Property, plant and equipment
Property, plant and equipment, including the building used by the Company itself, are carried at cost less accumulated depreciation and impairment losses. The cost of self-constructed assets includes the costs of materials, direct labour and, where relevant, the initial estimate of the demolition and removal costs and the site preparation costs for the site on which the assets are to be built, together with other directly attributable costs.
Where components of an item of property, plant and equipment have different useful lives, they are appraised as separate items of property, plant and equipment.
Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of items of property, plant and equipment or their separately appraised components. Buildings are depreciated over a period of 25 years, freehold land is not depreciated and the remaining assets are depreciated over an average period of five years.
Source: Annual Report 2008, Chapter Financial Statements, page 156 (PDF, 179 kB)
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