4.2 Intangible assets

CHF million

Energy purchase rights 1

Other intangible assets

Assets under development and prepayments

Total

Net carrying amount at 1 January 2021

27

65

7

99

Investments

 

 

5

5

Own work capitalised

 

 

5

5

Reclassifications

 

11

– 11

 

Amortisation

– 1

– 13

 

– 14

Impairment

 

 

– 2

– 2

Currency translation differences

 

– 1

 

– 1

Net carrying amount at 31 December 2021

26

62

4

92

Of which, cost value

1,490

523

4

2,017

Of which, accumulated amortisation

– 1,464

– 461

 

– 1,925

1 Include prepayments for rights to purchase energy in the long term, including capitalised interest, as well as long-term energy purchase agreements acquired in business combinations.

CHF million

Energy purchase rights 1

Other intangible assets

Assets under development and prepayments

Total

Net carrying amount at 1 January 2020

30

66

6

102

Investments

 

 

11

11

Own work capitalised

 

 

5

5

Reclassifications

 

21

– 15

6

Amortisation

– 2

– 19

 

– 21

Impairment

– 1

– 3

 

– 4

Net carrying amount at 31 December 2020

27

65

7

99

Of which, cost value

1,492

514

7

2,013

Of which, accumulated amortisation

– 1,465

– 449

 

– 1,914

1 Include prepayments for rights to purchase energy in the long term, including capitalised interest, as well as long-term energy purchase agreements acquired in business combinations.

Impairment

Impairment losses of CHF 2 million (previous year: CHF 3 million) were recognised in the Digital & Commerce business division as internally developed software could not be used as originally planned. In addition, in the previous year, impairment losses of CHF 1 million had to be recognised on energy purchase rights of Alpiq Wind Italia S.r.l. in the International business division. Please refer to note 4.1 for more information.

Accounting policies

Intangible assets are stated at cost, net of accumulated amortisation and any impairment losses. Assets with a limited useful life are generally amortised on a straight-line basis over their estimated useful economic lives. Amortisation of energy purchase rights is applied in line with the scope of the energy purchases made each year in relation to the total energy purchase quantity agreed contractually. The amortisation period and amortisation method are reviewed at each financial year end. The useful lives of the intangible assets recognised range from 1 to 76 years. Assets under development and prepayments are not subject to amortisation. An impairment test is only performed whenever indications exist that the assets may be impaired.

If the asset’s carrying amount exceeds its estimated recoverable amount, it is written down to its recoverable amount. An impairment loss previously recognised for an intangible asset is reversed in the income statement if the impairment no longer exists, or has decreased. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised.

For the significant estimation uncertainties and assumptions, please refer to note 4.1.

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