13
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
4.3 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.
4.4 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.
4.5 Financial instruments
4.5.1. 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.
b)
Equity investments in Group companies and associates: Group companies are deemed to
be those related to the Company as a result of a relationship of control and associates are
companies over which the Company exercises significant influence.
c)
Held-to-maturity investments: debt securities with fixed maturity and determinable
payments that are traded in an active market and which the Company has the positive
intention and ability to hold to the date of maturity.