ELBIT IMAGING LTD (ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory)

NOTE 8:-

PROPERTY, PLANT AND EQUIPMENT

Composition:

	December 31, 2017
	Real estate
	Hotels at revaluation model			At cost model
	Operating			Land and buildings			Other fixed assets			Total
	NIS in thousands

Cost:
Balance as of January, 1		711,906			15,236			31,516			758,658
Adjustment of Depreciation and amortization balance as of December 31, 2017		(28,880	)		-			-			(28,880	)
Additions during the year		3,156			-			-			3,156
Revaluation of hotels during the year		11,637			-			-			11,637
Disposals during the year (*)		(696,072	)		(15,288	)		(3,685	)		(715,045	)
Foreign currency translation adjustments		(1,748	)		72			463			(1,213	)

Balance as of December, 31		-			20			28,294			28,314

Accumulated depreciation:
Balance as of January 1,		-			7,482			25,051			32,533
Adjustment of Depreciation and amortization balance as of December 31, 2017		(28,880	)		-			-			(28,880	)
Additions during the year		28,880			52			71			29,003
Disposals during the year		-			(7,514	)		(2,528	)		(10,042	)
Foreign currency translation adjustments		-			-			380			380

Balance as of December, 31		-			20			22,974			22,994

Provision for impairment:
Balance as of January, 1		-			-			4,490			4,490

Balance as of December, 31		-			-			4,490			4,490

Net book value		-			-			830			830

(*)

See also Note 19.

	December 31, 2016
	Real estate
	Hotels at revaluation model (*)						At cost model
	Operating			plot designated for hotel			Land and buildings			Other fixed assets			Total
	NIS in thousands

Cost:
Balance as of January, 1		678,516			18,700			16,049			38,078			751,343
Adjustment of Depreciation and amortization balance as of December 31, 2016		(37,017	)		-			-			-			(37,017	)
Additions during the year		2,473			-						68			2,541
Revaluation of hotels during the year		106,842			-			-			-			106,842
Disposals during the year		-			(18,700	)		-			(5,712	)		(24,412	)
Foreign currency translation adjustments		(38,908	)		-			(813	)		(918	)		(40,639	)

Balance as of December, 31		711,906			-			15,236			31,516			758,658

Accumulated depreciation:
Balance as of January 1,		-			-			7,858			31,129			38,987
Adjustment of Depreciation and amortization balance as of December 31, 2016		(37,032	)		-			-			-			(37,032	)
Additions during the year		37,032			-						307			37,339
Disposals during the year		-			-						(5,513	)		(5,513	)
Foreign currency translation adjustments		-			-			(376	)		(872	)		(1,247	)

Balance as of December, 31		-			-			7,482			25,051			32,533

Provision for impairment:
Balance as of January, 1		-			3,700			-			4,490			8,190

Balance as of December, 31		-			-			-			4,490			4,490

Net book value		711,906			-			7,754			1,975			721,635

(*)

Had the Group continued to present the hotel based on the cost model, their net book value as of December 31, 2016, would have been NIS 284 million.

Composition of real estate assets included in property plant and equipment distinguished between freehold and leasehold rights:

	Year ended December 31,
	2017		2016
	NIS in thousands

Freehold rights		-		711,906
Leasehold rights		-		-

Net book value		-		711,906

Annual depreciation rates - see note 2l.

On June 23, 2016, the Company announced a termination of the lease agreement with the Israel Land Administration (“ILA”) in respect of plot located in, Tiberias Israel.

Following the termination of the Agreement, ILA released two bank guarantees in the aggregated amount of approximately NIS 13 million, which have been provided to ILA in order to secure the Company’s undertakings under the lease agreement and an additional amount of approximately NIS 27 million. The company recorded in the year ended December 31 2017 and 2016 a gain in the amount of NIS 3 million and NIS 8 million respectively.

ELBIT IMAGING LTD | CIK:0001027662 |

ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory