Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Disclosure of property, plant and equipment [text block] [Abstract]

Disclosure of property, plant and equipment [text block]

Note 8 - Property, Plant and Equipment

				Switching
				Transmission,					Multi-						Office
				power,					channel						equipment,
				Cellular,					equipment						computers
	Land and			And satellite			Network		and			Subscriber			and
	buildings			equipment			equipment		infrastructure			equipment			vehicles			Total
	NIS			NIS			NIS		NIS			NIS			NIS			NIS
Cost
Balance as at January 1, 2018		1,004			5,865			5,968		1,200			1,738			1,076			16,851
Additions		22			396			213		247			311			86			1,275
Disposals		(2	)		-			-		(1	)		(15	)		(9	)		(27	)
Transfer to Investment property		(22	)		-			-		-			-			-			(22	)
Balance as at December 31, 2018		1,002			6,261			6,181		1,446			2,034			1,153			18,077
Balance as at January 1, 2019		1,002			6,261			6,181		1,446			2,034			1,153			18,077
Additions		63			359			202		147			322			63			1,156
Disposals		(88	)		(3	)		-		(3	)		(7	)		(1	)		(102	)
Transfer to assets held for sale		(43	)		-			-		-			-			-			(43	)
Balance as at December 31, 2019		934			6,617			6,383		1,590			2,349			1,215			19,088
Depreciation and impairment losses
Balance as at January 1, 2018		455			3,953			2,940		591			1,140			832			9,911
Depreciation for the year		73			481			210		214			215			84			1,277
Loss from impairment of assets		22			-			-		526			-			28			576
Balance as at December 31, 2018		550			4,434			3,150		1,331			1,355			944			11,764
Balance as at January 1, 2019		550			4,434			3,150		1,331			1,355			944			11,764
Depreciation for the year		57			433			201		26			249			65			1,031
Loss from impairment of assets		26			74			45		106			-			10			261
Balance as at December 31, 2019		633			4,941			3,396		1,463			1,604			1,019			13,056
Carrying amounts
As at January 1, 2018		549			1,912			3,028		609			598			244			6,940
As at December 31, 2018		452			1,827			3,031		115			679			209			6,313
As at December 31, 2019		301			1,676			2,987		127			745			196			6,032

A. The residual value of the Group’s copper cables is assessed at the end of each quarter. The residual value is NIS 159 as at December 31, 2019 and NIS 168 as at December 31, 2018.

B. Fixed assets in the Group are derecognized at the end of each year upon reaching full depreciation, except for land, buildings, vehicles, copper cables and specific components for Pelephone’s UMTS network, which are derecognized upon their sale. In 2019, the Group derecognized fully depreciated property at a cost of NIS 481 (in 2018, NIS 537).

C. The Group companies reviewed the useful life of the fixed assets through the depreciation committee, in order to determine the estimated useful life of their equipment. The change is not expected to have a material effect on the depreciation expenses of the Group. Following the findings of the depreciation committees, minor changes were made in the estimated useful life of certain assets.

D. Most of the real estate assets used by Bezeq are leased under a capitalized lease from the Israel Lands Administration as from 1993 for 49 years, with an option for an extension of another 49 years. Lease rights are amortized over the term of the lease period.

E. In 2013, Bezeq started to deploy a fiber optic network that will reach the subscriber’s home, as a basis for future supply of advanced communications and broader bandwidths than those currently provided. In 2017, deployment of the fiber reached the state required for operation when a decision is made on the technology to be used, and Bezeq began to amortize the network. Commercial operation of the network is expected in the future.

F. In accordance with the Communications Order (Bezeq and Broadcasts) (Determination of Essential Service Provided by Bezeq - The Israel Telecommunication Corp., Limited), 1997, approval from the Prime Minister and Minister of Communications is required to confer rights in some of Bezeq’s assets (including switches, cable network, transmission network, and information and databases).

G. For agreements for purchasing fixed assets please refer to Note 23.

H. For information about pledges see Note 24.

I. For information about pledges on loans and borrowings, see Note 15.