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Land and buildings acquired for the performance of the Group's business activity or for
administrative purposes are stated in the consolidated balance sheet at acquisition or
production cost, less any accumulated depreciation and any recognised impairment losses.
Replacements or renewals of complete items that lead to a lengthening of the useful life of
the assets or to an increase in their economic capacity are recognised as additions to
property, plant and equipment, and the items replaced or renewed are derecognised.
Periodic maintenance, upkeep and repair expenses are recognised in the income statement
on an accrual basis as incurred.
Fixtures and equipment are stated at cost less accumulated depreciation and any
recognised impairment loss.
Depreciation is calculated, using the straight-line method, on the basis of the acquisition
cost of the assets less their residual value; the land on which the buildings and other
structures stand has an indefinite useful life and, therefore, is not depreciated.
The period property, plant and equipment depreciation charge is recognised in the
consolidated income statement using the straight-line method at rates based on the
following average years of estimated useful life of the various assets:
Years of
useful life
Buildings
33
Plant
5 to 8
Machinery and tools
6 to 10
Furniture
10
Computer hardware
3 to 7
Transport equipment and other items of property,
plant and equipment
5 to 10
Assets held under finance leases are recognised in the corresponding asset category and
are depreciated over their expected useful lives on the same basis as owned assets or,
where shorter, over the term of the relevant lease.
Impairment of other intangible assets and property, plant and equipment
At each balance sheet date, or whenever there is any indication of impairment of other
intangible assets and property, plant and equipment, the Group conducts an impairment
test to determine whether the recoverable amount of these assets has been reduced to
below their carrying amount.
Recoverable amount is the higher of fair value less costs of disposal and value in use.
In the case of property, plant and equipment and audiovisual productions, impairment is
calculated item by item, on an individual basis.
Where an impairment loss subsequently reverses, 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