Notes to Consolidated Financial Statements continued Thousands of Georgian Lari 12. Property and Equipment and Intangible Assets continued The movements in property and equipment during the year ended 31 December 2016 were as follows: Office buildings Hospitals Furniture Computers and service and and and Motor LeaseholdAssets under Infrastructure centres clinics fixtures equipment vehicles improvements construction assets Other Total Cost 31 December 2015 211,491 332,775 174,334 197,274 9,586 22,147 9,033 – – 956,640 Additions 5,298 47,950 21,714 69,897 3,394 2,299 98,211 1,098 30 249,891 Business combination 109,863 13,296 3,528 2,605 6,689 1,063 21,659 169,939 – 328,642 Disposals (330) (5,412) (1,530) (1,700) (2,958) (2,970) (917) (670) (64) (16,551) Transfers 3,196 194 (154) (372) 3,580 3,716 (39,097) 28,937 – – Transfers from investment properties 351 – – – – – – – – 351 Transfers (to) from other assets – – (760) (857) 1 – 504 – 2,170 1,058 Revaluation – 12,990 – – – – – – – 12,990 Write off – – (2,440) (17,720) (667) (176) – – – (21,003) Currency translation differences 1,560 – 111 312 64 158 143 – – 2,348 31 December 2016 331,429 401,793 194,803 249,439 19,689 26,237 89,536 199,304 2,136 1,514,366 Accumulated impairment 31 December 2015 1,221 – 38 82 7 – 9 – – 1,357 Impairment 1,403 – – – – – – – – 1,403 Currency translation differences 302 – 2 (22) – – – – – 282 31 December 2016 2,926 – 40 60 7 – 9 – – 3,042 Accumulated depreciation 31 December 2015 18,560 6,844 91,421 68,591 5,345 6,495 – – – 197,256 Depreciation charge 3,421 1,965 17,976 24,285 2,572 3,726 – 5,738 74 59,757 Currency translation differences 1,019 – 54 167 66 8 – – – 1,314 Transfers 764 – (204) (319) (241) – – – – – Transfers (to) from other assets – – (414) (694) – – – – – (1,108) Revaluation – (7,814) – – – – – – – (7,814) Write off – – (2,440) (17,720) (667) (176) – – – (21,003) Disposals (39) (255) (429) (434) (1,898) (2,613) – – (4) (5,672) 31 December 2016 23,725 740 105,964 73,876 5,177 7,440 – 5,738 70 222,730 Net book value: 31 December 2015 191,710 325,931 82,875 128,601 4,234 15,652 9,024 – – 758,027 31 December 2016 304,778 401,053 88,799 175,503 14,505 18,797 89,527 193,566 2,066 1,288,594 The Group pledges its property as collateral for its borrowings. The carrying amount of the pledged property, excluding that of disposal group held for sale, as at 31 December 2018 was nil (2017: GEL 90,200, including that of disposal group held for sale, 2016: 482,001, including that of disposal group held for sale). Within the regular cycle of the useful life review for its intangible assets, the Group has changed the estimates regarding the remaining useful life of certain assets. The change in the estimates resulted from the updated strategy in relation to using these assets in the future. The useful life of these assets was increased on average from 10 to 15 years. The change in accounting estimate was applied from the second half of the year on a prospective basis resulting in a decrease of amortisation expense by GEL 621. 232 Annual Report 2018Bank of Georgia Group PLC