During the year ended 31 December 2019 additions to assets under construction included staff costs of €0.1 million (2018: €0.5 million) and interest costs of €1.4 million (2018: €1.6 million).