2. Assets held for sale and discontinued operations

The Parent Company KOGENERACJA S.A. classified a transformer and switching station R 2 110 kV at EC Czechnica, located in Siechnice, as assets held for sale. On 5 December 2017, KOGENERACJA S.A. sold the aforementioned switching station to Tauron Dystrybucja S.A. The subject of the sale comprised the following items which formed part of the aforementioned station: buildings & structures and plant & machinery making up the electrical power engineering infrastructure, which were complete and ready to use.

On 21 July 2015 the Parent Company KOGENERACJA S.A signed an agreement with Wrocław Technology Park terminating cooperation effective from 30 September 2015. As part of the disinvestment process, assets relating to EC Muchobór were partially disposed and the reaming assets were appraised after disassembly and qualified as assets held for sale. As at 31 December 2017, the value of fixed assets presented as assets held for sale is PLN 1 810 thousand (31 December 2016: PLN 2 550 thousand). The fair value of the assets held for sale was estimated by valuation expert who used the cost approach (level 3 fair values hierarchy). In 2016 KOGENERACJA S.A. released the impairment loss in the amount of PLN 2 922 thousand. In 2017, after the value had been re-estimated by an expert, an impairment loss of PLN 740 thousand was recognized.

The Management Board of the Parent Company decided to sell the assets, and an active plan was implemented to carry out this transaction.

In 2017 no operations were discontinued.