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The Company depreciates its property, plant and equipment by the straight-line method at
annual rates based on the years of estimated useful life of the assets, the detail being as
follows:
Years of
estimated
useful life
Buildings
33
Plant
5 to 8
Computer hardware
3 to 5
Other fixtures
6 to 10
Other items of property, plant and equipment
6 to 10
Impairment of intangible assets and property, plant and equipment
At the end of each reporting period (for intangible assets with indefinite useful lives) or
whenever there are indications of impairment (for other tangible and intangible assets), the
Company tests these assets for impairment to determine whether the recoverable amount of
the assets has been reduced to below their carrying amount.
Recoverable amount is the higher of fair value less costs to sell and value in use.
In the case of property, plant and equipment, the impairment tests are performed individually
for each asset.
Where an impairment loss subsequently reverses (not permitted in the specific case of
goodwill), the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised in prior
years. A reversal of an impairment loss is recognised as income.
4.3 Operating leases
Lease income and expenses from operating leases are recognised in income on an accrual
basis.
A payment made on entering into or acquiring a leasehold that is accounted for as an
operating lease represents prepaid lease payments that are amortised over the lease term in
accordance with the pattern of benefits provided.
The leases in which the Company is a lessor consist basically of facilities which the Company
has leased to companies in its Group.
4.4 Financial instruments
4.4.1. Financial assets
Classification -
The financial assets held by the Company are classified in the following categories:
a)
Loans and receivables: financial assets arising from the sale of goods or the rendering
of services in the ordinary course of the Company's business, or financial assets which,
not having commercial substance, are not equity instruments or derivatives, have
fixed or determinable payments and are not traded in an active market.