13.	PROPERTY, PLANT AND EQUIPMENT

	Land and buildings US$‘000			Leasehold improvements US$‘000			Computers, fixtures and fittings US$‘000			Plant and equipment US$‘000			Total US$‘000
Cost
At January 1, 2018		2,624			3,004			5,894			37,895			49,417
Additions		19			1,609			829			5,068			7,525
Disposals or retirements		—			(1	)		(131	)		(1,804	)		(1,936	)
Exchange adjustments		(38	)		(52	)		(7	)		(1,095	)		(1,192	)

At December 31, 2018		2,605			4,560			6,585			40,064			53,814

At January 1, 2019		2,605			4,560			6,585			40,064			53,814
Adjustment on transition to IFRS 16		20,961			—			149			75			21,185
Additions		681			71			168			1,905			2,825
Disposals or retirements		—			(1,626	)		(2,610	)		(3,314	)		(7,550	)
Exchange adjustments		22			—			—			(54	)		(32	)

At December 31, 2019		24,269			3,005			4,292			38,676			70,242

Accumulated depreciation and impairment losses
At January 1, 2018		(1,283	)		(2,659	)		(5,308	)		(34,367	)		(43,617	)
Charge for the year		(80	)		(47	)		(185	)		(1,063	)		(1,375	)
Impairment loss		(578	)		(543	)		(423	)		(4,568	)		(6,112	)
Disposals or retirements		—			—			130			1,679			1,809
Exchange adjustments		7			6			3			827			843

At December 31, 2018		(1,934	)		(3,243	)		(5,783	)		(37,492	)		(48,452	)

At January 1, 2019		(1,934	)		(3,243	)		(5,783	)		(37,492	)		(48,452	)
Charge for the year		(1,545	)		(105	)		(200	)		(680	)		(2,530	)
Adjustment on transition to IFRS 16		(10,984	)		—			(40	)		(75	)		(11,099	)
Impairment loss as at December 31, 2019		(4,024	)		(233	)		(276	)		(1,816	)		(6,349	)
Disposals or retirements		—			1,544			2,618			3,331			7,493
Reallocations / reclassifications		—			—			—			(5	)		(5	)
Exchange adjustments		(6	)		—			(1	)		(3	)		(10	)

At December 31, 2019		(18,493	)		(2,037	)		(3,682	)		(36,740	)		(60,952	)

Carrying amounts
At December 31, 2019		5,776			968			610			1,936			9,290

At December 31, 2018		671			1,317			802			2,572			5,362

Right-of-use assets

The right-of-use assets are included in the same line item as the corresponding underlying assets would be presented if they were owned. The Group has used the modified retrospective application method for its first time application of IFRS 16, Leases in 2019. Right-of-use assets were assessed for impairment on transition by applying IAS 36, Impairment as at January 1, 2019. Right of Use assets leased by three Cash Generating Units, in which there was an unallocated impairment loss as at December 31, 2018, were impaired by a total of US$11,099,000. This amount is shown in the Consolidated Statement of Changes in Equity as a movement in Accumulated Surplus.

	US$000
Right-of-use assets cost at transition before impairment		21,185
Impairment adjustment on transition		(11,099	)

Right-of-use assets value at transition after impairment		10,086

The following is a reconciliation of the financial statement line items from IAS 17 to IFRS 16 at January 1, 2019:

	Carrying amount at December 31, 2018			Remeasurement			Impairment			IFRS 16 carrying amount at January 1, 2019
	US$000			US$000			US$000			US$000
Property, plant & equipment		5,362			21,185			(11,099	)		15,448
Lease liabilities		(962	)		(21,185	)		-			(22,147	)
Retaining earnings		(55,319	)		-			11,099			(44,220	)

Total		(50,919	)		-			-			(50,919	)

Additional information on the right-of-use assets by class of assets is as follows:

	Carrying amount		Depreciation			Impairment
	At December 31, 2019		Year ended December 31, 2019			Year ended December 31, 2019
	US$000		US$000			US$000
Buildings		5,220		(1,523	)		(3,913	)
Computer equipment		7		(39	)		(63	)

		5,227		(1,562	)		(3,976	)

Income from sub-letting right-of-use buildings amounted to US$3,000 in the year ended December 31, 2019.

Right-of-Use assets	No. of Right-of-Use leased assets		Range of remaining term in years	Average remaining lease term (years)		No. of Leases with extension options		No. of Leases with options to purchase		No. of leases with variable payments linked to index		No. of leases with termination options
Building		13	1 to 14		5		1		-		2		4
Vehicle		9	1 to 2		1		-		9		-		9
I.T. and office equipment		11	1 to 2		2		-		-		-		1

The annual impairment review performed at December 31, 2019 showed that the carrying value of the Group’s assets exceeded the amount to be recovered through use or sale of the assets by a total of US$76,740,000. The details of the impairment review are described in Note 14. When an impairment loss is identified in a cash generating unit, it must be first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. In this manner, an impairment loss of US$6,349,000 was allocated to property, plant and equipment as at December 31, 2019. The recoverable amount of property, plant and equipment was determined to be the value in use of each cash generating unit.

The annual impairment review performed at December 31, 2018 showed that the carrying value of the Group’s assets exceeded the amount to be recovered through use or sale of the assets by a total of US$57,794,000. The details of the impairment review are described in Note 14. When an impairment loss is identified in a cash generating unit, it must be first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. In this manner, an impairment loss of US$6,112,000 was allocated to property, plant and equipment in 2018. The recoverable amount of property, plant and equipment was determined to be the value in use of each cash generating unit.

Assets held under operating leases (where the Company is the lessor)

The Company has a number of assets included in plant and equipment which generate operating lease revenue for the Group. The net book value of these assets as at December 31, 2019 and 2018 is US$Nil following full write down of the assets due to group impairment (refer to Note 14). Depreciation charged on these assets in 2019 amounted to US$7,000 (2018: US$8,000).

Included in disposals/retirements in 2019 is US$Nil (2018: US$12,000) relating to the net book value of leased instruments reclassified as inventory on return from customers.

Property, plant and equipment under construction

There were no assets under contraction included in property, plant and equipment at December 31, 2019 (2018: US$204,000).