11 Depreciation and value adjustments of tangible assets

 

2017

2016

CHF thousand

 

 

 

 

 

Depreciation and value adjustments of tangible assets

–41,724

–26,338

Depreciation of tangible assets

–41,724

–41,844

Reversal of impairments of tangible assets

15,506

Reversals of impairments of generations assets are explained by segment:

Market Switzerland segment

In 2016 THCF 2,834 in reversals of impairments of intangible assets was recognised for the Taschinas plant. This is due to a fall in the cost of capital (WACC) prompted by the interest rate environment and a reduction in maintenance and operating expenditure in line with the market situation.

Market Italy segment

A reversal of TCHF 12,672 in the 2016 financial year relates to the Teverola combined-cycle gas turbine plant. The reversal for the plant was prompted by a substantial improvement in revenues from ancillary services. The generation asset is valued on the basis of its value in use calculated on a discounted cash flow basis.