01 02 03 Financial Statements 04 11.Property and equipment The movements in property and equipment were as follows: Land and Furniture Assets office Hospitals and Medical Motor Leasehold under buildings and clinics fixtures Computers equipment vehicles improvements construction Total Cost 1 January 2017 8,182 401,659 12,823 10,639 145,539 4,344 9,262 752 593,200 Acquisition through business combinations (Note 5) 6,829 1,805 1,546 1,051 1,064 1,129 598 – 14,022 Revaluation – (6,464) – – – – – – (6,464) Additions 3,279 28,917 5,591 4,711 37,342 342 2,443 – 82,625 Disposals – (427) (339) (197) – (271) (23) – (1,257) Transfers – 425 – – – – – (425) – 31 December 2017 18,290 425,915 19,621 16,204 183,945 5,544 12,280 327 682,126 Acquisition through business combinations (Note 5) – – 20 – – – – – 20 Additions 607 26,858 6,079 4,883 44,817 1,152 1,679 11 86,086 Disposals – – (258) (117) (865) (300) (72) – (1,612) Transfers 6,624 (6,624) – – – – – – – 31 December 2018 25,521 446,149 25,462 20,970 227,897 6,396 13,887 338 766,620 Land and Furniture Assets office Hospitals and Medical Motor Leasehold under buildings and clinics fixtures Computers equipment vehicles improvements construction Total Accumulated depreciation 1 January 2017 192 180 1,867 2,587 11,678 887 837 – 18,228 Depreciation charge 119 3,918 981 2,301 14,098 937 986 – 23,340 Disposals – (134) (318) (174) – (76) (1) – (703) Revaluation – (1,598) – – – – – – (1,598) 31 December 2017 311 2,366 2,530 4,714 25,776 1,748 1,822 – 39,267 Depreciation charge 186 4,778 2,258 3,866 17,020 1,146 1,337 – 30,591 Disposals – (1) (131) (106) (865) (152) (20) – (1,275) 31 December 2018 497 7,143 4,657 8,474 41,931 2,742 3,139 – 68,583 Net book value 1 January 2017 7,990 401,479 10,956 8,052 133,861 3,457 8,425 752 574,972 31 December 2017 17,979 423,549 17,091 11,490 158,169 3,796 10,458 327 642,859 31 December 2018 25,024 439,006 20,805 12,496 185,966 3,654 10,748 338 698,037 The Group pledges its office and hospital buildings and assets under construction as collateral for its borrowings. The carrying amount of the buildings and assets under construction pledged as at 31 December 2018 was GEL 405,710 (2017: GEL 397,436). The Group engaged an independent appraiser to determine the fair value of its land and office buildings and hospitals and clinics on 1 October 2017, which is the latest revaluation date. Fair value is determined by reference to market-based evidence. If the land and office buildings and hospitals and clinics were measured using the cost model, the carrying amounts as at 31 December 2018 and 31 December 2017 would be as follows: 31 December 2018 31 December 2017 Cost 465,355 437,890 Accumulated depreciation and impairment (17,110) (12,148) Net carrying amount 448,245 425,742 153