5 Non-current assets and disposal groups held for sale and liabilities directly associated with non-current assets and disposal groups held for sale

As of December 31, 2019, current assets recognized in the consolidated statement of financial position included EUR 0.1 billion (December 31, 2018: EUR 0.1 billion) in non-current assets and disposal groups held for sale. At December 31, 2019, as at the prior-year reporting date, current liabilities in the consolidated statement of financial position did not include any liabilities directly associated with non-current assets and disposal groups held for sale.

millions of €

 

 

 

 

 

 

 

 

Dec. 31, 2019

Dec. 31, 2018

 

 

 

 

 

 

 

 

 

Deutsche Telekom AG

Other

Total

Deutsche Telekom AG

Telekom Albania

Other

Total

NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE

 

 

 

 

 

 

 

Cash and cash equivalents

0

0

0

0

7

0

7

Trade receivables

0

0

0

0

12

0

12

Inventories

0

0

0

0

2

0

2

Other current assets

0

35

35

0

7

34

41

Intangible assets

0

0

0

0

13

0

13

Property, plant and equipment

50

12

62

42

21

0

63

Deferred tax assets

0

0

0

0

6

0

6

TOTAL

50

47

97

42

68

34

145

LIABILITIES DIRECTLY ASSOCIATED WITH NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE

 

 

 

 

 

 

 

Trade and other payables

0

29

29

0

34

0

34

Other non-current provisions

0

0

0

0

2

0

2

TOTAL

0

29

29

0

36

0

36

Real estate in the Group Headquarters & Group Services segment was sold in the reporting year. As of December 31, 2018, this item had included the assets and liabilities of Telekom Albania, which had been recorded in the Europe operating segment. This made it necessary to remeasure these assets, which resulted in an impairment loss of EUR 35 million recognized as of the date of the reclassification in the prior year on some of the intangible assets and property, plant and equipment assigned to the Albania cash-generating unit. This impairment was recognized under depreciation, amortization and impairment losses. On January 15, 2019, OTE concluded an agreement for the sale of its stake in Telekom Albania to Bulgarian company Albania Telecom Invest AD for a purchase price of EUR 50 million. The transaction was consummated on May 7, 2019.

For further information, please refer to the section “Changes in the composition of the Group and other transactions.”

In addition, Deutsche Telekom AG’s real estate held for sale of EUR 6 million as of December 31, 2019 (December 31, 2018: EUR 21 million) was no longer recognized at its carrying amounts in accordance with IFRS 5, but at its fair value less costs of disposal. This real estate relates to sites that are no longer considered necessary for operations or that will, in the foreseeable future, no longer be considered necessary for operations on account of technological advances. The fair values are determined by external experts. The fair value is measured on a regular basis using the earnings value method, taking into account local market estimates and specific characteristics of the property, including input parameters that cannot be observed in the market (Level 3). The expected costs of disposal (currently usually around 10 percent of the fair value) are subtracted. The real estate was written down by EUR 5 million (2018: EUR 11 million) to the fair value less costs of disposal. The expense was recognized under depreciation, amortization and impairment losses.

No reversals of impairments of the carrying amounts of the non-current assets and disposal groups held for sale were recognized either in the reporting year or in the prior year.