Consolidated financial statement of JSW S.A. Capital Group for 2012

8. Investment property

	2012	2011
As at 1 January
Net book value at the beginning of the period	-	-
Reclassified from property, plant and equipment, including:	20.8	-
- gross value	21.7	-
- accumulated depreciation	(0.9)	-
Current expenditures	7.6	-
Depreciation	(0.3)	-
Revaluation charge	(5.0)	-
Net book value	23.1	-
As at 31 December
Gross value	29.3	-
Accumulated depreciation *	(6.2)	-
Net book value	23.1	-

* This item includes accumulated depreciation and a revaluation charge for investment property

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In 2012, the Parent Company reclassified PLN 20.8 million worth of property, plant and equipment to investment property. The investment property components is the “Różany Gaj” building, currently handed over to an operator for commercial activity. The further expenditures incurred in 2012 after the reclassification are PLN 7.6 million. The property was commissioned for use in Q4 2012. The expected useful life of the investment property is 40 years. Investment properties are depreciated using the straight-line method over their useful life.

JSW S.A. uses the purchase price or manufacturing cost model to measure the value of investment property.

In 2012, the Parent Company made a revaluation charge of PLN 5.0 million due to impairment of the investment property down to the fair value calculated by an independent appraiser using the income method. Establishment of revaluation charges for investment property is captured as other costs in the financial result.